Interesting call yesterday on The Real Estate Warrior Show – caller has done couple of deals – last pay day was around $45,000 but he is losing out on good deals every day because all his money is tied up. We roughly calculated that if he had “access” to one million dollars he could probably clear around $600,000 in 2006.

One of the most common things that happens to all real estate investors – Michigan or otherwise is they realize as soon as they become active investors is that their own money is not enough.

Too many opportunities to those who are looking? Now obviously if you are watching 57 hours of television every week and complaining that there are no good deals to be found then the blame lies on ………

So you start in Michigan real estate – you think that the biggest challenge you are going to have is finding a good deal. You learn to launch some marketing systems in your city and then the deals start coming to you.

Then you do some deals, get some checks, you are happy and then just like that all of your own money is tied up on deals but your systems are still up and running and the leads keep coming in.

You can stop your ads but what about the flyers you mailed a month ago? You can stop the postcards going out but what about your website which is up and running? What about the Realtor you just closed a deal with and he is excited about sending you another 2 good deals?

You can say No; that is true but every No will probably cost you $20,000 in your bank account. That is not such good thing – is it?

So even though you might have your own money when you start out – I would suggest to you that you need to take a serious look at getting private money at your beck and call all the time.

There is no expense in it besides some advertising cost. So you don’t sit and wonder if you could have made an extra $100,000 in the next 3 months and you didn’t because you had no private money to pull it off.

Some people have emailed me asking me for a list of private investors. The same caller told me that he is having a hard time getting private money. I pressed him to whom he has asked so far – the answer was friends and relatives.

Here is my take on this – friends and relatives are probably the worst people to ask for money. Because the only reason almost everybody would turn to friends and relatives for getting private money is we feel comfortable with them.

There is no fear of rejection. But instead of asking friends and relatives for money lets pause for a second and ask us if they have money to give you in the first place.

It does not matter how good your credibility kit is or how well spoken you are? Because if you are asking friends, mom and dad, relatives and co-workers and they have no money to spare – then you are just wasting time barking up the wrong tree.

Real Estate Warrior Way says that you ask for private money only from those who have money to give and no one else.

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