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Access To Private Money FAQs
- How fast
can I get my money?
If the project is well defined
and in the proper format, and can be presented
right away, it is theoretically possible to obtain
funding in 2 weeks. However, in reality, most
projects will take at least 8 weeks or longer,
depending upon how much additional information
the investor needs to verify the facts and to
feel comfortable enough to fund the project.
- What types
of projects do you fund?
We fund a wide variety of projects
including real estate development, and business
growth and expansion in practically all industries.
- Where will
you fund projects?
The projects are primarily
funded in the United States. However, we provide
funding for projects all around the world. But
there are some
locations that the investors avoid, because
they are considered too high a risk.
- What is
the cost of funding?
Generally there is a 3 to 4
point broker fee which comes out of the funds
requested when the project funds.
- What ROI
do the investors want?
Since the projects are funded
by individual investors, the ROI varies widely.
However, depending upon the risk, length of time
the funds are in the project, and the type of
project, the investors generally want a 20% to
50% return. The investors are looking for a percentage of the profits in the deal. They weigh that against the risk to determine whether the overall return on investment is sufficient for the risk taken.
- What is
the cost to submit a project?
There is no cost to submit
a project to determine investor interest. However,
there is a security deposit
to ensure that you are willing and able to meet
the required meeting hosting fee, when an interested
investor is found for your project.
- Is there
an up front fee?
No. There is no up front fee
as such. However, there is a meeting hosting
fee to meet with an investor to present
the projects. This covers the costs of moderating
the meeting with the investor. The fee is per
investor meeting and not per project. That means
one meeting hosting fee for each investor you
meet with. But, several projects could be presented
at one meeting. The current meeting fee is $9,500
for an in person meeting, and $4,750 for a web
conference meeting.
- If my project
does not fund will I get my fee back?
No. The
meeting fee is non-refundable.
However, if you schedule more than one meeting
and your project is funded at one meeting, the
remaining meeting fees are refunded.
- Can the
meeting hosting fee be deducted from the broker
points?
No. The meeting hosting fee
is paid to the company that hosts the meeting
regardless of whether the project funds or not.
It is a retail service that the hosting company
provides to moderate the meeting. Since our business
is providing access to the funding sources, we
have no control over what happens between the
parties at the meeting. Thus, we
cannot underwrite or guarantee the meeting fees,
and cannot deduct them from the broker points.
- What
is the minimum project size?
Generally the minimum amount
of a funding request is 10 million dollars.
However, some types of projects have been funded
for lesser amounts depending upon the individual
investor and the type of project. Some of the
investors have been willing to fund projects as
low as 1 million dollars.
- How large
a project can I get funding for?
Projects in the hundreds of
millions can be funded. Usually if the project
runs over 100 million, more than one investor
will partner on the funding. However, a project
of 200 million has been funded by a single investor.
- How much
of my project will an investor fund?
Most, if not all, of the investors are willing to fund projects up to 100% of the funds needed to complete the project.
- What
type of documents do I need to submit?
All documents must be submitted
in PDF or PowerPoint format. An executive summary
is required describing your project, funds required,
projected returns, and exit points for the investor.
Any images need to be either JPG or GIF format.
In addition, a Project Funding Profile needs to
be submitted.
- What
is the Funding Process?
After a review of your business
plan and executive summary to determine whether
they meet the minimum basic funding guidelines,
we need an Initial Consultation to ensure that
you understand the Funding Process.
Then we send you a Noncircumvention and Nondisclosure
Agreement to ensure our interests are protected.
When that document is signed and returned to us
we will send out the Project Submission Package
containing the necessary forms to submit your
project.
The remainder of the Funding Process is basically
as follows:
- You submit a Project Funding
Profile and necessary Disclosure Documents along
with your Executive Summary, Business Plan,
Broker Fee Agreement, and any other supporting
documents in PDF or PowerPoint format.
- Your documents are entered
into the Secure Investor Database where the
investors can review your project.
- Investors interested in
your project pre-qualify your project for funding.
What this means is that each investor who pre-qualifies
your project has the funds currently available
and has set them aside to be able to fund your
project.
- You submit your meeting
hosting fees.
- You are briefed about the
investors who pre-qualify your project. You
will be told where the investor is from and
may be given any additional information that
the investor is willing to disclose prior to
the meeting.
- You schedule a meeting
with the investor or investors, either in person
or over the internet as a web conference meeting.
- At the meeting you make
a formal presentation of your project to the
investor, and you and the investor get to know
one another. Developing a good rapport with
the investor is crucial to any funding.
- Shortly after the meeting
(usually at the close of the meeting), you know
whether the investor will fund your project
or not. You may get a definite no, a definite
yes, or a qualified yes with conditions depending
upon additional information.
- If the investor agrees
to fund your project, you and the investor work
out the details of your joint venture agreement
for the project, and the funds are disbursed
in accordance with your joint venture agreement
with the investor.
- Usually at this point the
investor will request additional information
and maybe additional meetings to verify the
information you have submitted. In addition,
the investor, at his own expense, will
do his due diligence to be satisfied that your
project is the way it was presented prior to
making any final decision to fund the project.
- How do
I get started?
Fill out the Information
Request with your Name, Email Address, and
Phone Number and we will contact you to discuss
your project.
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