It took me awhile to figure this out. But it’s actually easier to raise large amounts of money than small amounts. For example, today, you can get 100% financing on $5 Million deals, often easier than raising $50,000.
Why?
Because there’s more “cheese” in the big money deal for everyone. Whoever it is, they make more money moving $5,000,000 than they do moving $50,000. And if you’re paid to move money as a broker, do you think you’d spend more time on the $50,000 deal or the $5,000,000 deal?
That’s right. The bigger deal.
There are hedge funds that will do 100% financing but for nothing less than $3 million. They make money by moving large blocks of funds.
Plus, they recognize the economies of scale and reduced risk with bigger deals so it’s prudent for them.
They simply don’t want to mess around with “small deals.”
And the big money sources fully entertain 100% financing deals. They just want to make sure that their investment is properly protected – which is the magic behind the Raising Private Money Formula (more later).
One Response to It’s Easier to Raise Huge Money than Small Money
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Are we talking about A & B Apts. and would that be a equity position.Would you start in the 40% brkt ? and or interest money too ???.Would like to do a deal like that, sure would put my dream to rest,….hope for a answer.
student Keys to vault club.
Scotty Mizukami