Using private money in unstable investing environment
I listened in on a webinar on raising money in a changing market from another site earlier this week where a team of savvy investors went out of their way to teach us listeners how to get other investors to trust us with their cash (aka "use private money") in these unstable times where traditional lenders limit their exposure by tightening their lending rules so we can continue with our business. They discussed how much safer RE is when compared with the stock market these days and that the average investor would be happy with just keeping the value of their investment funds from falling so we are actually helping them with their problems.
Now don't get me wrong, I am all for using private money but don't you find it cynical to use money from investors who fear investing in the stock market these days? RE may be a more stable investment vehicle but can anybody really guarantee keeping their investors' money safe or even turning a profit with the lack of visibility we have in the market 6 or 12 months down the road?