Scaling up a multifamily investing business starts with scaling up your capital raise.
And one key strategy for expanding your investor network is to get referrals from friends and family who already invest with you.
But how do you encourage your investors to talk about their experiences? How do you leverage referrals to build momentum in raising money for real estate deals?
Dan Reilly and Greg Danielson are Managing Partners at Measured Capital, a private equity firm that sponsors value-add multifamily investment projects.
Dan and Greg both walked away from lucrative careers for real estate, and since becoming partners in 2022, they have built a portfolio of 500-plus units.
On this episode of Financial Freedom with Real Estate Investing, Dan and Greg join us to explain how they overcame limiting beliefs around talking to brokers and scaling up quickly to build a successful multifamily business.
Dan and Greg discuss their decision to invest in Des Moines and Jacksonville, describing how they’re gaining traction in those markets and dealing with deal flow challenges.
Listen in for Dan and Greg’s approach to raising money from their network and get strategic advice on how to land referrals for investors from friends and family.
Key Takeaways
Why Dan and Greg ‘threw away’ lucrative careers for real estate
- Greg wanted time freedom to be present dad and husband
- Dan had desire to play on bigger stage
How Dan and Greg took action on their desire for a different life
- Greg started meeting with people who were already doing it
- Dan changed his beliefs through coaching
What mindset issues Dan and Greg had to overcome early on
- Lack of experience and knowledge in talking to brokers
- Uncomfortable with scale of 100-unit properties
How Dan and Greg overcame their limiting beliefs
- ‘We’re not going to be the reason this doesn’t happen’
- Leverage partnership to rehearse calls
What gave Greg the confidence to skip SFH investing
- Learned from others that single family isn’t scalable
- Got in on multifamily deal as LP to learn about syndications
Dan and Greg’s first multifamily deal as GPs
- Invited to GP team on local deal that was short on capital
- Dan made 30 calls and raised $800K in 5 days
Dan’s approach to asking friends and family to invest
- I’m investing in this deal and here’s why
- Maybe you should consider investing too
How Dan and Greg divide up their roles and responsibilities
- Greg = acquisitions, broker relationships and underwriting
- Dan leads charge on raising capital, newsletter
How to get referrals for investors from friends and family
- Earn trust of influential people who tell stories about you
- Bring authentic energy, natural curiosity to conversations
Dan and Greg’s interest in the Des Moines and Jacksonville markets
- Leverage existing relationships and visit in person
- Stay consistent in providing feedback to brokers on deals
Dan and Greg’s transition from co-GPs to lead sponsor
- Video offer helped land 216-unit deal in Des Moines
- Found operating partners, landed another 228 units
Dan and Greg’s biggest challenges right now
- Staying patient and disciplined in underwriting deals
- Finding strategic capital partners who agree with thesis
Dan and Greg’s advice for aspiring multifamily investors
- Network with people who are already doing it
- Don’t work to earn, work to LEARN
Related Articles
Mastering Multifamily Syndication
Building Your Multifamily Resume Through Partnerships
How to Build Trust in Your Brand
Connect with Dan Reilly and Greg Danielson
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Email [email protected]
Resources
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
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Access Michael’s Free Resources in the Freedom Vault
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Financial Freedom with Real Estate Investing by Michael Blank
