Raising capital to fund your first deal

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Raising capital to fund your first deal

Sarah Brown
Athens, GA · Member since 2022 · 8 posts · 2 votes

Hi everyone- I was curious how everyone first started out that maybe didn't have the thousands of dollars to start. Our exit strategy is to flip and sell so that we do have that capital for our future investments. However I am having a hard time figuring out solutions to raising capital for fees such as down payments, closing costs, etc. Any companies you recommend that helps with this? 

PS. I am talking with a few investors to do a JV project, just nothing set in stone.

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
4y

@Sarah Brown

Save save save. If you don’t have the $ be prepared to give up equity in a deal to find a funding partner. The deal may not be the most profitable or glamorous to you but real estate is all about building relationships and if you can prove to make money for others while making yourself money over time it will reap the rewards.

I have someone now who started as a jv that I funded the deal and it went extremely well now I provide private loans to this person as well as we still jv on some deals. She has been able to scale significantly and we have been able to also support her growth and make $ while doing it

7e investments53 Reviews
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  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    4y

    Talking with other investors is a great way to get started. Are you focusing on learning what those folks are looking for and learning how you can help them?

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  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    4y
    Quote from @Sarah Brown:

    Hi everyone- I was curious how everyone first started out that maybe didn't have the thousands of dollars to start. Our exit strategy is to flip and sell so that we do have that capital for our future investments. However I am having a hard time figuring out solutions to raising capital for fees such as down payments, closing costs, etc. Any companies you recommend that helps with this? 

    PS. I am talking with a few investors to do a JV project, just nothing set in stone.


     I worked 2 full time jobs

    Lived on the money from one and saved all the money CDN the other 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Sarah Brown

    Save save save. If you don’t have the $ be prepared to give up equity in a deal to find a funding partner. The deal may not be the most profitable or glamorous to you but real estate is all about building relationships and if you can prove to make money for others while making yourself money over time it will reap the rewards.

    I have someone now who started as a jv that I funded the deal and it went extremely well now I provide private loans to this person as well as we still jv on some deals. She has been able to scale significantly and we have been able to also support her growth and make $ while doing it

    7e investments53 Reviews
    WebsiteView Page
    1Reply
  • Sarah Brown
    OP
    Athens, GA · Member since 2022 · 8 posts · 2 votes
    4y
    Quote from @Chris Seveney:

    @Sarah Brown

    Save save save. If you don’t have the $ be prepared to give up equity in a deal to find a funding partner. The deal may not be the most profitable or glamorous to you but real estate is all about building relationships and if you can prove to make money for others while making yourself money over time it will reap the rewards.

    I have someone now who started as a jv that I funded the deal and it went extremely well now I provide private loans to this person as well as we still jv on some deals. She has been able to scale significantly and we have been able to also support her growth and make $ while doing it

    Thanks for your advice! I agree! I have been offering 70/30 split just to gain the knowledge and work along side an experienced partner for my first flip.
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  • Sarah Brown
    OP
    Athens, GA · Member since 2022 · 8 posts · 2 votes
    4y
    Quote from @Taylor L.:

    Talking with other investors is a great way to get started. Are you focusing on learning what those folks are looking for and learning how you can help them?


     Absolutely 

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