STRATEGY
CAPITAL
Raising Capital for Your Real Estate Investments
THE FIVE PARTS TO FINDING MONEY FOR YOUR DEALS
by Bruce Petersen, a Think Realty Resident Expert
ow much real estate would you buy if money was not a limit - ing factor? I’m guessing the answer is that there is no limit, and you would buy all you could. For most real estate investors, we are limited by our own bank accounts when it comes to purchasing that next income property. What if I could show you how to raise all the money needed for your next deal? Would you still buy that $100,000 house that generates $200-$300 per month in cashflow? How about buying two or three at a time or maybe even your first multifamily property (5 units or above)? The thing most successful and wealthy investors across any and all industries and niches have in common is their ability to raise capital. Most restaurants, hotels, sports teams, and commercial real estate are bought by groups of investors rather than individu - als. The thing is, most large purchases made in the U.S. are done as a syndication. Once you master the game of raising capital, pretty much any - thing is possible professionally. H
I break raising capital into five parts:
COMPETENCY/ KNOWLEDGE
1
2
PERSONALITY
3
PRESENCE
4
AUTHENTICITY
5
LEGALITY
in social settings where you know few if anyone there, you can still succeed. The key is to be likable even if you aren’t the life of the party. Be a good listener and don’t make it all about you and your needs. Also, don’t be a polarizing and angry person either in person or on your social media accounts. People don’t want to invest with those that they see as hot headed or irrational. You need to assume that people are going to vet you and look at your social media accounts, so be careful how you come across online. 3 PRESENCE Do you walk with a sense of confidence and purpose? Part of raising money is psychology; if you convey a lack of confidence people are going to be hesitant to give you
1 COMPETENCY/KNOWLEDGE While I can make an argument for any of the five being number one, I feel that it all starts with your knowledge. It doesn’t matter how likeable or friendly you are if you don’t know what you’re talking about. Seek the knowl- edge and learn all you can about what it is you’re trying to raise money for. Whether you are raising money to buy real estate or unicorns, you still have to be well versed and knowledgeable in your space. 2 PERSONALITY Are you likable and personable? Are you the one in the room that everyone feels they need to meet or know? If so, that’s a big help. If, however, like me, you aren’t great
64 | think realty magazine :: april 2021
Made with FlippingBook Online newsletter