Raise Money from Private Investors with No Experience

raise private equity capital
Many new or beginning real estate entrepreneurs despair about raising money from private investments to fund their deals, because they have not yet done a deal themselves.

Therefore, they think, “Who would want to invest with me”.  It feels like “Catch-22”.

Now, experience is important.  However, it doesn’t have to be your real estate experience.  In order to understand this, you have to start out with a change in mindset.

Let me ask you a question.

When you invest in the stock market, do you invest in a company like IBM or do you invest in the CEO of IBM?  Heck, do you even know who the CEO of IBM is?  Probably not.  You see, private investors feel much more comfortable investing in a “Company” rather than an individual.

So, besides all the other advantages of forming a legally recognized entity like an LLC (Limited Liability Company) or a Corporation, you acquire the credibility of being a “Company”.  By the way, the dba (doing business as) structure is not a legally recognized entity and brands you as an amateur.

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Do I Need Good Credit to Get Private Investors?

private money bad credit I just got this email: Will bad credit hinder me from getting a private investor?
Sincerely,
Tammy

Well, Tammy the answer is: Your credit has absolutely nothing to do with raising money from a private investor.

There are 2 reasons:

1) The private investors cares about the 5 key secrets:
-What’s in it for him (or her)? – that is the return on investment
-Return OF Investment – the soundness of your exit strategy
-Risk – how well have you structured the investment to minimize the financial risk to the investor
-Credibility – Are you a company? Does your company have experience, advisors and professionals that can make sound decisions.
-Trust – do you have a relationship with the investor. Have you built up his trust that you can do what you say?

2) The second reason is that the investment should not be about YOU. It’s about your company. After all, if you invest by buying shares of IBM or General Electric, do you know the credit score of the CEO? Heck, do you even know who the CEO is? Does it matter? No, because you’re investing a company with a track record and resources to carry out it’s mission and achieve its goals.

You should present your investment the same way. Listen to some of the interviews with private lenders, and our articles on structuring the financing for your business and creating an impressive business plan.

When you’d like to go to the next level, you may want to consider attending our Advanced Private Lending Summit where we work with you 1 on 1 to create your entire private lending program including your own personalized presentation to private lenders.

EVERYONE who has attended has loved it, and are now busy raising money from private individuals. We hold our Summit 3-4 times a year here in Atlanta (at the time of this comment, the next one is in Sept).

Check your (Premium) Members’ Area for the schedule AND get a Members Discount on the Tuition.

Here’s a comment from just one of our last attendees:

“..Save your money as quickly as possible [so you can go to this].

I was at that seminar and now will be giving my presentation to a few MDs this week.

Having the ability to practice it in front of the group and hear Richard’s insightful critique sure did help. More to follow, after the presentation.”


- Vivian Hooton vivianhooton@gmail.com

Tell the Investor Your Story

access to private lendersWith high net worth individuals you aren’t the first or only investment they’re considering, so wouldn’t it be critical to immediately convince the investor of the value of what you’re doing?  The best way to do that is tell them a story about the reason why of your investment.

For example, you could say,

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Inside the Private Investor’s Mind

find private money lenders

An interview with a Financial Advisor to High Net Worth Private Investors

This is a ‘Must-Listen’ to anyone interested in raising money for their Business

 

In this “kiss & tell” interview you will

Find out:

·What thing will automatically give you away as an amateur.

·What ROI private investors are looking for

·Whether to offer promissory notes or equity participation

·How long private lenders will wait to get their money back

·How to explain the risks in an investment

·And much, much more…

This is true inside information, exclusive to Members of the Investor Wealth Network.

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Who Are the High Net Worth Investors? Part 1 of 2 (Premium)

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angel investors-private money lendersIf you want to raise big money for your real estate deals, doesn’t it make sense to seek out people with lots of money?

And wouldn’t it also be desirable if these people actually wanted to invest their money in non-traditional investments with high returns, and were willing to accept some risk?

In this two-module video training, Richard describes who these people are and where to find them. 
Part 1 of 2 Read more

Who Are the High Net Worth Investors? Part 2 of 2 (Premium)

angel investors-private money lendersIf you want to raise big money for your real estate deals, doesn’t it make sense to seek out people with lots of money?

And wouldn’t it also be desirable if these people actually wanted to invest their money in non-traditional investments with high returns, and were willing to accept some risk?

Who Are They?

Part 2 of 2

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