Capital Raising Tip I Wanted to Share!
Gooood mornin guys!
Yesterday I heard a few VERY interesting perspectives on a MF Zoom call that Tim Mai was hosting that I wanted to share with you guys and hear your thoughts on.
He was interviewing Robert Helms of the RE Guys radio show (pretty badass!).
The things that Robert mentioned after 30ish yrs of experience were:
*”When raising capital, it is a game of small numbers. If you have a total of 50 accredited investors that love working with you, you can basically fund anything you want.”
*He also mentioned a story of a sponsor that had 1 INVESTOR that carried with him for over $20m throughout different projects…. As well as the risk factor of if something happened to that investor and your whole business collapsing….
But the overall concepts of having fewer, but drastically stronger relationships over having larger amounts, but not as strong relationships…
These really got my brain thinking yesterday. What do you guys think? 🤔
Have a good day!
Kyle 🙂
Most Popular Reply
I agree having one investor can be very risky - as is owning one asset. You want diversity. Now whether its 10, 50 or 500 investors really depends on the sponsor and the size they want to get too. We have over 500 investors and have investments from them ranging anywhere from $5000 to $1M. The key is to continue to build and nurture those relationships through communication and doing what you promised you would do. Raising capital takes a significant amount of time and effort and is compounding. As you get more investors they tell more people as well and its a snowball rolling down the hill effect as long as you continue to perform.
- Chris Seveney
