Raising private money
Hey everyone! I'm fresh on the scene from NY. So excited and proud to be part of this like-minded group. Can't wait to connect & learn from you guys....especially when it comes to building an elite investor pool!! Please show me your methods of getting $$commitments.
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#1 Real Estate Development & New Home Construction Contributor
- Developer
- Charlottesville, VA
Raising private money Is all about relationships. People invest with those they know, like and trust.
You need to establish a relationship first and show that you are an expert in the space. You do this by creating a thought leader platform, through experience or by partnering with experienced sponsors.
Finally it’s a contract sport. You need to get out and make contacts. You need to meet the right people and figure out how you can be of service to them then follow up and stay in touch in a meaningful way.
@Michel Midouin like @Greg Dickerson raising money is all about relationships. The first people that are going to invest with you have either known you, like you and trust you for many years or you’ve had many face to face meetings to build those three pillars of the relationship. @Dan Handford recently spoke at a conference about building those relationships and the importance of staying top of mind and getting in front of high net worth individuals with consistent value to them (not selling, just having conversations and you provide value).
@Michel Midouin again, the key factor of building your successful real estate portfolio is in the relationships. Get educated about the real estate topic to make sure that those people can trust you with their hard earned money.
Start with the ones that trust and know you and branch out from there. Everyone mentions and hit on the same theme here. Relationships. Start with what you have and form new relationships off the strengths of your network.
Wow amazing advice guys! I will surely apply all that you have said. @TheoHicks, funny thing is I have already purchased that book last week(my very first learning tool), so I quickly recognized your name. I'm putting a lot of energy towards educating myself about all the intricacies of the business, of course while working on a good marketing and networking strategy. Wish me luck guys, the beginning stages are nerve wrecking!(I haven't even yet put in my first LOI 😓) All of you seem so sincere, and I truly appreciate that.
Hi Michel,
It's What You Know, as well as Who You Know.
Are you typing on an Icelandic keyboard? " ð "
Good Luck!
Relationships are definitely important but I think you need a track record first. I love my brother but I wouldn't give him $50,000 based just on the relationship because he doesn't have any real estate experience. Prove yourself, then leverage that in your relationships.
@Michel Midouin, get out there and network everyday. Build rapport and relationships with people. This is not an over night process. Great things take time to happen. Are you willing to put in the time and enjoy the process along the way? Don't expect for people to hand over loads of cash to you, regardless if you have a good deal or not. People don't invest deals, they invest in people who they know, like and trust.
Welcome to BP community. A lot of great feedback already!
When it comes to building relationships, keep in mind it won't happen overnight. It takes time, commitment, and the track record to get there. You can do this alone or you can build a team as real estate is a team sport. Join REI clubs and network with like-minded investors. We host a meetup in the City as well. More details under my profile. You're welcome to join us.
Lastly, here's a post that will give you more more ideas on raising capital:
https://www.biggerpockets.com/member-blogs/10850/86199-how-to-find-wealthy-investors
@Alina Trigub, awesome article...very informative. I appreciate the invite to the NY meetings, looking forward new acquaintances.