b'How to Legally Raise Private MoneyHOW MUCH DO YOU NEED?How much money will you raise? The key is to figure out the exact amount of money you need to raise for your desired business model, and from that, determine a minimum and maximum dollar range. The minimum should be the least possible amount you could use to acquire a property or get a good start on your startup business idea. Once you have raised money from investors, it may have to be deployed right away. Idle money doesnt earn returns. Too much idle money may dilute the overall returns you can pay to investors. If only a portion of the funds is producing a return, you may still be obligated to pay a return to all investors, not just those whose capital is producing the return. You need some working capital and reserves, but the key is to not have too much. Additionally, syndicators with too much money may be tempted to make poor investment decisions just to get the money working. If you find you have too much money and cant put it to work in a rea-sonable timeframe, the best solution may be to return the excess cash to investorsnot as a return on their investment, but as a return of capital. This will reduce the amount on which you are expected to generate a return. You may possibly reduce any preferred returns owed to investors, as those are typically calculated against the investors unreturned capital contributions.CAUTIONARY NOTE: You cant pay investors a return on investment 24'