How to start raising capital from investors?


#1

What track record can you show when you are brand new? What’s the best way to start the capital raising process while learning and looking for deals?


#2

This was a question that was on my mind as well. I appreciate you asking it.


#3

The first step is to get educated on regulations. There are tight SEC regulation with regards to raising money. After you get educated, you can always create a sample deal that can be shown to potential investors. Start networking and continue showing your sample deals and stoke their interest. Then start building a contact list. When you get a deal, then you can reach out to these investors to raise capital from them. The biggest problem at this market peak is finding a “making sense” deal. There are abundant of capital looking for small number of “making sense” deals nowadays.


#4

Make sure you know what exemption you will be using. Then learn the rules and follow them. Assuming that you will start out with a reg D 506B exemption, you will need to establish a significant financial business relationship with the investor prior to showing them a deal.

You also need credibility. This can be earned by finding some way to be involved with an experienced investor. You can piggyback on their credibility


#5

Make a sample deal and say would you be interested in this type of investment.

Never ever pitch on the first date…

Everyone does that to me and its such a turn off.