High Return

The fourth part of the formula is high return.
Generally, when people see an investment with a
high return the thing they immediately associate
with that is high risk.

For any investor the thing that is on their mind
most when releasing their money is preservation
of capital. So if you offer a return that is so
high it is out¨of line with the security your
investment offers you will probably eliminate a
lot of your target group, as well as attracting
the interest of securities regulators.

Offer security at a safe loan-to-value to ensure
capital preservation for the investor, and make
the interest rate a fair amount that allows you
to both win. The private lender gets an above market
rate of return and you, the investor, get the
cash for your deal at a reasonable cost.

When you put you your investors' interests first
by using the four part formula, everybody gets
what they want ... a win/win transaction.

The SEC is mainly concerned with general
solicitation to the public. If you do not
approach people cold that you don't know, but
approach people on a referral basis and use
the four part formula you will be working well
within SEC guidlines and can raise all of the
money you will ever need.

Securities Attorney
If you have a larger deal and you need to
raise larger amounts of money, like, over $1M,
you don't want to even think about the SEC, and
you have a bit of a bankroll, retaining a
securities attorney to do the job for you is
an effective option.

Securities Attorneys have their securities license,
are well networked with money sources and usually
have their own list of clients they tap whenever
raising money.

For the most part you'll pay a retainer ranging
from $2K to $25K and a success fee in the vicinity
of 6%. The success fee is simply a commission
paid upon the successful raising of your capital.

Each attorney operates a little differently so
it's worth contacting a few and talking with
them. Don't waste their time, make offers first,
have Letters Of Intent out in the hands of sellers,
then approach a securities attorney with the deal.

You may or may not retain him/her, but you will
learn an awful lot about raising money and funding
big deals.

I highly recommend you do this. Take a look at these
sites to get started.

http://www.oswald-yap.com/PracticeAreas/Private-Offerings.asp

http://harvardcapital.com/

http://www.legalandcompliance.com/privateplacement.html


There's a whole lot you will learn about raising
private money that can't be taught here. You have
to go an find out for yourself. Sorry, that's how
it is. You will learn the real nuggets, the little
hinges that swing the big doors open when you are
out taking action getting your ducks in a row.

Use all the information you have learned here. Once
you have found a profitable deal that supports the
achievement of your goals, calculate the amount of
private money you will need and use the strategy
discussed here for raising private money that is
most appropriate.