This is Part 1 of a 3-part series on how to raise capital for your next deal:
Part 1 – [You Are Here] – How One Student Raised More Than $2M in 5 Months and Quit His Job!
Part 2 – Here’s How One Student Raised More Than $2M in 5 Months!
Part 3 – 5 Little Known Secrets You Can Use Today to Raise Private Capital
Ever wondered what it would be like to walk away from your 9-to-5 job because you’re earning plenty without it? How good would it feel wake up whenever you want instead of 6 a.m. Monday through Friday? Or to stop suiting up for a job you don’t like and hit the road with thousands of other tired, stressed-out drivers on their way to their jobs?
What if you could leave your job because you learned just how to raise private capital (a.k.a., other people’s money) for all your deals? How would that feel?
Why not ask someone who has done it… like Sep? At the end of 2014, Sep got to say good-bye to his 9-to-5 job. He’s now a full-time Real Estate Investor, which was his goal that he’d been working to reach for the past few years. What he didn’t know is that he only needed a few months to achieve what he thought it would take a decade to do.
So how did Sep suddenly achieve this new American dream?
Sep wants everyone to know that there was nothing sudden about his path… well, at least not till 2014. Then his success in raising lots of private capital did happen suddenly.
Sep had to walk a twisting path before he found Cash Flow Diary training.
“2008 was a pivotal year for me,” says Sep. “I graduated from college and thought I’d get to relax a little, have free time and have fun. That’s not what happened. Instead I found myself in a job I didn’t enjoy because I didn’t feel appreciated. Every day I’d wake up knowing I’d have to drag myself to the job. I felt trapped.”
Sep’s dissatisfaction turned into a journey. He began actively seeking a new way to earn money. That’s when he heard about investing in stocks. One of his friends told him about a guy he knew who didn’t work, but earned a fantastic income in the stock market.
Sep has a tale of warning for anyone thinking about this type of “get rich quick” strategy.
He says, “I got excited. I wanted to try investing in stocks and be like that guy! That guy invested in Washington Mutual, so I took all my savings and threw it into that stock. Almost overnight, because of what was happening in the housing market at that time, the stock dumped. I was left with nothing. My savings were gone. Lesson learned. There is no such thing as getting rich quick.”
Sep dusted himself off and began again.
One motivating force was that he wanted to move out of his parents’ home. Sep wanted to be financially stable. He wanted to put money away for later in life. He wanted to feel good about his work while earning a good income.
Though his experience in the stock market didn’t turn out as he had hoped, he didn’t stop looking and listening for opportunities to learn ways to create wealth.
“There just had to be a better way,” adds Sep. “So I kept looking. Eventually I learned about the Rich Dad books and then Ken McElroy, who is great when it comes to investing. I read lots of books and started listening to podcasts. Then I was introduced to the Real Estate Radio Guys. They were hosting a cool Real Estate Syndication seminar, so I attended. That’s where I first met J. Massey, someone who I would eventually be my mentor.”
Before Sep got to that point he had a few hard and costly lessons to learn.
“What’s funny is that a lot of what other Real Estate Investing educators and ‘gurus’ were teaching is reverse to what works for me, which is what I learned in my Cash Flow Diary training. But I didn’t know that until 2014. I kept buying properties with special bank financing. When they cut me off because they couldn’t lend me any more money, I used my own money and credit cards. My properties weren’t cashflowing, yet I just kept going. I even did my first syndication deal with the help of my father and brother. I kept pushing them to do my ‘great’ deal with me until they did. That’s not the way to do any deal, because the deal is not the first concern. That was something I wouldn’t learn till 2014 either!”
At this point, it became clear to Sep that what he had learned about getting the deal and talking about the deal and pushing the deal down people’s throats didn’t work very well. He wanted to find investors and use other people’s money in his deals, but he didn’t know the first thing about it. Then he remembered hearing J. Massey talk about raising private capital.
A light bulb went off!
“I needed answers,” says Sep. “The only person I found that gave me a way to raise capital that I could use and raise funding quickly was J. Massey. I remember sitting in his Raising Private Capital Mastermind Group in the spring of 2014. I got pretty excited. This guy wasn’t preaching the same old stuff that the other educators and investors were. When it comes to raising private capital, he was saying the reverse. His were common-sense concepts based on starting conversations with strangers! The epiphany for me was that investors really are everywhere.”
Sep had a few more V-8 moments as he went through the 12-week Mastermind.
“My first homework assignment was a total AHA! Moment,” explains Sep. “I had to go out and ask a certain number of people if they’ve ever thought about getting involved in Real Estate Investing. When I started asking this question during conversations I realized this is something I could do easily. There’s a simple formula to it that anyone can follow. You don’t have to be an extrovert, which is great. I’m an introvert by nature. I avoid crowds. Not now! I meet all sorts of new people in many different settings.”
If you were to ask Sep what his biggest misperceptions about Real Estate Investing were before entering Cash Flow Diary training, he’d give you a short list.
“To be a syndicator, I thought I had to be a good public speaker, extroverted, experienced, understand everything about investing and how to do a deal, have a license and have a whole bunch of confidence,” says Sep. “I learned otherwise. I do just fine. My mistake was to think I had to find the deals first and then go out and get the money. Boy, is that backwards! Now I do it the right way, which has allowed me to raise a couple of million dollars in a short time. I’m investing in all sorts of deals because I have the funding in the bag already.”
Sep adds that once he learned how to use a tool called the Profit Analysis Quadrant™ that was specially developed to help people like him explain deals and educate investors about why they would benefit from working with him he could help a whole lot more people through his properties.
The short story is that Sep took Cash Flow Diary training and learned how to raise private capital. He’s good at it. In fact, he has raised more than $2M in private capital for his Real Estate transactions. But that’s not the most impressive part.
Sep achieved this feat over five months!
Sep went through our Raising Private Capital Mastermind Group, which is now a video course that others are using to follow in his footsteps. The cool thing is that there are a number of students right now who are hot on his heels!
We added the Cashflow Creators Course to our Cash Flow Core Membership to help people learn exactly how to raise the funding they need for their projects. It’s just one of the training programs in the membership, and we’re getting excellent feedback about what people are learning across the board.
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Now, back to Sep’s adventures in Real Estate…
If you were to meet Sep, you’d wonder how such a mild-mannered, soft-spoken guy would be able to raise millions of dollars in private capital or how he closes on large multi-family properties. He’s too shy, right? Nope. His quiet demeanor isn’t what matters.
According to Sep, his success all comes down to practicing what he learned and continuing to take steps to build and improve on his skills. He tells us that persistence helps, and that he gets a lot of support from his girlfriend. He also says that he cut ties to the negative people in his life.
“I’m no ‘A’ student or genius,” says Sep. “I simply did as I was instructed. I did the homework assignments. I reported back. I learned to listen more than I speak. That one’s key! Listening to what sellers, buyers and investors are saying is key in my conversations. That way I can ask great questions and help these individuals reach their goals, which is really a solution to the problems they are explaining.”
Sep isn’t the first student to achieve such heights in Real Estate. It’s just that he’s done it faster than most. He is an inspiration to us all. He says he feels like a “cashflow magnet” now. Sep also says that he’s taken training with other groups before, but he never learned in such a practical manner nor in a way that made such common sense.
Hey, we try!
At Cash Flow Diary, we teach people from all walks of life, all ages and all ethnicities – no matter what challenges they may be facing – to raise capital. In fact, with the tactics they learn there’s no way they can’t raise the money they need for their deals. They’re always so shocked when they come to realize once and for all that they don’t need a dime of their own cash or credit. (That’s the fun part for me.)
Just like Sep, they learn to use common-sense strategies to put them in the right position, like:
- Playing the Cashflow 101 board game – Created by Robert Kiyosaki and the Rich Dad Group to teach players about financial intelligence and that what happens in the game can happen in real life, this game is a must-have for any investor, entrepreneur, business owner or literally anyone who wants to achieve wealth.
- Attending networking events – Even the shy have to get out there and try. You cannot get to your goals alone, and how can you expect to find what you need if you don’t get good at communicating your goals? People aren’t mind readers.
- The words that work best with investors – There are 10 words that when strung together the right way are like a magic key that opens the door to other people’s money. (Ever heard of OPM? You want to access it and plenty of it!)
- How to explain the deal on a paper napkin anywhere – This part is a little magical. Newbie and seasoned investors alike can use a tool I developed called the Profit Analysis Quadrant™ to explain simply and quickly how a deal can be done. Believe me… it gets the attention of investors worldwide. (There’s more about this P.A.Q. in my book, and it’s also a course inside the Core Membership!)
- Thinking things through – There are things you have to understand about different types of deals, how the numbers work for or against you, if something is truly a good deal or not, and what you’re willing to negotiate. This understanding takes learning and practice. No one is an overnight success. We all learn in stages. Four to be exact.
If you listen to some of the “gurus” in Real Estate Investing, you could conclude that you can’t do deals without providing funding from your own pocket. That couldn’t be further from the truth. (I’ve raised more than $10M for my real estate transactions and I continue to do what I show others to do to raise even more.)
Want to know my secret?
I talk to people. I have lots of conversations all the time.
Want to know Sep’s secret?
He talks to people. He has lots of conversations all the time.
But there’s obviously more to raising private capital than that, right?
It’s what you say when talking to people that counts. That’s what Sep and others going through our training have learned. They now have the answers to the same questions you might be asking right now, like…
- Where are these investor types who will let you use their cash and credit in your deals?
- Why would they be so willing to do it, and what do they get in return? How do you talk to them?
- What are the “magic” words?
- Can anyone do what Sep has done and in such short time?
Hey, I get these questions all the time.
Truth is that when it comes to the topic of creating cashflow and raising private capital there’s a lot of ground to cover. That’s why I’m breaking this article into three blog posts. This is part one of three. Be sure to read the other posts!
In the next one I’m going to answer more of the questions posed here today.
There is a way to get on the fast track to raising private capital for Real Estate deals, to start a new business, to develop a product you think will sell well, for a film or any other type of project that’s been percolating in your mind. It just takes the right information and guidance. Stay tuned. Read the next two blog posts. You’ll learn a lot!