Why not Take Loans Instead of Raising Capital?

[Shafi Noss]

I've been wondering recently about the advantages of borrowing money over raising money from investors. After financing 75% of the purchase price for a multifamily from a bank, many syndicators raise money from themselves and other investors to cover the remaining costs, in fact I've never heard of any strategy other than raising money.

Why not get the additional capital from another bank, credit union, or other lender? It seems like interest rates would be lower and the process more standardized. Has anyone ever heard of borrowing the entire capital stack or have any insights on the pros and cons of raising money from investors?