?? Raising Money for Real Estate in 2024+2025? Here’s What Works Now ??

It’s not as easy to raise money for real estate as it was before 2022. Investors are being more careful, and there’s more competition for their attention. If you’re using old methods to attract capital, it’s time to switch things up. Here’s what actually works in today’s market:

1. Start Conversations Before You Have a Deal

To raise capital, you need to build trust before you have a deal ready. Investors want to know and trust you first. Here’s how:

• Build an Email List
• Share Helpful Content
• Make It Easy to Connect

2. Keep Projections Conservative

Today’s investors want less risk. Gone are the days of aggressive growth assumptions! Here are some tips:

• Slow Rent Growth: Don’t assume rents will keep going up quickly. Instead, use modest rent growth numbers.
• Stable Interest Rates: Assume interest rates will stay high. Don’t rely on rates dropping to make your deal work.

Show investors that you’re planning carefully and protecting their money by using realistic numbers. They’ll feel safer investing with you if they know you’re conservative.

3. Get Creative with Your Pitch

The old-style webinars? Not as popular now. Today’s investors want flexible, bite-sized info. So here are a few things to try:

• Pre-Recorded Video Pitches: Instead of long, live webinars, try short, pre-recorded videos that investors can watch whenever they want.
• 506(b) to 506(c) Rollovers: Start your deal with a 506(b) exemption, which lets you include non-accredited investors, and then switch to a 506(c) if needed for wider marketing. (Check with your SEC attorney first!)

?? Want your deal to stand out in this market? Focus on building trust early, keeping your numbers safe, and delivering info in ways investors like.