Raising Private Capital: Building Your Real Estate Empire Using Other People's Money

by Matt Faircloth, Joe Fairless (Foreword)

This book is intended to be a roadmap for real estate investors who are looking to raise their game by injecting more private capital into their business. In the word of real estate, there is more than one way to obtain the money you need: Traditional lending may work for some investors, but going to a bank is simply not an option. Matt will provide the step by step process to acquiring, securing and protecting private money. This book will teach investors how to look into their current network for potential private money partners. It will also teach them how to provide a win-win proposition to money partners all while building the real estate investor's own business. Matt will discuss the specific roles in a deal: the person providing the deal and the person providing the cash and how they both benefit. The book will go into a deep discussion on how to work with your money partners and what types of deals will best benefit them based on their goals and the source of their capital.

Genres: Business, Finance, Nonfiction, Personal Finance

191 pages, Paperback

Published August 9, 2018

About the author

Matt Faircloth is the co-founder and president of the DeRosa Group, a real estate investment company that specializes in buying and renovating residential and commercial properties. Matt and his wife, Liz, started investing in real estate in 2004 with a $30,000 loan. They founded DeRosa Group in 2005 and have since grown the company to managing more than 370 units throughout the east coast. DeRosa has completed more than $30M in real estate transactions involving private capital—including fix-and-flips, single-family home rentals, mixed-use buildings, apartment buildings, office buildings, and tax lien investments. He is the author of Raising Private Capital, has been featured on the BiggerPockets Podcast, and regularly contributes to BiggerPockets’ educational webinars. Matt, Liz, and their two adorable kids currently live in New Hope, PA.

Reviews

[Anthony Tonsoline · Rating 1 out of 5]

The book does not give any good information. The message of the book is to tell all of your friends and family that you have investment opportunities. The author uses the book to promote himself and BiggerPockets, don’t waste your time.

[Dawid Yhisreal · Rating 5 out of 5]

A must read for anyone looking into really understanding the mindset and requirements for raising private capital. I read this one in a day! Love it.

[Jimmy Murray · Rating 5 out of 5]

Excellent read with relevant actionable advice!

[Amin Mo · Rating 3 out of 5]

I expected much more from this book. Especially it addressing a more specialized sphere of real estate investing which we don’t find in many books. The info it provided was too basic and “shallow”.
Using private capital and finding investors to fund deals is one subject I’m most interested in; after all, it’s why I’m having in my mind as a future career. And since this book is the first that’s concentrated on this subject, I was excited to learn more. But I believe it failed.
The most important aspect of private capital, is to simply find it. However, the author didn’t really give much insight about this. His instructions was to start with family and friends, then with referrals, and to broadcast your self and share your content for people to notice you. This is horrible advice, it’s like saying asking someone how to invest in real estate, and for that someone to answer you back with “buy good opportunities.”.
The book could have been much better, it could have devolved into more detailed aspects of operation showing the allocation of profit and how you as a deal provider can make money, it could have highlighted very important aspects one must focus on, and it should have most definitely provided more about finding investors.

[Jef · Rating 5 out of 5]

Thorough book on being creative when generating profit from investing in property.

This book is about more than that though, it focuses on the mindset it takes, creating the win-win for all involved and how to structure the process.

While written for the American market, can easily be applicable and applied to most markets.

[Paul · Rating 5 out of 5]

Outstanding book - Im an newbie real estate investor and have just made my first successful cash provider calls. I really found it helpful and intend to keep the book as a reference moving forwrd with my business.

[Dylan Berget · Rating 5 out of 5]

Raising Private Capital: Building Your Real Estate Empire Using Other People's Money is a well-written and insightful guide to raising private capital for real estate investments. The author does a great job of explaining the various methods for raising money from private sources, including crowdfunding, syndications, and partnerships.

One of the things I particularly enjoyed about the book was the emphasis on building a strong brand in order to attract private capital. The author provides practical advice on how to establish a reputation as a reliable and trustworthy investment partner, and how to use that reputation to secure funding from private sources.

Overall, I would highly recommend this book to anyone interested in raising private capital for real estate investments. Whether you are a seasoned investor looking to expand your portfolio or a beginner just starting out, this book offers valuable insights and strategies for securing the funding you need to build your real estate empire.

[Kurt · Rating 5 out of 5]

Great read for anyone interested in raising private money to do real estate deals. The author does an excellent job at taking a topic that can seem complicated to the new person and communicating it in such a way as to seem doable. He also manages to go into deeper deals that are in fact more complicated but makes more sense to the seasoned investor.
Additionally, he adds stories that mark his mistakes and obstacles. This is something not done enough in guru real estate books. They typically only tell of their genius. This trait in Faircloth makes his book relatable and gives the reader a connection to him, not to mention encouragement that things occasional go wrong to all of us. Overall, a book everyone looking to raise money should have in their library.

[Javier HG · Rating 4 out of 5]

Me ha sorprendido este libro. Es mejor de lo que esperaba. No solo es útil a nivel financiero, sino que también da muy buenos consejos a nivel de desarrollo personal. Me gusta la filosofía de Matt Faircloth.

"Raising Private Capital: Building Your Real Estate Empire Using Other People's Money" es un libro que trata sobre cómo apalancarse con dinero de inversores y deuda para construir un patrimonio inmobiliario relevante. Y lo hace con una prosa sencilla, nada complicada. Te llevará tiempo leerlo porque es denso. Quiero decir que no hay "relleno", cada página contiene información relevante y no estarás tentad@ de saltarte páginas o leerlo "en diagonal".

Un libro que interesará a aquellas personas que quieran sacar todo el partido a sus inversiones inmobiliarias.

[R Joseph · Rating 5 out of 5]

Raising capital realistically

Mark transparency about his challenges when the 1031 exchange custodian misappropriated 700k of investors money . That insight alone was. worth the money I paid for the book , Raising Capital. I felt Marks pain and I begin to think about the deep ramifications of stewardship of other hard earned money. Thanks again Mark for being transparent

R Joseph Blue

[Istvan Peter · Rating 4 out of 5]

Right after reading this book, I'm currently reading Brandon Turner's Book on Investing In Real Estate with No (and Low) Money Down, and there are huge overlaps between the two books. Which isn't a bad thing, for it confirms that the same things work for two separate successful real estate businessmen; also the authors obviously know each other. Yet, it feels like it must be mentioned that Brandon's book came out 4 years earlier than this one.

[Ed Barton · Rating 4 out of 5]

Good Basics

Fund raising is a lot of work and is probably the second biggest impediment to success after fear. This book gives you the breadcrumbs necessary to get started. This book doesn’t do it for you or arguably go far enough in the strategies but it is a great stepping off point.

[Mandy Wultsch · Rating 5 out of 5]

Interesting book on how to raise private capital, how to set up partnerships and other group investments, and when you should hire a lawyer. Great information. I am not going to be able to use any of this for a few years, at which time I will probably reread this book, but I did find it fascinating.

[Justin Sheppard · Rating 5 out of 5]

Very great resource, I learned a lot

This book introduced me to several concepts which have helped me with my real estate business. I’m a realtor who is about to make the leap into investing, and I’ve taken away many tips from this book that have improved my business.

[Derick Mboweni · Rating 5 out of 5]

Raising private capital

Good book I really enjoyed reading this book. I'm happy bought this book . I will read it again and again. This book is for everyone who want to grow his real estate business and build an empire.

[Jacob Thorp · Rating 5 out of 5]

Amazing book! Great concepts, amazing presentation on Audible. I will definitely be listening to this again!

[Jonathan Wylie · Rating 5 out of 5]

This was a great starter for me to learn how to communicate opportunities of deals.

[Harrison Busbee · Rating 4 out of 5]

While at times repetitive, this contained more specific and actionable advice than many other options in the genre.

[Linh nguyen · Rating 5 out of 5]

Practical

[Anthony Therrien Bernard · Rating 4 out of 5]

Overall good book on raising private capital but didn't really go in details enough on how to present these deals and examples of deal structures. Still worth a read

[Cory Wallace · Rating 4 out of 5]

This was a great read which covers the opportunities to generate wealth using private capital when the banks won’t lend.

[Zach Morrell · Rating 3 out of 5]

I would have appreciated to know more about putting and structuring a deal. Like how to divide up percentages/equity. He talked much more about where to find financing than anything else.

[Andrew Blunt · Rating 5 out of 5]

Great book for people who weren't born with access to a trust fund.

[Jess_voracious_ Reader · Rating 3 out of 5]

Too much information all at once was an easy to digest.

[Jacob St. Martin · Rating 5 out of 5]

Great book, can't wait to implement some of the techniques I learned.

[Caitlin · Rating 5 out of 5]

So practical and informative. Excellent resource. Also he was able to explain really complex topics in an accessible way.

[Jinglei C · Rating 1 out of 5]

I mean… not very practical

[Ronald J. Pauleus · Rating 5 out of 5]

Really helpful and constructive. Put much of what is needed to raise capital into perspective.

“Real estate investing is a marathon, not a sprint.”

[Alex · Rating 5 out of 5]

This is one of my favorite Bigger Pockets books. Matt provides clear, coherent steps for raising private capital that can benefit real estate newbies or well established investors. I believe many of his tips can also be applied to other industries.

[Mayfieldcedricyahoo.Com · Rating 5 out of 5]

The best book on raising capital for Real Estate Investors,Developers,and etc!! This book will be valuable for many years to come.