RAISING PRIVATE CAPITAL by Matt  Faircloth

RAISING PRIVATE CAPITAL

Building Your Real Estate Empire Using Other People's Money
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KIRKUS REVIEW

A concise but comprehensive introduction to finding private capital for real estate investment. 

Private capital—money not raised from a bank or financial institution but a private individual—can be far more attractive than its alternatives. The terms of such a loan are likely to be more elastic and susceptible to negotiated revision and therefore easier to customize. Also, a more direct, intimate connection between what debut author Faircloth calls the “Cash Provider” and the “Deal Provider” leads to a more symbiotic relationship between their goals; as the author emphasizes repeatedly, the arrangement between the two ideally is a “win-win” proposition. In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader, even including a basic understanding of what counts as private capital. He outlines the different types of loans and the various real estate deals for which they can be used, including the ways these deals can be differently structured. Much of this practical instruction manual is devoted to laying bare the technically esoteric—how to unlock the value of private equity, the benefits of self-directed IRAs as a source of funding, or how to successfully find and execute a fix-and-flip. Faircloth also discusses the more human element of sourcing funds to expand a real estate business: the moral obligations one owes to a cash provider, how to build trust in others through constant self-improvement, and the benefits of mentorship. This is a notably thorough synopsis of the subject, specifically addressed to the beginner—the author even provides a prefatory primer on basic accounting and financial terminology. Faircloth is appropriately conservative in his advice, cautioning the reader to make careful preparations—he explains in detail how—before even attempting to strike a first deal. His counsel is not only clear and expert, but also admirably sober. “While some people get lucky out of the gate, this is not a ‘make millions in a month or two and then move to Tahiti’ kind of business.”

A valuable tool for the aspiring real estate tycoon.

Pub Date: July 26th, 2018
ISBN: 978-1-947200-98-2
Page count: 180pp
Publisher: BiggerPockets
Program: Kirkus Indie
Review Posted Online:
Kirkus Reviews Issue: Aug. 15th, 2018




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