March 3rd, 2015 15:05 EST
CrowdFunding is Not a Shortcut
There seems to be a perception, that if you build it, they will come. Put up your CrowdFunding offering, and money will flow in. Well, unfortunately, like everything else in life, nothing is further from the truth.
Of course we hear about the one success story where money pours in and the lucky guy exceeds his goal for their campaign. That happens one in a thousand times. But for the most part, the people that succeed with CrowdFunding, have done a lot of work, and have done it properly, under the guidance of other people who have figured this out. And they`ve put in the effort necessary to be successful. Probably the same way they do for other things in their life.
Success is possible but it takes work.
As a society, we just don`t want to do the hard work. All of us look at weight-loss, and wish that there was a pill that we could take (I wish there were such a pill by the way!), so that we could continue to eat badly, and exercise infrequently. But it doesn`t work. There is no pill. There is no surgery. There is no shortcut. A change to our current situation requires work. But if you do the work, the weight comes off. It`s a very simple formula.
In CrowdFunding, putting your deal up, somewhere on the Internet, is not a guarantee.
CrowdFunding is nothing more than a lead generation mechanism. That mechanism is designed to expose your opportunity to investors that you might not otherwise have the opportunity to connect with. But once those prospects come into your world, you still have to have a suitable deal. You have to have a proper structure. You have to have documentation that works. And you have to have the experience, track record, and confidence to be able to convince the investor that you are the right person for the job. And if you can`t do that, then you will not be successful in raising capital " regardless of CrowdFunding.
The Internet will not solve your problems. In a certain way, it might make your problem worse. If you are not skilled at your craft, and successful in making deals happen, you`ll have a lot of prospects that will be disappointed. You`ll have wasted a lot of time. And worse, if those prospects turn into investors and you really don`t have the skills to pull off the transaction, then woe is you, because bigger problems are on the horizon, magnified 100 fold.
The lesson here is, go back to basics. Take CrowdFunding for what it is. Treat it as a fantastic mechanism for generating leads. But do the underlying work. Make sure that your deal structure is right. Make sure that your track record and your experience is right. Make sure that you understand exactly what you`re getting yourself into. And understand exactly how to sell your deal, once you get the opportunity to get in front of some investors. The investment business is a great business. And using CrowdFunding to help make it happen, is a great way to do it. You just have to make sure that you work the business in the right way.
We look forward to hearing from you.
The Bullseye Capital Fund is an opportunistic buyer of multi-family and commercial real estate that partners with accredited investors who participate in profits. Using our expertise, vast network of resources and experience, we select, fix and profit from distressed assets nationwide. The Fund generates revenue in three ways. Our Value-Add Group optimizes, renovates or otherwise adds value to real estate projects where profit can be realized within one year; our Arbitrage Group uses technology to find and flip parcels for small, but frequent and immediate profits; and our non-performing loan group buys, modifies or repositions non-performing loans for resale. These strategies, combined with our property picking and negotiating skills enable us to produce strong and consistent returns for our investors and partners. For more information, please go to: www.bullseyecapfund.com.
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Finally, the next standard-setting Syndication and Hedge Fund Symposium program will be held in Austin, TX from April 26 to 29, 2015. We hope to see you there.