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kaimera
02-27-2005, 06:38 AM
Hello,

How do you guys convince investors (not hard lenders or banks), such as your friends and friends' friends, to invest in your business? I happen to know quite a few people that just feel happy seeing their bank statements with their savings accounts monthly. I try to convince them that the bank will only give them 2-3% and show them how much the money they would get in a year, but that I can gurantee them at least 7% if they purchased or invested with me.

The problem of course is their fear of the risk of loosing their money. I would like to know how you guys convince your investors that you would return their money back to them etc? Do you make them sign anything like a contract. If so what does it say etc?

Thanksa

REIaddicted
02-27-2005, 03:22 PM
You absolutly sign a contract with ANYONE you are doing business with. Also, in the contract, state the investment is Secured by 1st Mortgage. This way they will feel they are in a comfort zone.

Lisa