A lot of people around the world struggle to raise capital, which is probably one of the reasons why you’re here. In this blog post, I’m going to talk about the five critical elements you need to raise money for your investments.

Hey, there! It’s Billy with KeePon Cashflow. Once again, I’m back to share tips and strategies that will help you make more money. They’ll help you have more control over your free time and ultimately live with less stress. If you enjoy my blog posts and videos, please do me a favor and like, share, subscribe, and leave a comment.

Getting back on topic, there are so many people who struggle with raising capital for their investments. I actually just picked up a book that I want to share with you. It discusses the five critical elements you need in order to raise capital. As you know, I have more than 6 years of experience in real estate, especially when it comes to managing and raising capital for assets. I’m also fortunate to have wonderful advisors and mentors all around the globe. One of those people is a gentlemen named Victor Menasce.

You’ve probably heard me talk about Victor before. I was on his podcast not too long ago, and he’s someone I hold in high esteem. Recently, I had a chance to purchase his book, called Magnetic Capital. I highly recommend you buy it for yourself if you’re trying to raise capital for your investments. It can be for real estate assets or for building a business, like what Victor did. He’s raised hundreds of millions of dollars in order to buy businesses in the high-tech sector. Whether it was buying businesses or real estate, he’s identified five critical elements that you need to be able to effectively raise capital.
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The first key element to raising capital is building relationships. He talks about different types of capital that people have, like educational capital, physical capital, financial capital, and more. At the end of the day, all those things come together into what’s called relationship capital. To have relationship capital means you can build a relationship on common interests. These relationships have to be real, and if they are, they could lead to further opportunities. It’s important to be honest in these relationships. If you don’t like golf, then don’t try to use that as common ground with another person. Communication is also important, which leads to the second key element Victor talks about: trust. When you have trust in a relationship, the friendship is of a higher quality. There is a direct correlation between the speed of doing something and the amount of trust between two people. A lot of you are in corporate jobs, like I am, so think about the clients you spend the most amount of time with. You’re building a great relationship with a lot of trust. With that kind of bond, your client is much more likely to get to a decision point faster.

There is a direct correlation between the speed of doing something and the amount of trust between two people.

Once you have relationships and trust, the third crucial element to raising capital is to have results. You must be able to show the amount of results that you’ve provided already. This allows you to make a bigger impact on the people you’re working with when you can demonstrate what you’ve done in the past. However, it’s important to note here that these kinds of relationships, this kind of trust, and all of your results don’t always come from an individual person. Sometimes it’s up to your whole team to have good communication skills and to build that relationship with another person or another team, and then to demonstrate everything you’ve accomplished in the past. Keep in mind, however, that just because a company has been able to provide a result in the past doesn’t necessarily mean they’ll be able to do it in the future.

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Therefore, the fourth crucial element to raising capital is having a compelling opportunity for your investor. This needs to be something where they can get the results they’re looking for. As I said before, just because you’ve provided results in the past, doesn’t mean you’ll be able to provide them in the future. With a compelling opportunity for your investor, it’ll be much more likely that they’ll trust you to provide what they need.

The fifth and final essential element to raising capital is alignment. Just because you have a compelling opportunity doesn’t mean it’ll always be the right prospect for the investor. It has to be a good opportunity, and it has to be the right fit for the person you’re talking to. This is absolutely critical because it doesn’t matter if you have a compelling opportunity if it’s not something your investor is looking for.

I know I’ve talked about this in sales bootcamp video, but it’s important to remember that it’s never, ever, ever about you. It’s always about what your investor or your customer is looking for. Victor has also talked about this many times. It’s like trying to find a shoe for someone. You can find a shoe that costs $2,000 but is on sale for $50. It’s a great deal! But if the shoe doesn’t come in the right size, there’s no point in buying it.

Like I said, these are just five of the critical elements that you need to raise capital for any investment opportunity. There are so many other things Victor talks about in his book, Magnetic Capital. As someone who’s been crushing it in real estate for over a decade, and who has experience in the corporate world buying and selling businesses, he knows what he’s talking about. His book had a hugely positive impact on me.

If you’ve read Magnetic Capital, I’d love to see your comments. Share with other people how much this book has meant to you or what insights it’s provided you. I’m also going to leave a link here, so if anyone is interested in purchasing it, you can do that right now. I hope it’ll bring you as much value as it brought me. I wish you all the best as you continue to raise capital for your projects.

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Those of you who have been following me know that I’ve been working a corporate job for over 20 years. In the last five and a half years, I’ve also been building my own business doing long distance real estate investing. If you want to know more about that, just click HERE. For those of you who are serious, there are some educational opportunities there as well. If not, just pick up the eBook as my gift to you. I’m looking forward to staying in touch.

This is Billy Keels with KeePon Cashflow. That’s my two cents for today. As always, hasta la próxima!

You can also check out my latest podcasts and collaborations here keeponcashflow.com/podcasts/