Raising money can be important, especially if you want to scale your portfolio and leverage your own cash more. You’ll want to have the capital in order to keep that ball rolling. Most of the time, it is the reason why many investors are stalled starting or keep going forward.
I am here to share my experience and lessons I have learned when raising money. I am not perfect by any means. I had my fair share of mistakes and boo-boos but one thing is I am sure of. I used these to improve more.
1. Getting Commitment from Your Investor(s)
Once you have found investors who are ready to be on board in your real estate business, one thing I have learned is that you want to instill a clear agreement of commitment between you and them. Example; prior to raising money for a deal I will accept soft commitments from investor partners a month in advance.
2. Need for Systems
Documenting the way you are raising money is also imperative. I have learned that documenting my process on how to raise money is an essential factor. If you have a systematic system and process it allows you to do things in an orderly manner versus doing things sporadically or randomly. What I’ve learned is that after I have documented everything, it has helped us enough time and effort.
3. Keeping Everything in One Place
Right now, I have two separate places, but I am consolidating right now to one place. Built everything out with a team, wherein I have one platform where I raise all the money, and then there’s a CRM component within their wherein I can email out the deal to everyone versus having different platforms or spreadsheets that can lead to confusion and mix-ups.
4. Hosting Webinar
Hosting webinars has been a game-changer for me. Providing your prospective investor(s) with useful information regarding the opportunity or property that you are considering buying through a webinar is an incredible avenue to build trust. I even include a live Q & A session in most of my webinars, wherein partners can ask questions. Through this way they will not just trust you but learn that you are transparent because of the valuable information you give.
5. Delegating the Task
Once you have documented the process, it is now time to delegate them to your trusted people within your team. Having them at your side helps in saving time and effort because they are there to help you complete the necessary task, and at the same time, you can do high-value duties.
6. Bringing IN the Right Investor
The biggest lesson I’ve learned when raising money is bringing in the right investor. Always good to check if both of you have the same goal and looking to achieve in investing. If you have different goals then it can be a red flag that things will not work in the future.
My journey as a real estate investor isn’t easy. I made tons of mistakes and wrong decisions, especially when I was just learning the ropes in this challenging industry. What I have learned that aside from focusing on the money and income you need, there are several aspects behind funding that you need to be prepared.
P.S.
I’m giving away a copy of my book “From Zero to 400 Units”. Grab your FREE copy here. Also, I am hosting an Intensive Real Estate Investing Training. Will Take You By The Hand To Show You Exactly How This Works— Absolutely FREE! Book your COMPLIMENTARY Seat here. I am putting up an elite group for real estate entrepreneurs like yourself. If you wish to be part of the “The Real Estate Mastermind Group” take the free self-assessment test to see fit.