Real estate capital raising and syndication
How do I raise capital for a mobile home park?
Short answer
Raise capital for a mobile home park by teaching investors why the asset class works before you ask anyone for money. Back that up with a one-line pitch, a short deck, a due diligence room and fair fees. Many sponsors talk to a securities attorney before they raise. Jack, a mobile home park operator, describes how this approach worked for him.
Teach first, then ask for money
Jack spoke at one of our events about mobile home parks. He told us he had raised only $5 million in four years. Then he read my book on capital raising and changed one thing. He told us he went on to raise $55 million more.
I explain how Jack flipped the script and attracted mobile home park investors instead of chasing them.
Summary and key takeaways from this video
"Instead of pitching his deals, he just started talking about the industry and why he liked the mobile home park industry."
I call this attracting instead of chasing. Investors who already like mobile home parks start swimming toward you. You are no longer throwing a spear at fish that were never headed your way. Jack told us his last deal raised $5 million in 72 hours.
Wave your own flag
Members often ask me who in the club would invest in their mobile home park. We have about 10,000 registered investors and roughly 1,000 active at any point. Many are open to different areas. But I am not waving the mobile home park flag for anyone. You have to wave it yourself and keep waving it.
Here I explain why trust and a clear track record matter more than the deal bullet points.
Summary and key takeaways from this video
The same deal can land very differently. Say it with clarity and one sentence about how many times you have done it and how many investors trusted you. Connect with people personally. Do not pressure them with a deadline. Most investors would rather back someone who promises less and is fully transparent than someone who promises the moon.
What to have ready before the first call
- A one-line capital raising pitch that nobody else could say.
- A one-minute video from the founder about the opportunity.
- A one-page opportunity summary.
- A short pitch deck of around 15 pages, not 40 to 70.
- A due diligence room and a master due diligence questionnaire.
Most of this costs very little and you can build it in-house. In my workshops, I often see only one or two people who have most of these items done.
Fees and the rules
Investors will pay for performance. They do not like big fees that land at closing, such as management, acquisition and debt arrangement fees. By month nine, a sponsor can have negative skin in the deal. Many sponsors explore structures where investor money comes off the table first, with low to moderate fees until then, and talk to an attorney about the actual terms.
Raising money is also a regulated activity. Many sponsors talk to a securities attorney about how educational content and investor conversations fit into the picture before they publish or speak to investors.
What I have said on this at our events
One practical point on materials. I suggest budgeting about point one percent of the amount you are raising for your deck and supporting documents. On a ten million raise that is roughly ten thousand dollars. Better materials make you look credible and professional, and you tend to raise faster with fewer meetings. You may even raise a little more than you planned. The larger the raise and the more sophisticated the investor, the more detailed and yet more concise your materials need to be. Many sponsors have a securities attorney review materials before they go out.
"The larger the amount of capital you raise, the more sophisticated and in-depth your materials will need to be. The better your materials, the faster the capital raise will go. And the more sophisticated the investor, the more detailed and the more concise your materials need to be."
From the source
- Jack said he raised $5 million in four years, then $55 million more after changing his approach to educating investors.
- Jack said his latest mobile home park deal raised $5 million in 72 hours.
- Family Office Club has about 10,000 registered investors, with roughly 1,000 active at any point in time.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: The #1 Strategy to Attract Investors Due Diligence Advantage | Capital Raising Workshop, AI Instant Due Diligence Advisor: Using Artificial Intelligence to Quickly Vet and Screen Deals, Inside the Mind of a Family Office: 100+ Strategies from 18 Years & 300 Investor Events. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around investor eligibility rules, marketing and communications and fee and deal terms. Do not use AI to write your own legal agreements.
Your next steps
- Write a one-line pitch that explains why you like mobile home parks.
- Publish articles, posts or videos that educate investors on the asset class.
- Build a one-page summary, a deck of about 15 pages and a due diligence room.
- Review your fee structure with investor skin in the game in mind.
- Many sponsors talk to a securities attorney before they market any offering.
More questions on this
Should I pitch my mobile home park deal directly to investors?
I suggest educating first. Jack raised far more once he stopped pitching and started explaining why the industry is worth investing in. Many sponsors have a securities attorney review how they communicate.
How long should my pitch deck be?
Around 15 pages is my rule of thumb. Many decks run 40 to 70 pages, and the busier the investor, the less likely they read it all.
Will Family Office Club find investors for my mobile home park?
No. I tell members that I am not waving their flag for them. You need to build trust and make your own value clear to investors.
Related questions
- How do I raise money for my first apartment deal?Start with the deal, because a good one is far easier to fund than most first-time sponsors expect.
- How do I raise equity for a ground-up development?Size the equity check first, then decide how much you raise yourself and how much a partner covers.
- What is a preferred return in a real estate syndication?A preferred return is a stated annual return, often quoted as a percentage like 8%, that investors in a syndication get paid before the sponsor shares in profits.
- What is the difference between a syndication and a real estate fund?A syndication raises money for one specific property or deal.
Work through it with the waterfall calculator. See all real estate capital raising and syndication resources.