People tell me they’ll start their investing career when they have money.
But who knows when that will happen?
And so they wait. Or they’ll say they can’t see themselves putting a building under contract if they don’t already have the funds in the bank – who will take them seriously? Or how can they raise all of the money in time to close? And how can they get money from investors when they don’t have a building under contract? It’s a catch 22, and so they’re stuck.
I’d like to take these objections entirely off the table right now.
Raising Money From Private Individuals
The truth is, you don’t need tons of your own money or good credit to get started with apartment building investing. The secret to getting started now is to raise money from private individuals. Here’s why.
- You don’t need your own money. I hate stating the obvious, but since the lack of money is the biggest objection to getting started with apartment investing, it deserves to be stated plainly. Just to re-emphasize this point, if you raise money from investors you don’t need to use or have any of your own.
- You can get more deals done. Even if you have your own money to invest, there is only so many deals you can get done. On the other hand, if you are able to raise money from others, the sky is the limit. Your ability to accumulate property is then only limited by your ability to find good deals. The ability to raise money is an incredibly valuable skill to have.
- You can do bigger deals. With the backing of investors, you can go after bigger (and more lucrative) deals than just using your own funds.
- You have more eyes on …read more