Being successful is a choice. If you're just doing it for the money, it's not a big enough reason why. You've got to do it because you enjoy or like the real estate process. It's got to be a passion.
On today's episode, I talk about raising private money and how a lot of people do it the wrong way. Who is going to give you the money at the right cost? When I talk about raising private money, the goal is, "How do you attract capital, people who have money? How do they give it to you? How much does it cost?"
Topics on Today’s Episode:
- Cost of capital is a big deal; take care of your capital, make it money, make it grow, and you will get lots of people to give you lots of money
- Private Money Ponds
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- Big Fish Pond: Where all the big fish are located; a big whale - someone who has lots of money, are aggressive, but never shows up
- Real Estate Investors Pond: Approach other real estate investors who are making lots of money; pay a Six-and-Six (6% payer and 6% backend pay)
- Consistency of the return makes the most sense; good financial advisors give you a range from 6% to 8%
- Pond or avatar that works well for me is the multifamily space, where there’s trillions of dollars; I crush the stock market because I offer a better return
- Most people have a 401K to store their retirement money; at a certain age, they can transfer some of their money to an IRA
- Most people spend their whole life saving for retirement; stock market may be ok to grow your wealth, but very bad at creating an income stream
- Invest in things that can get you paid:
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- Certificate of Deposit (CD) makes less than 1%, yet lots of retired people have their money in them
- Bonds: You can have municipal or corporate bonds; bonds pay between 4% to 5%
- Blue-Chip Stocks: Every retired person has a fear of running out of money; you save money, but it's not earning enough income
- Every quarter, monthly profit from rent checks is distributed to our capital; investors get 6% annually, which is $1,500 a quarter
- As rents raise, the property becomes more profitable and affects the value; maximize operations, so when you sell, you create additional money for investors
Links and Resources Mentioned:
- Why the Rich Get Richer book
- Raising Private Money Course
- Kahuna Wealth Builders Boardroom
- Collective Genius Mastermind
Quotes:
“The truth is it's just a choice. Being successful is a choice.” Corey Peterson
“I enjoy the sport of real estate, the sport of it. I want to get you there because it's a great, great lifestyle.” Corey Peterson
“I think what I offer investors is sexy as hell. The reason I know this is because I'm consistent as hell.” Corey Peterson
“When I compete against the stock market, which the majority of people that are investing are in the stock market, I can crush it. I really can.” 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.