Today I have some tips for raising private money for your REI business. Who doesn’t need more money, right?
My guest today is Bill Walston. Bill is someone who is known nationally as a successful multifamily investor.
Bill buys apartment buildings these days using the master lease option method. If you know anything about this investing strategy, you know that one day you’re going to need to cash that seller out if you intend to exercise your option. That’s where private money comes in.
Whether you invest in single family homes or some type of larger commercial property, I can promise you that one day you will run out of sources of cash for your deals.
Private money is a lot cheaper than hard money so that is one of the biggest reasons for using it. Once you have a good relationship with a lender (or private money partner), it often just involves having a conversation with that person to raise additional private money for your next deal.
What’s in it for the private money lender? Above average returns on their money secured with real estate. One thing you will realize is that once you find a private lender and have a solid track record of paying them back, they will almost always be willing to loan money time and time again.
After listening to this podcast the topic of private money (which most people think is very complex) will be some much simpler to understand and implement. That’s a promise.
Tips for Raising Private Money – Show Notes
Here are a few of the things we cover in this show:
- Bill’s first real estate investing strategy
- Why he made the shift to multi-family properties
- That moment when you realize you need to learn how to raise private money to survive
- Situations where you really need private money
- Identifying potential private money lenders in your area
- The right way (and the wrong way) to approach a potential private money partner
- Building relationships to gain trust and respect
- Do you need a formal presentation for their prospects?
- Where should you meet with potential private money partners?
- Why this process is a lot like dating
- “Prequalifying” people and why you should never do that
- Tips for raising private money
Be sure to leave your comments and questions here on the blog.
You Can Listen to the Podcast Here
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Bill Walston is a highly sought after business and tax strategist and has served families, business owners and investors. Bill is also a real estate investor, mentor and coach. He is dedicated to helping real estate investors build, promote and protect their businesses and to live a tax deductible lifestyle.
After successfully building an accounting and tax practice, Bill walked away from it to focus on real estate after deciding the profits were better on the other side of the desk. Bill holds a Bachelor of Science degree in Accounting and Finance and a Master’s Degree in Tax Law.
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