What's Holding Private Money Back From Deploying Capital?

[Orlundo Hubbard]

Why is it so hard to raise capital these days? 

I have been talking to investors and discussing my interest in raising capital and I get the same response "Capital is tight", "no one's lending right now", and "Why would someone lend to a new investor?". 

So, I'm here to ask those who either have capital to deploy or have raised capital, what are the common fears when it comes to deploying capital? 

Why is everyone so afraid to deploy capital? What are the common fears of investors who write checks to capital raisers? 

Is it just this market that is bringing fear or has it always been this way?

[Chris Seveney]

@Orlundo Hubbard

Raising capital and deploying capital are two different things in my mind

When you are raising capital, you are having investors provide you the funds so they can be passive. Many who have invested passively in real estate the past few years are in deals not going well and they are much more risk averse and are doing a lot more due diligence (unfortunately from lessons learned from not doing it previously)

Plus as mentioned risk free return vs risk adjusted return does not make it very enticing for investors

When it gets to deploying capital we have more deals than we know what to do with.