Raising Capital for JV

[Justin Elliott]

Hello BP Crowd I’m in a Minneapolis and in the market for a 5-20 unit. I’ve just got done with a refinance of a 3 unit that I was able to pull out $65k from after purchasing in May. I would like to add value to a 5-20 unit but I need partners. Since I’ve never raised money for a deal before I don’t know what I don’t know. From initial conversations the people I know that are potential investors are not very excited about buying right now. My question is how can I add value to these more established investors that don’t “need” to invest. What can I present to them that might build my credibility. For example if I came prepared with the details of the deal I just finished to at least show them I’m not a complete newbie would that be valuable or would that come off as naive because it’s not the same type of investment as a 5-20. For those of you that may have partnered with an up and coming investor (read less experienced). What made you believe in those people OR was it all about the deal that they presented? Anything helps. Thanks! Justin

[Tim Swierczek]

@Justin ElliottI'm with @Brad Schaeppi .  Your talking completely different deal types with a different skill set needed.   Get another slightly larger deal under your belt or offer your $65K plus your hustle to other investors and see if you can get into a syndication and learn from them.  If you do this you will 1. know what they like & want in from a deal 2. gain their trust 3. learn what you do not yet know about larger deals.  

Sure people brag about getting a large apartment with their first or 2nd deal on BP all the time, but they don't tell you what happened 5 years later.  I'm always curious to see how many worked out.  There is a learning curve to this process and the bigger the deal the more acceleration you have.  Which is great if your on the correct path, however, if your wheels then are not pointed in the right direction you can crash and burn quicker too.