| Raising private money should be a focus in your | | | | the same thing as filling out bank paperwork and |
| business. | | | | waiting like a good soldier. An unfortunate, but true, |
| Once you've made the decision to bring private | | | | fact is that most people that have the money to |
| investors in to finance your deals, your focus must | | | | invest with you do not know about your opportunity. |
| shift to attracting people to your opportunity. The | | | | And, if you don't tell them, who will? |
| typical route taken at this point is a slow, steady | | | | Here are some suggestions for ramping up this part |
| beat of the "get secured returns at 10% per year" | | | | of your private money marketing: |
| drum - which all to often gets heard by the wrong | | | | Get plugged in - Networking centric groups, such as |
| people in the wrong context.You might find yourself | | | | BNI (Business Networking International) or your local |
| casting a wide net and coming up with an old boot | | | | chamber of commerce (if you have a good one) are |
| and a rusty can. But, there's a better way... | | | | a 100% must-do. Why pass up the chance to |
| What if you could turn every person you meet into a | | | | present your opportunity to someone each week |
| marketing voice for you? What if each time you got | | | | who has a vested interest in finding an investor for |
| a business card there was a possibility of real | | | | you? Why will they help you find investors? Because |
| business to result from it (instead of tire tracks | | | | you will, in turn, reciprocate and send business to |
| running over it in the parking lot). Well..There is a way | | | | them. The power of these groups is tremendous. |
| to turn non-investors (people who aren't able, ready | | | | Partner up - Consider partnering with other real |
| or willing to place funds with you) into great referral | | | | estate investors, often those with less experience, |
| sources for private money. This is your hidden source | | | | who may have private money sources. If they bring |
| of private money. It can and should be a goldmine | | | | the money and you bring and manage the deal, |
| for you. Why more real estate investors aren't | | | | everyone wins. You win, the new investor gets |
| keenly focused on referral marketing for private | | | | experience and the private investor wins. Be careful |
| money is completely beyond me. To broaden your | | | | to lay out the ground work ahead of time, so the |
| reach, you must step outside of the real estate | | | | private investor isn't perceived to be 'stolen' by you. |
| investment world and grab the attention of other | | | | You may have to partner with real estate investor |
| business people and potential referral sources. | | | | for use of their contacts money, but there are |
| Remember: there are many people out there who | | | | worse things, right? Think of the referrals you could |
| are being victimized by Wall Street and would benefit | | | | get from a few deals like this and don't forget that |
| greatly by placing investment dollars with you! | | | | you're making money on the deal as well as building |
| Be careful not to get caught up in thinking the only | | | | your resume. |
| source of private money is that which comes | | | | Professionals - Leverage relationships with |
| through direct response - e.g. your website, social | | | | professionals, like your CPA or attorney. Show them |
| networking, emails, letters, postcards, ads, | | | | your business plan and investment details and let |
| newsletters, classifieds. If you broaden your scope, | | | | them bring investors to you. If you truly have good |
| you can catch a lot more prospects. In fact, if you | | | | deals and strong returns, a referral from a |
| implement a direct and indirect approach to marketing | | | | professional should be in the works. |
| your opportunity, the speed with which you get big | | | | If you think that you don't have the time to tap into |
| time results will increase dramatically. | | | | this hidden source of private money, guess again. In |
| You can turn every person you meet into a referral | | | | just a few hours spent per week you could have |
| source for private money. This requires you to be | | | | hundreds of thousands of dollars in private money |
| focused and purposed to get private funding this | | | | referrals coming at you. When you have a good |
| way and, of course, I'm assuming you have a good | | | | business model and a solid value proposition, |
| investment opportunity. | | | | economic principles dictate that money will be |
| As I've written before, getting private money is a | | | | attracted to your door. All you have to do is open it. |
| marketing process - not a financing process. It's not | | | | |