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How to reach your potential in real estate investing (Part-2)

In the first part of this two-part blog, I explained that most investors have two challenges:
1) Finding a good deal on a regular basis
2) Having the capital to make each deal happen

I explained the problem and the solution regarding the first challenge, which is: Finding a good deal on a regular basis. In this second part I will address:

Challenge 2:

2) Having the capital to make the deal happen:

The problem:
Amateurs think in one dimension only: Themselves. But they can only have so much, cash, credit or ability to obtain loans. At the end of the day they often lose the good deals they finally found to those who have more capital that is ready for deployment on a much shorter notice.

Learning to raise capital for real estate deals is by far the most important skill if you want to make millions and not just a few deals here and there.

The solution:
Raising capital has always been about three simple steps:
1) Increase your own borrowing power (even if you have a bad credit there are ways to quickly build credit lines under a separate entity that has a separate tax ID and bank account)
2) Create win/win partnerships with individual investors
3) Set up profitable Joint Ventures with other entities
The real profits are magnified when you learn to:
1) Start your own Syndication also called a Real Estate Private Fund. (This is the ultimate structure that can help you apply your strategies, capitalize on the good deals and have the capital ready at all times to grow exponentially with other investors)
2) Set up a public private fund where you can raise capital openly in the market from all kinds of investors
3) Set up a publicly traded fund where your company gets traded though a market maker over the counter or on the NYSE.

There are several types of structures to create your own Fund and it is the only way a small investors who does deals between $300K to $5Million to become a bigger player and do deals between $5Million to $50Million. That range is the critical mass of the best deals in the country because it is too big for the small investors and too small for the large institutions.

Eighty percent of the people are afraid to fail so they do nothing. Twenty percent are afraid of success so they keep studying and reading and attending events about theory and remain in the small game afraid to venture into the bigger and better world of large transactions.

I will be holding a rare live event on July 24-25-26 (The only one for 2015) to update my investors on how they can do residential deals on an ongoing basis. How they can set up their own Fund and how they can invest creatively in real estate using mortgage notes. I am looking forward to partnering up with investors as my personal portfolio in commercial real estate is growing, my real estate hedge fund is going to the next level and my training and investment company is able to have a larger reach through mass media and marketing.