So, you’ve found the perfect deal and you’re looking for somebody with more money than sense to invest in this deal with you because either you don’t have the money, or you don’t want to use your money. I would always say use other people’s money when doing deals because there’s a never-ending supply of it. Yes, Sunil, you might say, that sounds easy for you but I’m just starting out. How do I find these people? Well, let me just touch on what you should have in place first before you go and start talking to people.
Put yourself out there
I think having a business card for example is very useful, I used to go and meet people and put my hand out and say, ‘Hey, I’m Sunil, I’m an investor, I’m looking to expand my portfolio.’ Those magic words, I would say, ‘expand’ at the time I had nothing, but I started meeting people, I started meeting real estate agents, I started many lawyers, accountants and other investors and just talking to people, ‘Would you be interested in a deal if I found one?’ and then staying in touch with those people, but you can’t go to investors without a deal. When you have something solid, concrete, proven that this is an amazing opportunity then that’s something you’re bringing to the table and then you can offer that to investors.
Be honest, be genuine and when you do make a deal, make sure that the investor makes money.
Find good deals
I can tell you there are more investors looking for good deals than good deals looking for investors. There are hundreds of bad deals looking for investors but very few good deals. If you have a good deal and you can prove that it’s amazing, it’s a good opportunity, the investors’ money is going to be secured. You’re going to raise money and you’re going to be able to do that deal and share it with the investor.
Now, a lot of people think that because someone else is putting in the money, they should get the lion’s share of a deal, and that’s sometimes the case but don’t underestimate the power of a good deal. If you able to bring something amazing to the table, which I as an investor don’t have access to, then I value that, right? Because that’s very, very important.
Work out your yes/no ratio
So, remember finding a good deal is critical for being or doing deals with investors and the secret is just to shake hands, go meet as many people as you can and talk to them and when you’re ready, pitch it to them. You’re going to have a lot of people say no but remember every no is a yes because it’s a ratio, that’s business. Not everyone’s going to say yes to everything. So, work out your ratio, once you’ve got your deal, start counting how many people say no and when someone says yes then you know your ‘yes to no ratio’ which is very important.
So, finding investors, it’s very easy, you just put yourself out there and meet people. Be honest, be genuine and when you do make a deal, make sure that the investor makes money.