EP215: How to Get Unlimited Money for Your Business

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Today, we are going to explain a single system that helped us raise over 130 million dollars for our multifamily apartment properties. 

We have a multifamily apartment 🏢 portfolio of over $300 million and we did so, in 5 short years using this very system.  

If you don’t have a lot of money, nor a rich mom or dad, you have to think differently and play the game differently to excel.  

Now, if you follow our system you too will have unlimited money for your business.  Before we hop into the exact system/framework let us tell a quick story about how we got started.

A few years ago we took a trip down the land down under, Australia 🐨🦘🇦🇺. 

And on that trip we went hiking at Uluru formerly known as Ayers Rock. 

Uluru is made of sandstone about half a billion years old.

It stands 348 meters (1141.73 feet) high and has a circumference of 9.4 km (5.84 mile).

Uluru is at its most stunning around sunrise and sunset 🌇 when the golden light makes the rock’s colors come alive.

However, the unforgiving temperature that day stood at 42 degrees Celsius (108 degrees Fahrenheit). 🔥

When we asked our guide how far we were hiking, she retorted with a hint of sarcasm, “Well, how much 💧 water do you have with you?” 

In such harsh environments, your determination won’t determine your success; it’s the supply of water that dictates your journey’s extent.

Source:  The Kitti Sisters TV

This analogy mirrors 🪞 our entry into the real estate world, but it applies to any business venture.

Five years ago, we stumbled into real estate following the collapse of our fashion business.

While we were aware of the adage “find the deal, find the money 💵,” emotionally and situationally, we had no clue about raising capital or how to approach potential investors. 

We were petrified, thinking that no one would be willing to lend us money. 😖😖

Consequently, we focused solely on finding the right deals and hoped that everything would magically fall into place.

👉 After a tough sixteen month without any success, we finally landed our first deal.

But then we faced a new hurdle: we didn’t have the necessary funds to buy the single-family house we planned to renovate and sell.

The property’s price tag was $855,000, and the hard money lender would provide 75% of the purchase price, plus 100% of the projected $110,000 in renovation costs.

This meant we needed to come up with $213,750 for the closing, scheduled in just two weeks. Panic set in.

Desperate to solve this dilemma, we reached out to a few people, but none had the capital to lend us.

We were newcomers to the field, and it seemed improbable that anyone would trust us with their money.

As the clock ticked, hope seemed to slip away. In the eleventh hour, our mother’s friend loaned us around $160,000, leaving us $50,000 and some change short.

Just when we were on the brink of despair, a chance conversation with a friend became a miracle. She casually mentioned having $50,000 sitting idle in her Bank of America account. She was willing to lend it to us. These two individuals, despite our feeling undeserving of their help, made our initial foray into property flipping possible. Though the project ultimately succeeded, the lesson was clear: we must “always be raising.”

This experience led us to develop our unique system.

We realized that we hadn’t established the right system to attract investors or make ourselves visible in the market.

We were essentially “unfindable.” Nevertheless, we were determined to crack the lucrative real estate game.

That’s when we stumbled upon the concept of OPM (Other People’s Money) on steroids. 🚀

We discovered that raising substantial funds from multiple investors is much easier than relying on a handful of individuals.

We could adapt the same system used by venture capitalists, private equity firms, and hedge funds to secure capital for our ventures.

This system involves private placements or private investments. 

Now, let’s break it down for you, using a real estate example, but keep in mind that this approach can be applied to any business.

It’s essential to note that this is a highly regulated space with severe consequences for any legal missteps. Always consult with a reputable SEC attorney to ensure compliance with the law.

Imagine a property with a price tag of $50 million.

Chances are, 99.9% of ordinary people don’t have $50 million lying around.

So, what’s the solution? First, find a strong silent partner, such as a financial institution, willing to collaborate with you.

For real estate deals, they might provide around 50% of the Loan-to-Cost, leaving you to secure the remaining $25 million.

Again, if you don’t have $50 million, you probably don’t have $25 million either.

How do you bridge this gap?

By raising money from private investors through private placements, individuals who believe in your vision and are eager to join you in your business journey. 

You raised the $25 million because, unlike in our early days, you focused on creating an investor attraction flywheel (stay tuned for more on this in our next episode).

For your efforts in orchestrating the deal and overseeing its management, you’ll earn a 20% equity stake. 😝😝

This means that from the $25 million raised, you’ll receive $5 million in equity.

Yes, it’s a staggering amount, so take a moment to let that sink in.

But here’s the kicker – once the business plan is executed, and the project achieves its projected returns, your $5 million equity can double to $10 million.

In the words of NFL hall of famer Shannon Sharpe, “If it makes dollars, it makes sense.”

Play this game right, work diligently to grow your investors’ wealth, and you’ll find yourself with access to limitless money for your business endeavors.

Now that you have limitless money, tune into this episode on how we are turning dust into gold.

By 2025, gross rental yields across most major Commercial Real Estate (CRE) sectors are anticipated to increase compared to 10-year Treasuries, yet they are still expected to fall short of the 20-year average. The office sector stands out, as its projections for 2025 suggest it will surpass the 20-year average by that time.

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