Young Entrepreneur Starting a Real Estate Company – Seeking Advice on Raising Capital

[David Robertson]

Hey BiggerPockets community!

I’m a young entrepreneur in the real estate space, and I’ve recently started my own company. My focus is on raising capital for acquisitions and acting as a general partner in real estate investments, with a special interest in industrial, multifamily, and retail properties. I’m passionate about the development and redevelopment of these assets.

I come from a background as a commercial wholesaler and have worked with respected groups like Sands Investment Group, Hudson Edge LLC, and Vail Commercial during my time in wholesaling. This experience has provided me with a strong foundation in acquisitions, valuations, and deal sourcing. However, my true goal has always been to develop, buy, and manage real estate—something I've dreamed about since I was 12 years old. I want to work with great people, build long-lasting relationships, and help them grow their wealth while doing what I love.

Here’s where I could use your insights:

1. Raising Capital: What’s the best approach for attracting investors who are interested in partnering on real estate development and redevelopment deals? How did you establish trust with your investors when you were starting out?
2. Acquiring Clients: For those who’ve raised capital successfully and built a strong network of clients, how did you go about finding and nurturing those relationships?
3. Business Growth: As I’m focusing on multifamily, industrial, and retail assets, any advice on how to position my company to stand out in a competitive market?

I’m excited to learn from your experiences and advice. If you’re someone who’s doing something similar or have been in my shoes, I’d love to hear your story and the challenges you overcame.

Looking forward to hearing from all of you!

[Travis Timmons]

Start small and get a win under your belt. That probably means a small investment from friends and family or a partnership where you do almost all of the work for a small share of the upside. Trying to raise a giant pile of money from strangers is going to be really hard.

Resist the urge to oversell yourself and your experience. Be very honest and humble about what you have and have not done. Most people with a substantial amount of money don't get impressed by a resume. 

Lastly, don't forget how hard it is to do this. "Value add multifamily" is a cute term, but it will be an absolute bear of a project that will evaporate cash if you don't know what you are doing...and perhaps even if you do know what you are doing. Problems are compounded as the number of units grow.