Archive for Private Money Tools & Plans

Private investors are most definitely interested in wholesale deals.  A quick turn over of their money with a high profit is actually the best scenario, especially when the risk is low.  If for example an invest lends you $50K, and you flip the property for a profit of $20K in 2 months, and lets say you agreed to pay you investor a fixed 5% of his investment.  Then the investor would recieve $105,000 in 2 months.  That's a 30% annualized return.  Your investor would be delighted.

Question: “- – – I don’t see being able to pay them monthly, and I am not sure I want to share in the equity – – – what is your take on it?”

Investors can be your most valuable asset, and the cost of what you pay them is always worth it.  So if you can't make monthly payments out of the cash flow from your project then you have 2 choices:

1) Reward investors with equity–a percent of your profit.  If the investor puts up all the money, giving them a minimum of 50% of the profit is pretty standard, and you may want to give them even more to get them on board for your first deal.

2) Offer deferred interest – that is, all the interest due and the principal owed will be paid when you exit from the deal (usually by selling the property).

privatemoneylendingcoaching-200x200

An intensive personal 8-week training
to bring you to getting the check

Here’s How to Enroll in the Private Money Mastery Program

The Private Money Mastery Program is a short-term intensive 8-week training the will give You the entrepreneur, the “real life” skills, ability and every Resource you need to go out and find those high-net worth individuals who are interested in investing in your business and then actually convince them to write a check.

The system is based on Professor Richard Odessey’s GRAD formula (Get Ready, Attract, Deliver).  Richard is both a longtime entrepreneur and a Private Investor himself.   You will learn directly from Richard and the CEO of his Angel Investor Group.

And you will get personalized instruction that you can apply to your very own business and go out and raise the capital you need to succeed.

Here is the knowledge and skills you will develop:

I. Get Ready

When you meet with those Angel Investors (or anyone else who might invest), you’ll want to be totally prepared.  Imagine the confidence you’ll have knowing you have a great plan, a great investment and that you can easily respond to anything an investor throws at you.

So, well start off by helping you:

  • create your credibility kit including an impressive bio, business summary, and testimonials
  • create your board of Advisors and Strategic Team to bolster your credibility and appeal to investors
  • For real estate investors we’ll show you how to put together your property  package
  • Create your offer that will stimulate the greed glands of your investors without giving away the farm.
  • Make sure you have the proper “investor-friendly” entity structure
  • Create your 1 page investor profile (sophisticated investors with big bucks will expect this).
  • Create a timeline so you can accomplish your goads in weeks, not months or years

II. Attract

In the “Attract” phase you will develop the tools and resources to find the investors that are right for your business and learn how to get them interested in investing.

You will:

  • Work with your list of contacts and learn how to expand
  • Get an in depth understanding of investor psychology and learn what buttons to push
  • Develop an “elevator pitch” that will catch the attention of investors
  • Learn how “Get the Meeting”
  • Develop master networking skills.

III. Deliver

This is the “show me the money” part of the formula.  It consists of:

  • Developing a Powerful, Concise and Effective powerpoint presentation
  • Recording it.
  • Having your presentation professionally critiqued
  • And practice, practice, practice
  • Going over questions you will be asked and how to answer them.
  • How to ask for the money

If you agree to put in the work, we can show you how to master all these skills, and go out and get the money.

Private Money Mastery is an 8 week intense program.   You will be mentored by 2 master instructors: an experienced entrepreneur/and investor, and the CEO of an Angel Investor Group.

This is a totally unique program devoted to skill mastery and is only for entrepreneurs willing to do whatever it takes to succeed.

Please Fill out and Submit the Application below.
Richard will contact you to set up your first meeting.


Tell Us About Yourself
First Name *
Last Name *
Email *
Phone 1 *
Street Address 1 *
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City *
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Postal Code *
RE Experience Level
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Why Join this Program
3 Strengths
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Seed Capital for Start up businesses Want Seed Money for your Startup?

Well, as you might have figured out, you can’t just walk up to a potential private investor, tell him or her about your “Great Idea” or your Company, and expect them to write a check. No way!

Want Seed Money for your Startup?

Well, as you might have figured out, you can’t just walk up to a potential private investor, tell him or her about your “Great Idea” or your Company, and expect them to write a check.  No way!

If you want to be successful in getting startup funding for your early stage business, you have to learn how to “attract” private or Angel investors to you.

So what’s the secret? Or to paraphrase a famous movie title: “What do Angel Investors Want?”

The short answer is: put yourself in the private equity investor’s shoes, and think about what you would want before you invested your children’s inheritance is some startup company.

Now, what I’m about to tell you may shock you.  It’s not the “easy-no effort” seminar version that gets you all excited, but won’t put a nickel in your pocket. 

These are answers based on the experience of raising “real money” from “real private investors”.

First, know this – Angel investors are walking around with an invisible antenna over their heads that is tuned to only 1 station: WIIFM or “What’s In It For Me?”  Unless you can explain that clearly, quickly and concisely, you’re out.

Angel Investors and Venture Capitalists have no patience for people who beat around the bush and waste their time.

Second, as a sophisticated private investor, I know that not all ideas are good ideas, and not all good ideas (e.g. good for you) are good for me.

For example “lifestyle” companies (companies that will create an income for you but never build huge equity for the investor) are not investment candidates.  So, don’t give me a canned elevator speech, and expect me to be excited and whip out my checkbook.  First, “show me the money.”

Next, anybody who has become wealthy enough to have capital to invest, did not get there by taking excessive risk with their money.  The reason why lottery winners generally end up poor again is because they never learned this principle.

Or as Will Rogers once said: “When it comes to investing, I’ve always been more concerned with the return of my money than the return on my money.”

If you want private money, you need to explain to the Angel investor, how he is protected from losing his principal and how he is going to get his money back (ROI = Return OF Investment). In other words you need a realistic exit strategy—preferably more than one.

And you must address the question of risk. 

Unlike most people, sophisticated investors have fairly low risk tolerance.  If the risk level in your business plan exceeds their idea of an acceptable and calculated risk, no offer of a return is going to convince them to place their capital with you.

And the Final and probably the most important consideration for the Private Investor is: “YOU”.
Angel investors have a saying, “Bet on the Jockey, not the horse”.

Think about it. Would you invest your money with someone you didn’t know or respect, regardless of how great the idea was?  I don’t think so.

Are you a person of high integrity, and do you do what you say you’ll do? Do you have the experience, knowledge and expertise and the team to see this business idea through to a successful conclusion? 

Trust me: No Angel investor is going to entrust you with their capital, unless these questions are answered and demonstrated to their satisfaction.

Explosive Strategy to be Revealed to 200 investors…

private money lender deal evaluation tool

Congratulations,
there is another special opportunity waiting for you.

Is your deal “investment ready” for private lenders? When you want to raise $100,000’s or even millions of dollars for your real estate ventures, you’re going to want to be talking to people with money—the high net worth individuals and angel investors.

As a member of the InvestorWealthNetwork.com’s Private Lending Insider, you’ll be learning how to do this.

Now, these investors are going to scrutinize your deal to make sure it can generate the kind of return they’re expecting and not expose them to too much risk.

So, wouldn’t it be reassuring if you had an expert at your side that could assist you in structuring your deal to meet these criteria before you approached people for money?

Well, now you can with a special software tool designed by Richard himself that he uses in successfully funding his deals.

It’s not just a piece of software. It’s a unique expert system. Just enter your numbers and the expert system will:

Project out your profit and cashflows up to 10 years in the future

Quantify the investor’s risk by telling you what will happen if you lose a tenant or your rehab goes over-budget

Allow you to test multiple exit strategies to find the one that will maximize the return with minimum risk for yourself and your investors.

Give you multiple options for offering your investors those “can’t refuse” high returns through promissory notes, and/or equity investments while bringing you cashflow through management fees and equity sharing.

software-box-250

 

These are sophisticated techniques that the Donald Trump’s of the world have armies of accountants, and financial advisors to work out for them.

Now, you will have the power to work this out in minutes without spending another dime on high-priced financial whizzes.

This is an expert system created by an investor for Investors. Richard uses it personally in all his deals, and it has made him excellent profits every time, and it will do the same for you. It’s as simple as punching numbers into the blanks the program asks you for, then reading the evaluation sheet.

The Deal Evaluation Tool is a $297.00 value. It’s worth every penny. You’ll probably earn much more that the first time you use it. We sell it on InvestorWealth.com every day for that price.

For this Special OFFER you can get here right now, Get This incredible wealth-creating expert system for ONLY $147.

You will NEVER SEE this offer on our public non-members site. So, click the button below to order it NOW.

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Use the MembersOnly Discount Code IWNDET on the shopping cart to get an additional $70 off. Make sure you click the APPLY BUTTON before you check out.

Deal Evaluator

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Access To All Special Member Discount Codes are for Members Only after logging in.  If you are not a member yet, you can take advantage of the $147 special price for visitors to InvestorWealthNetwork.com.

Deal Evaluator

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real estate private money lendersTest your deal evaluating skills?

Every successful investor balances the risks with the benefits.  Let’s test your insights with this Example:

You find a single family house and after talking to the seller you find out:

Fair market value     $180,000

Seller Owes                   $135,000

Seller in arrears           $    1,800

Estimated Repairs       $    5,000

Seller’s Monthly pmts $   1,003 per mo (7.75% interest rate)

In your market, you estimate it will take about 3 months to get a tenant-buyer that will pay the market rate of $1350 per month.

Is this a good deal?

Let’s do the Math.  Let’s review the numbers below and then break it down.

Well, there’s $38,000 in equity even after fix-up and payoff off the arrearage.  Let’s calculate the cashflow: (you can get out your calculator or use my Deal Evaluation Tool).

Monthly
Rent Income
1,350.00
Other Income
Vacancy Adjustment
Gross Operating Income
1,350.00
Expenses
211.00
Loan Payments
1,003.00
Net Operating Income (NOI)
1,139.00
Net Cashflow
136.00

The cashflow appears to be decent, and the equity is nice.  Just lease option it for a year, and then get the tenant to refinance.

What’s the Catch?

I know a lot of investors that would take this deal.  (At one time, we would have).  However, let’s remember that 3 month holding period.  During that period you’re paying the mortgage, taxes and insurance, plus some utility costs.  All told that’s going to run about $4,060.

Oh, and the repairs…no repair job no matter how small costs what you think it does—it’s always more.  That $5000 could easily grow to $7000.  That means you’re going to have to come up with $11,000 before you receive a penny from a tenant.

Risk #1 = $11,000 in carrying/purchase costs.  Where are you going to get the money?

The Cash Crunch

Remember—never use your own money.  If you can’t borrow it or negotiate it, I strongly recommend you walk away.

But suppose you had a friend that would lend you the money (at 12% interest).  Ok, but that’s $110/month added to your costs.  Now, your cashflow is down to $26 per month.  That’s pretty slim, but positive.  As long as nothing goes wrong.

However, this raises a big red flag in the Deal Evaluation Tool.  Why? Because what if your tenant stops paying.  Well, even if you had a hungry buyer lined up, and lived in a state that made evictions quick, like Georgia, you’d be sucking air for at least 2 months.

Risk #2 – But heck, even if you lost only 1 month’s income, you’d be negative for the entire year.

Bottom-line – Bad deal – walk away.  There are better deals out there.  Don’t tie up your resources and stress yourself out for a hoped for pot of gold at the end of the rainbow—you may not get there.

The Deal Evaluation Tool to the Rescue

These are the kind of situations, I coach my students to analyze before they act.    A bit of due diligence, and the use of my Expert System–the Deal Evaluation Tool, could have allowed any investor to walk away from financially dangerous situations without costing him a dime.  It also calculates your costs, income and tells you if the risk is too great.  It will even let you test out different strategies or what if a scenario to find which one works best.  We use it for all our deals.  I insist my students use it, and I highly recommend it to you.

This is a system with my built-in expertise that has helped us tremendously in sorting through the points I’ve discussed above, for just about any kind of deal from single family to multi-family, rehabs to rentals, and short sales to pre-construction.   Put in a few simple numbers that you can get from the seller and a bit of due diligence, hit the enter key, and voila:  You get a complete report of your cashflow, profit and risks for up to 10 years into the future.

It will also tell you whether the deal is a go or no-go.  If it’s a no-go, you’ll also get specific suggestions on how to fix it, based on the risks involved.  And importantly, you’ll be able to work out a return for your investors that will make them salivate and bring you a hefty return.
I developed this tool for our own real estate business and it has consistently steered us away from bad deals and identified the slam dunk ones.  We use it on every deal we do.

For InvestorWealth subscribers, we sell this Deal Evaluation system for $297, and that’s a great deal. Now, because you are an Investor Wealth-Network Member, I am going to give you this incredible Expert system for only $147 – that’s a 50% discount—You Save $150.  Just click this link

If you don’t use this tool before you do a deal, you are putting yourself, in my opinion, at an unacceptable risk.  If you want to do only successful deals and completely eliminate losers, getting the Deal Evaluation tool is really a no-brainer.

P.S. There are a couple of other ways to work this deal that could turn out better.  Can you think of any?  Just put your comments in the forum.