Raising outside funds for deals?

Question

Hi All,

I'm relatively new to the world of commercial real estate. I've had a string of successes investing my own money and would eventually (after a few more personal deals) raise money from outside sources. I have 0 experience in this form networking.

I'm wondering if it boils down to just mapping out an investment strategy and meeting with as many contacts as possible to try and generate interest? It seems like an OK plan, but I'm wondering if there's a more organized approach to take.

Thank you!

Arun

Pat Parrillo · Answer

@Arun Gokhale

I am also new to syndication deals and have found one of the best resources thus far in getting started being the information that @Michael Blank puts out on BP (just search his name and his articles will populate) and also check out his website

http://www.themichaelblank.com/

He does a great job of walking through all of the steps from analyzing deals, networking, finding leads and closing deals. Simply put tell everyone you know what you are doing and the returns they can expect for X amount of investment dollars and ask them if they know anyone interested. Win-win as you either get a reference from them which leads to a warm introduction or they themselves say, yeah I want in.

Best wishes.

Joe Fairless · Answer

@arun

@Arun Gokhalecongrats on the previous success on your personal deals. I do multifamily syndication and your thoughts about building a network are certainly accurate. I'd also like to point out a couple other things to help you get going:

- it's not about a large network - at least, at first. It's about talking to those you know, like and trust you to participate in your first syndicated deal. Then building on that referral network after it's successful.

Essentially you will need to:

1. Build your brand (website, logo, company name)

2. Build your investor group (see this article where I talk about how to approach these conversations: https://www.biggerpockets.com/forums/223/topics/21...)

3. Find a deal

***there are many things in-between like ensuring you structure deals properly with investors, do proper disclosure, due diligence, underwrite deals, etc. but this gives you a good idea of your overall approach***

Here are a couple ways to build your network since you said that hasn't been your focus:

- volunteer for a non-profit you genuinely believe in. Then get on the Board of Directors  because you'll likely meet some people who have money and want to invest but don't have time

- become a thought-leader similar to what @Michael Blank has done which is why @Pat  Parrillolinked to his content - it's good stuff. You can blog about your experiences on past deals, you can create your own podcast, you can have YT videos, etc. Do what you enjoy doing because the key is to be consistent. So, so...SO many investors start something but it falls off the radar because they don't consistently create the content.

Pat Parrillo · Answer

@Arun Gokhale

Here is a specific article that may be of help. Let me know your thoughts.

http://www.themichaelblank.com/how-to-raise-money-...

Arun Gokhale · Answer

Additional note: I've read numerous accounts of syndicated deals and such, but very little about the intermediate steps to setting up the syndicate.

Raising outside funds for deals?

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