One of best ways to find money for funding your deals is to seek out and use Private Money Partners. My system of approaching potential partners and funders involves inviting them to a luncheon. There are several different ways I built credibility with my luncheon presentation over the years.
First of all, like it or not, people make value judgments about you before you even open your mouth. Think about it. What preconceived ideas do you have about a bag lady vs. a movie star? You get an image but the reality is you don't really know anything about them. It is in your best interest to present a well-groomed professional image and make sure your staff members comply as well.
This professional image extends to the meeting location you choose, the marketing items you provide, and your presentation slides.
The first verbal message should be to gain rapport with the guests. I share that I have lived in the area for 10 years and I have kids in school. I establish credibility as a member of the community. We are in this together. If you lose, I lose – and I'm not gonna lose because I have a lot at stake.
The actual presentation sends one clear, consistent message. You give me money and I give you high interest payments. That's it. While I have other facets to my business and other interests, I do not waiver in my message.
Send a straightforward message in an easy-to-understand way, to convey credibility because there is no “small print.” You let them know this is a simple program. These are the simple forms. This is the way it works. Period.
Current action conveys credibility. I always mention one of my most recent deals which is usually that I bought and/or sold a property yesterday or within the last few days.
In my presentation I acknowledge their fears and openly address a big one when I show the slide that says, “What Happens to my Investment if Alan Dies.” They usually chuckle because they thought of that but didn't want to say it. I let them know that the corporation is structured to sell properties and their principle and interest will be paid as agreed. Talk about credibility. Have I not crossed all the T's and dotted all the I's with this presentation?
Also, if you say you are going to do it, DO IT.
Someone might be testing you by loaning a small amount just to see if you are for real. Make sure you send them their interest check at exactly the agreed upon time for the correct amount. I've seen this happen time and time again where the lender comes back a couple months later with more money. Then a few months later they come back with even more money. You must prove that you are for real and that you do what you say.
If you break that trust, it's over.
Finally, I build credibility by being reachable. I have an office that they can stop by. I have an answering service that picks up my calls 24 hours a day, 7 days a week and relays important messages quickly. I have a web site where the lender can see what I'm doing and, they can send me email and I respond promptly.
Credibility is powerful… Learn to use it to your advantage.