Raising Private Money - Best Method that worked for you...and go

[Dave S.]

So reading through a large amount of articles, forums, books, etc. There are of course multiple ways of raising private money that all work but the question is what worked best for YOU and why? Also while we are at it, which method works the least effectively?

[Corina Eufinger]

The slow pitch sealed with drinks.  I like to create a relationship  first.  Hang out where they hang out. Be visible.  Then start talking directly to them, no pitching yet.  Start by selling yourself.  Then after building a little rapport when I have a deal and I need financing I take them out for drinks.  Pitch about 1/2 through the first drink and finish the pitch and deal by 1/2 through 2nd.  Starting at 1/2 through first allows the alcohol to loosen them up but not enough to get questionable judgment.  Seal it before the end of the 2nd for sure since that is when judgement becomes impaired. 

In your pitch: highlight how they benefit, deals you have done that are comparable (even if traditionally financed), and  your ability to follow through and make good on financing.  Go prepared with a booklet like Brandon Turner recommends when seeking  a bank loan on a property.  (I wish I could remember where he talked about  or posted about that so i could link it.)

Gotten 3 out of 3 done this way.