Raising my first private capital.

[Daryl Kenny]

Hopefully some of the more experienced investors here can help.  I’m in the process of trying to attract my first private capital.  I have 2 partners and together we have 19 deals under our belts, 13 buy and holds and 6 flips.  

The last 2 deals I have been trying to attract money partners so that we can remove our personal capital limitations and do more deals but we've ended up funding them ourselves because I'm finding people to be flaky and initially say they want to invest but when it comes time to write a check will find 100 reasons why they won't. I get a lot of interest around the fix and flips but on buy/hold (mostly BRRR) people run the other way.

I’m currently under contract for a pair of properties I found off market.  We got them for about $50,000 below market value and I negotiated in lucrative leases with a local oil and gas company to keep the properties leased for a minimum of 3 years as crew houses.  I created value adds by sourcing bag lunch service from a local deli and coverall service from a local laundromat.  Not including the value adds, the internal rate of return is 26% with a 10% cash on cash preferred annual return to the investor.  

It’s probably my strongest deal to date, but since I began pitching all I have gotten is fluff from my “investors”.  I realize we can do the deal ourselves but it’s going to run our capital pool dry.

How the heck do I get past this hurdle?  Pitch more people?  I feel like once I get my first one that it’ll get easier.  

Any ideas?