Private Money Networking
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Many entrepreneurs or real estate investors new to the game of raising private capital think that the quality of their deal or business is the key to getting private money. The private investors who read this are smiling, because this attitude is so typical and so far from the truth. |
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The truth is that success in raising money from private investors has a lot more to do with you, your team and the relationships you build. It is a process that I incorporate into my GRAD formula (Get Ready, Attract, Deliver).
I want to discuss the “Attract” part of the formula, because unless you are talking to the right people, the best preparation, and best pitch are going to fall on “deaf” ears. And the world of private capital is all about relationships.
Think about it. If someone came to you asking for a $100,000 investment, would you even give them a minute of your time if you didn’t know them and, neither did your colleagues or friends? Not likely.
And most “networking” meetings don’t even deserve that name. Contrary to common practice, the successful networker is Not the one who collects the most business cards. How many people do you think will remember you (or even want to remember you) after a 60 sec interaction which consisted mostly of you pitching your deal or your business to them?
Real networking is about building successful and “mutually beneficial” relationships with people. The questions the successful networker asks when he or she meets someone is
· Who are you?
· How can I serve you?
“Serve” is the operative word. No matter how much you think you know about a person, or his business, or the organizations she belongs to, the only one who can answer the question “how can I serve you?” is the person themselves.
Don’t make assumptions. Don’t try to figure out what you have to gain. Most people want to have personal and business relationships with “givers” not “takers”. Don’t you?
Since this is a forum, and I know there are many incredibly successful networkers on LinkedIn, I’d like to ask:
“What networking techniques have been successful for you?”
And
“How may I serve you?”
Richard Odessey, Ph.D.
For those of you who are interested in raising capital for real estate, I have a useful and free gift for you at http://www.InvestorWealth.com.
If you are an entrepreneur needing to raise capital for your business, I have a useful and free gift for you at http://www.RaisePrivateCapital.com
Private Money Business Plan Training Video Part 1 of 3 (Premium)
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This is part 1 of 3 of this business plan guide training video. |
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Private Money Business Plan Training Video Part 2 of 3 (Premium)
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This is part 2 of 3 of this business plan guide training video. |
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Private Lender Business Plan Training Video Part 3 of 3 (Premium)
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This is part 3 of 3 of this business plan guide training video. |
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How to Tell if Your Deal is Worth It? (Premium)
Test your deal evaluating skills?Every successful investor balances the risks with the benefits. Let’s test your insights:
You find a house worth $180K; the seller owes $135K. At 7.75%, monthly pmts are $1003. The seller is $1800 in arrears, and you estimate that you’ll need about $5000 in fix up costs. In your market, you estimate it will take about 3 months to get a tenant-buyer that will pay the market rate of $1350 per month.
Is this a good deal?
Let’s do the Math. Let’s review the numbers below and then break it down.
Business Plan Guide (Premium)
Business Plan Outline
If you want to be taken seriously by private investors, you need a business plan.
This is a document investors actually read and use to form their opinion about the credibility of your business.
When creating your business plan, here is an outline to follow that I got from one of the top business plan writers, in the business. Read more
Structuring a Private Loan (Premium)
There are many ways to compensate a private lender who invests in your project…interest, deferred interest, equity, equity kickers, etc. The terms you choose will depend on what your investor expects and what your deal can support.
In this video, Richard explains detailed strategies for structuring a private investment offering that can fit virtually every type of investment situation. This is a must see, for anyone who wants to use private investors.
What to Watch Out for in “Subject-to” Deals (Premium)
Real estate investors can’t help but get excited about acquiring property “subject to” the underlying mortgages. It’s like getting a “Free” house…
But is it? Arrearages, repairs, and carrying costs can drain a bank account faster than it takes to notarize a deed.
In this video, Richard gives you an in depth plan for doing your due diligence so you don’t get burnt.