3 Lessons Learned from Raising $2,500,000 in 6 Days

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If you are trying to raise any amount of money, these lessons will be important for you and are areas you can always improve. We are in the home stretch to close on 130-unit apartment community. Below are three lessons learned from our money raising experience in which we raised $2,500,000 in 6 days.

  • It Takes a Team. While it is possible to do it by yourself on a small scale or for your first deal, I encourage you to seek out the right team to help you scale. We take our investments very seriously so every item is completed accurately. What we did well with this raise was bring on the help of professional editors so our content was great and it allowed us more time to focus on high value tasks like speaking to investors. We paid freelance editors to help us create graphics, color schemes, and format design for our investment overview and presentation materials. In addition, we had a freelance videographer create a 60 second property video. Paying a freelancer is not super costly and they provide professional material so you can impress your investors.
  • Share and Follow Up. We did a good job preparing our investment material and getting the material in the inboxes of investors we have existing relationships with. We tracked email open rates and click through rates to determine who and how much follow up was required. We were diligent about following up with direct personal emails or texts or calls to individuals to ensure they knew an opportunity was available. This allowed us to raise the money in less than a week.
  • Practice. Everyone needs practice and continual improvement having investor conversations. Before you raise money talk to yourself in the mirror, try to raise money from your pet, practice with a friend, or practice with a local banker. Whatever you do, don’t have your first conversation be with one of your potential investors. You’ll want to practice at least five times to work out your important speaking points and be able to listen to your counterpart to understand what is important to them so you can provide the appropriate information. 

Thanks for sharing! Completely agree on all points, especially the need to practice. Knowing the questions investors will pose, and having your answer ready is vital.

Great feedback! Sounds like your team did a great job! 

How many units do you own in Charleston? I was there this week for a visit to the Volvo factory (I'm a dealer in NH) and while there heard some incredible stats on SC/Charleston. Average age of 35 and 3 times the normal population growth. Is that true? Still working on deals in NH but wonder if Charleston is a good market to explore in the future! 

Thanks,

Rick

Thank you @Kyle Mitchell and @Sam Rust

@Richard Lovering Charleston is a good area for investing with good economic indicators to support. I have 21 commercial units and 9 residential units in Charleston. Currently, we are focused on 150 unit+ multi-families across the Southeast US so we are looking well outside of Charleston, SC. Happy to chat about the Charleston area if you have questions. 

Great stuff @Danny Randazzo . You and @Dan Handford crushed it with this acquisition. Looking forward to hearing more great news about your projects.

Teamwork makes the dream work!

Originally posted by @Richard Lovering :

Great feedback! Sounds like your team did a great job! 

How many units do you own in Charleston? I was there this week for a visit to the Volvo factory (I'm a dealer in NH) and while there heard some incredible stats on SC/Charleston. Average age of 35 and 3 times the normal population growth. Is that true? Still working on deals in NH but wonder if Charleston is a good market to explore in the future! 

Thanks,

Rick

 while i am not on the commercial side of the equation we have been building Infill in Charleston last 4 years.. not big time 10 to 12 homes a year.. but its one of the most solid markets i have seen.. plus if you have to go someplace away from home to work and invest Charleston is a great city to visit.. I would totally recommend it..

@Danny Randazzo Thanks for sharing your lessons. You have a great team if @Dan Handford is on it! I love the resourcefulness you showed in using freelancers to make the marketing material professional, yet cost efficient. 

Question about the email tracking. Did you use a specific software? And how do you determine the metrics, of how much and how often to follow up? I would love if you could share some of your tactics.

Good luck on this deal, and many more!

thanks for tips Danny! This is good to know for us starting out and it seem like you and your team did an amazing job in raising capital in 6 days! I am amazed!

@Yonah Weiss We use mailchimp for our emailing lists to track open rates and click-thru rates. We typically get about 53% open rate with our large email list of investors when we release a deal and get 35% click-thru rate on each email sent. We also use a software called contactually for on-going follow up and networking. 

@Danny Randazzo solid write up. I couldn't agree more on the team emphasis. When your able to place individuals in certain lanes it makes the acquisition processes near seamless. By following these steps you've mentioned I believe investors can do extremely well. 

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