Mortgages & Creative Financing

Finding the Best Partners to Fund Your Next Investment

Expertise: Commercial Real Estate, Personal Finance, Real Estate Marketing, Business Management, Landlording & Rental Properties, Real Estate Investing Basics, Personal Development, Real Estate News & Commentary, Mortgages & Creative Financing
230 Articles Written
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Where and how do you find the best capital investors for your next real estate deal?

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Capital makes the real estate world go round. But it doesn’t necessarily have to be your own cash!

In fact, sharing investment opportunities with others isn’t just a smart model for yourself, it can also provide a great service, too. Of course, finding these investors—particularly ones that really fit well—can be another issue altogether.

First Decide Who

If you already have a list or database of investors and you don’t yet have your next property lined up, it can be worth considering what those investors want or need in order to create a good fit. This can be easier than doing it the other way around.

If, like many others in this space, you already have a business model and a deal you want to get funded, then take a few moments to really get a handle on what the best investors might look like for that project.

  • Who has the type of money you want?
  • Who will be easy to work with?
  • Who is going to be straightforward to manage?
  • Who will be wowed throughout the journey?

Related: 3 Questions to Consider When Bringing in Capital Partners

There are lots of people with money. But that doesn’t make them all a great fit for your offering.

Create a clear profile of your ideal investor.

  • Where are they?
  • What are their criteria?
  • How much liquid cash do they have?
  • Where is it coming from?
  • What are their pains and aspirations?
  • What type of media do they use and prefer?

With this data, you can reverse engineer the way in which you find investors to partner with.

The key is to position yourself in the appropriate channels to reach said investors and to be of value to them by delivering great content. Those channels could include BiggerPockets, podcasts, local real estate conferences or events, and so on.

Match Your Messaging

Make sure all of your materials support your project and appeal to the audience you’re trying to reach. Carefully consider what you post, the words you use, the images and colors you choose, your logo design, the domain names you create, etc.

Young business people shaking hands in the office. Finishing successful meeting. Three persons

Reach Out, Pull In

You can use both outbound and inbound marketing to connect with investors and raise capital for real estate deals. Just know your real costs, dig in, and do your homework so you’ll have realistic expectations about the process.

If you look at stories of how most tech startup entrepreneurs have landed investors, the most common scenario is them reaching out to their connections and asking for introductions. There’s often potential in friends from school, family members, peers, and even those you’d think might be competition.

Events are a great place to start, too. Get out and attend industry events where you’ll encounter like-minded people and other investors looking for information and opportunities. This is some of the lowest hanging fruit!

You can also acquire lists for outbound marketing. Credit bureaus, data compilers, and even Facebook have information like this that you can use.

Related: Real Estate Leads: How Much Do You Really Need to Follow Up?

Summary

Raising capital for real estate deals doesn’t have to be rocket science, but it does take work. It will also likely entail accepting rejection.

Finding investors can be done with an inbound approach or outbound approach to marketing, and networking, list-building, and learning how to sell yourself are all important parts of this.

The most successful are also the most efficient, and not only nail the follow up, but also take the time to really get to know and understand the ideal candidates for their next investing opportunity.

How do you recommend finding investors? Have you been approached to partner on a deal? How did it happen?

Share in a comment below. 

Sterling is an multifamily investor specializing in value-add apartments in Indianapolis and other Midwestern markets. With just under a decade of experience in the real estate industry, Sterling w...
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    Caleb Webster Developer from Portland, OR
    Replied over 1 year ago
    Great article Sterling! I find that like most things in real estate, there is a snowball effect with fundraising. Once you develop credibility and a reputation, in this market, money will find you. Do you offer your investors a choice between debt or equity partnership? How do you determine what partnership structure is best for you? Is it purely based on return?
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied over 1 year ago
    Caleb- Mainly offer equity at this moment. Did debt in the past and determined from feedback from our investor partners that equity is optimal.
    IBEJesus O Prince Rental Property Investor from Augusta, GA
    Replied about 1 year ago
    Awesome article, Sterling! I'm currently in the process of finding funding for my next project but was looking for those few things I should consider before starting my search. As you mentioned, all money isn't going to be a good fit for my investment so I need to establish what that good fit looks like.
    Thomas Hubbard Rental Property Investor from Little Elm, TX-Texas
    Replied 9 months ago
    From a legal standpoint what does an equity partnership look like? What types of contracts are involved? Thanks in advance to whomever can answer