Conquering the Capital Raising Beast

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Capital Raising Fears: Conquering the Note Investing Beast (and Maybe a Roach Motel or Two)

Hey everyone, Scott Carson here with another episode of the Note Closers Show! Last week was a little slower—thanks, Texas ice storm!—but I'm back with some juicy lessons from our recent Austin note-buying workshop. I know many of you feel that overwhelming fear of raising capital, so let’s dive in.

First, a huge shoutout to Stephanie Goodman, my workshop ninja! She handles all the small stuff (so I can focus on the big stuff, like preventing my students from accidentally buying roach motels). We pampered our attendees with coffee, tacos, brisket—basically, a culinary journey through Texas.

Now, the workshop was smaller than planned (thanks, flu season!), but intimate. That allowed me to connect with people on a personal level and see those "fear" eyes. You know the ones—wide, slightly panicked, and radiating the silent scream of, "I'm in over my head!"

What did I learn from observing these expressions of real-estate fear? People are scared to ask for money. They’ve flipped houses, done hard money loans, but raising outside capital terrifies them. Why? The unknown. The fear of rejection. The possibility that they might get that one deal or property, but it smells like wet dog.

Here are some key takeaways from the workshop.

-Small wins build BIG confidence: My first private capital raise was a dud. A complete disaster. But it instilled belief in myself. You need that first win, no matter how small, to prove you can do it.
-Networking is key: This isn't just about collecting business cards. It's about building relationships. People are more likely to help people they know and like. Who doesn't like free tacos?
-Embrace the discomfort: Stepping outside your comfort zone is where the magic happens. Are you getting that feeling of uneasy? Then you know you're doing it right.
-Due diligence is crucial: This isn’t just about numbers. It’s about seeing the property, the real deal. Remember that eightplex? A true testament to why you should ALWAYS do your due diligence.
-It's not about luck, it's about effort: Yes, some deals fall through. That's part of the process. But the more offers you make, the more deals you'll close. Remember that saying: "the more you sweat in practice, the less you bleed in war."

Remember the deal that almost got away? 29 units, worth about $1.1 million, and they were looking for $550,000. I lowballed them. The owners were shady and the property was a disaster (roaches, dead rats...the works). I learned a valuable lesson—due diligence and having confidence in your deals.

But hey, even failures teach you. I connected with four investors who were ready to back me on my next deal. They understood the business of risk. It’s a wild ride!

So, go out there, take some action, and remember that the only person limiting you is yourself. Until next time!