Should I raise more capital than I plan to need?

[Andrew Reyes]

Hi All:

I am in the process of working through a business plan with my partner to execute on the BRRRR strategy. We have limited funds ourselves but family and friends have expressed interest in investing with us. If we expect to need $200k for our first deal, how much money should we target to raise?

How much capital should we have committed in excess of our project budget? Assuming this capital will only be called in the event we end up going over budget.

What is a good assumption for % of money we will actually have available to us when we find the deal? I assume not everyone who expresses interest in the idea of investing in real estate will actually pull the trigger when it comes time to write a check.

Thank you in advance for your advice and experience!