Raising Capital for a Mortgage Fund

General Real Estate Investing
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Raising Capital for a Mortgage Fund

Brad Gloger
Member since 2026 · 2 posts · 0 votes

Looking for Best Practices For Raising Capital.

We manage a non-leveraged mortgage fund yielding 7.2% backed primarily by first lien loans on coastal Southern California real estate. Our underwriting is conservative with an average LTV of 52%.

The focus is steady income and capital preservation rather than chasing higher-risk returns.

Minimum investment is $250,000. 

  Looking for ideas for Raising Capital.   Thank you!!

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3mo

    As someone who runs a company that does exactly what you do, first I will say it's hard. 
    some things to consider

    1. hiring someone full time to focus on this effort

    2. make sure you do a great job keeping current investors informed

    3. Drop your minimum unless you are over  $100M and or have an extensive third party track record

    challenge we run up against is the Facebook ads of sponsors telling investors they can earn 15%+ (especially orther debt funds), but every one I have ever seen over 15% has gone under (and several sponsors arrested) 

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  • Brad Gloger
    OP
    Member since 2026 · 2 posts · 0 votes
    3mo

    Thank you Chris!!!   

    The Individual who is full time dedicated to this, what prospecting methods worked best?   

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