Ruben Greth is a podcaster and the host of the Capital Raiser Show where he teaches the best capital raising practices from successful syndicators and multifamily investors. In this episode, sheds light on the difference between raising capital for small deals and raising capital for traditional syndication and multifamily investment.
Important points in this episode
- Ruben’s show is about learning with the audience on how to learn capital raising and he’s been successful in small deal teams. He realized that raising capital for small deals is very different from raising capital for a traditional syndication.
- The company, Bakerson, has gone full cycle with 16 deals and started to move from multifamily sale to legacy investing.
- The mindset, “If you have a good enough deal, the money will automatically come,” while this is effective in small multifamily deals, this isn’t a great mindset in syndication.
- Syndication is complex and people want to be communicated with more.
- As Ruben got involved in Bakerson, they’ve evolved the way they raise capitals. They just didn’t present the deals and expected for the money to come in. They integrated a four-step process in taking care of their investors.
- Step 1: Get the investors to trust you and find out what their needs are.
- Step 2: Align and explain why multifamily is interesting to you and how they will benefit from it.
- Step 3: Explain what it feels like and share the investors’ experience so people understand when they are communicated with on getting distributions, having access, and more.
- Step 4: Take the investors through the 3-steps before presenting them the deal.
- Picking up the phone, communicating with investors, being the rock in times of uncertainty, keeping them warm in between deals are important factors in multifamily investing.
- Preferred equity model is a hybrid between regular equity from limited partners. They are paid first before the regular equity partners. They make less but it’s also a little bit more secure.
- One of Ruben’s guests in his show invests in parties, he’d be in the property and organizes party in it. He invites investors over and lets them have a feel on the property. It opens conversations and more.
- People who want to be hands-on prefer a joint venture. It’s a little bit riskier but they have control over the tenants.
- Many new syndicators are using technologies today such as investor management portals where people just login and see exactly what’s going on in the deal. It’s efficient and they’re more successful.
- Ruben’s ideal partners are people who want to bring equity into the deal.
- Follow Ruben Greth on LinkedIn.
- Check out their website here.
- You can send him a mail at email@example.com or call him at 602-300-3889.
- Check out and subscribe to Ruben Greth’s podcast, Capital Raiser Show.
- Try out Syndication Pro here.
- “People don’t care about you and your business; they care about how your business can help them.”
- “A lot of times, raising capital boils down to mindset.”