WHY YOU SHOULD STOP ACCEPTING ALL INVESTORS - What I Learned If you create a private equity fund, you have to learn how to turn away investors. If you

WHY YOU SHOULD STOP ACCEPTING ALL INVESTORS - What I Learned

If you create a private equity fund, you have to learn how to turn away investors. If you accept everybody into your private equity deal to buy more real estate or to buy businesses, it just shows that you may be desperate. You have to learn how to just tell people that they're not a good fit if they're not a good fit, and you can't, you have to have specific parameters, types of investors that are suitable for your fund because by defining the types of investors who benefit most from your private equity fund, that's the only way you'll be able to attract what you want. (why you should invest)

And people respect honestly, somebody that is clear about what they want, because the more you define what you want, the more likely you potentially get it. So, Real quickly is like when people are creating a private equity fund and to buy real estate and all this, either a single purpose syndication or you know, a blindfold fund.

Some people have it open where they say, oh, I'll acquire whatever I want. Um, and then they just try to, they just take calls of everybody that would agree to potentially write them a check. So the two problems are, number one, there's some investors that you don't wanna work with that are potentially very litigious. (why you should invest)

They can cause you a lot of problems. And we've seen where. People would be, there's some people that I work with a very high touch. They need a lot of support through the process. And then if their returns are not exactly what they're expecting, then they can start bringing in their lawyers right, really quickly.

Um, and they get agitated very quickly. There are some people that are like it. And so you have to just look for warning signs like this. And one clear warning sign is, is when you talk to an investor and then they start saying that they've put money in different deals and then they have a lot of horror stories about the past deals that they've invested in.

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