Raising Private Money FAILED

[Ray Jimenez]

Hello BiggerPocket Family,

I just wanted to present to you guys a package that I put together to raise private money for a deal that I was working on but unfortunately I failed. I just wanted to see if I did something wrong or is there something essential that I missed to implement. Please all criticisms all welcome.

[Jay Hinrichs]

couple things either the investors don't like the area and don't agree with your numbers.. or they don't have confidence in your ability to execute.

And or your not paying enough for the capital if you can't pull this off you should offer up a 50 /50 or 70/30 to the money so you at least get a deal.. and start to build your experience bucket.

Its one thing I see most that are starting out do that is in my mind a critical error.. they think they should be able to borrow private money and get as cheap as money as possible.. when in fact starting out it should be the opposite ... they should be looking for someone who will take a flyer with them since they have no money or real experience and will mitigate a potential loss with a very big upside.

Once you get a few of these under your belt and have track record and maybe a little jingle in your pocket you can go HML route with no partner or your current partners will have enough trust and faith to give you bonus or better returns.

those starting out need to get deals done no shop for the cheapest money waste a ton of time on the front end finding the deals and then lose them because they could not get them funded.

If you made 10k on this deal and the investor made 40k at least you got something instead of having to make this post that your deal failed.

Think about it.

Even after 40 years in this business I know my competition for investor dollars is always trying to find cheapest money... I do the opposite I ALWAYS pay the money more than myself  ALWAYS.   Ergo I have more money coming my way than I really know what to do with.. And for my own deals because I have extensive track record and I am making money because I attract investor capital, I can do my own deals with BANK money at 1 point and 5 or 6% like most just dream of....

So that's one side of the coin ... I know probably not a popular one with many of you out there in BP land who think you bring the value to the equation and the money should just roll over for your deals.... :)