289: Using Other People's Money to Build Your Real Estate Empire with Matt Faircloth

BiggerPockets Real Estate Podcast

Building a real estate business can be one of the best ways to achieve financial freedom. The problem for most, however, is money: There simply isn’t enough in your hands to get all the deals you want. That’s why today’s show might be the most impactful podcast episode you’ve ever heard. In today’s interview with Matt Faircloth, author of the new book Raising Private Capital, shares the steps needed to begin raising money from others to fund your real estate deals. You’ll discover the different types of private capital (and how to approach each), how Matt and his wife were able to grow from 30 units to over 300 (!) using other people’s money, and why talking about metrics to a private lender might not be a great idea at first. If you want to 10x your real estate portfolio or build your empire faster, this is one show you can’t afford to miss!

In This Episode We Cover:

• Who Matt Faircloth is
• How they’ve reached 380 units to date
• Tips for building wealth by investing in business
• What you should know about opportunity cost
• Finding deals versus making good deals
• How to raise private money
• Tips for starting a business with friends and family
• A role-play call with David
• The number one question potential cash providers ask
• Why you should start with debt
• A new way to look at debt
• When the SEC gets involved
• About his book
• And SO much more!

Links from the Show

• BiggerPockets Forums
• Brandon’s Instagram
• David’s Instagram
• BiggerPockets Instagram
• BiggerPockets Store
• BiggerPockets Podcast 203: Finding Deals, Funding, Contractors, and Mentors with Matt and Liz Faircloth
• BP Podcast 088: Investing with Your Spouse, Managing Financials, and Growing Your Team with Matt and Liz Faircloth
• BiggerPockets Webinar
• BNI
• BiggerPockets Pro Replay
• BiggerPockets Hard Money Lenders

Books Mentioned in this Show

• Rich Dad, Poor Dad by Robert Kiyosaki
• Rich Dad’s Cashflow Quadrant by Robert Kiyosaki
• Raising Private Capital by Matt Faircloth
• Lifeonaire by by Steve Cook & Shaun McCloskey

Fire Round Questions

• What kind of rates are investors getting from private lenders? What’s the holding period?
• Is there a serious, reliable source for PM lenders available?
• Would a loan from friends and family be considered private money?
• If you do pay for your coach, how does the fee work
• Whats up with the investors/mentors?
• Do I need a basic contract to use when raising private money, even from people I know and trust, even for family?
• Are there specific rules around raising the 20% down payment that most banks require?

Tweetable Topics:

• “When it comes to raising money, you got to establish trust first.” (Tweet This!)
• “People should start with debt.” (Tweet This!)
• “It’s not about finding good deals, it’s about making good deals.” (Tweet This!)
• “You’ve got to squeeze the lemon and make something out of it.” (Tweet This!)

Connect with Matt

• Matt’s BiggerPockets Profile
• Matt’s Company Website

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