Raising private capital is one of the most powerful tools a real estate investor can master. Whether you’re scaling a fix-and-flip operation or syndicating large multifamily deals, the ability to bring in private funds can be a game-changer. My business partner Chris and I have raised our fair share of private capital over the years, and we’ve learned what works—and what doesn’t.

If you’re looking to strengthen your investor relationships and attract more capital to your projects, here are four key strategies that have worked well for us:

1. Have Great Deals—Not Just Good Ones

Let’s start with the obvious: your deal has to make sense. But we’re not talking about “good” deals here—we’re talking great, risk-mitigated, investor-worthy opportunities. Private lenders and investors have options, and the bar is high. You need to be confident that your deal pencils out not just on paper, but in execution. A great deal is your best marketing tool.

2. Pay Investors As Often As Possible

Most people invest in real estate for the cash flow or the passive income. So why make them wait to see returns? While quarterly distributions are standard in many syndications, we’ve found that paying investors monthly—or even more frequently, when possible—builds trust and keeps excitement high. Especially in the fix-and-flip world, those backend-only payouts can be a tough sell. Instead, create a payment schedule that makes your investors feel valued and prioritized.

3. Offer Great Terms

A solid return is key to attracting and keeping quality investors. Whether it’s 8%, 10%, or even higher, offering competitive interest rates shows you’re serious about providing value. Sophisticated investors—those who’ve done their homework and understand the risk—are often looking for double-digit returns. And while rates will vary depending on the deal structure and the market, the bottom line is: if your terms are too lean, don’t expect capital to flood in.

4. Communicate Early and Often

This might be the most important piece of the puzzle. Transparency builds trust, and trust keeps investors coming back. Share the wins, but don’t shy away from the setbacks either. Investors want to know what’s going on—good, bad, or in between. Consistent updates, even when there’s “nothing to report,” can go a long way in building lasting relationships.

The Bottom Line:

Raising private money isn’t about one flashy pitch or promising the moon. It’s about doing solid deals, offering value, staying consistent, and treating your investors like partners—not piggy banks. When you focus on creating win-win scenarios and keeping communication open, you’ll find that raising capital becomes not just easier, but repeatable.

Have questions or want to learn more about how we structure our investor relationships? Drop us a line—we’re always happy to share more insights from the field.