The Ethics of Using OPM: Building Trustworthy Investor Partnerships

Using Other People’s Money (OPM) to grow your real estate portfolio is a powerful strategy—but with great opportunity comes great responsibility. Raising capital isn’t just about securing funds; it’s about building trust, maintaining transparency, and ensuring fair, ethical partnerships with investors. The most successful capital raisers understand that their reputation is their most valuable asset.

Why Ethics Matter in OPM Investing

Investors aren’t just handing you money—they’re trusting you to safeguard their capital and deliver returns. Any breach of trust can not only damage relationships but also make it significantly harder to raise funds in the future. Ethical OPM investing ensures that:

• Investors receive clear, honest communication about risks and returns.
• Deals are structured fairly, with win-win terms.
• Long-term partnerships are prioritized over short-term gains.

Transparency: The Foundation of Ethical OPM Investing

1. Clear Deal Structures Ambiguity creates doubt. Every investor should understand exactly how their money is being used, what returns to expect, and the risks involved. Provide clear legal agreements, pro forma projections, and exit strategies before taking any commitments.

2. Open and Frequent Communication Silence breeds suspicion. Investors should never be left in the dark about their money. Regular financial updates, quarterly reports, and open-door policies create confidence and prevent misunderstandings.

3. No Overpromising—Only Realistic Expectations One of the biggest ethical pitfalls in OPM investing is exaggerating potential returns to attract capital. Instead, be conservative in your projections, highlight potential risks, and underpromise so you can overdeliver.

Fairness: Structuring Deals That Benefit Everyone

1. Win-Win Investment Terms OPM investing should create value for both parties. Avoid lopsided agreements where investors take all the risk while you take all the reward. Fair structures include:

• Profit-sharing models where investors receive a proportional return.
• Clearly defined repayment schedules for debt-based investments.
• Transparency around fees and expenses.

2. Protecting Investor Capital Your investors’ capital should never be treated recklessly. Always:

• Have contingency plans for downturns.
• Maintain cash reserves to handle unexpected expenses.
• Avoid speculative deals that put investor money at unnecessary risk.

3. Honoring Agreements and Exits Trust is built when investors see that you do what you say you will do. If a deal goes sideways, handle it professionally—communicate early, present solutions, and prioritize investor capital protection before your own profits.

Building Long-Term Relationships, Not Just Transactions

The best OPM investors don’t focus on one-time deals—they build relationships that result in repeat investments. When you prioritize ethics, fairness, and transparency, investors will return for future opportunities and even refer others to you.

If you want to learn more about sourcing the right investors for long-term partnerships, check out this guide: 5 Ways to Source Investors

Final Thoughts

Ethical OPM investing isn’t just the right thing to do—it’s the most sustainable way to raise capital and scale your portfolio. By being transparent, structuring fair deals, and maintaining integrity in every partnership, you’ll build a reputation that attracts the right investors and secures long-term success.

Want to Attract Investors on Autopilot?

If you’re ready to take these qualities further and master the art of capital raising, my Unlimited Investor Leads book is packed with strategies for connecting with investors, building trust, and closing deals. This resource dives deeper into techniques like the E.A.S.Y. Method and creating an Unfair Advantage, so you can refine your approach and build powerful investor relationships.

Grab your copy here to start transforming your capital-raising journey!

— Marcin Drozdz

Founder, M1 Real Capital | Capital Raising Coach | Business Builder

The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. Marcin Drozdz, M1 Real Capital Inc are not financial, legal or tax advisers. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. You understand this to be an expression of opinions and not professional advice. You are solely responsible for any actions you take with the content and hold Marcin Drozdz and M1 Real Capital Inc or any of it's affiliates harmless in any event or claim.