Attracting Private Money

[Deadrick Colbert]

I have several people that are more like acquaintances than close friends. For the folks that I know well, I have taken the luncheon approach to chat about private money. However for these acquaintance prospects, I'm considering mailing a postcard or calling on the phone to gauge interest. For the investors that have utilized private money to fund deals, what has worked best for you? What advise can you share with me?

[Rejean Julien]

There are so many different opinions on the subject but the bottom line is raising money is a relationship game. The easiest method is always people you already know.

A strong relationship with the prospect combined with a high level of trust and comprehension leads to much higher success rates. You have to think, if this was your 200K, who would you lend it to; someone who sends you a postcard in the mail or someone who calls you on the phone and arranges a meeting at a coffee shop.

The more intimate the interaction the better chance you have of uncovering what their fears and needs are which, if properly addressed, will give you a much better chance of converting that prospect into a private lender.

Rarely do investors 'attract' private lenders, typically you need to make them by going out and offering people an opportunity that may benifit from.

There are alot of really good articles on this site you should read.

Happy investing