How to lock in private investors without a deal?

[Tom Foden]

I am in the process of raising private money to BRRRR a multi-family property in Cumberland County, Maine. I aim to create a simple pitch that could be used on potential investors. Prices are fairly expensive in this area and I don't believe I have any one investor willing to fund an entire deal. The market is hot so I would like to have the money accessible quickly enabling fast acquisitions. I'd like to ask investors for an exact amount of money on an exact date but I don't have a deal yet. How do I lock in investors without having a deal? Does anyone have an example of what this may look like? Because I am having a hard time wrapping my head around how to pitch an investment with an unknown price tag and timeline.

Questions moving forward:

Once I get an investor interested how do I lock them in? With a promissory note? 

In a situation with multiple investors should everyone enter into a 1065 partnership?

Thank you very much BP, I appreciate all your advice!

Tom

[Nathan Gesner]

Your question is more than I would want to answer in a post. As an investor, I would want to know that you have experience and success in this realm before I put any money with you. Do you have experience? Successful experience? If so, you should be able to document it and demonstrate your success. Build a portfolio that explains who you are and what you are trying to achieve. Provide proof by documenting past success. Then show what you project to do with their funds and how they can succeed along with you.

There are about 117 things in that little paragraph that a professional would do before asking for money. Good luck!