The Biggest Lessons I’ve Learned When Raising Money

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It can sound very simple to raise money online for multifamily real estate deals today. Capital is more accessible nowadays due to many investors chasing yields. Yet, capital raising processes can get messy and soak up a lot of your time. Here are some of the biggest lessons I’ve learned through raising money for multiple deals, and how to maximize the opportunity.

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The Need for Systems

As with everything else in real estate transactions, investing, and keeping your finances straight, you’ve got to have systems for raising capital and managing investors.

Without good systems, it is going to be inefficient. You’ll struggle to keep money in order, provide the best investor updates, and services.

Related: 6 Questions to Ask If You Plan to Raise Money for Real Estate Deals

It may not sound efficient or appealing to create and document systems every time you do a task the first time in order to make to it simpler for delegating later. Yet, it is far more productive than spending far more time cleaning up mistakes, repeating live training, and trying to reorganize once you’ve got mountains of data to sort. Google Docs are great for documenting processes and the information can be easily shared with partners. Additionally, the service is completely free. Free is good!

Getting Commitments

Starting by getting soft commitments upfront can be a huge help. Sponsors should plan to get commitments for 100 percent of their funds from contacts they know in advance, before going public with a specific deal. This helps you avoid having scrambling to raise money once you have a deal under contract. What I’ve found out is that you have to get at least 10 percent over your needed funds to close on the money you need. For example; if your base raise is $10 million, get at least $11 million in commitments.

Keeping Everything in One Place

When you are raising capital from dozens, hundreds, or thousands of investors, you really need to keep everything in one place. Using half-a-dozen databases, real estate CRMs, accounting tools, and customer-facing portals can not only affect your productivity negatively, but can really hamper your ability to serve investors. It can also dramatically increase your risk of loss of data and mistakes.

Work to have everything in one place if possible. There are real estate software solutions that help with this process. Look for those with the best integrations and which bring together the most components, so you can consolidated data, costs and streamline workflow and keep down labor costs as well.

The Need to Delegate

If you are going to raise money to complete more and bigger deals, you’ve got to learn to delegate.

Delegating should be the first choice in order to maximize ROI on time. As a sponsor, real estate syndicator, or CEO, you are expected to be the most diligent you can be with your time and overall organization’s performance. There have been plenty of CEOs and founders ousted from their own companies because they weren’t doing the best possible job. You have an obligation and responsibility to get the most out of your time, and resources available.

Related: 6 Aspects of Real Estate Investing You MUST Understand Before Your First Deal

Host Webinars

When you begin raising money from the crowd for real estate deals you can quickly find that it takes time. If you aren’t efficient you can spend months repeating the same information, holding meetings, giving presentations, and answering the same questions. That can take a lot of time away from doing actual deals, managing them, and getting the capital you have already raised to work.

Webinars have proven to be a great way to streamline this for me. You can get a couple hundred investors on one virtual meeting in one place and save weeks and weeks of time. Use them to present a business plan on a deal and process, give a quick overview of any deals you have on the table, and leave time open for a live Q&A session. The Q&A is the best part when it comes to providing value. You can really help convert investors, but also make your offering and service better. Just be prepared, because you will get drilled with questions by investors. They will not hold back.


Many of the above lessons I am still improving on to this day, especially the delegating on certain tasks.  

I would love to hear others experiences and lessons learned.

Please comment below!

About Author

Sterling White

With just under a decade of experience in the real estate industry, Sterling currently manages over $10MM in capital, which is deployed across a $26MM real estate portfolio made up of multifamily apartments and single-family homes. Through the company he co-founded, Holdfolio, he owns just under 400 units. Sterling was featured on the BiggerPockets Podcast and has been contributing content to BiggerPockets since 2014, with over 200 posts on topics ranging from single-family investing and apartment investing to wholesaling and scaling a business.


  1. John Murphy

    Thanks for the tips Sterling! Working through raising money for a deal currently and it is a pertinent and timely read.

    What platform or method would you recommend for new Syndicators/GPs for managing less than 10 investors?

    • Sterling White

      There are investor management softwares out there geared towards Syndicators/GP’s specifically or you can simply manage everything through a CRM like Podio or Salesforce. Do you plan to scale the amount of investors you work with, John? If so a investor management software may be your best option.

  2. Anthony Chara

    Hi Sterling, I like your processes stated above, but I feel there are a couple of important things your readers need to know. Not everyone has experience to know what SEC laws they need to follow. First off, regarding delegating, that’s very important, but those same people should not be talking to your investors about the deal specific numbers unless they are actually a part of your deal. That conversation should only come from you or a principle in the deal. Certainly, they can follow up with people to see where they’re at regarding their decision or returning paperwork and a few other minor things, but beyond that, they should be talking to a principle directly.

    Regarding the webinar idea, yes, this is a great way to have 10’s or 100’s of people on one webinar to disseminate information. However, there’s only certain things you can disclose on an open webinar and several things you CANNOT disclose on those webinars depending upon which type of SEC offering you’re utilizing. With some offerings you can disclose lots of detail, but with most of the rest you CANNOT discuss total investment, minimum investment or returns. Your readers should discuss all of this with a true SEC attorney before moving forward with any money raising so your friends and family don’t have to visit any of you in the GreyBar Hotel.

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