The #1 Reason 90% of Capital Raise Pitches Get Ignored

0:02So we're a single family office but we like to see ourselves more as a real estate platform we invest on both the equity and the debt. So we're essentially lenders, but we're also asset owners. And the way we've designed our platform is to always be able to take opportunities of different market cycles. So Dan mentioned multifamily. So what we've been doing actually for the past about 14 months is buying non-performing loans on multifamily because they're hitting renewal walls and it's a struggle. And for us, we're acquiring assets below replacement costs for 50, 60 cents on the dollar. That's a unique position to be in if you're well capitalized to go in and be able to acquire the assets.

0:45But that doesn't actually make you any money unless you're able to operate. So your ability to execute on a plan and turn the asset around is what makes you the money. So I believe in processes. And for some of you who've been to any of my previous talks, I focus a lot on systems, processes, and discipline. I think just like any other success you will find in life, anything you do in business requires a lot of discipline. You need to be extremely disciplined about how you operate your business. So for all the operators and asset managers out in the room here, the way we've built our business, the way we've built wealth, is we've built systems, processes, and we were super diligent about it.

1:27It's hard. It's like going to the gym. It's hard, but it pays off. You stay healthy, and that's an investment. So for me, that's your business hygiene. What are we investing in? We're investing in debt heavily. We're about 60 % in debt placements. So we're lending money. We are also rolling up debt platforms. So we're buying other lenders. We're buying mortgage brokerages. We're buying origination platforms, credit shops. So we're in acquisition mode because that drives our selectivity on what we lend on. The other thing we're investing in is taking direct real estate positions, so where we can control the asset.

2:13So we will do co-GPing, we'll do a little bit of GP stakes, but it's all in the real estate world. So that's why we see ourselves more as a holistic real estate platform, and that's what we're investing in. I think the key takeaway from my point of view to people in the room is that the market is very tough and it's very difficult to be raising money in today's environment. But we're also dealing with unprecedented economic conditions. So your understanding of where the allocation strategy is going with the investors you're trying to raise from and an understanding of what they're allocating to is crucial.

2:52because in a lot of times, we get a ton of pitches every day. I kid you not, we get maybe 10, 20 emails every day flowing in. And most of them don't even pass triage. The reason is nobody's actually investing the time to understand what they're presenting us with. If someone knows that we're a fully vertically integrated real estate platform, there's no point in sending us a fund pitch if you're going to be delivering 12 % return because we're hitting 30. So it doesn't make any sense, right? But if you're sending us a platform that's actually a good candidate for acquisition because they're a strong operator, they're on the verge of growth, then you've actually found something that could be a potential fit for what we're looking for.

3:38But the lack of understanding of what we look for and not investing the time up front to actually spend the time, the effort to zero in, who is my ideal investor? What are they looking for? And then designing that box and going after that specific profile. Whereas that shooting blind, like at the event, right? I got... You got to know your investor more better than your girlfriend if you want to make money. Absolutely. Like you got to know what they're trying to do here. And I guess like most of the allocators have got, what, 20, 30 messages before being on stage today. Like most of the people, the thing is the successful ones, the ones that I've done business with here at this, through this platform with Family Office Club and other platforms are people who are actually invested a few months of learning what we do, talking to our team, running deal scenarios and saying, does this make sense?

4:36Does this structure work? And those are the people we've ended up doing business with. But the blind sort of pitch doesn't really work well from my personal point of view. It also lacks the trust element. But I think it's also the alignment. You're in a market where money is very scarce. Allocation is becoming more difficult. Economic conditions are becoming more difficult. Right down the swing zone. Exactly. Right down the swing zone. So that's what people are looking for. If you're asking, what are we allocating to? Invest the time to understand what the buy box looks like. and what we're allocating to.

5:13And that would make it significantly easier for both sides. We're looking to make money. We want to deploy capital. It's just a matter of what are we deploying to and is it a good fit or not. Thank you. And I think that's a great point and why it's important to invest time in building those relationships. And if you're raising capital, it may seem like a daunting thing to say, oh, I need to build the relationship to a certain level of depth with every potential investor, whether they may invest in me now or not, but it does pay off if you pay it forward. And I can't tell you just as the others experience how many people message me on LinkedIn or get in touch in some other way.

5:54And one of the things that tells me that I should ignore their message is they didn't send me a connection request or were not already connected as if they're just using up their emails or whatever to send me a message, but they haven't really looked at my profile and they haven't said connect or request to connect, that tells me they don't really know who I am. So figure well before you're thirsty. Yes, that's right. That's right. So, uh, so I think that's great advice. Hi, I'm Richard C. Wilson. Our community has closed over $1 billion of transactions. We have over 16 million registered members across a hundred plus LinkedIn groups.

6:36And I own billionaires.com and run Family Office Club. Over 19 years, we've hosted 300 live events. I've built 50 of our own AI tools. And between the billionaires I've interviewed, the centimillionaires who have spoken on stage and over a thousand decamillionaires who have presented, we've found there's three things that really can build your wealth, proximity, super intelligence, and scale. That's exactly what we provide at Family Office Club. We host 30 events a year, including five large summits for wealthy founders and investors, dozens of workshops and masterminds, including 12 artificial intelligence, laptops out, implementation workshops.

7:14So you leave with AI implemented. To learn more, please go to familyoffices.com. And I look forward to personally meeting you at our next live event. If you are a founder, raising capital, developing real estate, or you're an investor, would love for you to get involved in the Family Office Club. I've run this community for 18 years now. We've hosted 300 live events. We have 17 million social media group members and followers. We have the number one YouTube channel on Family Offices. We have the number one most popular podcast on Family Offices. You can learn more about us and our membership options at familyoffices.com.

7:52We have 30 in-person events planned in 2026 and another dozen events this year. Please go to familyoffices.com to learn more.