When you’re just starting your real estate investing journey, one of the most critical factors you should consider is how you plan to finance your projects. Deciding whether to use hard money lenders or JV partnerships to raise private money to fund your projects is often one of the most challenging decisions you will need to make.

On today’s episode, Don and Ryan share how they raised money to fund their first projects and the lessons they have learned from these experiences. They share strategies to consider when determining which fund-raising method is right for your business, the difference between using hard money lenders and JV partnerships as well as the benefits associated with each strategy. They also explain the importance of building a reputation based on trust and how it impacts your ability to raise private capitol.

“The property is the collateral – you are the security.” – Ryan Scialabba

This Week on FlipTalk’s Rookie Play Book:

  • Strategies for raising private money.
  • How being trustworthy impacts your ability to raise private money.
  • Working with hard money lenders.
  • The benefits of working with local hard money lenders.
  • Funding your real estate projects with JV partnerships.
  • The benefits of JV partnerships.
  • How branding impacts your ability to grow your business.
  • How your mindset impacts your ability to raise private capitol.
  • What is a “Credibility Packet” and what should be included?
  • The pros and cons of using a Credibility Packet.
  • Secured versus unsecured borrowing.
  • Best practices for raising private money.

Key Takeaways:

  1. Your ability to raise private money is directly related to how well you get people to trust you.
  2. If hard money lenders are lending in your market, they know what’s going to work and what’s not going to work.
  3. Raising money comes down to salesmanship and confidence.
  4. Do what you feel is comfortable.
  5. Don’t get hung up on having a Credibility Pack.

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