Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
Asking for money seems to be an embarrassing topic. It seems to be more embarrassing to ask for money from private individuals than from a bank. Why? I think because a bank is just an "institution" versus a person (although that sounds strange, because institutions have people in them). Asking a person is more personal, more one-on-one.
It's been repeated on the forums a number of times to ask friends and family. But if you grew up without money, I think asking for money is even harder because it feels like "begging" and being successful is supposed to mean doing things yourself. Also, if you grew up around people without money, but have risen above, those friends and family you know might not have money to ask for.
So my question is, how do you "get over" the embarrassment in asking for money when you know you have a good deal to present?
The rules have changed you no longer have to ask for money. Money that is offered is far stronger than money you have to ask for.
Better to educate the person why investing in real estate is a great investment at this time. Warren Buffet says investing in distressed real estate is the best investment today in the country. He could invest in anything.
When you have educated and they raise their hand uncover their pain. Where do you have your money now? How is that going? What kind of return are you getting? Are you happy with that? What would you like to get?
These questions provide an excellent framing to gathering private money.
@Dawn Anastasi - looks like quite the thread going here! I certainly understand where you are coming from, and also agree it is not a "favor" but rather an opportunity. The deal most certainly will benefit both parties.
As an extrovert myself, I cant completely relate to how an introvert might feel, however my wife is an introvert, and one of the things she has shared with me is that she feels much more comfortable in the right setting. For here it might be the Starbucks near our house. Additionally, she feels more at ease if she arrives early, and is prepared with talking points. I realize this is nothing very profound, but the environment (that you could suggest) might help the nervousness a little. Maybe someday we will be having that conversation at your favorite coffee shop, or park, or whatever it is for you!
Very good replies! I'm going to try (no, wait -- "do or do not, there is no try") to step out of my comfort zone and start presenting opportunities to private individuals. I'm actually talking to 2 potential investors today about a great deal I found and will see if they would like the opportunity to invest in me.
Good luck @Dawn Anastasi ! In my experience, being genuine is much more effective than pushing a hard sell. You will be more at ease and will probably be more successful. Be yourself, be honest, and be confident.
Took person #1 over to the duplex I'm currently renovating, and then over to the new potential deal. His words when he saw it: "This is a killer deal!" So I am really psyched!