Approaching other Investors about capital

6 Replies

Good morning,

I'm working on putting an email presentation together to acquire capital and partnerships with other Investors. My question is, what are the key points I need to touch on in the initial email? Do I make it short and sweet and then if they're interested, go into more detail? Any tips/tricks/advice is highly appreciated!!! Thanks!

If you're emailing strangers soliciting money for a partnership, you're in very dangerous territory.  When you are asking for investments into a partnership you are "selling securities".  If you're trying to sell securities to strangers, you're making a public offering.  This is a highly regulated business.  Send enough of these and one of  your recipients will report you and you'll be having a very unpleasant conversation with the SEC or your state regulators.

@Corey Keller I would heed the advice of @Jon Holdman . Cold-emailing folks is dangerous territory. Every year people get reprimanded, fined or worse following this strategy. 

You can talk about your past experience, track record, team (experience/track record) and how you plan on sourcing past deals (and how you've performed on past deals) - BUT - I would tread cautiously.

Your best bet would be to partner with a more experienced person whom you can leverage.  

I was aiming to email the Investors in whom I've been in contact with, does what you're both saying apply then as well? Thank you both for taking the time to respond, there is so much to learn!

@Corey Keller as @Jon Holdman and @Omar Khan said BE CAREFUL! I like that you said you've had contact with them already. I recommend sending an email about yourself, your team, your goals, previous experience, and what you're looking to do now. Then simply ask them what their RE goals are. 

Base your response off of their answer to that question. If they want to make $X per month passively, great, you have a potential investor because your goals align. Ask for a phone call/sit down to discuss further if you can help each other achieve your goals.

Thanks again for the advice! However, my wife forgot to mention the software we have called prospect master by Dolmar Cross that has a list of over 15000 Private Investors that show how much money they have available and what areas they invest in. I would never solicit somebody I didn't know and if I did, I would do like you guys said and get to know them first and gauge their interest on investing before I really got down to business lol. Is it still illegal if Investors put them selfs out there? Again we appreciate the advice. 

@Corey Keller - I can really help you this. PLease, feel free to message me privately or email me (better way to get in touch). 

First and foremost, there are TWO securities exemptions you want to thing about: Rule 506(b) vs. Rule 506(c). The basics: 

506(b) - general solicitation allowed (meaning you cann solicit from that list); ONLY accredited investors (must make sure the are accredited); no prior relationship with investors necessary; Need to provide proper disclosure (PPM, Operating Agreement, etc.); need to file form Ds. 

506(c) - no general solicitation allowed (meaning you cannot solicit from that list); up to 35 sophisticated investors; unlimited accredited investors; need to have a "substantive pre-existing relationship" with investors; Need to provide proper disclosure (PPM, Operating Agreement, etc.); need to file form Ds. 

You should provide some kind of disclaimer in any emails you do send. 

Best of luck - I am here to help.

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