Best of: Are You Begging for Money?

Welcome to the Real Estate Espresso Podcast: your morning shot of what’s new in the world of real estate investing. I’m your host, Victor Menasce, and today we’re talking about begging for money. You’ve heard me right, begging for money. I often hear from many real estate investors who are looking to raise capital; they’re uncomfortable with asking or begging for money. Consider this: when you encounter someone begging, whether it’s for money or anything else, many people immediately say no. Begging or desperation is rarely attractive.

Let’s examine the other end of the spectrum. Think about Ken McElroy one of the rich dad advisors. When he goes to raise capital for a project, he simply sends out an email alerting people – integral members of his community – about the upcoming project. He typically finds himself fully subscribed within less than 24 hours, even for a multi-million-dollar capital raise. There is no begging involved; he’s simply providing information about an opportunity, and people seize it. So, let’s question what differentiate these two starkly contrasting approaches. Both involve the transfer of money from someone making an investment to an entrepreneur aiming to improve their lives. I suggest that the difference lies in nothing more than context. Yes, the content of the messages is the same; however, the contexts differ.

We often get stuck in content, but it’s the reframing available by setting the context that makes the difference. I never ask for money. Instead, I offer people the chance to collaborate with me on a project. This is a completely different posture, a new context, and a reframe of the same question. Let’s not mistake this for playing a game with words; it’s a wholly different context.

Current context can be confining and restrictive, just as a new one can be liberating. If you equate raising capital with asking for money, that’s exactly what you’re doing. But if you shift your context to one of abundance, of offering an opportunity to people who are significant in your life, it becomes a generous act that does not bear an ounce of selfishness.

In future episodes, we will delve deeper into this question of context in various settings, as a new context can be incredibly liberating. Don’t go out and start offering average opportunities. Instead, if you have something genuinely compelling, you have the responsibility to offer someone that opportunity. In the meantime, consider the opportunities before you and ponder over how you may frame the question. Have a spectacular day and accomplish incredible things. We’ll talk to you again tomorrow.

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