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R AISING M ONEY

default is even more remote. Bankers hate to deal with problem
loans—especially when timely payments are being made.

HOW TO GET INVESTORS

Trumphas loads of available cash, but he still seeks investors so he
can invest in several large projects concurrently. Bringing in equity
investors effectively reduces Trump’s risk on any given project,
while the money provided by equity partners makes it easier to get
better financing. The more capital invested by a borrower, the
greater feeling of security is created in the mind of the lender. The
small investor should consider getting investing participants for sim-
ilar reasons.
If a small investor lacks certain expertise in a particular area, he
or she should seek to hook up with someone who does. For example,
if your aim is to furnish money and only be the money partner, be-
cause you don’t have the expertise in other areas or the desire to per-
form a function yourself, team up with a partner who doesn’t have
the money, but has expertise in maintenance, repairs, construction,
management, or any other skill that a successful venture requires.
In another instance, you might have property management skills,
and know someone who has repair and maintenance skills. The two
of you, as partners, could team up with a money partner to buy an old
20-unit fixer-upper that you will manage and your partner will pro-
vide the necessary talent for the refurbishment and maintenance. In
this way, you take advantage of the attributes of each partner to at-
tain a common goal, which would otherwise be unattainable. It is not
necessary for the partners to share profits equally. There should be
some agreed recognition of the value of the services furnished by
each and some procedure for equalization by distribution of profits
or otherwise. Since the managing partner has to spend the time and

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