Lessons Learned From A $4.8 Million Cash Raise [Commercial Real Estate Development]

As you might expect, raising capital for commercial real estate isn’t all that easy. In fact, it’s my least favorite aspect of investing in commercial properties - I’d much rather stay in my lane and focus on deal sourcing and acquisitions, planning for and developing the project, and executing our ideas. However, capital is a finite resource and if you’re looking to grow your assets under management, you’ll need to throw that fuel on your fire and bring in outside capital from investors. I recently finalized a $4.8 million cash raise with my partners on a commercial development in Nashville. At 10x my largest capital raise to-date, this raise gave me some valuable insight to the entire process. So, here are my biggest takeaways.

0:00 - Start
0:50 - An Experienced Team Matters
2:04 - Get Your Attorneys Involved Early
3:19 - Take Your Marketing Seriously
4:30 - Over-Raise and Get That Money in The Bank!
5:38 - It’s More Difficult Than It Seems

Interested in some aspect of commercial real estate that I haven't discussed yet? Please let me know in the comments!

// BUY MY UNDERWRITING MODELS

[TylerCauble]

What was your biggest takeaway from this cash raise? Let me know below!

[feeltheWrush]

Regarding the need to raise 2x the funds needed for the development—Do you inflate the dollar amount of the offering, or do you typically just continue raising funds and accepting pledges beyond the benchmark needed to pull off the deal?

[gabeg]

Another great video, I really like how you publish a text version of this on your blog so I can read/process the information. Also, is there an email or best way I can contact you? If you don’t want to give info out in here I understand.