Why Raising Money is Easy When the Deal is Right

Want to raise money for your real estate deals but don’t know where to start? Good news—when the deal is right, raising capital becomes easy! Discover the 3 essential keys that make raising money natural, rewarding, and even fun.

In this video you’ll learn how to:

• Identify deals that attract investor funding
• Position yourself to gain investor trust and confidence
• Match the right investors with the right opportunities
• Bonus: Two critical disclaimers to protect yourself and your investors

Real Success Story: Jaden’s Journey

Many aspiring real estate investors find raising capital intimidating, but here’s the truth: when the deal is right, raising money is easy. In this post, I’ll break down the three essential keys to successful fundraising—keys that will make raising capital feel natural, rewarding, and even enjoyable. To illustrate how effective these principles can be, let’s look at the story of Jaden, a student in our Protege Program.

Just three years ago, Jaden had zero experience in multifamily investing. Fast forward to today, and he owns 199 units worth $14 million. How did he achieve this incredible transformation? By mastering three critical keys to raising capital. First, he focused on identifying deals worth investing in. Second, he worked on positioning himself as someone investors could trust. Lastly, he aligned his opportunities with the specific needs of investors. Using these principles, Jaden successfully raised the majority of his investment capital from outside investors, contributing only a small fraction of his own money.

Two Important Disclaimers

Before we dive into the keys, it’s crucial to acknowledge two fundamental guidelines that will protect both you and your investors.

1. First, you must hire a qualified attorney. Raising capital involves legal complexities that require professional oversight. Consulting an attorney is not optional—it’s a necessity. Be sure to seek professional legal counsel for any investment venture.
2. Second, respect investor funds. Handle every dollar as if it were your grandmother’s last $20. If you wouldn’t invest her last $20 into the deal, don’t expect others to. Investor funds must be managed with care, transparency, and integrity.

With these important considerations in mind, here are the 3 keys to raising money for commercial real estate.

Key #1: Is the Deal Worth It?

Raising capital starts with the deal itself. Not every deal qualifies for investor funding—you must ensure it provides strong returns to justify the risk. Your deal should meet two essential criteria:

1. It must generate enough profit to pay investors their promised returns.
2. It must leave you with a reasonable profit after paying investors.

Evaluating a Deal’s Profitability

For example, imagine you secure a multifamily property that produces a 12% cash-on-cash return. You offer your investors a 6% return on their money, leaving another 6% as profit for you. This type of deal is worth raising capital for because both you and your investors benefit. Now, consider a weaker deal—one where the return is only 7%, but you still offer investors 6%. That leaves just 1% for you, which is far too small to justify the effort and risk. The deal is too tight and risky, making it an unwise investment choice.

The key takeaway is simple. The higher the cash-on-cash return, the easier it will be to raise money. If the deal doesn’t allow you to adequately compensate both yourself and your investors, it’s not worth pursuing.

Key #2: Belief in Yourself and the Deal

While the deal itself is crucial, investors ultimately invest in you before they invest in the deal. That’s why your mindset and confidence matter. Jaden faced this exact challenge when he first joined our Protege Program. With no prior experience and no existing investor network, he struggled with self-doubt. He asked, “How do I raise millions of dollars when I have no confidence in myself and don’t know anyone?” The answer? Mindset. Mindset is critical in business, sports, relationships—and raising capital. Understanding this, we worked with Jaden to shift his mindset from doubt to confidence.

The Mindset Shift

To transform his outlook, we encouraged Jaden to shift his thinking. Instead of selling investments, he learned to offer opportunities. People hate being sold to, but they love opportunities. Rather than aggressively pitching a deal, Jaden reframed his conversations. He presented his investments as a way for investors to grow their income, protect their savings, and build long-term wealth through multifamily investing. This small but powerful shift allowed him to confidently connect with investors and secure millions in capital.

Building Trust: The Foundation of Investment

Equally important is trust. Investors must trust you before trusting the deal, and trust begins with genuine connection. One of the best resources on this topic is John Maxwell’s book, Everyone Communicates, Few Connect. This book is an excellent guide for anyone looking to build relationships, connect with investors, and earn trust. If you’re serious about raising capital, make time to read it.

Two Practical Questions to Build Investor Trust

To further develop connections and make the process feel natural, we coached Jaden to ask two simple but powerful questions when speaking with potential investors:

1️. Are you looking for income now or growth later?

• This question helps identify whether an investor prefers immediate cash flow or long-term appreciation.
• Since not every deal is suitable for every investor, this insight helps align their financial goals with the right investment.

2️. What’s your time horizon for investing?

• Are they looking for a short-term investment (3–5 years) or a long-term wealth-building strategy (for retirement or future growth)?
• Understanding this allows you to structure deals in ways that match their objectives.

By applying these trust-building techniques, Jaden transformed from a hesitant beginner into a confident investor, successfully raising millions.

Key #3: Understanding Investor Needs

At its core, raising money is about aligning the right investor with the right opportunity. This requires a mix of strategy and psychology. Every investor has unique financial goals, but most fit into one of these four categories:

1️. Replacing a paycheck – Investors who need steady cash flow.
2️. Catching up on retirement – Investors looking for value-add opportunities.
3️. Reducing high-income taxes – Investors who need tax benefits through cost segregation.
4️. Leaving a financial legacy – Investors focused on long-term wealth-building.

Matching Investors to the Right Deals

Once you identify an investor’s need, you can strategically pair them with an appropriate deal:

• Cash-flowing deals → Investors seeking stable income.
• Value-add opportunities → Investors looking to grow their retirement funds.
• Cost segregation strategies → Investors needing tax advantages.
• Long-term holds → Investors focused on generational wealth.

Raising money isn’t about having deep pockets—it’s about resourcefulness. When you have a strong deal, adopt the right mindset, and genuinely care about your investors, funding naturally follows. Instead of chasing money, money will start chasing you! By applying these principles, you can unlock the same success as Jaden and countless others.

Every Successful Commercial Real Estate Investor Has a Mentor

Every successful commercial real estate investor has a mentor. Get your mentor here:  Commercial Property Advisors Protege Program

If you have any comments or questions, text PETER to 833-942-4516.