b'How to Legally Raise Private MoneyYour business model is a matter of personal choice, your interests or experience; the amount of your financial need; and certain limitations that may be imposed by others. Many entrepreneurs seek an alternative to their current careers and find trainers who can teach them a new busi-ness model. Others have an idea for a new service or product and wish to start a new company to implement it. Once you determine your business model, you will describe it in your businessplan,website,companybrochure,pitchbook,orinvestment summary. You will use these venues to explain your business model or specific investment opportunity to prospective investors. WHAT WILL YOU DO WITH THE MONEY?The first thing you need to figure out is what you are going to do with the money raised from private investors. Developing an investment strat-egy that will yield a return on investment for you and the investors is the next step.Some typical business models that use private money include: Selling interests in your company to generate cash flow to develop your product, service, or real estate acquisition company. You share ownership and profits with investors. Buying, fixing and flipping residential or commercial properties and splitting the profits with investors.Buying, leasing and holding residential properties to share cash flow during ownership, and splitting further profits (equity) on eventual resale. Buying and holding commercial income-producing rental prop-erties such as multifamily property, hotels, retail shopping centers or malls, office buildings, industrial parks, self-storage facilities, mobile home parks, or student housing; and sharing the cash flow from rental income and profits on eventual resale. Developing vacant land or redeveloping existing properties for sale or lease and sharing rental income and resale profits with inves-tors.22'