061: The Six Pillars to Profits: Pillar 1 - Secrets to Raising Private Money

Don’t believe everything that all those information gurus out there teach about multifamily real estate and investing. A lot of them start by showing you how to find a deal. I believe that’s totally wrong and the worst place to start. The ability to raise capital is much more powerful, valuable, and vital to deals.

This is the first episode of my six-part series called, The Six Pillars to Profits. Pillar 1 is Secrets to Raising Private Money. If you are able to raise capital, deals will find you. I’m going to teach you a different way to raise capital that has worked very well for me.

Topics on Today’s Episode:

• Corleone Method: If you will find money, deals will come find you; money is always patient and negotiates out of strength
• Money is made in the money by procuring capital at the right cost
• Avatars: People who have money, and who they are; they who have the money make all the rules
• Look for people who are looking for a solid return; do less volume
• Majority of people’s wealth (i.e. dumb money) is in a 401(k) or self-directed IRA; most people don’t know they can invest in real estate with their IRA
• Investors want exuberant returns via big risks and low expectations; people don’t want to take big risks and hate the ups and downs of the stock market
• People like me know how to find great deals on properties that become little factories that write checks and spit out profits
• Always sell based on income; raise rents and keep expenses tight to create more income and value
• If you want to raise money, the first people to ask are your friends and family
• Create an opening “Who am I?” statement for different environments/audiences
• Selling the Story: Tell a story or have a conversation and end it with, “How’s the market treating you?”
• Schedule a meeting and have them complete an accredited investor form
• Bring your Credibility Kit that has a high-end brochure describing your process
• 506(b) Rules: Raising money is all about relationships; make sure you serve that capital well because that money in return will serve you

Links and Resources Mentioned:

• Kahuna Investments
• Kahuna Boardroom
• Cashflow HQ
• Raising Private Money Course
• Edward Jones
• The Godfather

 

Quotes:

“The ability to raise capital is so much more powerful, it’s so much more valuable, and it’s vital to deals. If you are able to raise capital, deals will come find you.” Corey Peterson

“I used to really think that the money was made in real estate. That’s just not true. The true capital, the money is made in the money.” Corey Peterson

“There’s more money out there than you’ll ever know. The one thing I learned...is how much stupid money is out there, and it is searching for people like us.” Corey Peterson

“They will then become your friends. They’ll give you money. They’ll give you referrals. They’ll give you their friend’s friends. It’s something that you should really just cherish.” Corey Peterson

 

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.

Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.