Where to Find Private Money For Buying Your Next Property

I have been speaking around the country at real estate seminars, boot camps and events recently. It seems like everywhere I turn people are asking me, “Where to find the money?” However a great deal of them would never meet our criteria in our company. We are extraordinarily picky on the deals we work with and only work with properties with huge upside. Either way the struggle for these investors is to find the money.
One day long ago I was in their position attending real estate boot camps, seminars, and trade shows. I was educating myself on the commercial real estate world with an emphasis on self storage. Boy did everyone know I was attending these events. Many of them believed me flying to Vegas for a self storage event was just another excuse to get in a high stakes poker game at the Bellagio. Little did they know I put that part of my life on the back burner for bigger profits and passive income. No worries I will be back on the professional poker circuit soon but by then the passive income that I have will off set any loss nicely.
When I attended anyone of these events I would tell everyone I knew what I was doing. I was attending events learning about real estate investing. I would also educate them on how 70% of the millionaires in the world were because of real estate. I then would let them know what I learned and if they were interested I would stay in touch. No, I wasn’t really doing this and spending time on my friends who are still bartenders with little motivation or dreams to become successful. I was doing this with my other friends, who were already successful Real Estate Developer Usa and targeting their parents and their friends’ parents. See, being my age I do not have many millionaire friends. Although I do hang out and work with a select few who are all under the age of 30 and all have net worth’s above a million dollars. Don’t worry we are not all stiffs who have no fun and work 15 hour days. We work hard but enjoy our money and we do well with it. We have all mastered the ability to outsource our work to capable people and focus on what we enjoy doing. All the while, receiving passive income on the side.
Back to finding the money. I always try to let people know what I am doing in life and in business. Facebook is a great tool as many of my friends see what I do and then word spreads quickly. I always ask my friends if they know of anyone interested in what I am doing and to pass my name along to them. When I target my friends parents’ which I know are wealthy, I slowly and surly tell them what I am doing in my business. You have to build trust in a relationship well before you ask for any money. They have to trust you, believe in you, see your plans, and see some of your successes. So I always describe to them what I do, show them the passion I have for the business, show them how much fun I am having, show them the successful people on my team, and show them all the success I am having. Don’t worry if you haven’t done a real estate deal in your life and have no experience you need to partner with someone who has. They will lend you a guiding hand if your sense, passion, and that desire is to be successful. Once you are involved with a group of successful people, you can then backpack on their success and as long as they give you permission to use them as credibility. I have done this for people all the time and it has taken them farther and quicker in the real estate game.
Back to what everyone wants to know “WHERE TO FIND THE MONEY” I have a few proven places that I enjoy finding the money. We have already talked about friends and their friends and their friends and so on. Just the other day I had a guy approach me during the super bowl, which I really had never met and he heard of what I was doing from one of my friends who told him. This gentlemen, had a net worth between 1 and 5 million dollars which is the people we are targeting “accredited investors” (Google the term to learn more). You do not want to target individuals with less than that because investing with you is simply too much and the people with more than that do not need investors like us. They can go elsewhere and deals we are looking at do not apatite them. It is always important to qualify your investors and dig down deep into their needs, wants, and desires. This will come in a later article.
Investors who are interested investing with you could pull cash from several different areas. Here are a few, self directed IRA’s, refinance existing properties, and home equity loans are just a few where fully tapped investor with no cash on the side can pull to invest with you. Odds are that these investments are not generating them the nice safe return that you can provide. I dealt with an investor recently who owns several properties free and clear and they are not providing him a return. They are actually a liability Liberty Mutual Commercial Umbrella Insurance because they provide no cash flow and just sit there and build up taxes and holding cost. We have recently pulled out a certain investors cash in a refinancing and they invested that cash with me for a substantial swing on their interest rates they are paying the bank and I am paying them. People are really oblivious to some of their investing mistakes (yes even the rich ones) and by education you can teach them there is a better way, but you have to have trust first. You have to crawl before you walk with investors.
In conclusion spend your time and energy with qualified and accredited investors. If whoever you are dealing with is not, do not disregard them. They may know several others who are and could lead you to them for a small referral fee or a beer on Friday night. It is always good to have someone else do the talking and bragging for you. Just like the super bowl story. I had never met the guy in my life but he knew who I was through a friend, who was not an accredited investor but introduced my work to him. The more you get people talking about you, your business, and your investment plan the better chance you have to raise money and succeed. When you make that first contact with potential investors, you have maybe 30 seconds to introduce yourself and make an impression. Practice this elevator pitch so when you have an investor in front of you, you are ready to go. Have passion for what you believe in, yourself, your business, your plan, and make sure you leave that person excited and begging for more.

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