Ep 289. Using Other People's Money To Build A Real Estate Empire

7 Replies

Building a real estate business can be one of the best ways to achieve financial freedom. The problem for most, however, is money: There simply isn’t enough in your hands to get all the deals you want. That’s why today’s show might be the most impactful podcast episode you’ve ever heard. In today’s interview with Matt Faircloth, author of the new book Raising Private Capital, shares the steps needed to begin raising money from others to fund your real estate deals. You’ll discover the different types of private capital (and how to approach each), how Matt and his wife were able to grow from 30 units to over 300 (!) using other people’s money, and why talking about metrics to a private lender might not be a great idea at first. If you want to 10x your real estate portfolio or build your empire faster, this is one show you can’t afford to miss!

Listen here or on your favorite podcast app.

Thanks Mindy!

I'm so honored to have been on the Podcast for the third time.  This episode was a lot of fun with some great discussions.  I'm glad we got to talk about the book also as it contains everything I know about raising money for debt and equity real estate deals. I hope that it adds value for new and seasoned investors to grow their business!  Thanks for the great conversation @Brandon Turner and @David Greene !

Matt

Thanks for the insight on raising money Matt! I'm at a crossroads in real estate investing. I've used my own savings and W-2 income to accumulate some great income-producing rentals, but if I want to take it to the next level I know it will require additional resources, and I've been wondering if I want to go down the path of risking of OPM. Your comments about having a solid track record made a lot of sense. Can't wait to get your book!

One problem with leverage is that the lever can pry against the borrower.  The other is that the lender is not on the hook for more than the remaining loan balance, but the entire net worth of the owner / ownership entity could be lost due to a lawsuit or regulatory enforcement action.  If you have little equity, you are simply a rent collector for the lender, but unlike an employee, you also have all of the liabilities.      

I am just trying to start learning about investing. A little late for me to get started. Money is definitely the biggest issue. I want to create a nest egg for my family. The old 401k is not enough of a tool in my mind. I am looking to get educated in Real Estate investing and start making extra money for myself and family. The OPM concept I have heard of but simply have no idea how to even get on that path. I will be getting this material and start learning. 

Hello, I was so energized to hear more about using other people's money to help me invest in real estate that I immediately bought the audio book on my audible account.  However, I was also interested in the Interview with Gene Trowbridge on protecting yourself from SEC violations. @Matt Faircloth, is it possible for me to be able to get access to that interview? I suppose I could return the Audible book and purchase through Bigger Pockets but I do enjoy the audible experience. Listening on the go is fantastic.

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