Wanna know why you’re having trouble raising private capital for your deals?
Three guesses… and the first two don’t count.
Not to be harsh, but it’s you. Rather, it’s your approach.
You can’t just launch into, “Have you ever considered getting involved in real estate investing?” It takes a little finesse… a little conversation up front.
It’s funny, but I’ve seen comments in our private Facebook group (that you have to be a Cashflow Core Member to be a part of) where people say they’ve had trouble with that conversation-starter. But as others in the group educate them on ways to better use it, they come back and report how well it works.
That’s a good thing.
That phrase has worked like magic for me, but do you think I just launch into it… “Hi, I’m J. Have you ever considered…”
Um, no. Of course not.
It’s called communication, people. You need to get to know the other person a little before you start asking the big question.
Use a Better Approach…
Let’s say you’re sitting next to the cream and napkin dispenser area at your local Starbucks. You have an interesting real estate-minded book that a lot of people recognize on the table near your laptop (on which you have a fun sign to grab attention of passersby).
Someone stops and says, “Oh, I love that book! It really opened my mind to the possibilities of being an entrepreneur.”
Here’s someone to engage in conversation.
So you chat about the book and what you learned. You ask the person why he/she found the book interesting and you actually listen to the answer.
If fact, you shouldn’t be having a dialogue going on in your head; you need to literally listen and give the person your FULL attention.
Show them you care about what they’re saying more than you do rehearsing your big question.
Be interested in others and you’ll be the most interesting person in the room. (Others will remember you, too.)
It’s called practicing the 70/30 rule, which I talk about in my book… which you can get for ZERO DOLLARS if you click the graphic below:
Want Money for your Deals? Learn to Educate!
When the person shows an interest in being an entrepreneur, and they’ve shared with you what they do in life, that’s the time to tell them what you do BRIEFLY.
Tell them you are an entrepreneur… a real estate entrepreneur. Explain to them in a sentence what you do.
At the end ask them, “Have you ever considered getting involved in real estate investing?” And no matter what their response is, yours will be, “Really? Why?”
They will tell you. That is for sure. And that’s called a conversation.
If they show interest, you will see it in their body language and eyes. That is when you invite them to sit with you now or at a more convenient time. And that part’s not pushy either. It’s more like, “Do you think it makes sense for us to sit down together and chat about this further?”
And this is the time to invite them to your next Cashflow game. If you haven’t scheduled one, guess what? You’re going to do it right then and there. You’re going to pull out your handy dandy paper day planner and pick a date.
You get the person’s info and let them know you’re going to contact them with the details.
In quick time you’re going to choose the place and time for the game that you just invited them to.
You want to see how you can use this game to build your business? Go watch this very short video:
Talk To Strangers Every Day.
Okay… so you aren’t raising the private capital from investors you need to close deals.
If so, I have a couple of questions for you…
- How many people do you talk to every day?
- Are you using the conversation formula presented in the last section of this article?
- Are you playing Cashflow games with other human beings?
- Are you hosting Cashflow games?
- Are you attending real estate investing-related events?
- Are you following up with people you meet who’ve expressed an interest of learning more?
Yeah, yeah… that was more than a couple of questions, but you get my point.
You can come up with all sorts of excuses as to why you’re not doing these things, but if you do just a few of them you will see a massive shift in your ability to raise private capital.
Here’s the deal…
If you don’t talk to strangers… yes, those people you’ve never met before in your life who have the same interest in let’s say coffee (because they are at Starbucks when you are)… you aren’t going to raise funds for your deals.
You want to do real estate transactions using little to NONE of your own cash or credit, right?
I have news for you… You are going to have to push yourself out of your comfort zone and strike up conversations with strangers.
That’s one important thing you need to do. There are others. This is a question I get all the time, so I devoted a few of my podcast episodes to it. Here’s one:
Show Proof of Concept
In your conversations with other people, when it rolls around to talking about what you do, you’re going to do all the things you’ve just read in this article. However, as part of your conversation you need to show proof of concept about what you’re raising capital for.
If it’s a widget, a film, the next best smart phone app on the planet or a business… that proof is going to be a lot harder to prove than it ever will be when talking about real estate.
The reason is simple.
Everyone understands real estate because we all need a place to live, work, play and lay. What I mean by this is that you don’t have to prove to anyone that we need a roof over our heads, a building in which to work (even if that is working from home), that anything we do for distraction and entertainment involves a property or building of some sort… and at the end of our lives we will be laying somewhere for eternity (even if that involves a loved one’s fireplace mantle in an urn – which could also be considered a piece of real estate because that earn costs a bundle).
Yes, that last part is a little harsh, but it’s also true. It should also open your mind for a minute. For example, could you earn a good income by investing in properties that deal with end-of-life issues? (The answer is yes.)
But that’s a topic for a whole other article. Right now, go watch this short video to learn more about “proof of concept” and how to share your views on it in your conversations. Click the graphic below:
Put Yourself Out There and Don’t Worry about Looking Funny.
In this article, I’ve shared with you some very simple things you can do to put yourself in a great position to raise lots of private capital for all your deals.
The long and short of the message here is that EVEN IF you don’t know how to do these things well YET… give yourself time.
Don’t fear putting yourself out there, give it a shot, talk to strangers, keep practicing and don’t worry about looking funny. That’s just fear talking. It’s that little voice inside your head that wants you to keep doing what you’re doing now and getting the same results.
Tell the voice to shut up and try something new.
In fact, do just a couple of the things in this article and see what happens. (HINT: Very good things will happen and you will achieve your goals of raising private capital sooner.)
Think about this…
- Have others raised private capital? The answer is ABSOLUTELY.
- If you know my story, how much money have I raised… that’s OPM (other people’s money)… for my deals? The answer is millions of dollars.
- Can you learn new skills that would allow you to do what we do? The answer is CERTAINLY!!!
BUT… you have to show commitment to learning the new skills you need, and that part doesn’t take long. You also have to commit to practicing those skills… starting immediately…
… AND you MUST stop making excuses for why you aren’t raising private capital, because in the end of it the one thing that’s holding you back from raising all the cash and credit… and finding all the investors, buyers and sellers you need to make your real estate investing business grow and thrive… is, well, YOU.
It’s time to make a decision so you can cut your learning curve and turn a corner toward the success you desire. Take one little step forward right now…