If you’ve added Private Money Brokering to the services you offer in your business, you’ve made a wise choice in the direction of your real estate investing career. Not only is Private Money Brokering a great way to pocket thousands more when you flip properties, but it’s also a path many choose for their primary business, and with the earning potential, it’s easy to see why.
Whether you’re just starting out or are an experienced broker, you likely want more business.
If you want to broker more loans, you need to market yourself by letting the right people know you’re in business, using your digital marketing (such as social media marketing, email lists, and having a landing page of either a website or blog), and educating potential borrowers appropriately. Even if you’re swimming in leads, you may encounter problems and objections.
Let’s talk about tackling a few of those potential objections.
Objection #1- A borrower that isn’t motivated.
When my youngest son was two years old, he never wanted to go to bed. Thankfully, true to his age at the time, he loved his blanket. All I had to do was dangle his blanket in front of him, not letting him reach it until he’d stumbled into his room and climbed into bed.
If we tried to push him into bed, we were met with significant resistance the meant time wasted struggling.
The principle is the same in business; a dangled carrot works better than a push. Don’t feel like you need to convince someone to do business with you when there are millions of people in this country. If you can’t get a deal to close with someone, find another person to work with. If you’re doing business with someone who keeps bringing you garbage deals and they just aren’t comprehending the types of loans you can fund, move on.
You can dangle the carrot in front of someone to help them comply, but you can’t push them toward success. It won’t work.
I used to think that anyone could succeed if I would just push them hard and long enough. But the more I pushed people, the more I was met with resistance, and the same will happen to you. There are enough motivated people out there who want success that we don’t have to push those who don’t, we merely need to show those who already want it what to do.
Objection #2- Fear
Your greatest enemy at the business table is your client’s fear. It may be hard to understand what they’re afraid of if you haven’t been doing business long. Here are the main fears you will encounter:
– They’re afraid you’re a fast talker,
– They’re afraid of you being too pushy, or
– They’re afraid of you being too familiar too soon and using it against them.
You can simply avoid their fear by avoiding these things.
– Instead of fast talking, relate to more people by matching their rate and volume of speech.
– Instead of being pushy, lead with questions and be an intent listener. If you’re going to sell anyone on anything, ask questions.
– Instead of familiarizing with someone so quickly, use their last name and earn the right to use their first name.
The better you understand someone’s fears, the better you can avoid them by representing the best in your services. People want to invest in a valuable product or service that will change their situation. It is up to you to understand what you have to offer and offer it without activating their fears.
Objection #3 – People don’t want to make a mistake.
I talked about this last week and how the opinions of others can affect our perception of a product or service without understanding first-hand how it works and if it’s a good fit for us. If you want to read more about what I call “The Gospel of Bad Experience,” CLICK HERE for the full scoop.
We’re afraid of being lied to and incurring debt. No one wants to be bamboozled, no one wants to be “had.” If you’re brokering private money, you may need to explain to someone why hard money lending and borrowing is a good tool for their business. If they can’t qualify for commercial bank loans, where are they going to get the money? You need to be aware if someone is afraid of incurring debt and take your time explaining why income producing debt is a wise investment when it results in wealth. Sometimes, people don’t see the debt of a hard money loan any differently than they see consumer debt, and you may have to define the difference.
There are few things that will boost your business like the ability to tackle objectives. The more familiar you are with your work and the better you understand people and their reactions to you, the more business you will do.
If you can overcome the most common objectives, you will maximize your lead potential and close more loans. Now, these aren’t the only objections you will face. What other objections do you hear in your business? Or, perhaps, what are some objections you have? Leave me a comment or tweet me @LeeArnoldSystem using the hashtag #IObjectLoans, and I’ll help you tackle those objectives next time.
If you aren’t certified as a Private Money Broker, why not? Chances are, you have to handle objections in your business regardless of what it is. If you’re interested in becoming certified, adding to your real estate investing arsenal, and creating another avenue of cash flow to your services, give us a call to learn more at 800-533-1622. With certification events around the corner in Las Vegas on January 4th-7th, you can be on your way to brokering money for the next fiscal year.
To Your Success;
Lee A. Arnold
The Lee Arnold System of Real Estate Investing
For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.