The 3 Things I Wish I Knew Before Raising Private Capital

[Stanley Yeldell]

Hey investors,

Whether you're just starting out or you've done a few deals, I wanted to share some hard-earned lessons I’ve learned from raising private money for real estate flips and rentals. Hopefully this helps someone avoid a few bumps along the way:

1. People Invest in You Before They Invest in the Deal
Early on, I thought I just needed a good deal to get funding. But what really moves the needle is trust. People want to know you’re honest, responsive, and won’t ghost them if things go sideways. Always lead with integrity, even when it means walking away from a deal.

2. Overcommunicate During the Process
When someone trusts you with their capital, the worst thing you can do is go silent. Even if everything is going fine, send updates. “No news” is still news. It builds confidence—and keeps doors open for future funding.

3. Be Clear on Exit Strategy and Timeline
Don’t overpromise. Be transparent about what could happen, how long it might take, and what the risk looks like. Private lenders aren’t scared of risk; they’re scared of surprises.

🔥 Pro Tip: Build a "funding packet" with your past deals, your contractor team, and sample numbers—even if you're early. It shows you're serious.

Would love to hear from others in the community:

👉 What’s your biggest lesson from working with private money lenders (either as a borrower or lender)?

Let’s help each other avoid the rookie mistakes 🙌