Who in your inner circle–your family, your close friends, your 1st cousins, parents, grandparents, aunts, uncles, high school buddies, etc– knows EXACTLY what you’re doing in real estate investing?
Hopefully, you can say with confidence: all or most–but realistically, very few or none of those individuals know what you’re doing in real estate investing.
It’s not so much about real estate investing or how cool you are, but that you have such a great opportunity that you’re offering to investors who understand what you’re doing and why you’re doing it. It’s essential that they actually understand what you’re up to and what is in it for them– like an incredible, potential double-digit return on their investment– they will likely have some interest or eventually will, at some point in the future.
The epiphany I had after struggling to raise capital was this:
You are NOT asking for money. You are NOT ASKING for money!
You are offering an incredible investment opportunity to those who understand it and have the disposable income to take advantage of it.
So, I’m not going to break down every step of how capital raising works– that’s actually for another video–but if you like what you’re hearing, I want to make sure you know that I recently recorded a live webinar. You can access the FREE recording right now using the link below AND– since I don’t have time to dive deep into how to raise capital from family, friends, high net worth individuals and everyone in between–I want to give you a very generous gift if you step to the end of the webinar. The gift is the capital-raising elevator pitch I’ve used to raise millions of dollars for deals over the last five years.
So, once you have a verbal or “soft” commitment to cover your costs and get the deal officially under contract–which usually is just an earnest money deposit, some risk capital like inspections, an appraisal, survey, environmental studies, etc– you’ll be spending money and taking a risk that the deal will close. It’s also a known rule of thumb to NOT spend any money, other than the EMD, if possible, before you are confident you want to move forward on the deal and that you can make it happen.
So at this point, you have a deal under contract with $0 of your own money because you borrowed, say, $5k as an EMD to get this great deal under contract, and you have a verbal agreement that your family, friend, or parent willing to help you with other risk capital if needed.
Now, because the deal is under contract, you will begin due diligence and figuring out how you will get the resources you need to close the deal. This will entail debt financing, equity financing (down payment cash), lining up a property manager, getting with the right reps at City Hall, and essentially finding a reason why you shouldn’t move forward with the deal.
Now, you should have an excellent idea of how to get control of and close a large commercial or Multifamily deal with nothing, nada, $0 out of pocket.
Also, are you subscribed to our YouTube channel? If so, thank you! If not, this is your cue!
Check out the free webinar I hosted and collect your freebies by clicking the link below so you can register and watch it immediately!
Find, Fund, & Successfully Manage Your First Or Next 7 Figure Multifamily Deal In 6 Months Or Less
Stay tuned for the next blog.
