How Long Does it Take to Raise Private Money for Deals?

[Brian Adams]

I bought a 1,000 unit apartment complex and raised $40 million in a month from my private investors.

I get asked this question a lot: How Long Does it Take to Raise Private Money?

Once I understood how to raise private money from investors my real estate business completely changed.

The length of time it takes to raise private money can vary depending on a number of factors such as the size of the property, the amount of private money needed, the complexity of the transaction, the quality of your offering documents, the number of potential investors you have in your network, etc. 

In general, raising private money can take anywhere from a few weeks to several months to years.

If you are well prepared and have a clear and compelling pitch, it may take less time to secure funding. On the other hand, if you have a complex deal it may take longer to find willing investors.

It is important to note that building a network of potential investors takes time. If you don't have a network it can take longer to raise the funds. As you create more relationships and build more trust with your investors over time, it may become easier to raise private money in the future.

It's also worth noting that raising private money, like anything, is not a one-time event but a continuous process. 

One thing I learned early on: ABM (Always Be Marketing)

ABM for private money when you don't need it. 

The worst feeling is working on a deal and realizing you don't have the funds to close and someone else swoops in and takes your deal.