When I ask the question "What's stopping you from doing a development deal right now?", there are a few answers I hear a LOT. The most common ones?
Rephrase it however you like, essentially it comes down to people believing they can't become a Property Developer without a bank account packed full of cash and access to massive loans from a bank.
And yet reality is very different. Reality is full of people with money and serviceability who would love to become Property Developers, but just don't have the time or knowledge to do it.
All that needs to happen is for the person with time and expertise to partner up with a person with money and boom! It's a Property Development match made in HEAVEN!
And I can tell you exactly what the person in front of me is going to say next...
If you guessed that the next words out of their mouth would be: "I don't know anyone with that kind of money" or something similar, then woohoo! Golden buzzer time!
Considering how many people say that to me, you'd have to assume that nobody in the whole world has any money. Yet we all know that isn't the case, otherwise who on earth is paying for all those BMW and Mercedes-Benz showrooms?
The problem here is that the potential Property Developer who's short on cash themselves isn't asking the right question. Instead of focusing on "I need a money partner but I don't know anyone" they need to be asking the question "How can I find a deal that's so good people will be elbowing each other out of the way to become my money partner?"
Okay, I know what you're going to say (I'm doing a great mind-reading job today!) - "But, what's the point of finding a great deal if I don't know anyone to fund it?" I could go all zen at this moment, close my eyes and murmur "Find it and the money will come..." as I've heard many gurus do. Thanks for that, Field of Dreams.
But, it's really just the ‘chicken and egg’ thing in disguise. What comes first? The deal or the money? Well, in this case the answer is a bit simpler - it's both. In the Property Development Formula course, I talk about building a deal funnel and how to go about it. But right beside it I have a second funnel - your money partner funnel.
The secret to being a Property Developer with lots of deals on the go is to fill BOTH funnels at the same time.
I'll continue being psychic, because I know you're going to say that the idea of doing a deal with a stranger is scary. And it can be!
Personally, I always say that working with people who already know, like and trust you is the BEST option. And before we go right back to the start of this blog post again in a big circle, stop, and look down at your hand (or maybe your pocket).
See that rectangular bit of plastic and technology called a mobile phone? That's the first step to filling your funnel with potential money partners. The fact is, your phone has a list of contacts on it, and the vast majority of the people on that list already know, like and trust you. Well, that's assuming you're not a crook....!
And even if the contact on your phone doesn't have money, they have a contact list on their phone, and maybe someone on that list does have money. Do you see where I'm heading with this?
Now, before you start calling everyone on your phone asking them to lend you squillions of dollars for an awesome deal you're going to find - STOP! That's going to have them all fleeing to the hills faster than the word "Amway". Plus it's incredibly embarrassing for both you and them. The process is much simpler than that.
Drum roll please....
Talk about what you're doing! That's it.
Someone asks you what you did on the weekend? Say that you spent some time researching an area to see if the numbers stack up for a development deal you want to do. Maybe you visited some display homes. Or worked through a module of a development course you've signed up for.
By talking about what you're doing, you'll get one of two responses.
It's that second group of people who now progress a little further into your funnel. Over time, drip feed more information to them about what you're doing in the property development space, answer their questions, or offer to show them more details about development deals you're researching. Believe me, if they have potential as a money partner, you'll know.
Are you likely to secure them as a money partner after one conversation? No! Patience is required. Show your commitment to educating yourself. Show your continued enthusiasm and passion for what you're doing. And do it over an extended period of time. Because eventually, the old marketing adage of "buy or die" will come to pass. In Property Development terms, that translates to either they'll ask to become a partner in a deal, or they'll stop showing interest. Simple.
And if you've been doing the right thing and filling both your deal and money partner funnels at the same time, then when they are ready to partner with you, you'll hopefully have your next development deal under your belt, that you can then do together.
No desperation required!
- I don't have any money
- I don't have enough money
- No money
- I can't get a loan
- The bank won't lend me enough money
Rephrase it however you like, essentially it comes down to people believing they can't become a Property Developer without a bank account packed full of cash and access to massive loans from a bank.
And yet reality is very different. Reality is full of people with money and serviceability who would love to become Property Developers, but just don't have the time or knowledge to do it.
All that needs to happen is for the person with time and expertise to partner up with a person with money and boom! It's a Property Development match made in HEAVEN!
And I can tell you exactly what the person in front of me is going to say next...
If you guessed that the next words out of their mouth would be: "I don't know anyone with that kind of money" or something similar, then woohoo! Golden buzzer time!
Considering how many people say that to me, you'd have to assume that nobody in the whole world has any money. Yet we all know that isn't the case, otherwise who on earth is paying for all those BMW and Mercedes-Benz showrooms?
The problem here is that the potential Property Developer who's short on cash themselves isn't asking the right question. Instead of focusing on "I need a money partner but I don't know anyone" they need to be asking the question "How can I find a deal that's so good people will be elbowing each other out of the way to become my money partner?"
Okay, I know what you're going to say (I'm doing a great mind-reading job today!) - "But, what's the point of finding a great deal if I don't know anyone to fund it?" I could go all zen at this moment, close my eyes and murmur "Find it and the money will come..." as I've heard many gurus do. Thanks for that, Field of Dreams.
But, it's really just the ‘chicken and egg’ thing in disguise. What comes first? The deal or the money? Well, in this case the answer is a bit simpler - it's both. In the Property Development Formula course, I talk about building a deal funnel and how to go about it. But right beside it I have a second funnel - your money partner funnel.The secret to being a Property Developer with lots of deals on the go is to fill BOTH funnels at the same time.
I'll continue being psychic, because I know you're going to say that the idea of doing a deal with a stranger is scary. And it can be!
Personally, I always say that working with people who already know, like and trust you is the BEST option. And before we go right back to the start of this blog post again in a big circle, stop, and look down at your hand (or maybe your pocket).
See that rectangular bit of plastic and technology called a mobile phone? That's the first step to filling your funnel with potential money partners. The fact is, your phone has a list of contacts on it, and the vast majority of the people on that list already know, like and trust you. Well, that's assuming you're not a crook....!
And even if the contact on your phone doesn't have money, they have a contact list on their phone, and maybe someone on that list does have money. Do you see where I'm heading with this?
Now, before you start calling everyone on your phone asking them to lend you squillions of dollars for an awesome deal you're going to find - STOP! That's going to have them all fleeing to the hills faster than the word "Amway". Plus it's incredibly embarrassing for both you and them. The process is much simpler than that.
Drum roll please....
Talk about what you're doing! That's it.
Someone asks you what you did on the weekend? Say that you spent some time researching an area to see if the numbers stack up for a development deal you want to do. Maybe you visited some display homes. Or worked through a module of a development course you've signed up for.
By talking about what you're doing, you'll get one of two responses.
- Their eyes will glaze over and they'll make a lame excuse to get away from you (okay, maybe they'd be a bit politer than that, but you'll know pretty quickly they're not interested!)
- They will start asking questions...perfect!
It's that second group of people who now progress a little further into your funnel. Over time, drip feed more information to them about what you're doing in the property development space, answer their questions, or offer to show them more details about development deals you're researching. Believe me, if they have potential as a money partner, you'll know.
Are you likely to secure them as a money partner after one conversation? No! Patience is required. Show your commitment to educating yourself. Show your continued enthusiasm and passion for what you're doing. And do it over an extended period of time. Because eventually, the old marketing adage of "buy or die" will come to pass. In Property Development terms, that translates to either they'll ask to become a partner in a deal, or they'll stop showing interest. Simple.
And if you've been doing the right thing and filling both your deal and money partner funnels at the same time, then when they are ready to partner with you, you'll hopefully have your next development deal under your belt, that you can then do together.
No desperation required!
