Finding Private Investors And Closing The Deal
I've come across a handful of people who are very sucessful at their current job but have excess money laying around. How do I present the idea of investing in real estate simply by funding projects? Even more how do I present it that it appears to them that I am benefiting them as much or more as it benefits me?
Thanks
Send them to me...kidding
Well, kinda a long question but in a sense you have to find out what kind of returns they are getting on their money...what kind of SAFE RETURNS.
See, if they are like most of the world they know how quickly their money can diminish in the stock market. Quickly show them that $100,000 in stock if taken to the bank for a loan against it..will get laughed at, but $100,000 in equity and you got people kissing your behind.
What do the banks invest in, insurance companies, pension plans...yep real estate, because it is always worth money and almost always appreciates. So tell your friends that if they are interested in making a good return on their money backed be the safety of real estate, then you are their guy. Ask them, "If I could promise you a solid 8.5% return on your money all year if not more, would you be happy?"
They are going to be cautious but there are tons of way to show them how safe it is and why. You are more than welcome to head to my site (private message me) and then check "investors" and read the free info guide to get an idea. Just try not to copy everything word for word okay
Good luck and wish I had the same friends.
Christian "The Solutions Kid" Beebe[ Edited by SolutionsKid on Date 11/04/2003 ]
Hi myfrogger,
I would make a presentation to everyone that you think may be a candidate for funding. Share with them you knowledge of real estate, and any successful transactions that you have completed (if you have). Or share with them that you have a specialized nitche in the real estate market and that in order to complete the transactions that you need funding partners. (dont offer them a partnership, but by calling them funding partners it sounds good to them).
Guarantee them 10% (per annum of course) on their money. And tell them that you will "Secure Their Interest with Real Estate", via a 2nd mortgage. Some of them may only be interested in short term, and others may allow you to use their funds on a long term basis.
It is a great thing to have many funding partners at your disposal. Best of Success!
BAMZ
Is there a good way to market this type of thing individually to people? Although this may not be time efficient, it is more effective? I can talk about all the good but I don't really want it to sound like a sales pitch like a group presentation would... I want it more to come accross as I have a good thing i'm willing to let you in on (if that makes sense).
Gain the consensus of the 'group' by winning the ear and demonstrating the success to this individual. You are not their peer so allow one of the peers to lend credibility. If you approach it this way, the benefits could be very rewarding.
Try and devise a 'funding rally' (15 minute) gathering where you can present 5 sure fire properties to create an XX% return. Portfolio these units and be sure to: 1) Include the appropriate exit strategies. 2) Appropriate amount of documentation to support the array of questions 3) Risk mitigation scenarios and 4) Leverage your credibility - Present a strategy for growth with other real estate investors.
Good luck,
Eric & Rosa
[addsig]