So you’re trying to raise money from private individuals to fund your next house flip or multifamily buy-and-hold? Good for you!
But make sure you get a series of “YES’es” so you don’t strike out and exhaust your personal network prematurely.
The Mistake that Leads to Dead Ends
Many newbie syndicators make the mistake of trying to get a potential investor’s commitment to invest too early. I’ve seen too many eager syndicators approach their circle of influence like this:
You: “Hi Frank! I’m getting into apartment building investing and I’m looking for investors. The minimum investment is $25K and you can get a 10%-15% return on your money. Are you interested?
The problem with this approach is that it’s too direct and will likely lead to a “NO” that then becomes a dead-end. And you only have a finite number of people in your circle of influence. You don’t want a series of dead-ends, you want your circle of influence to introduce you to as many new people they know as possible.
You want to EXPAND your circle of influence.
The Better Way is o Get to a Series of “YES’es” to Expand Your Circle of Influence.