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Updated over 6 years ago on . Most recent reply

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478
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Chris Tracy
  • Specialist
  • Plainville, CT
388
Votes |
478
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If you needed to raise a lot of capital... What would you do?

Chris Tracy
  • Specialist
  • Plainville, CT
Posted

Asking for a friend... lol.

Most Popular Reply

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134
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155
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Matt Faircloth
  • Rental Property Investor
  • Trenton, NJ
155
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134
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Matt Faircloth
  • Rental Property Investor
  • Trenton, NJ
Replied

Thanks for the tag @Jason D.   There is a ton of wisdom on this post already but I will try and add some thoughts.

@Chris Tracy , I would go one of two ways with this.  Either of these scenarios assumes that the deal has a good operator, a solid business plan, and produces an attractive return.

If you think that you have the network to raise the funds, then I would create a solid offering memorandum, get a good SEC attorney, and assemble a syndication.  Then shake your network tree as hard as you can until you have the funds raised.  It's a large risk on your part because if the deal doesn't go through, you are out a bunch of time and a bunch of your or someone else's money.  Trying to put something this big together and failing may end your career in this business.

Maybe you don't have the network.  Then you need to bring in a partner asap.  Find someone on BP that is an expert in the deal type and geography of the deal and work out a deal for them to take over.  You should be able to negotiate a solid slice of equity for yourself as a "bird dog" fee.  You may need to swallow your pride a little to go this direction but if you pick the right partner, you take a little risk and have a good chance of getting paid.

I hope that helps!

Matt

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