EP305: The Secret Playbook Wall Street Uses to Raise Billions (And How You Can Use It Too)

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Ever wonder how Wall Street raises billions (sometimes trillions) of dollars—without going public?

We’re talking about the real, behind-the-scenes strategies that the biggest firms use to fund real estate, private equity, and venture deals without ever touching the IPO route.

And if you’re an entrepreneur, business owner, or investor looking to raise capital the smart way—listen up.

Because once you learn these three money-raising methods, you’ll never look at capital-raising the same way again.

How We Learned These Billion-Dollar Secrets

Six years ago, we found the perfect multifamily deal—76 units in Phoenix, prime location, with rents way below market.

The seller wanted $6.3 million+, and I knew we could double the property’s value in three years.

(Spoiler: We actually tripled it in just 27 months—but that’s another story.)

There was just one problem…

We couldn’t raise enough money.

We were doing what everyone else does—calling friends, reaching out to my network, and basically begging for investments.

And it wasn’t working.

Then something wild happened.

We were having coffee with a friend who works at one of the largest banks in the country. She looked at my deal and started laughing.

“You’re trying to raise money like it’s 1985,” she said. “Wall Street doesn’t do it that way anymore.”

What she showed me changed everything.

These weren’t just random strategies. These were SEC-approved regulations that allow fund managers to legally raise billions—without going public.

So today, we’re breaking down:

💰 The three ways Wall Street raises billions
💰 How you can apply them to fund your deals
💰 The biggest mistakes to avoid (because getting this wrong can destroy your business)

Let’s dive in down⏬

Money Door #1: Regulation D (Reg D)

The most common way private investment firms raise capital is Reg D.

Reg D has been around since 1982 and is the foundation for most real estate syndications.

But before we get into it, let’s clear up one thing:

What is an Accredited Investor?

To qualify as an accredited investor, you must meet one of these:

✅ Earn at least $200K per year ($300K with a spouse) for the past two years
✅ Have a net worth of $1M+ (not including your home)
✅ Hold a high-level financial certification (Series 7, 65, or 82)

Think of Reg D like running two different types of restaurants:

506(b) – The Private Dinner Party

🚪 You can raise money from accredited + a few non-accredited investors
🚫 No public advertising
💡 Investors self-certify (no proof required)

This is like a VIP dinner party.

You can invite up to 35 non-accredited investors and unlimited accredited investors—but you can’t advertise.

That means:

❌ No Facebook ads
❌ No YouTube videos
❌ No social media posts

You have to build relationships first.

This is what we’ve used for the last six years to raise over $130 million.

Why? Because people invest with those they know, like, and trust.

💡 If you’re an accredited investor and want to invest alongside us, join our Kitti Freedom Club. We have a massive waitlist, so make sure you’re on it: kittisisters.com/kittifreedomclub

506(c) – The Public Restaurant with a Neon Sign

🚪 You can raise unlimited capital from accredited investors only
✅ You can publicly advertise (social media, podcasts, ads, etc.)
📄 Investors must verify income/net worth

Unlike 506(b), 506(c) lets you market your deals anywhere.

But here’s the catch:
❌ Investors must verify their accreditation (tax returns, W-2s, CPA letter, etc.)
❌ You can’t accept non-accredited investors

For many investors, this verification process feels intrusive, which can turn them off.

💡 Which one should you choose?
✅ Want to build long-term relationships? 506(b)
✅ Want to scale faster with public marketing? 506(c)

Either way, you’ll need a Private Placement Memorandum (PPM) to legally onboard investors.

🔥 Example: Blackstone (one of the biggest private equity firms) primarily uses Regulation D to raise billions in real estate and private equity funds.

Money Door #2: Regulation A+ (Reg A+)

What if you could raise $75 million… from anyone?

✅ Your neighbor
✅ Your hairstylist
✅ Someone who found you on Instagram

That’s Reg A+.

It’s like an IPO (going public)—but way easier.

Two tiers of Reg A+:

✅ Tier 1 – Raise up to $20M (requires SEC + state approval)
✅ Tier 2 – Raise up to $75M (only needs SEC approval)

💡 Tier 2 is the popular one because you don’t need state-by-state approval.

🔥 Example: Grant Cardone raised over $400 million using Reg A+, allowing everyday investors to invest as little as $5K.

🚨 BUT… Reg A+ is expensive.

❌ Legal fees: $250K – $500K
❌ SEC audits: Required annually
❌ Marketing costs: HIGH

If you don’t have deep pockets to launch a Reg A+, this isn’t the best starting point.

Money Door #3: Regulation CF (Reg CF)

Ever heard of Kickstarter?

Reg CF is basically Kickstarter for real estate and private equity.

It allows anyone to invest with as little as $500.

💡 Max raise: $5 million per year
🚪 Investors must use SEC-approved platforms like WeFunder or SeedInvest

🔥 Example: Fundrise used Reg CF to raise over $1 billion, allowing everyday people to invest in real estate.

Pros:

✅ Access to a huge pool of small investors
✅ Lower legal/compliance costs vs. Reg A+

Cons:

❌ Capped at $5M per year
❌ You must use a funding portal (which takes 5-7% of funds raised)

If you’re looking to raise a few million from small investors, Reg CF is a great way to start.

Which Door Will You Open?

Wall Street held these secrets for decades—but now they’re available to you.

🚪 Want to build relationships and raise millions? Reg D (506b/506c).
🚪 Want to raise up to $75M from anyone? Reg A+.
🚪 Want to raise $5M using crowdfunding? Reg CF.

Here’s the biggest takeaway:

Raising capital isn’t just about collecting checks—it’s about building trust, transparency, and long-term relationships.

So if you’re looking to elevate your wealth game, join our Wealth Beyond Me community.

🔥 It’s where high-level investors, entrepreneurs, and business owners learn to build wealth that lasts beyond them.

And if you got value from this, drop a comment and tell me what topic you want me to cover next.

Until then, ciao for now! 🚀