Multifamily Legacy Podcast 014: Raising Private Money
Whether you are just starting out or are transitioning from fixing and flipping, there is a good chance that you struggle with the idea of raising private money. Today, I hope to move your thinking to get you to a point where you know that you can do this. I started out with nothing and was able to do it, and you can to.
I’m going to show you how I transitioned from single family deals to apartment deals. A lot of it is about education and explaining to people what you are doing and what they are getting. I’ve been doing multifamily for awhile, and I feel it is time to give back and tell my story.
Topics on Today’s Episode:
- The importance of being strategic and saying no to yourself and your wants in the beginning.
- Living the life you have because you lived the life no one else would. We actually moved in with my sister in law when I first started with real estate.
- When raising money, put yourself in leadership positions when you are teaching what you know.
- It helps to be in a place of authority. Raising private money is always done one on one.
- Bring your credibility kit for multifamily and your private money program for single families.
- Ask questions about dreams, goals, etc. Share what you do. Start with the apartment story and how they provide a source of quarterly income.
- People want income, but don’t want to spend down their principle.
- We have learned how to mitigate risk and that is what we do.
- Millenials don’t want to buy houses. They like the flexibility of renting. Baby boomers are downsizing.
- We are good at buying old properties that suffer from deferred maintenance and bad management. We know how to fix fixable problems.
- We specialize in finding old properties fixing these problems and making profit. We buy based on cash flow.
- Most of these investments are five year commitments. Most people are looking for consistency.
- We pay based on cash flow. Every quarter our investors get a preferred rate of return.
- Single family is based on each and every deal. It’s a lot of work. Most people just want to set it and forget or at least not be hassled by it.
- Does that sound like you? This is the buy in.
- But, I don’t know you, and you don’t know me. Do a small fix and flip deal for 90 days. This is the best way to start the relationship and go from there.
- This method can easily unlock current private money.
- The market is super hot, it’s time to transition to cash flow through apartments.
- People will follow you when they know, like, and trust you.
Links and Resources Mentioned:
Quotes:
“Anything in life that you are going to be successful with takes work. If you put in the work and do what I ask you to do ultimately you will really start finding success.” Corey Peterson
“The work done once is the beauty of the multifamily business.” Corey Peterson
“Start believing and tell yourself daily that you have what it takes. You have to start programming your mind to believe in yourself.” Corey Peterson
Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.
Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.
On the next episode, I am going to give a quick shout out to some of my reviewers.