Please Advise!!

[Quintessa Haynes]

I have a VERY wealthy professional boxer in my family. I REALLY want to ask for capital so that I can invest in REI. I am SOOOOOOO scared to ask. How can I go about this and he take me serious....

Signed - Shaking In My Boots

[Gerald Demers]

Hello @Quintessa Haynes.  First a suggestion on creating your posts with more descriptive subject lines; it really does help others help you and it makes your post easily searchable by others too.  

Before asking for anything, you have to know more about them.  Start by answering some questions.  As an accredited investor with 100K or more to invest, what is this family member looking for?  What is their tolerance for risk (if your type of investment keeps them up at night, you do not want them as an investor)?  What are they doing now to invest?  Are they happy with the results (if they are happy, it doesn't mean they still wouldn't mind diversifying by working with you)?  

Next, you never want to ask for them to invest in you; you want them to ask you to invest in you.  You do that by creating value to them and you do that by telling them what you do.  Get a great elevator speech down that draws them in to ask questions.  

Share with them what you are doing in a way that stresses safety, safety, safety!  Your profile says you have been wholesaling so speak of this from a private lenders' or investor's perspective.  When I talk to others, I tell them about my current project but I mention more about the investment opportunity rather than the house itself.  For example, our latest rental we are working on right now.  What a deal!  We partnered with our private investor to purchase this property for cash at a huge discount.  Now, we are rehabbing it to be a rental property and when we are done, it will be worth significantly more than we paid.  We had immediate equity buying it right and we are creating even more equity by fixing it right.  Our private investor is getting a great return on their investment secured by real estate with equity, we helped a distressed seller get rid of a house they did not want, we helped improve a neighborhood and contributed thousands to local businesses and experienced contractors and we add another great property to our rental portfolio.  

Also, I love Zig Ziglar's quote "I can have anything I want; I just have to help a bunch of people get what they want."  So, what problem does this family have now that neither they nor their associates have solved?  What can you do to help?  How can you add value to them?  

And in the end, the conversation and the question will be directed at you: as an accredited investor with 100K or more to invest, why would I invest it in you?  You need to have an answer that does not depend on "because I am family."  Your answer must benefit them and keep them safe.  How will you speak to that?  Then, practice having such conversations with others and then talk to them.   

As an aside, if you do speak to them and they are not interested now, ask them if you can keep them informed about what you are doing.  If they say yes, and most do, then send them update emails.  Let them know you won't be spamming them and the emails can include both upcoming projects/requests for investors and then updates on the projects themselves:  

• Here is our latest project, another rental property for our ever growing portfolio.  We are looking for 40K to purchase and an additional 25K to rehab.
  
• Here is our latest project, 40K to purchase, 25K to rehab.  This project is now funded by one private investor and we close on Friday morning and the dumpster will arrive Friday afternoon!
• Then send them updates on the project, new kitchen going in, before and after shots.
• Project complete and new tenant moves in August 1.  Or we sold the home to a wonderful family.  Our private lender is thrilled and eager for our next project.  

Once they see some projects and project conclusions, they will grow more comfortable with you.  

No need to shake in your boots.  :O)

Gerald Demers