It's no secret that there are many reasons somebody might invest with money with you. But, there's one reason that is often neglected by real estate investors. In fact I would be surprised if anybody is really using this one at all - if you are, email me (with a sworn affidavit!). When I first stumbled upon this, I was pretty shocked. And, a bit nostalgic. You see - a long time ago, in a galaxy far, far away, I used to work out day and night to songs by the heavy metal bank Metallica. No, I never had a mullet or big hair. I did used to love listening to the album Ride the Lightening whenever I was getting into some heavy lifting. Call me old school. Pressing on back to 2010... Actually, it was about two years or so ago that I realized a little known secret that many people with money sleep tight with under their pillows. Here it is...Just like the Metallica song; some private investors want to 'ride the lightening.' They want a thrill. Whoa!

"Adam, that's totally wrong with everything I've ever been taught about private money."
Good. If you're going to drum up some serious capital, you have to think differently. And, if you follow some of my other posts, you'll see that you have to make sure that three pieces of the deal are always there: You matches Investor matches Deal. "The Private Money Deal Triangle" (copyrighted by me - seriously). And, like I always say, different investors want different things with their money. Some want a nice steady march of monthly interest payments. Others want some tax advantages. And... Others want to invest with you to feel alive and to feel like they are a part of something big an exciting. You may know this, you may not...but a lot of people with money (the kind of money to invest with you) have worked long and hard to get it. They put in lots of hours, many times in jobs or businesses that they didn't love, but did anyway to support their family and/or lifestyle. A lot of times these people work and save and pine away to accumulate retirement funds and other globs of disposable income and investable assets. Many times they feel they never got to 'take any shots'...hence we see a lot of baby boomers retiring from high income jobs and going and starting businesses.

Some investors want to feel alive and they want to feel the thrill of being a part of something. The coolest thing about real estate is that it's a real, tangible asset that somebody can see, touch and look at as they drive around in their car on the weekend. One of my first private investors, the only thing I swear he liked about investing with me (other than the money, but that was almost secondary) was that he got to drive by houses with his buddies and show off...about how 'he was in on flipping this house for a $x profit." Mark Twain once said: "Man will do most things to be admired. He will do anything to get himself envied."

This is quite true.
What you will discover as you talk to a few potential investors for your deals is that each one will have their preferences. Using a 'one size fits all' approach - like the old "earn x% secured...blah...blah...blah..." is only going to get you so far. And it might not get you out of the starting blocks. Realizing that some private investors will want to invest with you for the thrill and fun of being a part of something, to get a small piece of the action, to feel like they're 'in the game' - this will be a big breakthrough for you.
Happy Investing.  Adam j. davis