How do you prepare for the intricate process of real estate financing and capital raising? In this episode, Brian Briscoe talks about the complexities of securing real estate loans, emphasizing the importance of having experience and proof of business plans for agency debts. They share personal anecdotes about the prolonged timelines often encountered in lending processes and the necessity of maintaining updated financial statements. Brian shares the importance of waiting until after due diligence to announce deals, managing investor expectations, and the critical need for thorough preparation in raising capital. Tune in to this episode and learn the importance of being proactive and driving the timeline in real estate transactions! 00:00 - 04:07 Agency Debt and Bridge Loans The intricacies of commercial real estate lending, specifically focusing on the complexities of obtaining Fannie Mae and Freddie Mac loans. Essential factors such as the need for bridge loans to gain experience, the stringent checks by lenders, and the recurring requests for financial statements. Often underestimated timelines involved The overarching message is to manage expectations and not be discouraged by these delays, as they are a common part of the process. 04:08 – 07:22 Announcing Investment Opportunities The importance of thorough due diligence before making public announcements about investment contracts. They practice of not revealing investment opportunities until they are certain of the purchase, usually during the latter part of the due diligence period. Addressing the variability of financial terms until a lender reviews and confirms them with a term sheet. Collaborating with appropriate agencies based on state regulations and ensuring all procedural aspects are covered. 07:23 - 08:43 Importance of Raising Capital The importance of understanding title reports and their role in securing loans. The necessity of consulting with escrow companies, attorneys, and title companies to ensure a smooth closing process. The need for strong connections to secure funding, especially for first-time capital raises. 08:42 - 13:53 Final Thoughts and Advice Bing well-prepared for the entire closing process when raising capital for real estate investments. Capital discussions early with a broad network Establishing oneself as a credible investment opportunity Understanding the importance of soft commits Asking the right questions to ensure prospective investors can follow through Staying in regular contact with potential investors to prevent them from going cold. 13:54 – 20:27 Conclusion and Farewell The nuances and strategies of raising capital in real estate Focusing on understanding investor profiles and setting appropriate investment minimums. Flexibility in minimum investment amounts for accredited and sophisticated investors The importance of maintaining good relationships and being strategic about which investors to negotiate with. The necessity of driving timelines and efficiently managing all parties involved to prevent deal losses. The importance of not jeopardizing friendships over investments The value of having a proactive team member to manage timelines effectively. Key Quotes: "People have to look at you as a viable investment opportunity because they're investing in you as much as they're investing in the deal." – Brian Briscoe "You can always negotiate that buy-in and you can get into a deal for less than that minimum. If you have a really good relationship with the person that's putting the deal in." – Brian Briscoe "There is no amount of money that I would put on my friendships and I don't want to lose them because of an investment." – Brian Briscoe Connect with Brian Briscoe: https://www.instagram.com/brian_briscoe https://www.linkedin.com/in/brian-briscoe-ut/ Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today! LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode. Are you confused about where to start? Join our community and learn more about real estate investing. Head over to our Facebook Page, YouTube channel, or website https://www.theacademypresents.com/jointhesummit36848306.
