Has Anyone Successfully Raised Money By Saying They Need $X With Y% ROI?

Question

I see people posting on BP all of the time that ask for money for their deals, loans, etc.  I was wondering if anyone actually successfully raised money using this technique.  It seems that most people on here are net money consumers and that most of the people doing this are throwing Hail Marry passes hoping to find funds.  Has anyone been successful with this technique or should we pretty much assume that posting stuff like this is a sign that people have zero chance of getting their deal funded?  Most of the posts violate securities laws IMO too.

Dustin Gott · Answer

I am usually better at conveying sarcasm even when using the internet as my medium but I obviously failed!! Will, I was only alluding to the first time posters that come, ask for money, and are never heard from again. Obviously there are many people on BP (hopefully myself included) who contribute greatly to this site and are successful to many degrees in their own businesses. I apologize for any confusion!! My one and only award here is being an addict. I fully realize the breadth of knowledge here and am utilizing it everyday! I appreciate your opinion and advice as much as anyone on here.

Gregory Childs · Answer

I've always found that the people who will lend you money for a deal are those who know "beyond a reasonable doubt" that they will get it back with interest - despite the circumstances. That's a product of integrity, and integrity is earned.

The posts I see on BP and elsewhere often don't provide a compelling and defined business reason to invest or offer a source for due dilligence of the individual or the deal. People with capital only lend to those who are qualified to receive capital. It's that simple - otherwise it would be called a hand-out rather than an investment.

I doubt you will find any direct "success stories" from casual one off posts; although I bet a better result would be achieved if the question was posed - who, after buidling a relationship with someone on BP, eventually partnered on a deal together. I bet those stories would be compelling - and relevant.

TTFN,
Greg

Account Closed · Answer

Financing real estate can be challenging.  New investors I'm sure fine the challenge even more daunting.

I would venture to guess that most private investors are going to want to know the person they are giving money to as well as the potential deals that a person is looking to invest in.  I for one would want some assurances that my money will be returned with a reasonable return for the risk I'm taking.

I think though some get anxious to move forward with deals without building the necessary creditability or preparing marketing materials that show the creditability.

Will Barnard · Answer

Bryan,
I will go against the grain here and this comes from personal experience.

I have received funding from people, some of which from either my website, or here, or other places where I inform them that they can invest in my deals and receive a set rate of return secured by a trust deed.

I think the difference between my success in doing so and most others who fail stems from two ket factors:
1. I have a positive and long standing presence and others can easily research my history of deals completed.
2. I don't have to toss "hail marry's" becuase my deals have enough spread due to my purchasing at steep discounts and the fact that I always have skin in the game.

The common ad wee see here and other places resembling: "I need funding for my great deal in XXX, am willing to pay yy%" is the hard/fast approach that does not receive acceptance. Opposite of that, those similar to me who have "information" on their website or post info here offer others the ability to make their own decisions rather than a hard sale tossed in their face. I really believe that is the difference.

Bryan Hancock · Answer

Thanks Jim...can you please elaborate on C-list?

Jim Peck · Answer

I have raised anything on this site but, in the old days I used C-list with pretty good success.  It all comes with being able to deliver.  I start small and after 2 or 3 experiences investors come to realize this is what I do.

Bryan Hancock · Answer

It will certainly be difficult, but perhaps there could be a post minimum for things like this like there are for other things.

James Hiddle · Answer

And there you go great post right here.

James Hiddle · Answer

I don't see how you are going to keep people from posting threads or posts like that unless you can get to them and educate them on how to properly acquire private money before they post.

Bryan Hancock · Answer

I figure we can give this another day or so.  Without success stories using this technique perhaps we can discuss ways to keep people from doing it on BP.

Has Anyone Successfully Raised Money By Saying They Need $X With Y% ROI?

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