The One Simple Thing Required to Raise Unlimited Money From Private Investors

The One Simple Thing Required to Raise Unlimited Money From Private Investors

3 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

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YouTube
Instagram @beardybrandon
Open Door Capital

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I know private investors are tough to find, especially if you are just starting out.

I’m not sure your experience level, but put yourself in their shoes for a minute: private investors have a lot of money because they’ve worked hard for a long time. (Okay, some of them, perhaps, inherited the money or were just lucky – but most of them are smart and have worked hard.) Therefore, private lenders don’t throw their money around – especially to new investors. So it feels like a catch-22. You can’t raise money until you have experience, but you can’t gain experience without money.

What’s a newbie to do?

The One Thing Private Lenders Care About

Deep down, I believe that most private lenders care primarily about one thing, above all else, and if you can offer this one simple thing, you can get more money than you could ever handle.

Do you know what this is?

Simple:

Security

Pretty much, everything boils down to this one thing. If you can solve this concern, you can find unlimited money in this world to fund your real estate deals.

Seems almost too easy, doesn’t it?

The fact is – it is easy to understand, but a little harder to carry out. Isn’t this the case with most things in life? After all – we all know how to get a six-pack… but how many of us really do what it takes to get there? I know I need to stop eating candy, do a lot more crunches, and jog everyday… but the couch just seems so much more appetizing, doesn’t it? (Though… I’ll have you know…I just got P90x3 for Christmas and have started… just wait!)

So how do you solve this concern? Let’s talk about it…

Security and Raising Private Money

As I mentioned before, people with money have it because they’ve worked hard for it.

Perhaps they’ve scrimped and saved for 40+ years, or perhaps they spent years of nights and weekends building a profitable business. Either way… they are not about to throw away their hard earned cash on a risky bet.

So how can you reduce their risk and increase their security?

Through great deals and strong competence.

The two go together like peanut butter and jelly, like the Lone Ranger and Tonto, like Bert and Ernie.

If you are having trouble raising money because you are being turned down by everyone you approach, you are lacking in one of those two areas. It’s as simple as that. Don’t try to convince yourself otherwise. Perhaps you have a great deal, but you lack the knowledge/competence to make the deal succeed (in the eyes of the investor, at least.) Or maybe you have the competence, but you lack the great deal. You need both.

If you find a house worth $1,000,000 that you can buy for $40,000 – I would wager you wouldn’t have a problem finding money. However, the second half of that equation is competence. Even an amazing deal can turn sour if the person in charge is not 100% capable. So the best way to increase that is to learn more, read more, study more, teach more, and network more. Hopefully that’s why you are here, and why you are a part of BiggerPockets. To learn how to become a better investor.

Get it?

However, if you are not attracting financing because you aren’t asking for it (or asking properly) perhaps there is another issue. One of my favorite moments in the recent Podcast interview with Mike Simmons here on BiggerPockets was when Mike told the story of how he and his wife told EVERYONE about what they were doing in real estate. They blogged about it, spoke at REIAs about it, talked with family and friends about it, and shared their story with everyone who would listen.

Awesome, isn’t it?

Be Like Mike. Start talking about your goals, your dreams, your actions. What are you doing, right now, to become a better real estate investor? Whatever your answer is… go post it on your Facebook page! Seriously, like right now. I’ll wait. And while you are over on Facebook, be sure to “Like” BiggerPockets as well. Or just click this little like button right here:

Conclusion

Alright – hopefully you can see how easy it is to know how to raise money: by offering security.

However, as this post has laid out, this is easier said than done. However, if you keep this one thing in mind as you grow, learn, and expand your business, you’ll find no trouble raising money to fund your killer deals.

So continue learning and gaining competence. BiggerPockets exists for this one reason – so take advantage of it! If you haven’t read through The Ultimate Beginner’s Guide to Real Estate Investing yet, start there. Then check out the Podcasts (AMAZING interviews) and introduce yourself in the BiggerPockets Forums and let everyone know who you are.

Questions? Comments? Concerns? Leave ’em below and let’s chat!