The 5 Things a Private Money Partner Really Cares About [Video!]

The 5 Things a Private Money Partner Really Cares About [Video!]

1 min read
Matt Faircloth

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, N.J., is a developer and owner of commercial and residential property with a mission to “transform lives through real estate.” DeRosa creates partnerships to finance select real estate investments and has a proven track record of providing safe, profitable investment opportunities to their clients.

Experience
Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to hundreds of units in residential and commercial assets throughout the East Coast. Under Matt’s leadership, DeRosa has completed tens of millions in real estate transactions involving private capital, including fix and flips, single family home rentals, mixed-use buildings, apartment buildings, and office buildings.

Matt is an active contributor to the BiggerPockets Blog and has been featured on the BiggerPockets Podcast three times (show #88, #203, and #289). He also regularly contributes to BiggerPockets’ Facebook Live sessions and teaches free educational webinars for the BiggerPockets Community.

Matt authored the Amazon Best Seller Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money. The book is a comprehensive roadmap for investors looking to inject more private capital into their real estate investing business and is a must-read for anyone looking to grow their business by using private lenders and equity investors. Kirkus, the No. 1 trade review publication for books, had this to say about Raising Private Capital: “In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader.”

Matt and his wife Liz live in New Hope, Penn., with their two children.

Education
Matt earned a B.S. in Industrial and Systems Engineering with a minor in Business from Virginia Tech. (Go, Hokies!)

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DeRosaGroup.com
DeRosa Group’s YouTube channel
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When talking to new private money partners, investors often jump in too quickly and talk about the actual deal they are raising private money for. They talk about the location, the market, where they got the deal, the numbers, and of course, the potential return the private money partner could make if they invest in the deal.

Related: How I Find Private Money Lenders to 100% Fund My Deals (& How You Can, Too)

Yes, private money partners do care about the deal and the returns they are going to make. However, this is not the first thing they care about.

5 Things Private Money Partners Care About

When presenting and talking to new private money partners, you have to put yourself in their shoes. You have to think about their perspective first. What do they care about? What is important to them? If you want to build long-term relationships in this business, you have to first consider the perspective of the private money partner (verse simply focusing on your own goals and what is important to you).

Related: Investors: Don’t Be Intimidated by Private Money! Here’s What You Need to Know

In today’s video, I teach that about the details new private money partners care about most:

  1. Trust
  2. Protection
  3. Use of money
  4. Return of capital
  5. The deal

Thanks, as always, for watching my videos!

Check out my new book on raising private money (published by BiggerPockets) that is available for pre-order now!

raising-private-capital

What have you found to be areas new private money partners care about?

Please comment below!

In this video, I look at the details that new private money partners care about most, so you can approach them with the right specifics and land the deal!