If you read real estate investment publications, articles and generally follow the trends of our industry, you will note that more and more real estate investors are working more creative to structure deals, are using specialized skills to create an investment opportunity where it might otherwise not exist and many, like me, are just plain coming to the closing table with cold hard cash.
A ‘drying up’ or at least tightening up of liquidity in the marketplace has caused real estate investors to find easier, faster and more certain ways to fund their deals. That’s why I spend quite a bit of my time raising private equity money, structuring partnerships and security compliant offerings. When it comes to raising private money, I cringe at the direct SEC violations that I see many real estate investors do on a daily basis.
There is millions upon millions of dollars looking for the right real estate opportunity. If you can raise more money, you can capitalize and make a killing in this real estate market today and through 2009.
Spend some time researching the following critical parts of raising money and you’ll succeed faster, easier and with greater profits:
1. SEC Compliance through pooling funds – In general, you want 1 investor doing multiple deals or multiple investors only doing 1 deal
2. Partnerships, LLLP’s, LLC’s – A great structuring tip is to raise money and create uneven distribution potential
3. Know exactly what you can’t say – Don’t promote guarantees, don’t blindly advertise returns and a ton more
4. Know exactly what you can say – Use a carefully designed script to keep your conversations legal – set expectations
5. Study the ins-and-outs of Regulation D, Private Placement requirements and whether Hedge fund rules apply to your deal
These are just some of the starting basics you can research to start really raising big money to make the most money in today’s market.
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