size, purchase price, etc.). This helps others understand that while you may not have made your first purchase, you are taking this seriously and have a well thought out plan, which in turn should help them get more comfort - able with you. 5 LEGALITY There are right and wrong ways to raise money. You need to consult with a syndication attorney, but I will cov - er one big thing you need to understand. For most first timers you will likely not be allowed to advertise your offering, mention it on social media, or dis - cuss it with anyone you don’t already have a pre-existing relationship with. Meeting someone for the first time at a networking event and presenting them with the deal you are currently working on is not allowed in most cases. The SEC has specific rules for how you are allowed to raise the money needed for your project so please consult with a syndication attorney. Now that you understand the How of raising money let’s talk about the Who and the Where. Who is your target audience? Think of the perfect per - son that your investment would be the ideal solution for. You are probably looking for someone that has investable cash and is a high wage earner. They might be someone looking for alternatives to the stock market and don’t have a lot of time to buy and manage their own investments. You need to put some thought into who you are looking for. Now, where do these people hang out? Once you’ve identified your ideal investor and where they spend their time, both physically and virtually, GO THERE! Trying to convert someone that’s not open to invest - ing in your type of product (real estate in this case) is an extreme uphill battle and doesn’t have a high probability of success. Most people that ask for my advice believe that they should of course start with friends and family. Are your friends and family open and receptive to invest - ing in your type of business or asset? If not, trying to convert your 80-year-old mother that insists the only safe way to manage her money is to bury it in the backyard is not likely to be successful. Think through this logically.
Known in the real estate world as the Apt-Guy SM , Bruce Petersen is a serial syndicator who started with a 48-unit building and has now syndicated over 1,100 units. As the founder and CEO of Bluebonnet Asset Manager LLC and Bluebonnet Commercial Management, Bruce is a #1 best-selling author and has received local and national recognition for his syndication efforts. He was the recipient of the Austin Apartment Association’s Independent Rental Owner of the Year for 2016 and the National Apartment Association’s Independent Rental Owner of the Year for 2017. In addition to being a TV personality and public speaker, Bruce is also an educator with a focus in multifamily investing and syndicating. Once you get the money-raising part down you should be able to grow your real estate business to levels you may never have thought possible. As long as you can continue to find deals that work for your investors’ needs and you are able to build a track record of success, your growth could be unlimited. Much of this article has dealt with the soft art of raising capital. If you will treat it as a business and conduct your - self with integrity, humility, and transparency, then the sky’s the limit. •
Some places to start with for the Where: • Meet-ups
• Conferences • Masterminds • Facebook groups
66 | think realty magazine :: april 2021
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