Best Practices for Raising Capital

[Shayne Hastings]

Hello All!

What methods/practices you find to be most beneficial as an investor to raise private capital for larger multifamily properties? 

What ways have you structured your larger multifamily deals to make it most appealing to other investors? (% interest on their investment, equity in the deal, etc)

Thanks for all the feedback in advance!

[Brian Burke]

Raising capital has nothing to do with structure, promised returns, and sponsor investment.  It has everything to do with positioning yourself as someone who delivers results.  This is hard to do when first starting out because you can't point to the deals you've done, returns you've delivered, and the hundreds or thousands of units that you own in the market.  Which is one reason why most newer sponsors struggle to raise capital.  Starting with smaller deals helps because you can raise smaller amounts of capital, build a track record and deliver results--and use that to leverage to larger raises in the future.

A common mistake is to focus on the real estate and the "deal" when raising capital.  It's not about that--it's all about you.