Raising Private Money in Real Estate Deals is a Skill, Not an Art

Stop me if you’ve heard this one before but real estate investing, in order to pay off big, requires some play money which must be equally big.

This is the popularly accepted wisdom and it becomes the stumbling block which stops many real estate investors with the necessary drive and set of skills from even dipping their tow into the market.

The whole knack of real estate is that you, as the investor, do not necessarily need to have a single penny to your name provided you have the skills necessary to bring together the elements required to close a successful, profitable sale and make money for others who do have it but do not possess your skills. These are private investors eager to get into the real estate market but baulking not at the cost involved but at their lack of knowledge and their inability to acquire it.

This is where you come in. I know from direct personal experience that there are many investor out there looking to connect and if you are new to the business you need to work on two fronts. First you need to actually attract private money and convince them that you are the right man for the job and second you need to work at closing deals and creating a reputation.

I know it’s not an easy task and many times I cover in my courses and bootcamp workshops how to find private money investors and how to convince them that you are the person they can trust to make their money grow.

The first part is relatively simple. Private money can come from almost any quarter. From friends who want to invest, from family members who have spare cash, from colleagues, from recommendations and referrals, from business angels, from business contacts and from business acquaintances.

Identifying who these people are, where they may be and how to approach them is a matter of developing the necessary skills. I can tell you that you neither have to be as charismatic as JFK nor as holy as Gandhi. You just need to know what to say and what skills set to present and then you’d be off and running.

This way, raising money to fund your real estate investments will allow you to leap several steps in your road to total financial independence. In the process you will generate wealth for many of the private investors, create a name for yourself and make your job of finding future opportunities that much easier. Not bad for learning a few skills, right?