I talk to people that raise capital successfully and they
follow this checklist I created so could consider it if you want to raise money and do
syndications:
1)
Get a viable specific opportunity (ie. commercial property)
2)
Present it in person (to a group or an
individual investor)
3)
Present only to qualified and interested people
4)
Have a good PPM at hand (a PPM is a Private
Placement Memorandum)
5)
Use words, pictures and numbers in a way that is
clear and concise (PPts)
6)
Ask for the money
7)
Ask for referrals
8)
Follow SEC rules (Proper documents- Full
disclosures- proper filing etc.)
9)
Perform as promised
10) Keep
good accounting
11) Keep
strong relations with your investors
12) Be
tenacious and keep growing and contributing
When I meet people who want to raise money but never succeed
they do precisely the opposite:
1)
They do not have a specific opportunity- so they
speak in generality about ideas, and concepts instead of a specific deal and/or
project
2)
They present it by email blast, fax broadcast or
on the phone (or even webinars! Against SEC rules for private funds)
3)
They present to anyone they run into without
qualifying people first (qualifying them financially and their interest level
in this type of investing)
4)
They do not want to spend the money on a good
PPM to show interested investors something specific to sign at the end of their
presentation (Instead they show a Business Plan with some proforma)
5)
They do not know how to present well using PPts
and other tools to make it real and exciting for the investors
6)
They are intimidated by money so they do not ask
for it to avoid creating a tense moment with the investors
7)
If they get an investor who is committed, they
do not ask for referrals (best way to pitch is to ask: “do you know someone
that would be interested in…”
8)
They do not follow the SEC rules especially in
terms of qualifying potential investors financially and keeping good records as
to whom they spoke with and to whom they handed a PPM (if they have one)
9)
They don’t get started to get a performance
track (This enhances the credibility factor)
10) They do not keep good back up receipts
and accounting for the fund activities and often expense personal items through
their fund (very bad in an equity fund)
11) They
maintain relationships with people that will never invest with them hence they
end up frustrated after wasting time and energy
12) They
give up often soon enough and never give themselves the chance to explore their
potential in making big deals happen only if they make some small self
corrections as stated in this blog.
My ultimate training event is held in Puerto Rico where I
coach people through the process of raising capital and deploying it safely, profitably and legally. I get my student/Investors to practice and elevate their
game to a level where they can even have a Fund of Funds (I show them how to create a set up under
my existing private fund called MIGSIF) so they can start under my wings, so to speak, until they've raised enough capital then they can branch out on their own to the big game.
This is extremely profitable to them, with residual income on
capital raised and it has a very low risk and hassle for everyone involved.
I hope to see a select few (limited to 20 attendees) in my next Puerto Rico wealth retreat that are focused, willing and able to grow and contribute to others by impacting their financial future through syndications and commercial real estate investing.
See the promo clip from Youtube regarding PR Wealth Retreat:
http://www.youtube.com/watch?v=6vUIEL5_2fs
Sincerely,
Cherif Medawar
