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Raising Money from a student’s Perspective Hosted by Kyle Garifo Strategic Real estate Head Coach
Topics to cover: Why raising money is vital to your business Where are the best places to find $ How do you raise money effectively I’ve got the $, now what? If anyone would like to contact Strategic Freedom Funding please call (888)
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Kyle’s Background Student of SREC since 2008
Personally mentored and trained by Josh Cantwell in 2011 SREC Coach since 2013 Completed short sales, lease options, wraps, REOs, note buying, rehabs and commerical Done over 250 real estate deals Raised over $2,500,000 for real estate deals If anyone would like to contact Strategic Freedom Funding please call (888)
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Why do you need to raise $?
Willowmere Dr. South Barrington, IL Seller owed over $1,100,000 on the property Negotiated a short sale for over a year with 2 lenders for $468,000 Found a retail buyer for $750,000!!! Was going to do a back-to-back closing but……………………..
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I Could not Raise the money!
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Life Changing?? I’ll do the numbers for you. Because I could not raise that money I lost out on $190,000!!!
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Raising money is the key to your business
Unlocks deals you would never had seen when you can perform Freedom to be more aggressive in your marketing and your deal searches You can cherry pick great deals rather than trying to make a deal out of something that is not Become the go-to person people look for when they have a property to sell And the best incentive of all…… Borrowing cheaper money means MORE MONEY IN YOUR POCKET. You can then get a bank LOC. If anyone would like to contact Strategic Freedom Funding please call (888)
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Where do I find these mysterious people who will lend me money?
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Answer: EVERYWHERE! If anyone would like to contact Strategic Freedom Funding please call (888)
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-1.15% YTD
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The market is down along with CDs etc
Investors are looking for alternatives to put their money Typically you can have low risk, low yield Why not low risk higher yield If anyone would like to contact Strategic Freedom Funding please call (888)
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Family, friends, coworkers
Professionals-Lawyers, Doctors, Accountants-People with no much down time Independent Financial Planners Country Clubs, Chamber of Commerce, Golf Outings If anyone would like to contact Strategic Freedom Funding please call (888)
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How DO I raise this money?
If anyone would like to contact Strategic Freedom Funding please call (888)
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You must have the right attitude to raise money.
This……….is not it. If anyone would like to contact Strategic Freedom Funding please call (888)
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This is.
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Talk to everyone you know and let them know what you do.
NOT A REAL ESTATE INVESTOR-You must sell your skills and your business What do you do. “I raise money for private investment deals where we buy, fix and flip houses that are typically in foreclosure and pay our investors a double digit rate of return.” How does that work? “It works great!” Set up a time to go over your business with them. Do not present an offer to them Bring along a binder with previous deals (before pics, after pics etc, money investor made etc) If anyone would like to contact Strategic Freedom Funding please call (888)
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You control the deal (rate, length of loan, terms)
Looking for a money partner not a business partner Typically the interest will be10-12% or 15% of the profits whichever is greater Don’t be afraid to offer more of the pie to get in your first deal and make some money Once you do 1deal with them they will come back to you every single time guaranteed! (and bring their rich friends along too) If anyone would like to contact Strategic Freedom Funding please call (888)
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I have never done a deal Kyle, now what????
Use Josh’s samples of deals that he has done and tell people he’s your partner, mentor etc. Steal SREC’s credibility (Josh won’t mind) Bring along a business plan-get samples from Google. Very important to have This is a business not a hobby. Present yourself that way with materials and appearance Business cards with or gmail
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All my peeps have no liquid Dough
Teach them what sources of their money they can make work for them CDs, Bank accounts, savings plans, stock market, under the mattress, couch cushions ONLY 2% OF PEOPLE KNOW THEY CAN USE THEIR IRAs TO INVEST IN RE!!!!! Self-directed IRAs 3rd party custodians like IPlan Group-Easy to do Tax deferred!
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Will I be cellmates with Bernie Madoff?
If you do this wrong, yes. I am not a Securities and Exchange Committee attorney so your best bet is to get one like Joe Carney or Ralph Sherman Each state has its’ own requirements as to what you can and can’t do Need to stay intrastate with your investors to keep it at a state level Illinois allows me to raise $1,000,000 and have up to 25 investors by filling out 1 simple form. They just want to know that you are raising money and what for. Majority of states have the same requirements. Find out what yours are 506B and 506C Federal Exemptions Use mortgages and notes Inform your investors of the risks in your property presentations along with comps, scope of work, estimated length of time
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that doesn’t sound so hard, right?
Bottom line is you are providing a service that can pay them handsomly (commodity) Don’t be afraid to use the line “I could use your money, but I don’t necessarily need it.” This could be the biggest bunch of that has ever come out of your mouth but need to show control not desperation. Exclusion mentality when talking to them-assume they’re not interested Keep your investor informed during the process-if they have to ask where their money is, you’ve lost some of their confidence Make doing business with you easy Do what you say you are going to do- TRUST=More $
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