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Posted about 10 years ago

Wholesaling or professional fund raising?

I get this question a lot from my investor groups and meet up's I attent.

How can I find deals to wholesale?

I always ask this, why spend time on the "wholesale" game when you can market for large private equity, Venture capital and investment funds? I do this regularly when I want to raise some quick cash or use the comissions to invest in the fund deal I am helping raise money for.

It's not hard, investors are always looking for money and finding those who have the money to invest is even easier it just takes time and some know how.

Find the money not the deals is my point here folks.  Institutional investors get the best deals dropped in their laps every day because bird doggers know they have the cash to close or can raise it quick so why compete with your little wholesale flips?  

Network with investment groups, find out what they need and help them raise the money!  You dont need a license and you are not soliciting investors as you are just acting as an affilate marketer for the firm not the investment.  Using the firms track record, investment returns etc. is all usually on their website which is public so you are the pitch person for the firm.

My standard contract is 5% for every $1 raised and usually the minimum investment is $25,000-$50,000 so as you can see it can be lucrative.  Make sure to write in your agreement that all referrals that invest which were directly or indirectly procured from your efforts are to be comeserate with compensation (which can be hard to track but at least you should have it in writing)

Use the cash as you wish but I usually take 20% and invest the rest in the deal which usually offers monthly cashflow and then appreciation.  Let the investors take all of the risk and do all of the work, you just help them raise money and once you get a few under your belt word will spread and firms will then seek you out for your talent and EVERYONE NEEDS A PROFESSIONAL FUND RAISER!!!



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