How 90% of Real Estate Investors Build Wealth Without Their Own Money

Building wealth in real estate doesn’t have to rely on your personal savings.

In fact, almost 90% of successful real estate investors utilize other people’s money (OPM) to finance their deals. From private lenders to strategic partnerships, leveraging OPM can help you grow your portfolio while minimizing financial risk. If you’re looking for strategies on how to raise capital for real estate fund, this guide will walk you through proven methods and why raising funds before you need them is essential for success.

Why Other People’s Money (OPM) Is the Key to Growth

Relying solely on personal savings limits your ability to scale. By tapping into OPM, you can:

• Access larger deals with better returns.
• Minimize financial strain and protect your savings.
• Build a scalable portfolio faster.
  In my YouTube video, I discuss why raising capital early gives you an advantage, helping you stay prepared and credible in the eyes of potential investors.
  
  

3 Proven Strategies to Leverage OPM

1. Private Money Lenders

Private money lenders are individuals looking for higher returns than traditional investments.

• Benefits: Flexible terms and faster approvals.
• How to Find Them: Attend local meetups in New York, Illinois, or British Columbia to connect with professionals.

2. Hard Money Loans

Hard money lenders provide short-term, asset-based financing.

• When to Use: Ideal for flipping properties or bridging gaps before long-term financing kicks in.
• Pro Tip: Keep loan-to-value ratios conservative to manage risks.

3. Partnerships

Partnering with investors allows you to pool resources while sharing responsibilities and returns.

• How It Works: One party provides capital while the other manages the project.
• Why It’s Effective: It builds credibility and allows access to more significant opportunities.
  
  

Want to transform your real estate journey? Download my Unlimited Investor Leads Book below for proven methods to connect with investors and grow your portfolio.

Start Raising Capital Before You Need It

Waiting until you’re desperate for funding puts you at a disadvantage. Raising capital early ensures:

• Investors have confidence in your preparedness.
• You can act quickly when opportunities arise.
  
  

I have also created a blog recently on why you should raise the money or capital before you even need it. Give it a 5-6 minute read below. 

Conclusion

The most successful real estate investors know that leveraging OPM is a game-changer. By working with private lenders, exploring hard money loans, and forming partnerships, you can grow your portfolio without relying on personal savings. Ready to take your investments to the next level? Start applying these strategies today to master how to raise capital for real estate fund and unlock the full potential of your portfolio.

Follow me on: 

• LinkedIn: @MarcinDrozdz
• YouTube:  @MarcinDrozdz
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• Facebook:  @MarcinDrozdz
  
  

The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. Marcin Drozdz, M1 Real Capital Inc are not financial, legal or tax advisers. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. You understand this to be an expression of opinions and not professional advice. You are solely responsible for any actions you take with the content and hold Marcin Drozdz and M1 Real Capital Inc or any of it's affiliates harmless in any event or claim.