Raising Private Money Flyer
Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
Hello BP,
I am currently compiling a flyer and a credibility kit to raise funds for my real estate investments.
Just need some feedback for what kind of information do you suggest to include in the Flyer (one page handout) that I can give to potential lenders at the local REI meeting.
I look in BP website, but I was not able to find the information I am looking for.
Your comments are gladly appreciated
@Hector Perez The way I have been doing is through presentations.
My very first time in 2010 I raised $50k was at the REIA meeting where I represented my company, our business model, mission statement, investment opportunities (deals) that I have and in the pipeline, estimated profits shown in numbers backed by pictures of the property and lastly explain why we need to borrow and ROI.
From there, one thing leads to another and the word got out. Now I don't even have to present at the REI meetings. I have investors call me and I just schedule a one on one with them and explain the terms and ROI.
My Investment Opportunity slides looks something like this:
- Investing Range - 25K to $250K
- Times frame:
Short term (6 to 12 Months)
Long term (1 to 5 years)
- Annualized Rate of Return - 10%
Hence I would suggest instead making the flyers, which can be a little risky when ask for money and may not be effective way. Ask for 10 - 15 minute slots at the local REIAs and build your brand and reputation first.
Just my 2 cents :-)
Cheers!
May I give you some ideas that have worked for me in raising millions of dollars over 18 plus years and 1k in deals. (All but one using private money, hard money and creative financing)
1) find the right place to network:
95% of all private lenders are comprised of 3 types of people. Biz owners, licensed professionals, (doctors, lawyers, etc) real estate professionals (brokers, realtors, appraisers, investors, etc).
So now that you know what they are, where can you find them? I'm going to concentrate on the first, but if you want more on the others I will add later.
Biz owners: Join your local chamber of commerce.
Why the chamber:
A) your target market is there: when u join you get a membership book that is a list of all your target market
B) Chamber members take other chamber member calls: you have built in credibility with your other members and let's admit it, raising capital is all about credibility.
C) At least once a month, Your local chamber will provide you with networking opportunities designed for nothing else but putting you in front of your target market in a nice, easygoing, relationship building scenario.
Now if this isn't shooting fish in a barrel, I don't know what is.
2) so now you're at the right place, here is what I would recommend for any networking opportunities.
Perfect your elevator pitch:
When someone asks you what you do at one of these meetings, what they are really asking is what can you do FOR ME? if you respond with the typical "I'm a real estate investor," you've probably already lost them because thats not really in most business owners wheel house.
How about this next time you are asked what you do by a biz owner, licensed professional or real estate professional?
"I help professionals and business owners take control of their retirements by showing them how to use their IRA's or 401ks to invest in notes and mortgages secured by quality real estate, earning up to 18% returns on their money."
Keep in mind, you are not looking for an investing decision right on the spot. All you are looking for is, "tell me more," or "let's set up a time to talk."
As for a credibility package, the best thing you can do is everytime you buy a property, sell a property, close a deal, borrow and repay a loan, etc... Get a letter of reference from every participant in the deal.
From the seller, title agent, realtor, buyer, etc.
And if you want a flyer that will get attention, do this take quotes off those letters of reference and paste them one after another with a good headline. Something like:
Headline:
These people made money with me!!
Body:
Quote after quote
Line to go with contact info:
Learn how to earn up to 18% in your IRA with "your biz name here and contact info"
You'll raise money.
Hope this helps.
Hey David, I really appreciate you sharing your networking idea. I'm also in Florida and I was curious to know if you had to include any disclosure verbiage on your flyers to comply with any securities regulations.
Thanks in advance,
Karlus
What I recently learned when we dont have a deal in play is to create what is called a sample deal packet which consists of details of the deal, pictures, brief description of your team members and some of the numbers on the deal (annual returns, potential cashflow if it's a rental situation, etc). You'd of course tell the investor it's not a deal you have under contract but when you do have a deal it would look similar to the deal in the packet. I actually learned this tactic from Michael Blank and I've used it a few times and it's been very helpful