private partners/investors

[Douglas Wolf]

Whats the best way to attract private capital or partners? Thanks

[J Scott]

If you wanted me to partner with you or lend you money, this is what I'd be looking for:

0. Have a great deal.
1. Have experience and a track record of success.
2. Have a written, detailed plan.
3. Have some of your own cash to put into the deal.
4. Offer decent returns.
5. Have at least decent credit.

[Andrew Jones]

If your looking to attract people with money that are not in real estate bussiness educate them. Being able to explain logically to an uneducated investor how it works is very important.

[Bryan Hancock]

The best way I have found lately is educating people on self-directing their retirement funds. That does, however, require you to know the rules.

[Nathan Emmert]

Originally posted by Bryan Hancock:
The best way I have found lately is educating people on self-directing their retirement funds. That does, however, require you to know the rules.

That'd be an interestin business model... get peope to put money in an SDIRA... Loan to your business at say an 8% fixed rate... pass that loan on to others at 8.5 or 9%. You get 1% for setting up the deal. The retiree gets a fairly low risk, collatoralized 8% annual return, investors have access to capital outside of banks...

[Bryan Hancock]

I pool the money in our fund Nathan. A lot really depends on their appetite and whether or not they want to be passive.

JV investors from my experience generally want more control over the deal, but granting this control exposes them to risk like what GPs have.

[Nathan Emmert]

What returns are you offering to make it attractive enough for people? I can see it being a bit difficult at my level to offer good enough returns unless I have a stronger appreciation/exit play strategy.

[Bryan Hancock]

You'd be surprised Nathan. People have dollars sitting around collecting dust.

Our fund offers a 8% pref as a minimum prior to the promoters being compensated, but a 60/40 split overall if we exceed 8%.

[Geoffrey Murphy]

May i add something that as well guys that i learned from my mentors.

1. Do what you say your going to do
2. Make doing business with easy
3. Do not be a pain in the butt
4. And of course have a great deal!

[Jeff S.]

Bryan, what is the minimum investment in your funds?

[Bryan Hancock]

$50k minimum. I don't want to divert the thread to be about my fund though. I am certainly welcome to speak with anyone if you would like to PM me ;-)

[Douglas Wolf]

Thanks for all your thoughts.. Jeff and Nathan, i would for you to email me so we can talk further