Originally posted by @Tony Wooldridge:
@Manmath D., Full disclosure, I am no expert by any means on Private $ investing. However, I too am very interested in how the process works and how to go about starting that conversation with someone. If you haven't heard about it I would highly recommend the book Raising Private Capital by Matt Faircloth (https://www.biggerpockets.com/store/raising-private-capital-ultimate ) hope you don't mind but took the liberty to post the link to the BP bookstore.
Once again, I have not done any deals yet with Private $ just my own. However, just like anything else in this world it is all about relationships. Your friend, I am assuming since he is your friend you talk with him about your REI ventures(?) If so what is his response? If not why haven't you(?) as you are passing up a golden opportunity if he is interested in what you are doing and would want to get involved. IMO, I personally believe that it truly has to become a mind set shift. We are always told that asking someone for something is an inconvenience to that person or we don't want to put that person out. However, when you think about the opportunity a RE Investor (such as you and I ) can present to someone with Private $ it now shifts your mind set to see that we are providing a GR8 opportunity to someone with money to make (potentially) ALOT more of if they are interested in investing in with us. We have something, a GR8 Opportunity to make their wealth grow. That Manmath in my humble opinion makes us a GR8 asset to people who see this opportunity for what it is and seize the moment! So it starts with a mind set shift and educating the individual on what you have to offer them.
Now, that is a lot easier said then done I am sure, LOL. But you have to lead by example and let people know about your love of REI and how it is impacting your life in what you describe in a positive way (I mean who pays off 40K of debt in two weeks and doesn't think that is AWESOME!!!!). Just let your friend know and if he seems interested educate him on the process. If not continue to lead by example and buy more properties and tell everyone you know about what you are doing as it relates to your RE investing career. My hunch is that someday it is going to payoff. Persistence my friend is the key to success! Best of luck to you in your approaching your friend. Please keep me posted as maybe I can learn from your successes! Thanks for allowing me to share.
@Tony Wooldridge thanks for taking time to respond. I really appreciate it. I'm fairly new to REI and trying to soak in as much as possible. It's funny how things work. I asked the same question to my friend A about raising private capital from friend B. After listening to me A ponders for a min, asks me about the deal and tells me not to go to B and that he has 200k to invest. He also tells me that he knows someone who has 500k to invest too. Well since then the deal I was interested in was snatched by someone else but for a lot more than what my numbers showed it would make sense to invest. I have no idea why people around here are paying more than what the deal makes sense for.
Since asking this question I've dived deep into Scott Trench's " Set for life", Matt faircloth's "Raising private capital" and about to finish "Cash flow quadrant". I'm now more focused on optimizing my persoanl finances. After reading trench's book and Mr money mustache, made few changes in personal life and now I'm able to save 60% of my take home pay. If I continue this for a yr or two, I hope to have good cash to invest.
Thank you again for your response.
