In business and in life we have what I call direct and in-direct mentors. Direct mentors are those who mentor you one-on-one, you build relationships with them and they help you grow and guide you. In-direct mentors, on the other hand, are those who you emulate in business, mostly through reading and watching. You may ...…
As a real estate investor, it’s easy to get caught being a lone wolf. You have to look out for ‘number one’ in business at all times. Somebody always has their hand reaching for your wallet. However, it’s dangerous to become short sighted. After a few deals, it’s easy to think that you and only ...…
It’s critical to know your private investor prospects if you want to market your opportunity effectively to them. Take this quick quiz to see how well you know and understand your prospects. If you can’t answer these questions, how can you be sure that you are attracting the right people to invest money with you? ...…
When you are raising capital for a real estate investment project, it’s easy to get caught up on what you should do in order to secure the money. If you focus on core principles and take action, you’re half-way to the goal line. However, I have found it at least as (if not more) helpful ...…
It seems just about every time a real estate investor talks about offering a return on private money investment, 10% is the starting point. Upon closer examination, 10% seems to be some kind of unspoken benchmark for investments of all kinds. “Can I get at least 10% per year on this?” is a question often ...…
As tax time draws closer, it’s time to spend some time discussing the impact that private money has on yours and your private investors income tax returns. It’s no secret that if you’re making money flipping houses or buying apartment buildings that Uncle Sam is going to take a bite out of it. This is ...…
There is a right way and a wrong way to use any marketing medium. There’s a right way and a wrong way to use the Yellow Pages, newspaper ads and direct mail pieces. When marketing your private money opportunity, you must take care to use the most powerful marketing media available to small business owners ...…
Raising private money should be a focus in your business. Once you’ve made the decision to bring private investors in to finance your deals, your focus must shift to attracting people to your opportunity. The typical route taken at this point is a slow, steady beat of the “get secured returns at 10% per year” ...…
There’s a source of some debate about whether private money is better suited for a ‘buy and hold’ approach or a ‘flipping’ strategy for real estate investing. Real estate investors correctly point out that their private investors will want to exit (or the availability of exit) from their investment at a future date, which could ...…
There are easy ways and there are hard ways to raise private money. One of the easiest of the easy ways to raise private money is to incorporate self-directed IRAs each time you talk to a prospective private investor. Self-directed IRAs are still relatively unknown outside of the niche real estate investor world, which means ...…