Over the years, I’ve done a reasonable share of JV presentations while simultaneously speaking with a great deal of real estate investors looking for advice and tips on how they should talk with JV prospects.
I’m not going to pretend I know it all or imply that I’ve done hundreds of deals to be viewed as THE ‘expert’ on this subject, but I’ve done enough business in my life on all levels that have involved ‘deals’ and establishing relationships that eventually turned into capital investment.
I’ll admit that I’ve learned a lot that is specific to the ‘real estate business’ but the ONE thing that will KILL your JV presentation is nothing new to me. In fact, it’s a problem that has always existed for any type of business; and even when I was selling records all over the world to DJs, I still needed to be aware of it.
You’ll be relieved to know that it doesn’t matter how many doors you have, your reputation, experience or anything else because understanding this one circumstance will save you from destroying your chance of securing JV money.
I want to make you conscious of this because sadly a lot of real estate entrepreneurs desperately look for the ‘magic recipe’ to raising JV capital and in their search, they look to replicate someone else’s success. Although it’s a good way of learning and saving time by modeling others, MOST of them get caught up in trying to BE an exact photocopy. I’ve found what works for one, doesn’t necessarily work for another, wouldn’t you agree?
So my intent is to give you something that is universal,
something that will work whether you’re a veteran or a beginner is that fair?
Let me set this up for you:
You’ve completed your ‘presentation’ & concentrated on tapping into what REALLY makes the decision, the prospect’s emotion, NOT the ‘logical’ part of the brain that deals with ‘cold’ numbers and facts. We’ve all been there right? “I’ve given them the details, but they STILL say they want to think about it”
By now you understand that ALL humans make a decision FIRST with their emotion and THEN explain their decision with logic. It doesn’t matter WHAT decision it is, everyone does it the same way.
You also did your best to make them like and trust you in the time you had.
It’s all good and as you wrap up you say something like “So what do you think?” Guess what…
You’ve Just KILLED the Deal
Why would that kill it? It’s because you have exposed a sense of need. People don’t want to deal with an entrepreneur who is needy…in other words, one who is desperate.
This has been the SINGLE MOST CONSISTENT PROBLEM I’ve seen in coaching real estate entrepreneurs about Joint Ventures.
Here’s why:
In ALL my conversations with real estate entrepreneurs about raising JV capital, the very FIRST thing I ask is “how much money do YOU have right now for an investment?”
90% of them tell me “none – I’m tapped out and that’s why I need JVs.”
This is A CRUCIAL point to understand – because if you’re in that position, don’t you think you’re mindset is completely different than someone who has enough money to close a deal themselves?
THINK about that. It may also be one of the reasons (aside from experience, etc.) people with hundreds of doors close prospects all day long. Because either they don’t really need them…or they don’t DIVULGE they need them.
Either way, no matter where you sit in the spectrum, you should NEVER appear hungry for money. Any time you appear needy, desperate and in pursuit of “validation”, you’ve lost.