The Private Money Formula: How To Raise Money For All Real Estate featuring Scott Carson

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Welcome back to the flipnerd.com REI classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let's meet today's expert host.

Hey, everybody, Scott Carson here from weclosenotes.com and I am excited to be the guest speaker on today's REI classroom. In today's topic that I'll be focusing on is what I call the private money formula.

This REI Classroom real estate lesson is sponsored by the Investor Machine.com Flipner, its private investor coaching program, and your blueprint to investing success.

All right, now, what do I mean by the private money formula? Well, everybody, we're all looking for private capital. I don't care who you are, whether you're Scott Carson, Joe Blow or Warren Buffett on Wall street, everybody's looking for private capital not only to do deals but to grow their business. So I don't care if you're sitting on a chunk of cash. At some point you're going to use up your money and need to go out and raise private capital. Now, the private money formula is very simple, all right? You take everybody that's in your database. If you've got 500 people in your database on LinkedIn and Facebook and you've got them in a database like a spreadsheet or in mailchimp or PODI or something like that, you can access, take that number. So say 500 and multiply that times a thousand dollars. The number that it gives you in this case would be half a million. Well, that would be the amount of private capital that's probably sitting untapped in your database. Now, you're not going to tap into it all, all right? Totally. And some people are going to be worth more than $1,000. But you're going to have, on average, everybody's worth about a thousand. One person may be worth 10. You may have nine duds. Who knows? The older you are, the bigger your database is. The average per person goes up, too. So keep that in mind. Now when you're reaching out to your database, all right, you've probably heard the tried and true quote from Tom Hopkins out 80% of sales are made after the fifth contact, all right? It means you're gonna need to reach out to your database at least five times to tap into 80% of that money. Now, a little unknown fact what's known if you market quite a bit is that only about 20% of your email database will, you know, only about 20% of your database will open your Email at any given time, that's notorious across real estate. All right, so what does that mean? Well, it means you really are only going to have 125 people or 100 people out of your 500 open your email. So that means you've got to grow your database and you've got to send out emails at least five times or some sort of contact with your database, giving them some sort of knowledge, not asking, but knowledge to have them want to do deals with you. It's all about building rapport. Okay? So you have to look at, you look at your numbers, look at your marketing. When was the last time you sent an email out to your database? Now, I'm not talking about spamming, everybody email every day, but honestly, those companies, those investors that send out some sort of great content every day have the lowest unsubscribe rate. I bet you didn't know that. Alright, now the biggest bang for your buck marketing wise is it's going to be email. Constant contact, eye contact. Came out with a survey a while back that said on average, for every dollar you spend in email marketing, you should see a 4300, 4400% return on your money. Now think about that. Alright, so what am I getting to? Well, set up a five email series to your database. You do one email once a week. At the end of five weeks you should start seeing that private money rolling into you. It's going to take you five weeks to start tapping into that 20% of that private money formula sitting in your database. So what does this mean? One, you need to grow your database. Two, you got to market on a consistent basis. And three, you got to give some content. Nobody wants to deal with people like give me, give me, give me. It should all be, what can I give you? How can I serve you? Here's an article, here's something about who I am and what I'm doing to really help you guys separate yourself from everybody else. That's not doing anything at all. Trust me, you do a little bit extra than the next guy will exponentially pay off not only the deals you close, but the money you raise, especially if you implement the private money formula. I'm Scott Carson, guys, that's my guest lesson here on the REI classroom. We look forward to seeing you guys at the top.

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