Tricks to Securing Private Money
Investing in real estate without upfront capital might seem difficult, but it follows the same principles as any other loan. You can still finance your college degree, new car purchase, or business venture even when you have limited capital — you borrow Other People’s Money (OPM). Being able to raise private money is imperative to successful real estate investment, and there are foundational strategies you should know if you want to raise private money. If you raise money the right way and make smart investments, you can make a great return-on-investment and ultimately fund your own real estate transactions.
Grow a Network
Networking should be an unspoken rule of all real estate strategies, especially when it comes to raising private money. After all, your existing network represents the people who will most likely lend you money. Why would a stranger trust you with their capital more than your personal acquaintances? Attend local real estate investment seminars, introduce yourself to anyone any everyone, and maintain a trustworthy reputation in your community. This way, you will not only expand your network, but you will also develop a strong interpersonal foundation.
Keep Impeccable Records
You know that person who has multi-sheet, color-coded spreadsheets that they use to document every penny spent, minute scheduled, and email sent? You should be that person. No matter the form your organization takes, you need to show potential money lenders that you have your act together and will not squander their money. The best way to prove this trustworthiness is to document everything. Documentation also helps your real estate investment future, as you can go back and look over mistakes, trends, and returns on investment. If you don’t consider yourself innately organized, consider downloading an app or program that takes care of the organizational structure for you.
Participate in a Real Estate Investing Class
Securing private money might seem easy enough: have someone else help to fund your real estate investment. However, even individuals with expansive, affluent networks can still struggle if they don’t understand who to ask, how to ask, and what to ask when it comes to private money. While attending live real estate investment classes are a great option, you should also consider online webinars lead by real estate investing mentors. You get the same real-time interaction as a live class, but you don’t need to travel anywhere for the personalized learning experience. Additionally, you can cater your webinar selection to your particular real estate investment needs rather than just listening to whatever subject your local real estate club might discuss..
As a real estate mentor with more than 25 years of experience, Laura Alamery is an expert when it comes to financing with private money. Her popular “Private Money Made Easy” real estate investing webinar outlines the steps it takes to raise private money, how to raise capital without experience and credit, and statistics that showcase how much private money exists around you. Register online today and get started with your real estate investment career.