“How do you CLOSE someone with your real estate joint venture presentation almost instantly?”
That’s a question I hear a lot from my students and coaching clients…
Disclaimer: I’m NOT a master salesman. I’m just teaching them techniques and best practices I’ve learned throughout the years…
Like the Price vs Cost close from Zig Ziglar.
First, check out he explains it in this quick video: (don’t skip this because you’ll pick up some valuable ‘tricks’ )
httpv://youtu.be/cYYrrQdR5hc
How To Use it in Your Real Estate Joint Venture Presentation
This is one of the closing techniques I’ve adapted to work when you’re presenting a deal to your JV prospect.
Because people are really concerned with how much something “costs”. Especially when it comes to handing over fifty grand to buy a piece of real estate, am I right?
In reality, they are concerned with the UPFRONT PRICE of that investment – NOT the cost.
Because the ‘cost’ is what they actually PAY for over the lifetime of that investment.
Let me explain my circular logic:
If your prospect puts 50 thousand into a mutual fund and gets a 5% return every year for 5 years, they will have $63,814.08 in the end.
Not bad.
YOUR investment is more than likely going to give them a BETTER return. Double or even triple.
But from my experience, many people have a hard time even believing THAT statement so we’ll ignore that for now.
So to be fair and not over-sell our investment, let’s pretend it gives them the SAME 5% return.
Get ready, because here comes the magic:
When they invest in mutual funds, there’s a little thing called a management fee.
For the sake of simplicity, let’s use the standard 2.5% (there are much more hidden fees but I’m not getting into that in this post)
And let’s not worry about DE-compounding ( for you mathematicians out there 🙂 )
Let’s just agree their 5% return has now be shaved in half.
So they have $56.570.41 instead of $63,814.08 at the end of 5 years.
BIG difference right?
However, your real estate investment still gives them $$63,814.08. (because you’re NOT taking a management fee are you ??)
THE REAL COST
In this simple example, the PRICE they paid for the investment was the same.
But the REAL cost ( of loss ) is $7,243.76.
They have LOST just over 7k investing in mutual funds.
Plain and simple. The math doesn’t lie and they can see it.
Plus, we haven’t used the old’ “well mutual funds may go down in value”.
Because they can say the same thing about real estate.
We’re just using facts against facts.
1 has a management fee, and the other doesn’t.
BONUS TO THEM
Here’s the bonus kicker…with your real estate investment, they NOT lost that $7,243.76 AND they’ve still got a HARD ASSET they can see, feel and touch.
That’s plays to their ‘security’ psychological switch.
So when a prospect is unconvinced about real estate, this is just ONE way to draw out for them to physically show them the “cost” vs price of an investment.
Does this help you?
I’d love to know.
If you’d like a copy of my JV Conversation Secrets, just click here
If there’s any other challenges you have with your real estate joint venture presentation or real estate business, please let me know and I’ll write about it here.
One last thing, if you’re really struggling with closing joint venture partners you will truly benefit from checking out the joint venture presentation formula here.
To your JV success…