In this episode I jam with aspiring commercial real estate investor Scott Isley as we discuss techniques for raising money and structuring the deal. Here’s what we cover:
- How to find potential investors.
- How to approach the investors, what to say and do.
- How to get a commitment from the investors.
- How to educate your investors how they can use the IRA’s to invest in real estate (most don’t know they can, but they have sizable accounts with which to invest and they’re not happy with their current returns).
- How to set up and use a blind pool to buy your next apartment building
- The Pros and Cons of using a blind pool vs. using an entity for a specific deal.
- SEC securities law considerations: the private placement memorandum (PPM) and when you should have one.
- Recourse vs non-recourse loans, net worth and liquidity requirements, and what to do if your personal financials don’t support the deal.
- Step-by-Step how to raise your first $100,000 for your next apartment building deal.