Raising Capital from Accredited Investors

Raising Capital from Accredited Investors

Ashley WilsonPro Member
Rental Property Investor · Radnor, PA · Member since 2015 · 178 posts · 125 votes

Hi BP Community! I am partners in a local Philadelphia group that has an apartment deal in Houston, Texas, and is currently in the capital raising stage.  While I have a network of accredited investors that I am speaking to currently, many of them have never invested in real estate before.  I am wondering what is the best way to convert them from interested to invested?  This is the best deal that I have vetted to date; however, when I go over the details with people, most think that it is too good to be true.  

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Rental Property Investor · Fort Wayne, IN · Member since 2016 · 258 posts · 177 votes
8y
@ashley smith you need to prepare a professional lookin memorandum and add everything in there you can and then present to your interested parties one by one and email them with a time limit so that they can do their own due diligence too and then follow up with any questions they may have and then get there commitment.
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  • Ashley WilsonPro Member
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    Rental Property Investor · Radnor, PA · Member since 2015 · 178 posts · 125 votes
    8y

    @Steeve Breton thank you so much for the reply.  While I haven't started raising money for my second syndication (yet), I was guessing it would be easier after I have done my first:)  Similar to flipping houses, once my track record was established, the easier it was to obtain financing.  I am a huge proponent of communication, and transparency, so I love your tip on "communicate often and honestly throughout the hold period".  I will definitely be communicating frequently, and I have some ideas on how to communicate to make it more enjoyable for my investors too!  Thank you again for your time!!

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