5 Tips for Impressing Potential Lenders
Private money lenders are looking to invest in projects that are the least risk to them. Initially when getting to know an investor, they may only lend small amounts to start out and charge higher fees & interest until you develop a good relationship with them.
Making the best impression when meeting lenders for the first time is one of the most important things that you can do to ease the tension. Like any other relationship, building a foundation of trust is the key to success.
Here are 5 simple yet essential tips to secure the best first impression:
1. Tip #1: Always be Trustworthy
Make sure that you have and a trustworthy mindset. Basically, this means living up to your agreements; being a “say what you mean and mean what you say” kind of person.
Show up for the first appointment a few minutes early and always be on time for any following appointments with your private money lender. Actually, this is a great work habit to have and is great for any other appointment as well.
2. Tip #2: Provide Documentation
Paying bills on time is a good way to document your trustworthiness. Better yet, EARLY. Be as reliable as possible, and try to exceed their expectations.
Making this a habit will ensure a high credit score, which speaks volumes to any lender. Prepare a portfolio of your documents to show your trustworthy track record.
Compile records such as your credit report showing on-time payments, supported by a high score and records from previous real-estate projects showing how lenders were repaid. Previous lenders are the best references you could offer.
3. Tip #3: Remember to Listen
Get to know what the private money lender is looking for. Listen, take notes, and have open-honest communication with the lender. Ask “what is your goal rate-of-return; steady income, etc.?” This will send the message that you’re concerned with making a “win-win” agreement and should make the private money lender feel secure about signing a contract with you.
4. Tip #4: Have Confidence
Go into your meetings with a good attitude. Moderate self-confidence will say to the private money lender that you’ve done your research and are confident that your offer, in exchange for their funds, is a good-solid-fair and win-win contract.
Show the private money lender how you arrived at the figures you’re presenting, by getting appraisals and comparisons; then be prepared to answer any questions the lender may have.
5. Tip #5: Be Respectful
Pick an appropriate location such as an office or the lender’s home; dress professionally, and be respectful of the lenders time.
Be conscious not to make the mistake of giving a wrong answer to a question that you’re not 100% sure how to answer. It’s much better to follow-up with correct information than it is to give the impression that you’re willing to say anything in order to obtain the funds.
In other words…
Securing a great impression with private money lenders really requires the skills needed to lay down a solid foundation for any contractual agreement. Following these tips will get you the status you want to achieve—a character that speaks for itself and tells the prospective private money lender that you are trustworthy, organized, and serious about making the deal a worthwhile benefit for everyone involved.
