One of the most common questions I get from new investors on how to raise money is: “How do I FIND investors for my deals, especially when I’m just starting out?”
I’ve raised over $145 million for real estate projects, but I started out just like everyone else: young, unproven, and trying to raise money during the 2008 housing crash. If I could figure it out then, you can absolutely figure it out now. Here’s what I’ve learned after nearly two decades in the game.
1. Stop Hunting. Start Fishing.
The biggest mistake I see beginners make when raising money is that they go straight for the sale. It’s like walking into a store and having a salesperson immediately ask, “Can I help you?” You instinctively say no, even though you walked in to buy something. That’s what happens when you go straight for the pitch. You make people feel sold instead of supported. Instead, think of raising money like fishing, not hunting. You’re building relationships, educating people, and letting them come to you over time. Lead with value, not desperation.
2. Raise Money Before You Have a Deal
People often ask me, “Should I find a deal first or raise money first?” The answer is both, always. Even if you don’t have a property under contract, you can still plant seeds. Talk to entrepreneurs and professionals who are successful outside of real estate. These are people who understand investing, cash flow, and ROI, but might not have time to operate deals themselves. Here’s a simple way to open the conversation: “Hey, I’m reviewing a few potential real estate deals right now, still early in the due diligence phase, but would you have any interest in partnering up on something if the numbers make sense?” That’s it. No pressure. No hard sell. Just planting seeds.
3. Keep Your Deals Simple and Fair
When you’re getting started, don’t overcomplicate your structure. For smaller flips, I’d often say, “I’ll pay you 10% interest or 15% of the profit, whichever is higher.” That’s easy to understand and instantly more attractive than what they’d get in a savings account or bond. For buy-and-hold deals, maybe you offer an 8% preferred return and 20% equity, or even a clean 50/50 split. The point isn’t to squeeze every dollar. The point is to build trust and momentum. Once people know you do what you say you’ll do, the money follows.
4. It’s Not About This Deal, It’s About the Next Ten
I gave up 70% ownership on my first 150 doors. Sounds crazy, right? But those deals built my track record. They gave me the credibility and relationships I needed to buy thousands more units later. Too many new investors get caught up trying to “win” on deal number one. They forget that this business rewards the long game. You’re getting paid in experience and relationships, both of which compound over time.
5. Don’t Be Afraid to Pay Yourself
Early on, I refused to take acquisition fees because I thought it made me look greedy. I wanted every investor dollar to go into the deal. The problem was that left me struggling to pay my team and fund operations. Eventually, I realized investors want their operators focused. If taking a modest acquisition fee helps you stay all in and run the business professionally, it’s not selfish, it’s responsible.
6. Learn From Early Mistakes
On one of my first apartment acquisitions, the seller tried to remove a “representations and warranties” clause from the contract. That clause basically says, “Everything I’m telling you as the seller is true to the best of my knowledge.” My attorney told me not to remove it. Sure enough, the seller had been hiding major issues with the property. That clause was the reason we won a lawsuit later. Moral of the story: get good legal advice and never sign something you don’t understand.
7. Compete With Connection, Not Credentials
If you’re new, you might wonder why anyone would invest with you instead of a big firm that’s been doing it for years. Here’s the answer: access and alignment. When someone invests with me, they’re talking directly to the operator. I walk the properties, meet with contractors, and keep communication open. Big firms can’t offer that. Use that personal connection as your strength. Many investors would rather partner with someone who’s hungry, responsive, and transparent than a faceless institution.
8. Start Small, Then Scale
You don’t need to know everything about SEC law to raise private money. Start small. One investor, one property. If you’re doing a single-investor deal secured by real estate, you don’t need complicated syndication paperwork. Once you start pooling multiple investors into one deal, that’s when you hire an SEC attorney to draft a Private Placement Memorandum. Don’t overthink it. Start where you are.
9. Raise for Deals, Not Funds
Even after raising over $145 million, I’ll tell you straight up, it’s much easier to raise money for a specific deal than for a blind fund. Investors want to see the actual property, the numbers, and the business plan. When they can visualize the deal, they move faster and invest with more confidence. You’ll raise money more consistently when people can see exactly what they’re buying into.
10. When Investors Don’t Reinvest
Sometimes an investor will make great returns and still decide not to roll forward into your next deal. That’s okay. People have life events—kids going to college, buying homes, medical expenses. Don’t take it personally. Your job is to keep the pipeline full and never rely on a single investor. If one source dries up, you should have five others ready to go.
11. Educate Instead of Sell
Content is leverage. When I share how I structure deals, how we pay investors, and the lessons I’ve learned, the content works 24/7. Someone can find that video at 3 a.m. while I’m asleep, and it plants a seed that turns into an investor months later. Leading with education builds trust and respect. And trust plus respect equals influence. Influence is what fills your capital stack.
12. Be Real, Not Perfect
Every real investor has lost money at some point. If someone tells you they haven’t, they either haven’t done enough deals or they’re lying. Sophisticated investors can smell inauthenticity from a mile away. Be honest about your wins and your losses. Tell people what you learned. When one of my early deals went south, my investor didn’t lose a dime—I made him whole out of my own pocket. That one decision probably made me millions down the road because that investor became a massive advocate for me. “If you lose money, you lose nothing. If you lose health, you lose something. If you lose your reputation, you lose everything.” Protect your reputation at all costs. Integrity compounds faster than interest.
13. Final Thoughts
Raising private money isn’t about chasing investors or showing off fancy spreadsheets. It’s about relationships, education, and integrity. When you focus on helping others understand what you do, staying transparent when things go wrong, and playing the long game, you’ll never have to sell again.
If you want to learn more about raising capital the right way or joining one of our programs, you can schedule a free call with my team here: https://legacywealthholdings.com/success-call/
Be your best,
Tim Bratz
