Raising private money for apartments

[Leah Bonner]

I'm really interested in understanding the power of "Other peoples money" I've been seeing and reading that there is NO shortage of money you just have to find it.

When pitching to private lenders is it a smart path to present it to Self directed IRA holders.. Show them the much better return they will get on their money?

Also do you get the private lender to lend the whole amount or just a down payment to get bank financing. EX:  raise 200,000  to get a 1M loan from bank (but that also would cut way into your profit margin[?] 

 Any personal stories on how you've raised money or advice on finding high net worth individuals would be great. 

[Tj Hines]

@Leah Bonner raising private money from individuals is sort of like dating. You need to get to know that person and their needs first. Generally you need to have previous relationship with the person according to the SEC rules and guidelines. No matter how good the deal is, if they don't know you presents a real challenge for anyone to give you 100k or 200k for your project. It's always good to start with your inner circle such as friends and family members. Build a track record there first then take it to the next level. 

I think talking with individuals who have SDIRAs is good but would be even better is you talk to people who have traditional IRAs, 401K, CDs, stocks or bonds and educate them how they can invest in a SDIRA to achieve better returns with more stabilized assets such as real estate investments. Raising money is not an overnight thing and will take constant networking and letting each and every soul who you meet know what you do. Raising private money and building relationships will take some time. If you have a track record of completing such deals already it makes it easier, but if not you will have to work hard and diligently to build that track record in your area of interest in order to get people to trust you with their hard earned money.

Hope this helps!