forzaRo

Somebody I think highly of recently wanted to grab coffee and get some advice on fundraising. They’d never raised money before, but they know the multifamily asset class very well because of lots of brokerage experience. So we sat down - and I asked him if he’s comfortable asking people for money. He started saying he wants to make a newsletter to create connections. I told him that was a terrible idea, and an excuse to avoid fundraising. “Make a spreadsheet of every person you know, and start calling them. Tell them that once in a while you see deals you’re excited about, and ask them if they’d be open to participating if great deal came up. If so, ask them approximately what ballpark range they’d be comfortable with. And then pause and wait for an answer.” I also shared the fundraising wasn’t for everyone, and he needed to find out if it was for him or not. He responded by bringing up the newsletter again. I cut him off: “No. Start the spreadsheet today, and start calling to tomorrow. You’ll find out fast if you’re ready, or if anyone would be interested. Oh, and waive carry. You’re practicing with their money, so forget about making real money on the first ones.” When someone wants advice or feedback, I think holding back is doing them a disservice and wasting everyone’s time. Some appreciate it, some are uncomfortable and never ask again, and some are even offended. Anyone can escape giving actual advice by going with “wow amazing I love it” - but I think sugarcoating is boring and useless, and a sign you don’t really care