Learning How to Raise Capital

[Jonathan Chan]

Hi All,

I'm a semi experienced real estate investor. I've closed and dispoed 4 wholesale deals, flipped 7 lots of land, own 30 rentals and have closed around 25 deals as a lender. It's been a pretty cool journey and has allowed me to leave my W2, however, I've come to the realization that my current strategy of delayed gratification is no longer working for me. I jumped into real estate doing the BRRRR method, understanding that holding property will allow me to build generational wealth, but then learning that landlord income is not the best way to feed your family. That brought me to about a year ago, when my Mom wanted to retire. I moved all of her old retirement money into a self directed IRA/Solo 401K and started putting her money to work through real estate lends. It's been great, but I'm not able to financially benefit from any of that money. This brings me to now, I've taken this approach and have used my own money in lending, but am also bringing in friends and family to take part in these transactions so they can earn way better returns than with CD's. The only problem is that these are 6 month lends, I'm 1.5 months into this, so any work that I do now will not reap any kind of benefits until 6 months from now. Going back to a W2 is not what I want to do, at least not in my old industry.

I've learned through my 4 years of experience within real estate that my strengths and best used in raising capital. However, I'm new to this and have really only started raising money through friends and family here and there. It's been great, we've hit over 4M in soft commits through 2 months, but we've only deployed about 500K. I feel like there are some strategies and follow up I'm missing and hoping to work for a capital raiser or an investing group as a capital raiser, so that they can focus on what they excel at, rehabs and project management. Has anybody gone this route? Any suggestions on where to look other than the facebook outreach I've been doing?