Table of Contents - #FreeFlowFriday: Raising Capital Myth Busting Part 3 with Dave Dubeau
Welcome to Free-Flow Friday, powered by the Property Profits Real Estate podcast, I am Dave Dibble and I'm very excited to give you an over the shoulder learning experience around raising capital, as well as other tips, tricks and strategies to help you on your real estate investing journey. So let's start let's discover together. Dave, why would anybody invest in one of my deals if I'm not willing to put my own cash in the deal? Why would they risk their money if I'm not willing to risk my money? Here's the reality, if you're like most real estate entrepreneurs that I know, chances are most of your money is our most, if not all of your money is already tied up in your portfolio. That's just the way it tends to be with most real estate investors. And quite frankly, if you were sitting on a whole bunch of cash, why would you need investor partners anyway? Right. So that's the whole thing. So we autarchy got to keep in mind, when it comes to real estate investing, there are three parts of the deal. You've got the property itself, the deal. You've got the money. That's your investor partner and you've got the team and the experience to make the deal happen. And that's you and the team and all the experience that you bring to the table. So we've got three parts to any real estate deal. You can do the deal if you're missing any one of those parts. If you look at it objectively, how much of the equation are you bringing to the table, you're bringing two thirds of the equation to the table, you're bringing the deal, you're bringing the expertize and the team and your money partner is really just bringing the cash. So you're bringing two thirds. They're bringing one third. And you're going to share the deal, 50 50 with them. That sounds like a pretty good deal to me. All right. We always got to keep that in mind. And if you want a really good example of that, I think, Peter, Kiddush in his book, The Real Estate Action Plan, he's got a whole list of everything that you and I have to do as the real estate entrepreneur, as the active partner in this deal, all the stuff that we have to do to make the deal go. So if you need any convincing on why you're worth 50 percent of the deal, why you don't necessarily have to be coming up with any of the cash for the deal, and just take a look at that now. Other thing is make sure that you structure your deals so that your investor partners are covered. You got to you want to make sure that they are registered on title. You want to make sure that they are getting paid first. You want to make sure that you're only getting paid if they're getting paid. You want to make sure that when it's time to refinance the property or sell the property, they get their capital back first and then you share the profits 50 50 or whatever the split is that you're going to have on that deal. So make sure it's in your investor's best interest and show them that. Right. So I think that'll that'll help make a lot of sense. Take care. Well, hey there, thanks for tuning into the property profits podcast, if you like this episode. That's great. Please go ahead and subscribe on iTunes. Give us a good review. That would be awesome. I appreciate that. And if you're looking to attract investors and raise capital for your deals, that may invite you to get a complimentary copy of my newest book right back there. There it is, the money partner formula. You can get a PDF version at investor attraction book, dot com again, investor attraction book, dot com ticker.