Today I want to talk about something many of you have asked about: how to raise money for real estate deals. This is a topic that excites me because I know it's something many of you are curious about.
Start With the Deal, Not With Fundraising
Here's my approach - I don't start by trying to raise money. I start with finding a good deal. That's much easier.
Now, after doing many deals and growing my network through this podcast and blog, sometimes people reach out wanting to invest with me. But typically, my process is simple:
- I find good opportunities
- I secure them with a contract
- I conduct thorough due diligence
- I create a detailed presentation
- I share the opportunity with people who know me
My entire focus isn't on raising money - it's on finding excellent opportunities. The money follows naturally.
My First Deal Experience
Let me share how I approached my first investment. I was 25 years old and found a property for $86,450. I initially thought my parents would invest with me, but they declined, telling me, "Do five deals in America and then talk to us." It was too risky for them since I was young and new to the American real estate market.
So what did I do? I focused completely on verifying the deal was solid:
- Confirming potential rental income
- Calculating renovation costs
- Negotiating with the seller
- Documenting everything thoroughly
I created a detailed Google Doc with everything I had learned - my conversations with realtors, inspection findings, where the numbers differed from what I was initially told, and my complete business plan.
I shared this document with people who might be interested, not as a pitch, but simply documenting my journey. During a Zoom call for a real estate mentorship program I was in, I mentioned I was looking for a partner. Immediately, someone offered to put in 50% of the money!
Just like that, my fundraising challenge was cut in half - from needing $92-93K (including renovations) to only needing $47K. I had $10K saved, and I took a loan for another $30K (which I felt comfortable with since I had savings elsewhere to cover it if needed).
The Real Key to Raising Money
When you tell the story of a deal, tell it as a complete story. Share:
- What you did step by step
- How you analyzed the opportunity
- Your doubts and concerns
- The less attractive aspects of the deal
- Every single number in your business plan and how you arrived at it
People will join your investment when they see your thoroughness and transparency. If they don't, it simply means either the deal isn't good enough or your presentation needs improvement.
In my first three years doing real estate, I raised over $1 million for investments. That might sound impressive for someone who started at 25, but here's what's important to understand:
Critical Perspective on "Raising Money"
First, money is always looking for opportunities to grow. If you can provide high-integrity, well-researched opportunities, money will naturally flow toward you.
Second, it's not like investors transfer money to my personal bank account. They're investing in properties and assets that are theirs. They're buying shares of LLCs that hold properties, or buying properties themselves. All I get is a fee or a share of the profits. I'm not "taking" their money - I'm helping them place their money in assets. That's what DYS Invest does.
This perspective shift is crucial. It's not about convincing people to give you their money. It's about finding opportunities and presenting them clearly. Then investors can decide if it's right for them.
Sometimes they'll say no because of you. Sometimes they'll say no because of the opportunity itself. And sometimes they'll say no because of factors in their own lives. That's their journey, not yours.
Communication Is Essential
This connects to my previous blog post about communication skills. Without the ability to articulate ideas clearly and persuasively, I couldn't have done any of this. I've been practicing communication since childhood - speaking on stage, practicing in front of mirrors, and constantly working to improve how I express myself.
Don't be afraid to raise money. You don't have to do it on your first deal, but eventually, you will need to - whether from investors or banks. And even with banks, while they have formal processes and analysis teams, your ability to communicate and tell your story remains critically important.
The Bottom Line
Focus on finding great opportunities, not on raising money. When you have something truly valuable to offer, share it completely and transparently. Show everything - the good, the bad, the potential, and the risks. Put all your findings and even your doubts on the table.
Then it's their decision whether to invest or not.
If you have questions, feel free to reach out. Wishing you nothing but success!
I opened the doors for 10 individual students in a mentorship program, 1 on 1, 12 weeks, with yours truly. You can find all the info here.