Raising Money From Your Everyday Investor
Written by Manjit Rukhra on October 7, 2019
There's no better time in history then today to access capital for your real estate deals. Today, most people’s savings and retirement funds are sitting in a bank savings account, GIC (Guaranteed Investment Certificate) or a Certificate of Deposit (if you're in the USA).  A large majority of people are dissatisfied with the returns they're getting from these traditional investment vehicles.

Most of the money sitting in banks and credit unions is made up of GIC’s, savings accounts, registered government funds and cash. Your average person either doesn’t know where to go or whom to contact to get a better return on their money or they haven’t given this a second thought.  

A perfect example of this is a few years bank I was looking for a $50,000 loan for one of my renovation projects. I approached my mother about her retirement and her current GIC at her local bank. She informed me that her banker had locked in her funds for a 2-year term. I then asked her what her rate of return was and I learned it was just a measly 2%. I'd be lying if I said I was shocked but I wasn’t. These low rate of returns are quite common amongst many banks. The good thing was that her term was about to expire around the same time I was to take possession of my project. Once she got access to her funds I was able to borrow them for my project and pay her a lucrative 10% return on her money and I also registered a mortgage on the property in her name to secure her money. I used those funds to pay for renovations and returned her funds with interest in about 6 months. Needless to say she was quite happy with her new return on investment. She made 5 times the return on her investment that she would have made at the bank. 

This is an example of the type of every day people who invest in these very low paying investment vehicles. No one has educated them on how low of a return a GIC, or similar bank products pay. In fact most people would be shocked to know that after factoring in taxes and inflation this can diminish the return to the point that it's in the negative. 

We have built our business on raising capital and have also taught many other clients to do the same. Someone once said, “The one who educates the market, owns the market”. That is so true. Once you start to educate yourself and others in your inner circle on how returns, securing money, and taxes work people will start to see the value you bring to them and naturally they will want to invest with you. You will begin to access a whole new world of capital that you may not have known existed before. 

Manjit Rukhra

Manjit Rukhra helps people raise private funds to invest in real estate.  He is an expert at helping people raise funds by following his simple system and making things super easy to understand.

If you're interested in raising private funds to buy your first property or buy more property to add to your portfolio then definitely reach out and request a free strategy session today.
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