For Lenders
1. Trust. You have to build trust with a potential investor. That means spelling out the facts, showing the investor your plan and answering questions honestly. It also helps to have a deal or two under your belt. The more success you can prove; the more trust you can build.
2. Value. You have to show the value for an investor’s money. Telling them they can make an 8% return by investing with you isn’t the same as “showing” them how you will make them an 8% return. Check out this case study from my partner Patrick Riddle. He walks you through four real deals and teaches you how to show the value.
3. Understanding. You have to understand your market, your deals and your prospective investors. If you don’t understand all three elements, it’s difficult to build trust or explain value. Be sure you have internalized all your facts and figures before you present. Also, make every effort to see where your investor is coming from. Calm fears with information. Build the relationship by being genuine. Show the value to deepen their understanding.
2. Value. You have to show the value for an investor’s money. Telling them they can make an 8% return by investing with you isn’t the same as “showing” them how you will make them an 8% return. Check out this case study from my partner Patrick Riddle. He walks you through four real deals and teaches you how to show the value.
3. Understanding. You have to understand your market, your deals and your prospective investors. If you don’t understand all three elements, it’s difficult to build trust or explain value. Be sure you have internalized all your facts and figures before you present. Also, make every effort to see where your investor is coming from. Calm fears with information. Build the relationship by being genuine. Show the value to deepen their understanding.
