Passive investors are fearful in the current market environment.
Many got burned by rising interest rates, and they’re skittish about putting more money into the real estate market right now.
But we know that there are big opportunities coming in 2024. And Warren Buffet encourages us to ‘be fearful when others are greedy and be greedy when others are fearful.’
So, how do you position a deal to investors who may have lost money in multifamily? Can you still raise capital at scale—even when it’s not a popular time to invest?
Bronson Hill is CEO of Bronson Equity, where he has raised over $20M for real estate ventures and served as GP for a portfolio valued at more than $150M.
An advocate for helping others achieve financial freedom through passive investing, Bronson educates aspiring investors through his podcast and new book, Fire Yourself: Replace Your Working Income with Passive Income in 3 Years or Less.
On this episode of Financial Freedom with Real Estate Investing, Bronson joins Garrett and me to explain how he raises money at scale through his online marketing platform.
Bronson shares the inspiration behind his book, Fire Yourself, and discusses the common mistakes passive investors make.
Listen in for Bronson’s insight on vetting deals in new asset classes and learn how to position a multifamily deal to investors and raise money in a challenging market environment.
Bronson’s journey to financial freedom
- Frustrated with lack of time freedom in medical sales career
- Took 1,000 one-on-one calls with HNWI while working full-time
- Worked with Michael to raise tens-of-millions for real estate
How Bronson’s marketing platform raises money at scale
- Takes you from one-on-one to one-to-many
- Reach professionals/business owners who want financial freedom
What inspired Bronson to write Fire Yourself
- Help others control own time, leave job if they want to
- Explain how to develop cashflow streams, vet deals, etc.
Bronson’s approach to vetting sponsors in verticals beyond real estate
- Look for alignment of values, reputation and track record
- Invest your own capital first, then bring in investors
How Bronson gets up to speed on other industries
- Get educated on primary risks of investment and look at data
- Start with minimum investment to get familiar with asset class
The main messages for passive investors from Fire Yourself
- Make sure your investments are actually passive
- Misalignment of interests when invest in Wall Street
Bronson’s take on the common mistakes passive investors make
- Look at deals but never make decision to invest
- Want to know everything before they take action
How Bronson is positioning deals to investors right now
- Deals that cashflow from Day One are easier sell
- ‘Be greedy when others are fearful’
What problems multifamily operators are facing right now
- Floating rate bridge loans in trouble
- Even good operators can’t overcome expiring interest rate caps
How Bronson thinks about investing in multifamily in 2024
- Hard to raise money for apartments with current sentiment
- Savvy investors will capitalize on opportunities
Connect with Bronson Hill
Connect with Michael Blank
Email [email protected]