Darren Weeks, founder of The Fast Track Group based in St. Albert, Alta., has come up with a five-point tip sheet on how to sell those opportunities to prospective partners. Tip one: slow down the fast talk. In other words...
Become the anti-salesperson
Start by disarming your prospect. Tell them upfront that you are not a salesperson, but a professional real estate investor. Tell them a bit about your goals and your philosophy, says Weeks.
It’s crucial that you show the prospect specific numbers that support the return you expect them to get from the property. While you may feel like you’re under the microscope, don’t forget that you should be sizing up the prospect just as much as they are you.
This is something that you’ll want to deal with fairly early in your conversation. There’s no sense in wasting your time if the prospect won’t agree to the role you’re seeking in a partner. The partners I look for have one role and one expectation, says Weeks. They invest their debt, and in return, my team and I use our expertise to ensure they get a return on investment. That’s it.
By laying this out matter-of-factly in the beginning, you can save yourself a lot of headaches down the road.
Build rapport and trust
Never try to get money from the prospect during the first meeting. If you handle things properly, the likelihood of receiving investment dollars is very high. If you go after investment dollars during the initial meeting, you have zero chance of ever seeing those dollars.
Remember: If they are married, be sure to invite their spouse as well. As independent as many of us believe we are, few of us make major decisions without consulting our spouse.
Close with a Card
Thank the prospect for taking the time to meet with you, encourage them to mull over the partnership that’s on the table, and hand them your business card. Walk away.
Don’t be naïve enough to think that the prospect isn’t going to Google you, if they haven’t done so already. Make sure you have some sort of a web presence in advance of meeting with them. If you’re not on the internet, you don’t exist in today’s business environment.
Remember, you’re the “anti-salesperson.” This means that you don’t pressure prospects. Don’t be surprised if this process takes between 6 and 12 months to come together. It doesn’t happen overnight. Most people become frustrated and just give up after three or four months. If you can resist this urge, you will be better than 99% of would-be real estate investors.
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