If I were in your shoes I would not choose any of the starting points that are easily obtained. Even though having a business plan is significant to A: running and successful business and B: getting funding, I still wouldn’t rank it as number one on my ‘to do’ list if I had to start all over again at zero with no private funding. Knowing what I know now about getting private lenders and equity investors to fund my real estate deals, the first and most significant thing I would do is…. but first see the example.
Here are some examples of an exclusive selling proposition: “hot, fresh pizza to your door in 30 minutes or less- or it’s free.” (Dominos Pizza). “if it absolutely, positively has to be there overnight.” (Federal Express).
“melts in your mouth, not in your hand.” (M & M’s). Now, before you start thinking that I’ve totally lost my mind, I mean, you’re thinking ‘what does this have to do with real estate investing?’- just consider this:
My underlying principle for establishing a unique selling proposition as the primary thing that I would do if I had to start all over again at 0 private money. How can you begin doing this? Actually, it’s a heck of a lot more simple then you think. First, start with the benefits of investing with you. I wrote about ways to find the benefit versus the feature of your private money investment in above, so I will let you read more about it there. Suffice to say, your unique selling proposition must contain a great advantage for your investor that also makes you different from the rivalry.
How about…. “Double your returns every 6 years without losing a wink of sleep.” Very good. I don’t hate this one. I’m not sure I’m in love with it yet. It’s a little wordy.. but it could easily get the job done. Want to know how I broke this down? First of all, “double your cash in 6 years” is one hundred million times better then saying “12% interest”. One is a characteristic and one is a benefit. Next, stating “without losing a wink of sleep” is better then saying “peace of mind”, “no trouble ” and “preservation of principal.” I’m pretty sure that if you used this communication that it would land just fine.
I hope you now see the significance of developing a unique sales proposition. It will give you the foundation to completely dominate the competition in raising private investors. All the other real estate investor using the same known “earn 10% on your money…” bit will be blown away by you. More prominently, you will be able to quickly and easily convey an advantage to your prospective investor that will create a burning desire inside of them to place funds with you and tell everyone they know to do just the same.
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