Money Partners

[Aryelle Collins]

What are the best ways to find a money partner that will fund the deal for a percentage of the profit. I can find the deal, perform the due diligence on the property and present a full analysis to my partner. I know people aren't just going to hand over their money to someone they don't know, so any suggestions on exactly how you find people who have the money that is willing to partner? 

[Gerald Demers]

Hello @Aryelle Collins.  The first and most important thing is make sure when you connect with people, your first priority is them.  What do they need, what is going on their lives?  Too often, we meet someone and off we go telling the world how good we are the opportunities we present.  So, start the Zig Ziglar way: I can get anything I want as long as I help others get what they want and need.  

Talking about money, when the conversation does come to you, talk about why you do things first, then what.  Read Simon Sinek's Start with Why.  Brilliant book!  You want to find people that believe what you believe and then you can talk about specific opportunities.  

When I do discuss what I am doing, I never ask them if they want to invest, I always ask if they know someone that wants to supercharge their IRA or make above average returns. Many times, they will say yes, ME! Okay, let's talk about that. Never corner a potential investor and never be in a hurry for money. It is a far better to play almost...hmmmm, not disinterested not overly eager.

Also, of all  the many people you know, how many know what you are doing and what you are looking for?  For most of us, that percentage number is surprisingly low.  Why?  

When I talk to people, if they are not sure or not interested, I always suggest that i can keep them in the loop when I have new opportunities and of course, when I close off opportunities, i update my people as well.  If they start seeing you ask for 60K for 123 Main St and later, you recap the 123 Mainstreet project FROM THE PERSPECTIVE OF THE SUCCESSFUL PRIVATE INVESTOR/PARTNER, they get more and more comfortable with what you are doing.  Alternative investing, no matter how successful it is, is really scary for most.  

When discussing investment funds, it is always an investment, even if they ultimately will be a lender.  No one wants to be a lender but everyone wants to invest.  

From a legal standpoint, changes to SEC legislation allow you to advertise for investors, but you can only accept accredited investors.  

Did that help or did I miss the mark?

Gerald Demers