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

by | BiggerPockets.com

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!

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

Please comment below!

About Author

Matt Faircloth

Matt Faircloth, Co-founder & President of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, is a developer and owner of commercial and residential property with a mission to “transform lives through real estate." 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 owning and managing over 370 units of residential and commercial assets throughout the east coast. DeRosa has completed over $30 million in real estate transactions involving private capital including fix and flips, single family home rentals, mixed use buildings, apartment buildings, office buildings, and tax lien investments. Matt Faircloth is the author of Raising Private Capital, has been featured on the BiggerPockets Podcast, and regularly contributes to BiggerPockets’s Facebook Live sessions and educational webinars.

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