Creative Financing Lab Series Ep 5 Raising Private Money For Your Creative Financing Deals
We hear it all the time by newbie investors. \u201cI don\u2019t have any money to get started in real estate!\u201d. The most beautiful part of creative financing is that it\u2019s not your money that you\u2019re investing. But we recognize that new investors who are just putting together a network might feel a little stuck as they\u2019re raising private money. Matt\u2019s got your back, so grab some paper to jot down how you can start building a private investor network.
No one, and I mean no one, likes a pushy salesman. So when you talk to someone about investing, you don\u2019t want to find yourself chasing them down. You should push a little and then pull back. Matt breaks the investing ice by asking these three questions:
\u2014Would you like a 10% return on your money?
\u2014How much money would you have for a deal like that?
\u2014Would it make sense for me to call you if I find a deal like that?
Matt is so good at asking questions that really open up the conversation and give the potential private investor the chance to opt-in. You\u2019ll hear why the phrase \u201cReally, why?\u201d is one of his favorite sentences to keep the conversation going. When you\u2019re in real estate, you can\u2019t keep what you\u2019re doing secret. Real estate is a people business.
You\u2019re also going to hear how Matt evaluates a virtual wholesaling deal, and it is so cool to watch. He wants to know right off the bat if there\u2019s equity and will it cash flow? After that, he gets very specific on his numbers, and he talks about how he uses CADS, or Cash After Debt Service. Check out Matt\u2019s YouTube channel for more amazing content, and we\u2019ll see you back here next week, same time and place, for our weekly webinar.
What's Inside:
\u2014Anticipatory thinking will kill your business; stop creating hypothetical situations in your head where you fail.
\u2014Matt\u2019s three questions he asks every potential hard money lender.
\u2014Is it illegal to ask for private money? We\u2019ll tell you how you can get in trouble asking for private money.
\u2014How Matt figures out whether a property is a good deal; he goes deep in the weeds here on deal structuring and you\u2019re going to love it.