Ever wondered how easy it to raise money in private finance? Well, I have a 30 second tool which will allow you to raise £100k of joint venture money easily!
You might be thinking who’s this and how do they know how to raise money with private finance? Well, to give you a feel my business led by me raised 20 million pounds a year of joint venture money to build a successful property portfolio.
Now, for you as a property investor there are two key things that get in your way of successfully investing in property. The first is or can be a lack of money; you may have enough money right now, but your money will run out at some point, and you can only buy so many deals. The second is the lack of property and a lack of the right properties in the right areas that quadruple those returns and results that you get.
So, how do we raise £100k? How do we get in the game?
Right now, you might say that “I have enough money for two or three houses, I don’t need to raise anymore!” Well, ask yourself will 2 or 3 houses get you financially free?
If the answer is no, then you have 2 options. You can get your two or three houses, wait for the market to go up, wait to be able to refinance, wait to buy more properties, get this done in 5 years, 10 years, 15 years’ time, OR you could learn just one skill, put that into place and go buy 10 houses instead of 3! Or if that scares you, you could go buy five instead of three over the next 2 years or 5 in the next year or even go buy 10 in the next 6 months; ultimately this skill gives you choices.
So, the big question is why would people give you, their money?
Let’s think about it, if you’re a saver and you’ve got money sat in the bank, what are your savings earning right now? The current bank of England base rate is at 0.1% but the bank only pays 0.001% and there’s talk of this dropping even further!
Imagine someone is sat with £100k in the bank and you ask if they know what return they are getting? Let’s say they are getting the 0.001% like many of the banks are paying, you can turn around say that you can give them 5000 times as much interest as they’re getting from the bank! That’s only 5% for you and still a great rate to borrow!
Do you think that would interest them? The investors may say “yes, potentially” and then you can assure them that you are going to buy amazing deals in the right areas after you’ve followed all my training. They are instantly going to say, “time for a conversation then!”
Who is going to say that doesn’t interest them? All these savers out there right now, who wouldn’t want to earn more money? Many of these savers are retired and planning to live off the interest of their savings but now it’s dead in the water and they are in big trouble financially!
You will be able to significantly help them by giving them a 5000 times better return than any bank can give them and help yourself at the same time – a win, win situation!
So, this four-sentence tool, it’s time to share this with you so you can learn what you need to put together and how. Please make notes and after you finish reading, I want you to create your four-sentence tool so you can use it and put it into play!
So, what is this four sentences tool that we use to raise over 20 million pounds worth of joint venture money every single year?
There are 4 steps to building this piece.
Step 1: Work out what you are going to bring to the table
There are 3 key attributes to bring to the table: time, money, and experience. All 3 of these need to be at the table to successfully invest. So, which of those do you bring to the table? Or do you bring a blend of them?
Step 2: Build your piece
You need to brag a little bit; we are all taught not to brag but we need to brag in order to recognise what we’re good at.
If you’re unsure what you’re good at it, just message some friends and say hey! I am doing some training at the moment, what do you think I’m good at?
It doesn’t always have to be a specific property skill; you might be really good at organisation or even bringing people together. It’s just the things you are good at!
Step 3: Tell someone what you’re looking for
You need to tell people what you are looking for. For example, “I am looking for someone with £250,000 or more who would like a great return on investment”. This is a really clear statement which tells the investor you are looking for the money and for someone who wants a great return investment.
Step 4: Location
People generally make the world too large; if I say to you “anywhere” your brain can’t compute anywhere, it’s too large. But if I say I’m looking to build a portfolio in Bradford or I’m looking to build a portfolio in London, the brain can compute that and they can say yes or no.
This has given you an overview but here are some examples below of putting these 4 key steps into practice and creating your property identity. You need to clearly state, what you’re looking for, what you bring and where but in 4 simple sentences. So, the person you are presenting this to can understand exactly what you are looking for and can either answer saying it’s a fit for them or its not but maybe they know of a friend who it would be a fit for.
”My name is Aran and I specialise in HMOs in Yorkshire. I have the time and experience (over 200 properties) to build great portfolios. I am looking for investors with £500k plus who would like superb cash flow today and great long-term growth. Do you know anyone like that?”
”My name is John and I specialise in Serviced Accommodation in Leeds. I have the expertise and time to turn buy-to-let properties into properties that make £1000 per month. I am looking for landlords who would like to get better returns on their buy-to-lets. Do you know anyone like that?”
”My name is Andy and I specialise in Serviced Accommodation in Nottingham and Sheffield. I’m looking for people that would like to safely and securely earn 500 times as much interest on their savings as they do in the bank. Do you know anyone like that?”
Let me tell you a little bit more about Andy. He is one of my students on my VIP Education Program. On the program I taught Andy this property identity piece in detail, we go back and forward with every single word to get it perfect. He’s created his property identity, yet he doesn’t post it anywhere, he doesn’t take any action. Why do you think that is?
When something is a new concept, you get fearful and you might say things like Andy said; “I’m not sure I want to put that on Facebook and tell my friends what I’m doing”, “I don’t want my friends to know that I’m looking for money”. Andy is a great student; he’s implementing everything else on the VIP Programme but not this part.
But every fortnight on our accountability call, on the VIP Education Programme he’s hearing what he needs to do, what he needs to take action with and then he sees the peer group starting to use their property identities to raise money, get deals and get results.
Eventually Andy knows he needs to push his property identity out there and that’s the power of an awesome peer group. Property can be a lonely game on your own but with the peer group on the VIP Education Program you are surrounded by people in the same boat as you which helps motivate you enormously.
Andy decides to post his property identity on Facebook. Not just with a simple post, he filmed a quick video at home explaining his property identity, posted on Facebook with the caption ‘Do you know anyone like this?’
Within just 3 minutes he gets a message back from a friend who he wouldn’t normally have spoken to about property, they have a conversation and Andy gets a deal of £40,000 for the next year! So, he raised £40,000 from a 4-sentence property identity posted on Facebook once!
To summarise using this 30 second tool you get your property identity, you take action and put yourself out there and you will be surprised to see how fantastic the results are and how easy it is to raise £100k.