Capital Raising Tips and Challenges

[Kwame Searcy]

   I am currently raising capital for my first deal. The deal structure is a 506(b) syndication which means that I have to have a personal relationship with the investors in order to get them into the deal as LP. In doing so I realized that my network is limited on high net worth individuals or people who have the money just have things tied up. Any tips or advice on some things that I can do to help raise more capital to get to closing? Bring in more partners? Look into creative financing? Any suggestions and tips would be greatly appreciated.

Thanks!

Kwame Searcy

[E. C. "Stony" Stonebraker]

The obvious answer is you have to raise your local and online profile so others know what you do.  

1. Attend local events where your target audience is likely to attend.  Check local newspapers, business journals, economic development commission, chamber of commerce, etc. to find these events.

2. Attend REIA events where you might find one or more HNW partners to help you through the first deal or two, or more. Investors also attend these events.

3. Connect with others and post on social media channels such as LinkedIn, Facebook, Instagram, etc.  Do this regularly.

4. To build your business, create a webpage and post educational articles, blog posts, etc. to help when investors are searching to invest in real estate.

Kwame, those are a few key steps and as you grow, you'll refine this list and develop more details as you learn from others.  Good luck to you!