Vendor Finance Explained With Mobile Phones

There's a lot of things that are dependent. It's, again, the economy, your level of experience, what are going to be the safest strategies, and what will keep you out of trouble.

But before we go into that, I'd just like to refresh what I said last month. We all quite often have this true or false, yes or no, win-lose, left-right, positive-negative way of thinking about things, what our belief systems dictate, and I'm well aware of this. You may have noticed when I'm doing my presentations to you, I'm quite often not telling you exactly what I think. It's more to throw an idea in the air.

It's just like when we're talking to buyers or sellers. We're not trying to tell them anything; we want them to come up with the answers themselves. We're just asking the questions that make logical sense to respond in a certain way. So that's what I do when I go to events, when I give you a presentation, and that's what I'm going to show you.

I want to also, in this presentation, take you behind the scenes in my rationale for dealing with these types of situations. In this case, giving you a presentation that you may totally disagree with. You may have your own way of thinking. But let's have a look.

I was at a property investing meeting last week, and I had a girl to my left. She wanted to know what I do. And I know, in this case, with somebody with no knowledge, if I said to her, I do vendor financing, she’ll have no idea. I had to say, “What's a vendor?” She wasn't quite sure. “Well, is it like a seller?” Yes, it's the same meaning. It's a seller.

And instead of trying to explain it to her, like many presenters do, and one of the presenters last week was giving facts and figures. It was so dry. It was boring. It was confusing that many people would have been lost in the understanding.

Now, just think, if you're speaking to a seller about a concept of doing what we do, they will get lost quite easily, but they won't say to you they don't get it. So, in this case, I was going to explain with two mobile phones what she needed to know, and definitely what she did not need to know.

She had her mobile phone there on the desk. Let's say it's the one on the left. And I said to her,

“In concept only, would it be possible for me to just use your mobile phone to make some calls in concept? Nothing more than that.”

“Yes, you could make some phone calls.”

“And doing it that way, could I actually pay your monthly mobile bill to your provider?”

“Yes, you could do that, in concept.”

“And, if we came to an agreement, could I do all that? Just borrow it off you, take it and down the track after I've used it for a while, would it be possible, in concept only, for me to buy that off you?”

“I guess you could do that. How much did I pay the phone provider for that phone?”

“Nothing.”

“Yeah, and I made the calls, I had the benefit on it.”

“Yes.”

“Let's look at what most people in this room are going to do. Your mobile phone is perfectly good, functions, does everything, and in concept, you've allowed me to have the benefit of that. And I've paid you to be able to use that, or I've paid that directly to your provider. They don't care where the money comes. But doesn't it make sense to just throw away that mobile phone, get rid of it for whatever reason, and replace it with another one where we've been able to come to an agreement together, where I get to be able to use a mobile phone? How much did I pay for your mobile phone to get started?”

“Well, not much.”

“Well, I gave you a little bit of money up front, but I didn't have to go and buy a brand-new mobile phone, some of which cost hundreds of pounds for that inconvenience. Does it really make sense for me to throw away a perfectly functioning mobile with a brand new one that does exactly the same things, got all the same features?”

“Well, when you put it that way, in concept only, well it doesn't make much sense.”

And all I did was say,

“Now, substitute your mobile phone (and phone provider) with the house and the mortgage with my mobile phone with the same house, but a different mortgage.”

“Oh”

And then the people gathered around during the break. They wanted to know, “What are you talking about? How does this work?”

And I turned around to her and I said,

“Just wait for all the ‘what-if?’ questions to turn up. because I've explained to you in simple terms and concept only. Wait for what these questions to come up with.”

But because I did the same type of presentation to them, I've kept it simple. Now I'm doing the same in this presentation as well because we can get into detail. And with this presentation, “What's the right strategy?”, have you noticed in my newsletters and the images that I use, I do it in groups of three and I do it for that. I'm always thinking, “How can I simplify it?” How can I use imagery to get something stuck in your head, like the mobile phone? She will think of the mobile phones because I want it simple, easy. does it work, can I do it? Is that all there is to it? I don't want all the objections out front.