MB461: The 4th Pillar of Apartment Investing Success: Deal Capital - With Michael Blank

In this episode of the Financial Freedom with Real Estate Investing podcast, Michael Blank wraps up the powerful 4-part series on the “4 Pillars of Apartment Investing Success” – a framework to get your first or next deal under contract in as little as 6 to 18 months. Today’s focus is on the final pillar, Deal Capital. In the last three episodes, Michael discussed becoming Deal Ready, establishing Deal Flow, and mastering Deal Analysis. Now, he dives into the importance of Deal Capital, where you’ll learn how to raise the funds you need to act quickly when the right deal comes along.

If you’ve ever felt that raising capital is daunting or worried about making mistakes, Michael breaks down the proven methods that have helped his students raise millions in capital, purchase over 41,000 apartment units, and build wealth using Other People’s Money (OPM).

Key Takeaways

The Basics of Deal Capital

• Securing capital is essential to closing multifamily deals, but many investors are unsure how to raise funds effectively, especially before they have a property under contract.
• Michael explains that raising capital doesn’t require you to have your own funds; you can leverage Other People’s Money (OPM) to build wealth.
• He shares strategies to begin conversations with investors early, so you’re ready to move quickly when a great deal comes your way.

Creating a “Sample Deal Package”

• The “Sample Deal Package” is a powerful tool that allows you to present an example of a typical deal to potential investors, even before you have a specific property identified.
• This package provides potential investors with a clear picture of the type of opportunities you’re looking for, showcasing your vision and approach.
• By educating investors rather than “selling” to them, the Sample Deal Package builds trust and interest, making them more likely to invest when you’re ready to close a deal.

How to Find Investors in Your Network

• Raising capital often starts with people you already know, so don’t overlook your network – talk to everyone about what you’re doing.
• Michael emphasizes that you’re not selling an investment; you’re educating your network about multifamily opportunities and solving a problem for them by offering passive income.
• Approach potential investors as partners in wealth-building, showing them how they can benefit from passive income through real estate.

Approaching Investor Conversations as Education, Not Sales

• Many investors are looking for passive income opportunities but may not know how multifamily real estate can work for them.
• Instead of a sales pitch, approach conversations as education – show them the potential of multifamily investing without pressuring them.
• When you position yourself as a resource, you create authentic relationships where investors feel comfortable asking questions and investing with confidence.

Success Stories Using the Deal Capital Approach

• Michael shares how many of his students have used this approach to successfully raise capital, purchasing over 41,000 apartment units valued at $1.5 billion.
• By focusing on education, strategic networking, and a clear investment approach, these students have been able to simplify the capital-raising process and close deals more easily.
• These stories demonstrate that with the right approach, raising capital becomes an achievable part of multifamily success, even for first-time investors.

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