Hunter Estess, president of Estess Contractors and Dash Development,
and other renowned real estate investors and developers, know that
raising capital is essential to becoming successful in the real estate
field. This can be a challenge for many new investors, but raising
capital is about much more than a message, marketing image, or website.
Personal relationships, return of capital, and reasonable returns are
important cornerstones of raising capital in real estate.
A
personal relationship between the investor and the potential money
partner is of utmost importance. The real estate investor must get out
and network at local functions to build, and then maintain, a
relationship. A return of capital is the next important consideration,
especially for the investor. An investor’s primary concern is protecting
the money that has been lent to the investor, and many will look for
collateral should their investment not pan out. An investor has to be
ready to share a thorough backup plan with the money partner so that
partner does not lose his contribution.
Many real estate investors like Hunter Estess steer clear of promising what may not be delivered, namely overly large and impossible returns. Overconfidence on the part of the investor can translate into mistrust in the eyes of the money partner. It is best to underestimate the goals of the project rather than over estimate and lose the money partner’s trust. That said, the investor must still make the investment sound appealing. Chasing the big win is why many money partners got into the business to begin with. Real estate investors should not overestimate or promise the impossible, but they should make clear the potential for their deal.
A
personal relationship between the investor and the potential money
partner is of utmost importance. The real estate investor must get out
and network at local functions to build, and then maintain, a
relationship. A return of capital is the next important consideration,
especially for the investor. An investor’s primary concern is protecting
the money that has been lent to the investor, and many will look for
collateral should their investment not pan out. An investor has to be
ready to share a thorough backup plan with the money partner so that
partner does not lose his contribution.Many real estate investors like Hunter Estess steer clear of promising what may not be delivered, namely overly large and impossible returns. Overconfidence on the part of the investor can translate into mistrust in the eyes of the money partner. It is best to underestimate the goals of the project rather than over estimate and lose the money partner’s trust. That said, the investor must still make the investment sound appealing. Chasing the big win is why many money partners got into the business to begin with. Real estate investors should not overestimate or promise the impossible, but they should make clear the potential for their deal.
