Hey, welcome to this episode of The Flip King Real Estate Radio. Joe’s just come back from a conversation with some new investment partners in New York City and he’s excited to tell you about the relationship, how it came about, and how he built up to the point that he’s able to have conversations with people who can invest very large amounts of cash in real estate investments. It doesn’t come naturally and it doesn’t come without a lot of paying your dues and hard work, but when it does come, it comes in big! In this episode Joe’s going to walk you through some steps and mindsets that can set you up for one day making those kinds of connections yourself. Give it a listen.
A financing snag that brought about a great opportunity
Today’s episode flows out of a situation Joe and his team hit recently. His main investor typically has around 2 million dollars available for Joe to use. With that in mind Joe had a handful of projects going in various states of completion. Then he got the call. His investor couldn’t give him any more money for the time being. It was scramble time. A high level associate recommended Joe talk to some guys from New York who were curious about real estate investing, Joe made the call, set up a meeting, and made a good connection with some new investors. Within days he had a high dollar amount wired to his account and things were back on track. Hear the story and how Joe made the right sort of connection with these new investors, on this episode.
When you first get started, you need to do anything to get deals under your belt.
If anyone ever tells you that real estate investing is an easy field in which to get started, don’t listen to them. When you first begin things will be hard. The learning curve is steep and the things you have to to in order to make your first deals work will cut into your profits. But that’s OK because you’ve got to have a long view. Successfully completed deals now are the clout you need to show future investors that you’ve got what it takes to see things through. They’ll want to see a track record of successful deals to prove that you can be trusted with their money. That’s a big part of how Joe got his newest investors on board. Joe’s got some great tips for how you need to look at that balance on this episode.
Amazing things happen when you shift your focus.
Joe was cruising along, running his business as usual when the news that his main investor was pulling out came. He had to make a dramatic shift of focus right away. For the next week he and his team were doing nothing but searching out a new source of funding to enable them to complete the projects they already had underway. The result was that the increased focus on the area they needed most enabled them to make contacts they wouldn’t have otherwise made, find the financing they needed, and get back on track to finish up their projects and make money for everyone. Think about that principle. What you focus on is what you’re going to see the most gains in, every single time. What is it you need to be focusing on right now? What are the distractions and diversions that will keep you from getting there?
Why you need to prequalify your private money lenders.
After Joe made a phone call to get to know some potential new private money investors he scheduled an appointment to drive up to New York City to meet them. He didn’t talk about money once. Instead he focused on getting to know them, their desires for their investments, and to get a feel for how they did business. The last thing he needs is somebody who’s looking over his shoulder, calling him every week, making him feel like he’s not being trusted. His visit was to prequalify them, to make sure they were someone he wanted to work with. When you need money the temptation is there to accept anything that comes your way. But you have to be careful. Often times the person who gives you the smallest amount is the one who’s the most irritating to deal with… and it makes sense, they don’t have much so they’re very concerned about how it’s being used. Hear Joe’s lessons learned on this episode of The Flip King.
OUTLINE OF THIS EPISODE OF THE FLIP KING
- [0:43] Introduction to today’s show: Debunking myths about cash investors.
- [2:20] Hitting a snag in his funding pipeline.
- [4:10] The power of shifting your focus.
- [6:46] The meeting with new investors.
- [7:54] The one thing to tell yourself about funding when you first get started.
- [9:16] What matters most when you first get started.
- [10:30] Why Joe doesn’t give away equity in his real estate deals.
- [14:52] What it means to prequalify a private money lender.
- [16:33] How your limiting beliefs will keep you from growing.
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