I'm an aspiring real estate investor and I'm seeking advice on how to build relationships with private investors. Would I need a portfolio? Would a private investor even deal with little to no experience?
First, unless you know the person personally, already, in a non-real estate setting, don't ask them for money. You need to build relationships, and you do that with private investors the same way you do it with anyone else...over time. It takes time to build relationships and nothing can be substituted for time.
And, if your only motivation for building a relationship is to get them to invest, then don't bother. You need to truly care about each person, their wants, needs and desires. You need to ensure you are 100% more concerned about what is best for them than what is best for you, and you need to act accordingly. You want people to trust you with their money? Then truly care for them...look out for them...protect them...and do it all for nothing and expecting nothing in return.
That's the important part.
The legal part is that unless someone is registered as an investor with the SEC, you cannot approach them directly for investment $'s, unless they are within your circle of influence.
Track Record are experience are HUGE! Find someone doing what you want to do and join their team in anyway you can, even if unpaid, the experience and connections you will gain will be INVALUABLE!
When I had no track record and little experience, the only "private investors" I could find were family, and the only reason they invested with me at the time was I had a successful track record in businesses other than real estate.
Once you have demonstrated the ability to make profits and give people / banks back more money than they gave you in a short amount of time it's pretty easy to bring new investors into the mix.
Thanks Hattie and Todd!
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