How to Raise Unlimited Amounts of Investor Capital
For any investor who is on one of my mailing lists, you have likely seen firsthand that when a new project, private loan or real estate opportunity comes out, it is gone in a matter of hours.
Here are 5 concepts that I use that allow me to raise capital rather easily and continuously:
1. Make Your Investors Money - duh, right? First and foremost, your investors want a return. They also want a good return. I don't think I have made one of my investors less than 10% annual return since I began my career. Secondly, do not LOSE their money. The quickest way to lose an investor and kill your business and reputation is to lose your investor capital. I have NEVER, EVER lost a single cent on any deal either of my own cash or an investor's cash. Protect your investor's money more than you protect your own.
2. Creditibility - Do you know what the fuck you're doing? You better. Investors can smell a rat in two seconds and if you think they are going to park their hard-earned cash with someone who can't manage a project, vet a deal, analyze risk, etc, you are going to be climbing uphill. I get calls quite frequently from people asking me to invest my money yet they have ZERO experience. While I certainly admire the ambition, this is a hard and quick stop for me.
3. They Risk, You Risk - I put my own cash in EVERY single deal I am involved with, or at a minimum, offer to do so if the investor chooses. This alone is often enough to ease any investor anxiety, especially among new investors. I don't risk my money, and as mentioned above, have never lost a cent after 11 years in the business, but asking someone to put money in something that I wouldn't put my own into doesn't feel right to me. There are other models out there sure, but this has been a very successful process for me.
4. Transparency - Although I run point and manage virtually every deal and project, every investor knows what is going on, or as the ability to, at any given time. Every document, every bank account, every legal matter, everything and anything, is available to any investor at anytime. This is OUR project, not mine. They deserve to know what is going on with their money.
5. Control - My investors have control over their own capital, in accordance with agreements we put in place prior to closing a transaction. I manage the deals, I do not OWN them. Private lenders own their own deals, joint venture partners have control over their shares and real estate investors pull the trigger only if they choose to. My recommendations are just that, but it's the investor who makes the final call.
I have a 100% track record after 11 years of investing. Any of my investors reading this post can confirm that very fact.
Maybe you should join our network?
