A couple of months ago, I found myself an amazing apartment rehabilitation deal. I believed it was a huge score, a no-brainer. After finishing up the contract and performing some due diligence, I came to an astonishing realization. My financial partners that I worked with for years had disappeared! Some were purely just fearful of the times we were in. Some had monetary wounds from their businesses and from the stock market. To sum it all up, I did eventually close the deal, but it was the toughest money-raising challenge I’ve ever come across. And I was not the only one. Once I shared my experiences with other investors, they told me of comparable scenarios, many turned out far worse than my own. Consequently, I consider myself starting from the ground up on finding new financial partners. I enjoy doing things together, so let’s do this as a group shall we? Here are a few questions I began with myself. See if they resonate with you too.
Questions to ask yourself:
Question:
When do I need to start looking for financial partners?
Answer:
NOW! There is no way to know what deal will need a financial partner. For that reason, always search or qualify, and always be on the lookout for monetary partners. Wear your “money partner-finding hat” at all times. Family events where friends are invited is a great and approachable place to share your successes. Any time you’re networking, always “be involved” in whose standing next to you. Ask them what they do for a living so that they will also ask what you do. Once this happens: you’re on!
Question:
What should I say if I were to run into someone that’s a potential financial partner?
Answer:
Easy, just say the following. “Hey Fred, do you know of anyone who might be interested in this amazing real estate deal I’m pursuing?” That’s what gets the ball rolling. You’re not selling or putting any pressure on Fred. You’re requesting his assistance and people usually like to help other people. Fred might reply that he is interested personally or he might know of somebody who might be (like himself!).
Question:
What should I say if they ask how much monetary gain they can earn on the deal?
Answer:
By law, you cannot guarantee them a set sum or range or calculation. All you can say is that it look like an amazing deal, but every deal has risks. Get their contact information at this time and follow up with them in the next couple of days with the deal facts and particulars. Once you follow up with them, put your “advisor” hat on instead of your “salesman” hat. Nobody likes to be sold. Almost everyone likes to be counseled. Know the variance and it could make all the difference.
Question:
What is THE ONE most significant thing in locating financial partners?
Answer:
ASK. You must ask! This is a worldwide rule. It’s fairly normal to be anxious, careful, and even overwhelmed in asking. The only thing I can say to that is, “You have not because you ask not”. In a later blog post, I’ll talk over how to prepare yourself to ask.
