Personal Relationships and Private Money

It often said that "relationships are everything" in business. Have you ever heard this?

My guess that you have. But, are you putting it to work in your money raising activities?

There are vast goldmines of private money hidden underneath many of the relationships you already have. Not sure what I mean yet? Here's a non-real estate example.

---Side note--

Most real estate investor reply "but I don't know anybody with money" immediately upon first learning about private investors.

--End side note--

If you have ever heard an MLM pitch - had somebody approach you for an multi-level marketing company opportunity, you will know that the person  most likely came to you because of a "memory jogger" activity that is first done when people join these types of business opportunities.

The memory jogger works like this: it's a sheet of paper that asks you a series of questions about people you know, people that know people you know and so on. When done correctly, this list ends up being in the hundreds of names. That's pretty substantial. Actually, based on several studies. The average person knows just under....  1,000 people! And you thought you didn't know anybody that could invest money with you! This is just for the average person by the way. If you're slightly above average, maybe you know 1,200 people or more. Just looking at the statistical breakdown of this number, there are bound to be dozens of people in that list of 1000 that have the ability and inclination to place funds with you.

Bet you didn't think of that, huh?

Now, once you realize that you DO know people that can invest with you; the next step is to leverage that relationship for private money investment.

 

How does this start?

It begins with first understanding what the other person wants in an investment. You should always ask more questions than the prospective investor and find out what drives them more:

    * Security

    * Comfort

    * Appetite for returns

    * Diversification

    * Etc.

 

Next, you want to demonstrate that you have a profitable and pleasant investment opportunity for them. Dangle the carrot a little bit and show them how they can achieve their investment goals by placing funds with you. Personal relationships are about rapport. Connect with the investor and they will be much more likely to place funds with you.

Your ultimate goal is to have people ASK to invest with you. Each step of your marketing and relationship process should have this as the end objective.

When people ask to invest with you, the entire dynamic of the relationship changes, and you have a high likelihood of not just closing the one deal, but getting a great deal more investment capital from that one person. You also open up the doors for referrals.

Personal relationships are a goldmine waiting to be tapped. You should set a goal of $100,000 or more within a 60-90 day time period. This is just a start, too.