Raising Capital for Deals

[Jackson Madonna]

Currently, I'm attempting to syndicate my first few multifamily developments near universities throughout the Southeast. I've found a few deals where the numbers add up, and I'd like to start pitching these deals to investors and capital partners. I was wondering how to start networking and compiling a list of LP investors and equity capital firms. I'm attempting to start modestly and grow, without going too small where economies of scale will work against me. Please give me your suggestions, and if you know anyone who can help, let me know. Thanks.

[Arn Cenedella]

@Jackson Madonna

Congrats on finding a few deals.

Find the deal or find the money - what do you do first? is an on-going debate among investors.

As you now see, the correct answer is do both - find investors while you look for deals, find deals while you look for investors.

As others have noted, it is difficult to “cold contact” potential capital source - your first contact is “I got a deal and need capital”. That equally doesn’t work. Few people of any are going to hand over $50,000 to someone they just met.

So you have to prime the pump with investors - educate them let them know what you are doing build a relationship with them. THEN when you get a deal, you can let them know.

BOTH AND is always better than EITHER OR.

The answer to your question is NETWORK NETWORK……

Reach out to your existing personal and professional sphere first - they are your most fertile ground.

A more immediate solution would be to bring the deal to existing investors and syndicators - people who have done this before and partner with them. You will have to share the pie with them but the experience you gain will be invaluable.

I’m in Greenville SC and do MF deals all over the Carolinas - happy to connect and see how we can help each other do deals.. 👍