Credibility is a key element in getting and using other people’s money (OPM). If your investor doesn’t perceive that you can do what you are proposing, they won’t fork over the dough. If you establish strong credibility from the start, you’ll have far few objections (if any) to overcome.

There are several ways you can build credibility with your private investors, such as showing them past deals or financial performance of your company. One thing that worked particularly well for me when I was first raising private money to buy income properties was to take a page out of the banker’s handbook – and provide my prospective private investor with a copy of my personal credit report.

If you don’t have good credit, don’t worry. You can still get as much private money as you want, but think about getting your credit back up into pristine status so you have one more tool in your bag. Read More→