Raise Money from Private Investors with No Experience
By Richard & Michelle Odessey
Filed under Private Lending Reports
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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. |
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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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