3 Things $100m Investors Do That You Probably Don’t
Book to somebody called Ronald Skeleton, who runs a really amazing podcast, and I don’t know if the podcast would be out, but the biggest idea that he got when raising tens of millions of dollars from investors was splitting two parts, and I’m gonna go through it in this video. It’s really quick video. (how invest 1000 dollars)
The first thing was when he reached out to investors, he went to investors who were already at courses. Teaching people how to become investors. And then halfway through the course, like it’s like an online program or something. What he would do, he would then court those investors. I think he would sign up as a member or something or uh, or something. (how invest 1000 dollars)
You can watch the podcast later on in the channel. But basically he would sign somebody up or you, you, you work with the, the people and he would send and pitch out his deals to people who were part of that course. And by doing that, That was a really nice way to kind of, you know, talk to people who are more malleable, who are willing to invest. (how invest 1000 dollars)
And they got, you know, hundreds of thousands of dollars wired compliantly. So that’s one way. And another thing is you wanna make sure you find the investors before you find the deal. Uh, because. It is really critical to, because if you get a deal under contract, so if you sign an agreement with a company saying that you’re gonna buy them or a piece of real estate, 99% of the time, you only have like 30 to 90 days to do that.
So to do that, you have to make sure that you can actually fund a deal because you can get a lender that can lend you like 50% or maybe 75% of the value of the business or in a better real estate, but it’s really hard to find a down payment to be can’t afford it. So in other. You wanna buy 10 million piece of real estate apartment something, right? (how invest 1000 dollars)
Um, you know, you get 75% from a lender, so you need to raise 2.5 million. You have 1 million that you’re able to invest. Or let’s say you actually have just a hundred thousand to make it even harder, you have to raise the other 2.4 million to buy that business. So yeah, to do that, that’s pretty. So instead of being stuck in that 30 day period, just talk to investors compliantly before you get a deal under contract.
So you’ll be able to do that. Either do that or try to acquire a piece of real estate that doesn’t have to be under contract for that long. Like land could be under contract for one year. So in either case, make sure you do that. And then the last thing is you want to make sure this is a bonus. You want to make sure that you find, uh, you know what your track record. (how invest 1000 dollars)
Uh, I spoke to somebody in Vancouver, Canada who raised over 500 million. He raised that money buying businesses. So, but then he wanted to start buying real estate. I raising money to buy real estate with other people’s money, right? So in doing that, what happened is he said that I need to do it one deal at a time, because there are two ways of usually of usually buying businesses and buying real estate in a nutshell.
Either you can do it one at a time, like one apartments one. One piece of land at a time, or you can raise the money to buy multiple at the same time. In a nutshell, if I’m really to summarize, so he wasn’t able to raise money to buy multiple pieces of real estate at a time because he had no track record for doing that. (how invest 1000 dollars)
He did have it, however, in buying businesses. So I found it very interesting that even somebody who raised half a billion, uh, you know, wasn’t able to get success by creating a fund to buy multiple deals at once. So my point at the end of the day is just make sure you buy one. Or one piece of real estate at a time when you’re just starting out.
That’s what everyone recommends. The exceptions of the rule are if you need to raise money to buy deals that go off the property too quickly, you know, such as doing multiple fix and flips, or doing for closed properties, or raising money to buy like publicly traded stocks that change quickly. Those are different cases, but most times you just wanna do one at a time. (how invest 1000 dollars)
So if you combine all these three. You know, then you’ll be well on your way to the races and you know, if you want to see how these pieces integrate in your specific situation, feel free to apply to work with races.com personally. But other than that, just check out the YouTube and we’ll see you in the next one. (how invest 1000 dollars)
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