Raising Capital Without Asking Friends and Family for Money with John Casmon
Merry Christmas and Happy Holidays to all. I wanted to do something different for you for today’s episode and wanted to really focus on why we spend a lot of time highlighting marketing and raising capital for apartment investing. I realized many of you may not know my story and how I got into real estate and capital raising. That's why I decided to highlight an interview I did with Steven Pesavento on his show, the Investor Mindset Podcast.
We talked about my background, growing up in a scarcity environment, making it to corporate America, and ultimately becoming a real estate investor. Much of our discussion focused on raising capital for real estate deals and overcoming the issues that many investors face.
I discuss the 6 C’s of Raising Capital and why developing a marketing plan is critical if you are serious about growing your real estate business.
How to Raise Capital Without Just Asking Your Friends and Family
How my past shaped my financial future
Starting out as an executive at GM
I was selling plastic gloves to beauty salons, which taught me the value to putting the right (offer) in front of the right audience at the right time.
How a heartbreaking moment at GM during a bankruptcy changed my trajectory
The Rich Dad, Poor Dad connection
Multifamily Investing as an adult side-hustle
Taking the equity in my first 2-unit property to create a six-figure line of credit to buy an 8-unit property.
How to get started with raising capital
Before you can raise money, you have to understand your goals as well as your limiting beliefs
How to change your focus (mindset) away from your limiting beliefs
Raising capital concerns fall into one of three buckets:
I don’t have the network to raise money
I don’t want to ask friends or family for money,
I don’t have the education or knowledge to feel comfortable raising capital
Understanding the 6 C’s of Raising Capital
Confidence (knowledge is power)
Credibility (leverage the people around you)
Connections (family and friends are not your ideal investor)
Channel (What platform you use to communicate your message)
Communications (What’s your message?)
Consistency (demonstrating your commitment level)
A good salesman is not trying to sell you, they are trying to educate you
How to structure your message if you’re starting out in real estate investing
Understanding the different channels to use to build your network and get your message out
How to structure your messaging
Creating different tiers of messaging
Educate and inform and position yourself as a subject matter expert.
How to create an avatar (customer profile) of your ideal investor
How understanding your customer profile is a vital piece to your investing career
Developing a marketing strategy is paramount to the success of your business
What Success Looks Like to Me:
Freedom and independence
Daily Success Habits:
Journaling and having one hour to myself every morning
The Book I’m Loving Right Now:
Relentless: From Good to Unstoppable (Tim S. Grover)
When I first started out, I was concerned I was going to mess up someone else's money, so I owed it to myself and my investors to invest in a mentor. Looking back, I wish I would have doubled-down on mentoring.
What Drives Me Everyday:
My legacy and making an impact.