6 Steps to Raising Private Capital – Even if You’re Starting from Nothing
In 2003, I hit rock bottom: no properties, no savings, terrible credit. I was broke and homeless. Rebuilding my real estate career seemed impossible. But with strategy, persistence, and a focus on raising capital using other people’s money and credit, I made it happen. Here’s how:
1. Become a Magnet for Investors
When I decided to get back into real estate, I knew I had to make myself visible and valuable.
Start sharing real estate insights on social media, attend events, and have real conversations with industry people. Investors want to work with those who understand the market. Even if you’re new, share what you’re learning and offer practical insights.
2. Learn to Build Trust and Share the Vision
If you want people to invest, they need to trust you. When I first approached investors, I didn’t have an impressive track record, but I was upfront about my experiences, what I’d learned, and my plan to protect and grow their investment.
Share your strategy clearly and confidently, showing both potential gains and risks. Building trust is about honesty and helping others see the full picture.
3. Keep Building Relationships—Even Before You Need Funding
When I started, I focused on building long-term relationships, not just raising money. Don’t wait until you need capital—make it a habit to connect regularly, understand others' goals, and stay in touch. Showing investors you’re committed to their success makes it easier to ask for capital when the right opportunity arises.
4. Stay Compliant and Legal
One of the hardest lessons I learned was the importance of following SEC rules when raising capital. I saw people lose deals and face fines for not doing so.
Start right—learn the basics and work with an attorney who understands private capital. Posting deals without proper setup can lead to serious issues, so protect yourself and build credibility by staying compliant.
5. Structure Deals that Benefit Both Sides
It took time to learn how to structure deals that worked for both me and my investors. Aim for terms that are clear, fair, and transparent, showing both gains and risks. Investors need to feel valued and secure, so research standard structures that keep them interested and encourage referrals.
6. Follow Through and Deliver Results
Raising capital relies on reputation, which is built through consistency. Deliver on promises, stay connected, and build trust. If challenges arise, own them, communicate openly, and share your plan. Over time, hard work and accountability keep investors coming back and attract new ones.
I rebuilt my real estate career from the ground up with no money and no credit. If I could start again from zero, so can you. So, what’s stopping you from getting started?
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Mike Ealy
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6 Steps to Raising Private Capital – Even if You’re Starting from Nothing
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