So, instead of retiring, the actress learns her lines with help. She has a friend or staff member read her the lines like a story and she learns the lines by listening.

Link to “M” video – http://youtu.be/CqS9jxruy-A

Know what’s great about this strategy? She’s not just reading and reciting lines.

So, today I’ve got a few tips for how this spy star’s strategy can help you improve private money investor script delivery.

Find a role playing buddy. Bouncing your scripts off a willing participant can help you become more comfortable in delivery and help you better commit the “lines” to memory. He or she can also throw out objections and give you feedback on where your spiel is weak.

Have someone read you your lines. Let your role playing buddy read the lines to you. Hearing information taps a different part of your brain than reading. If you’re struggling with delivery and confidence, this may help.

Record your lines and listen to them. You can record the lines yourself and listen to them on your iPod or burn a CD for the car. Or record your role playing exercise. You can become more comfortable with the lines and listening to yourself gives you the opportunity to work on weak areas. It can also spark ideas for new openers and new transitions.

The big idea here is to not sound “rehearsed” or “memorized.” You’re looking for genuine confidence and taking a few acting cues may help you improve delivery and become more comfortable in your own skin.

Want more tips on working with private money investors? Check out my free training videos at GettingtheMoney.com.

If you answered “yes” or “right” to either of those two questions, it sounds like you need a script. Now, that’s not all you need – you do need a solid plan for what you’ll do with their money – but scripts can help you start the conversations and generate interest.

This month, we’re talking about scripts and presentations on the Investor Insights because it’s Private Money month. I’m launching a new program called Getting the Money, which is designed to help you become private investor pro. Go check out my free training videos to get a feel for the program.

Back to scripting. Scripting will not apply to all situations. You won’t want to read a script while you’re on the phone. It’s a tool of reference. You need to rehearse it and get comfortable with it.

However, scripting will help you organize your thoughts and become more confident in approaching potential private money partners – I call them that because they are your partners. You’re partnering with them to do something bigger and better than the two or more of you.

So, keep this in mind when you are studying your scripts. You’re a confident, valued partner. Here is a sample script for approaching someone you don’t know.

The Outgoing Script

This is a script you will use when you are calling to follow up on a postcard you mailed or from a lead your friend gave you. It’s basically talking to strangers. I know there’s an old saying about not talking to strangers, but these scripts are designed to make strangers less strange – and maybe your future private money partners.

1. Start with a salutation. Keep it simple – something like “Hi, Andy Robinson here.”
2. Give them a clue about why you are calling. Something like this: “You may remember that I sent you a postcard in the mail referencing the private loan you made on 125 Broad Street.”
3. Answer the “so what?” You have just a few seconds to get to the point and continue the conversation. Make it about them with a script like this: “Well, it’s not really about what I want, Henry (use their name). I have something that I’m hoping may be of interest to you. Occasionally, I have buyers that need to borrow private money for their wholesale rehab deals (or whatever your specialty is). My buyers usually pay between X and Y% interest. I’m not a broker, and I don’t charge you anything to put you in touch with my buyers. Would you mind if I contacted you on occasion to look at some of these deals?

It’s All in the Value!

If you were Henry, wouldn’t you be interested? You’re already lending private money. You have someone that knows about deals going on. Hmm? This script is full of value and all about Henry.

Next time, we’ll talk about follow-up scripts or the next step in the conversation because that’s really what we’re doing – starting a conversation that leads to return on investment. Don’t forget to check out my free training videos on this topic at GettingTheMoney.com.

So, where to start? It starts with building a killer presentation. And a killer presentation is not that hard to create. It just takes a little thought and planning and PRACTICE. You can’t go into a private money pitch unprepared. You also can’t go in too rehearsed. So, let’s look at what makes a perfect pitch presentation.

Keep It Simple, Stupid!

Kelly Johnson an aeronautics engineer who designed over 40 aircraft was known for his design approach fittingly called KISS – “Keep it simple, stupid.” His premise was that engineers were intelligent and highly trained, but the people making repairs were not necessarily engineers. He told his team to use simple tools and simple design so that the aircraft could be repaired in combat situations by “an average mechanic.”

A great example is my cousin, Clay. He is a musician and has worked as a baker and plant manager – learning as he goes. He was the last person on Earth I thought about talking private money investing with, but he was the kick in the rear I needed to spell out what I do in simple terms. You see, Clay was looking for a way to grow his money after he’d maxed out that 401K and IRA. And there are many, many people out there just like him.

The way to get their attention is to be VERY clear in what your opportunity is and how they can earn a return from working with you. With that said, your private money presentation starts with your value statement, which is a simple statement that goes like this “We/I do X so that Y happens.” Learn more about developing that statement here.

The Famous Five Questions

All private money investors have five basic questions. Save yourself objections and be sure your presentation always answers these famous five questions.

What is the opportunity? It’s a 156-unit apartment building in Lexington, Kentucky. That statement gives your prospective investor a picture. They can see an apartment building! Keep it that simple. Whatever you do stay away from fluffy jargon and acronyms!

How much money do you need? This depends on you want to structure it. If you want to work with multiple investors, you should have an individual number in mind. If it’s a one-to-one investment, you need that number. Think about your audience and think about what they have to offer you before you give this answer.

How much can I make? They want to know what return they will get. A range helps you answer the unknowns, but you should have a clear picture of how the investment plays out and how much the investors will net.

When do I get my money back? In other words, what is your exit strategy? How long do you need to hold my money before I see a return? Answer these questions with simplicity and confidence.

What happens if you die? Yes, this question needs to be addressed. It’s an objection. But it’s one of the two certain things in life. You’re asking people to give you their “precious” and they want to know what happens if you exit the picture. You can answer this question by showing them how you are structuring your company and what measures you are taking to protect their investment.

Your presentation will have more elements than this, but if you want to come across as a pro and to close the deal with a private money partner, you need to keep it simple and address these famous five questions.

Learn more about working with private money investors in my free training videos at GettingtheMoney.com.

Currently the general rule is that every offering of a security must be registered with the SEC, unless exempt. Most real estate syndicators (the ones pooling private money from lots of investment partners) try to take advantage of the exemption available through Regulation D, Rules 504, 505 and 506. Each of these rules prohibits the issuer from making an offer through advertising or solicitation, which covers making offers on the Internet.

The House of Representatives passed H.R. 2930 which authorizes the Entrepreneur Access to Capital Act. If passed by the Senate and signed into law by the President, this Act would create a new exemption from the requirement to register the sale of a security with the SEC providing that:

* The total amount of securities sold by an issuer in a 12 month period does not exceed $1MM, or $2MM if the issuer provides audited financial statements to the potential investors; and

*The aggregate value of securities sold by an issuer to any individual investor does not exceed the lessor of $10,000 or 10 percent of the investor’s annual income.

This Act does not place a limit on the number of investors, does not prohibit advertising and general solicitation and does not require extensive disclosure be made to investors. However, the issuer must:

1. Put a warning on their website that the investment is speculative and illiquid;

2. Warn investors that there are restrictions on the resale of these securities;

3. Not provide investment advice to investors;

4. Have each investor complete an offering questionnaire that will show that the investor understands the level of risk involved in the security being offered;

5. State the amount of money to be raised and have a third party hold the funds until 60% of the stated amount has been raised; and

6. Outsource cash management to a qualified third party, like a licensed mortgage broker or broker-dealer.

As the legislation proceeds through the channels there are a few things that could muck it up for us real estate investors such as:

* The limitation of the $1MM funding limit
* The management of large number of small investors
* The requirement that a broker-dealer will be involved in the cash management of the fund
* The requirement that the SEC issue rules and regulations that govern crowdfunding – they could spoil the whole party!

Do your part and call your Senator to support the Act!

The proposals to allow “crowd funding” without the current registration regulations are being reviewed as a way to “help fast-growing companies keep their accounts private” and to “solicit investments online,” reports the Financial Times.

The measure, which has passed the House (in hope it will lead to job creation), would give companies the ability to raise money from investors – up to $10,000 per investor per year – without the formal registration and level of disclosure currently required by law.
The House has passed the “crowd funding” legislation in HR 2930, which includes the following provisions:

• Allows companies to raise $5 million from individual investments up to $10,000/investor/year.
• Eliminates the ban on general solicitation under Blue Sky laws for startup, emerging or small firm capital.
• Excludes these “crowd funding” investors from being labeled as shareholders under the Securities Exchange Act.

The legislation does have a few requirements around disclosure and fraud prevention including:

• Notice to potential investors about the nature of their investment as “startup, emerging business and small issuers” and the risks involved.
• “Registration” to include the intermediary or principal’s physical address, website address, and the names of the intermediary and the intermediary’s employees.
• The SEC must have investor-level access to the website of any crowd funder.

Many of the current structures for raising capital require state registration and in some cases – state approval. For instance, the SCOR (Small Corporate Offering Registration) type of security must be approved in many states and has conditions attached. And this is the big sticking point for opponents.

Crowd funding legislation opponents say the states should be the policymakers in this case. The current legislation could take the state review process out of the picture.

Jack Herstein, the president of the North American Securities Administrators Association testified before the Senate on Thursday and pointed out that the House and Senate bills (HR 2930 and S 1791) would “prevent state regulators from reviewing investment opportunities made on these websites before they are offered for sale to the public.”

Herstein continued that the issue of regulation in crowd funding belongs with the states.

John Coffee, a professor at Columbia Law School, says this legislation is dangerous because “people who are not brokers – who are simply unemployed salesmen who used to sell used cars – could start marketing all this stuff, possibly being paid by the issuer or some intermediary based on the sales they accomplish.”

What are your thoughts? Could this lead to crowd funding birddogging like Mr. Coffee suggests? Is this a bad thing? Or does it eliminate some of the barriers and legal costs for investors looking to pool or raise money from private sources? Could crowd funding help real estate investors raise more money?

It’s definitely an interesting story to follow in the coming weeks. Stay tuned.