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money people deal

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truth of the matter is, in business or real estate, we will always run out of money. No matter how much cash and credit we have, it always gets ‘tied up’ in a deal, and we eventually run out. This happens to every investor, whether you are Donald Trump or Warren Buffett. There is always a point where the investor must go out and raise capital to keep investing.

I began investing at age twenty-two, and the greatest advantage I acquired by starting so young is that I had virtually no cash, no credit, and no credibility when I started. I had to learn to raise cash, manage my small amount of credit, and leverage credibility. I had to learn the skills required to play the game of Money, People, Deal with no cash from day one because I started the game with nothing. I was a punk kid who had taken $2,000 worth of real estate seminars and had to make the dream happen.

My investing career didn’t take off until I learned the rules for creating deals and raising money. This skill set has allowed me to raise money for all of my deals (except my first one, where I put down a small down payment of $1,200 cash). Because I understand the fundamentals of Money, People, Deal, I have never put down money on an acquisition of business or real estate since.

Most investors think that cash is king, and they are terrified of raising money for a deal. The truth is that cash is trash; everyone has it, and it’s a cheap commodity that is worthless without the brains to manage it. Money is fickle and is easily attracted if we understand a few key principles of money.

There are three major parts to putting a deal together and raising all the cash we will ever need. They are the following:

1) The Money: The cash required to start the business or acquire the real estate.

2) The People: The team that will operate the business or asset.

3) The Deal: The business or asset itself.