Who doesn’t love money? We’re talking about raising private money with Josh Cantwell, who has raised over $60 million dollars in private money without having someone check his credit in over ten years. In seven steps, Josh lays out how you can raise capital for your real estate investments.
Raising private money is not about pitching people. It’s about teaching people about what you do in a cool way. Josh likes to tell people, “I raise private capital for real estate, and I buy distressed properties and pay my investors double-digit fixed returns”. For him, this is far more effective than trying to sell potential investors on the idea of real estate investing.
The relationship that you build with investors is incredibly important. For Josh, one investor took about 3 years before he finally invested with him. His number one rule for working with investors is: Follow up, follow up, follow up. A “no” today doesn’t necessarily mean a “no” tomorrow.
Josh uses the 2R-3M approach. That’s “Regular Recurring Multi-Media Marketing”. For him, all of his marketing starts with a podcast interview, and then he sends it out across various marketing platforms. By putting himself out there and positioning himself as the authority, he doesn’t have to keep answering the same question one hundred times.
You don’t need a big audience to raise capital. You need an irresistible offer, and you need to be authentic. Ask your investors, would you rather have 12% interest on the loan or 15% of the profit? Let them self-select into your deals.
But you’re never going to be successful raising capital from strangers if you can’t convince someone you know to buy from you. Josh shares in his book, Get Flip System, some of the many ways you can have better conversations with potential investors.
Watch and Learn
Listen and learn:
- Raising private money means you’re doing deals on your terms, and not the bank’s.
- The question you need to ask so that investors self-select themselves to work with you.
- All of your marketing doesn’t matter if you don’t have a way to let people opt-in to more information.
- Leading with value means you’re giving information out that is worth it to your audience.
- Josh’s strategy for winning the supply and demand game.
Mentioned in this episode:
- Apple Podcast Reviews
- Joe McCall on Youtube
- Be Daring With Josh Cantwell
- Get Flip System Book
- Accelerated Investor Podcast
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