Two Steps That Investors Miss.
I have a great property under contract, but I have a huge problem… I have no money! This was me pacing around my kitchen and living room 8 years ago. Two things I have learned over the years of real estate investing are 1. You need money to close deals and 2. There is an art to raising money.
There are billions of dollars invested in low returning investments and those investors would LOVE to see a greater return. Can you help them? Absolutely! If you know what you’re doing.
Step 1: MINDSET
Change your MINDSET. Money is everywhere if you know where to look. Shed your limiting beliefs. Stop the negative self-talk that is holding you back.
- “Why would anyone invest with me?”
- “I don’t know what I am doing.”
- “I feel bad asking.”
Instead, ask yourself:
- “Who will be lucky enough to work with me?”
You get to decide! Investors will lend you money but it all starts with relationships. When people genuinely like you, feel like they’re in alignment with you, think you might be fun to spend time with, and know they might be able to make some money by investing with you, now you are on the right track.
Step 2: CREDIBILITY
Would you lend money to someone like you? It has become a bit of a cliché but that doesn’t make it any less true and that is:
“If you want to get more, you have to BECOME MORE!”
~Jim Rohn
Credibility means the quality of being trusted or believable. Are you a person of integrity? Are you dependable? Credibility is a higher bar than success. It means others look at you as a reliable resource and decision-maker. It allows others to rely on you, trust you, count on you, align with you, and do business with you.
The question you should ask yourself is this: How can I become credible?
- Be knowledgeable. I have seen investors struggle to raise money and I have seen investors raise more money than they ever expected. The difference is their competency. If you’re not confident you’re getting into a good deal, then you should not be raising money to fund it.
- Be trustworthy. To become credible you must build and earn trust. If someone LIKES you, they will have a tendency to trust you and do business with you. Develop a reputation for being candid and honest
- Be professional. A professional is someone who is consistent, respectful, and accountable. It is easy to say these words but harder to live them. In this area, I have seen my business partner, Tony Rosenbum, outshine the competition. These are his core values and he lives these whether anyone is watching or not.
- Be loyal. Look out for their best interests. This will speak volumes. It is about protecting them and their investment and you are both committed to the success of the mutual investment.
- Communication. You must have regular contact and stay on peoples’ radar. This allows them to see your positive attributes and build the credibility that you are desiring. If you are only in contact when you need something, the relationship will not last.
Now, I am no longer pacing around my house wondering how to raise money for my next deal and that can be attributed to learning these critical steps and applying them in my life.
It is all about the next deal. Have consistent communication, be professional, have the tough talks when things don’t go right. How you treat someone on the first deal will dictate whether it is the first and last, or if it is the first in building a long term business relationship! Be mindful of this as you are raising money and it will pay you tenfold.
When you put your partner’s needs first they will remember you and you will stand out among other investors.
Happy investing and make a big IMPACT.
~ Jeremy Isles