Private Money Partnering

Presenting The Deal

Chapter K. (continued)

Forms:
Flip chart Presentation
Flip chart Presentation With Script

Power Phrases When Talking To The Money Momma / Money Man:

“I’d like to team up to make money. Wouldn't you?”
“What kind of return is your money getting now?”
“What size investment can you comfortably handle now?”
What was your experience with any previous real estate investments?”
“What kind of rate of return do you think is fair?”
“What kind of security can you give me for my time?”
“What will make you feel more comfortable about this venture?”
“How involved do you want to be in this venture? Active? Passive?”
“What do you expect of me?”
“When do you expect it?”

Listen to Dan, who has a deal, present the situation to Joe, a Money Man who may be interested in investing. Joe go this money the hard way, earning it in over 40 years of hard work. In this conversation Dan very carefully responds to the issues that Joe raises, and moves the conversation along to a timetable for action.

DAN: Joe, I've got a deal for you that I’d like to talk to you about. When I met you at the seminar a couple of months ago, you mentioned that you were interested in investing some of your hard-earned money. I made a note of that and I've come up with an opportunity that I think you might be interested in. This is one of my first deals and I think it’s a good one.

I've got this property optioned in Decatur, Georgia, in a good marketable area. It’s right in line with what I consider to be a great deal based on what I know. Without going into great detail on the numbers. What I need is about $39,000 including the repair costs to get into the deal. Does that sound like something that would fit into your investing parameters?

JOE: Right, we met maybe what, two months ago? Definitely at that time I was interested in maybe jumping in and getting some investments going because I do like to make money. And time is very valuable to me. I don't have time to do the work myself or even find the deals myself.

But, you mentioned just now this is one of your first deals. I guess the first thing that pops into my mind is the experience. What is your experience, how have you come about the numbers, the particular location of the property, what have you done to gather the facts? What have you done in writing that I can look at when I have time to sit down with it?

DAN: I've got a proposal prepared that I'll sit down with you and show you. What I’d like to do using your money on this deal is to fix it up. It needs cosmetic repairs, and it should take about six months to get all the work done and sell it. Now, I would do all of the grunt work or supervise all the repairs. We could split the profit on the other end 50/50. I think the property should sell, fixed up for between $60-$65,000. There’s plenty of room for profit there.

I've done, and to answer your question on experience, I've done a couple of flip deals I funded myself. Nothing this big, but they worked out OK. I would be glad to furnish you some references. I've been in business for about 14 years so I have lots of personal and business references. I've gotten my repair estimates based on my knowledge in the field of repairs.

The property would cost us $25,000 to buy. It needs $14,000 in repairs. I've got a schedule here so you can look for yourself. The roof is going to cost about $2,000; that’s a rough guess. What I have done, I've been generous in my estimates so that we shouldn't have nay cost overruns. You can look down this list and see all the repairs.

Presenting The Deal - Chapter K (continued)