5 Basic Steps to Raise Private Money

[Nathan Tabor]

One of the hardest things people struggle with is raising money. Why? Simple. They are doing it WRONG!

Raising money from investors is VERY easy if you know how to do it. If I had a $1 for every time I’ve heard “well, I wish I could invest in real estate but I don’t have money and don’t know anyone with money” I would be filthy rich! 

Here are the 5 basic steps: 

First, you must define your niche and develop your business plan. This is your investor profile. 

Second, anytime you can share your niche with someone do it. Family, friends, coworkers, neighbors or anyone you come into contact with.

Third, share your business plan with them and the return you are offering.

Fourth, talking about a deal verses presenting a real deal is totally different. Find a real deal!

Fifth, learn the process of how someone can use their 401k, home equity, personal loan to get a higher return in real estate investing.

Yes, these are simple steps because raising money is simple. Think about this way. I have a 12-year-old daughter. She basically has me wrapped around her little finger except when money is involved. If she comes to me and asks for $20 dollars the answer is no. If she comes to me and says she needs $20 to purchase more thread to make friendship bracelets I don’t immediately say no. Why? Simple. Smart people don’t just blindly give away their money.

99.9% of unsuccessful real estate investors approach family, friends and others and say “hey, will you give me $20,000 so I can invest in real estate.” There is no plan, there is no determination.

99.9% of successful real estate investors raise money by approaching family, friends and others with a niche and written plan.