Raising Private Capital by Matt Faircloth

32 Replies

Grow your real estate business and raise your game with other people's money with the newest book from BiggerPockets Publishing!

Are you ready to help other investors build their wealth while you build your real estate empire? Have you always wanted to do a private money deal but don’t know where to start? The roadmap outlined in this book helps investors looking to inject more private capital into their business. Author and real estate investor @Matt Faircloth  helps you learn how to develop long-term wealth from his valuable lessons and experiences in real estate: Get the truth behind the wins and losses from someone who has experienced it all.  

Inside, you’ll discover:

  • Private money partners in places you didn’t know existed  
  • The prerequisites needed to start raising money
  • How to structure debt and equity deals and when to use each strategy
  • The best way to provide win-win deals to all money partners
  • How to protect all parties involved in a private money transaction  
  • Proper private equity exit strategies
  • … and so much more!

Starting at $19.99, this book is ONLY available on BiggerPockets.com. Order here.

BiggerPockets.com/RaisingPrivateCapital

Thanks Mindy!  I am so excited about this book, I really feel that it offers the tools needed to new and seasoned investors to grow their business using private capital!  The Bonus materials alone are worth 10x the price of the book, especially the interview with the SEC attorney.  I am so grateful to be given the opportunity to create this book for the BiggerPockets community!

Matt

I picked the package up last night and currently a couple chapters in VIA audio book. Great book so far, and I am glad I bought all three. I anticipate "listening to this book" and then re-reading each section with a highlighter in hand, as this is a topic that I have been searching for more information on for quite some time. Glad to see it all in one place. 

Thanks again Biggerpockets for putting out another great book, and a special thanks to @Matt Faircloth for all the work that went into this. 

@Matt Faircloth  thanks for sharing some of your experience and knowledge.  This podcast really spoke to me as my partner and I are in the midst of a big fundraising effort.  A quote that didn't make sense to me when I first started investing is now reeling in my head, "you'll know you're serious about real estate investing when you're frequently trying to raise private money".  I feel like we're consistently counterbalancing that with marketing for deals.  

I especially loved the part where you talked about leading with the track-record, integrity and trust discussion before going into the percentages. The person knows the returns are great compared to many alternatives, what they don't know is what happens when things go south. One of the objections we've run into is "Sure you're giving me a note and mortgage, but what happens if you guys stop paying and now I own the house with two or three people I don't even know?" It's frustrating that there's really no way of reassuring the person that even if I have to work nights a McDonalds, they're getting paid.

Maybe you could shed some light on how to structure the deal to put their mind at ease and take even more risk out of it for them.  The first thought is a clause that states that after payment is 15 days late the home must be listed for sale as-is within X days.  Then again, maybe I haven't done a good enough job speaking to the integrity piece and objection-handling up front, therefore, this is a concern that comes up as a result.

@Matt Faircloth just listened to the podcast.  I am going on vacation and excited to read the book over the next 2 weeks and set a plan of action for when I get back.  Appreciate your knowledge and help to all us following our Real Estate Dreams.

Love the dynamic due of @Brandon Turner and @David Greene on the mics. You guys do an incredible job of keeping the podcast upbeat, informative and enjoyable.

Cheers

@Matt Faircloth - Excited to buy copies for myself and friends. Thanks for sharing your wisdom gained over so many deals.

It’s true - if you’re not looking for private capital (for 20-40% down) and bank capital (for the other 60-80%), you’re not serious about building a substantial real estate portfolio.

When I worked for a big real estate development company, they planned everything around other people’s money. For $3m, they were controlling the development of a 350+ unit, $100m+ apartment building project. It was like 3m equity them, 27m equity insurance / big money partner, 70m bank commercial loan. And more than $3m was being paid back out to them for managing the construction and finding the deal, so net net they were $0 invested in the deal.

@Matt Faircloth.  Bought the book last Friday after hearing the podcast and have been reading the downloadable version.  Good read so far.  Excited to get the bonus materials and worksheet.  I've almost hit the wall with my own capital and am personally "debt averse", so I enjoy looking at ways to bring in money partners to do deals via equity sharing.

Thanks again for the Webinar last week Matt, I'll check out the podcast next. Bought the book this morning and looking forward to delving in. Excited about SDIRAs and how I can find my real estate by setting up my own.

Originally posted by @Gilbert Gutierrez :
@Matt Faircloth Just wrapped up the podcast. Really excited about this. Can the info in the book be applied across all states? I'm in CA.

 Yes, it can!  Our SEC attorney reviewed the comments in the book regarding SEC regulations, and the other sections apply to all states in the US.  I hope you check it out!

Matt

@Matt Faircloth My dad has an IRA and is willing to loan me some money out of it. However, he would like to not be taxed on taking the money out of his IRA for the loan. Is there a way for his IRA to hold a private mortgage (loan) to me and not have it count as a taxable event? Hypothetically, just switching assets. Not looking for tax advice over the internet, but is this covered in your book?

@Derek Janssen ,

Your dad can setup a self-directed IRA. With this vehicle he will have virtually limitless investment options, including being a private lender. However, IRS rules say that you as his son are considered to be "disqualified person" to his IRA. Therefore his IRA is prohibited from entering into any transaction with you. He can use his IRA to lend to anyone other than his immediate family members.

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