One of the number one challenges an investor faces in transacting deals is the access to money. Successful investors learn how to expand their awareness and get themselves unstuck. As an investor you are not expected be an island when it comes to financing your deals. You are the one that is courageous enough to venture into finding, purchasing, and renovating properties. Allowing someone to participate in this venture gives them the opportunity to reap returns while providing you with the missing component to your vision. As the captain of this vision your charge is to be clear about your goal, shift your mindset to eliminate any stumbling blocks and identify solutions.
Imagine that you want to close on three more deals before the end of 2020. You are clear on your strategy and have the subject properties in your crosshairs. Do not limit yourself because you have tapped out your traditional lending sources. Outline the details to the goal and how it meets your strategy.
Identify anything that might be a stumbling block by shifting your mindset. For example, if you have exhausted your traditional bank financing what other options are there that can help you buy these houses. Two that are not obvious but available are seller financing and private money lending.
First are sellers who want to sell their properties because they no longer want the hassle of self-managing. Selling outright will incur excessive capital gains. What if they could defer the capital gains by acting as the bank? Could selling them to you achieve relief from the day to day grind?
Secondly are private money lenders willing to loan money from their bank accounts or self-directed IRA’s to investors who will pay them a return. Friends and family are likely candidates. They accept that you are a professional investor, successfully running your business and they would like to venture in without the hands-on requirement. What if you could offer this opportunity to that person?
Now that you have transformed these stumbling blocks into solutions, you are now ready to pave the way to the solution. Finding and getting buy in from both investors is based in trust and relationship. Start now, developing your story that demonstrates your vision and your expertise. Include an outline of how your company works, your developed team, testimonials and projects completed successfully.
Construct a clear outline of your specific ask in the deal. Know exactly what you are proposing and how it will benefit all concerned. Practice with trusted colleagues and hone your presentation until you are ready to try it on someone such as a family member. Achieving the goal of securing financing will open your horizons to expand your portfolio and build your wealth.
