Understanding the mindset of the investor

In my 35 years of dealing with investors I have come to the conclusion that raising investment capital is more than showing your proposal. You need to understand the mindset of the investor before you can begin the process of showing your investment strategy

Keep in mind, the investor is interested in preservation of capital and dividend returns second. So many people talk about returns first, this is a huge mistake. Nobody is going to deploy capital until you have built a solid relationship with them. The key has always been getting the investor to like and trust you. Do not assume the investor automatically trusts you because you have a glossy brochure and a fancy Powerpoint. Find a common ground, approach the investor with a mindset that fills his needs not yours. I follow the 4 step rule. The biggest issue with raising capital is being patient. It takes 5 touches before you should even ask for their participation. Remember, the investor wants to feel warm and fuzzy before they invest their hard earned money. We talk more about this at our 39th national hard money conference in south Florida March 7th. www.pitbullconference.com