Five Steps to Securing Private Investment Capital by Tony Martinez
There’s an old adage in investing that “It takes money to make money.” While this is usually true, before you can get the money you need, you must give investors a reason to give it to you. Too often novice investors start by trying to get the money and they even had a deal. This is backwards. Unfortunately, this often comes because a person doesn’t want to the work unless they know they’re going to get paid. However, you have to do the work if you want to get investors, So, deal first, money second. Give potential investors a reason to put their hard-earned money with you.
Here are five steps to help you secure the capital you need to for your next deal:
Step 1: Develop the skillset of locating profitable deals. Know what states and which cities will provide enough inventory and enough demand to meet your goals and deliver for your clients.
Step 2: Find profitable real estate transactions. Research the potential properties to determine the resell price, improvement costs, and the highest acceptable bid to provide the necessary return.
Step 3: Master the proposal package. Learn how to put together a proposal that outlines plan, provides legitimate research examples, projects expected returns, and outlines a potential timetable for the return of principal and earnings.
Step 4: Present the deal and not just yourself. Sales movies like talk about how you sell yourself not the product, and there’s some truth to it, but investors today are more data driven. Make sure you know your numbers and present them in a clear way. Your credibility comes in the deal.
Step 5: If you’ve done steps one thru four, then realize you have a lot of options. Your potential investors don’t have unlimited sources of reliable deals that yield returns of 25%, 50%, 100%, or more. So, have the confidence that you can help them meet their investment goals.
Moving beyond investing just your money to managing other people’s money is a big step because of the fiduciary responsibility you’re taking on. So, now is the time to make sure you are as prepared as you can be. Your professionalism and success will help you build a book of business of investors that know you can help them reach their goals.
Tony Martinez is the Founder and Chairman of the US Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates. With over 30 years of expert experience, Tony is the world's #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.