Why “The Money Will Find the Deal” is the Worst Advice in Real Estate

The Money Doesn’t Follow the Deal. It Follows the Confidence.

Let’s address one of the most dangerous myths in real estate:

“If the deal’s good enough, the money will come.”

I get it. We all want to believe that excellence sells itself. That if you find a killer property, investors will line up around the block.

But here’s the truth: That only works for the top 1% of operators—those with established funds, 10-year track records, or a cult following.

For the rest of us?

Waiting to raise capital until you have a deal in hand is like planning your wedding and hoping someone says yes at the altar.

 The Deal is NOT the Starting Line

Here’s what really happens when you follow the “deal first, money later” playbook:

• You’re chasing investors while trying to get your DD done.
• You’re begging people to “move quickly” on a 6-figure check.
• You’re slashing your terms just to get commitments.
• And worst of all—you’ve got no leverage with the seller.

When you raise capital after the deal, you're negotiating from a position of need. When you raise capital before the deal, you’re negotiating from a position of power.

That power shows up in the form of confidence, clarity, and control.

Real Case Study: $5M Discount Secured

Let me show you how this works in the real world.

In 2023, we closed on a distressed 144-unit asset in Texas. The seller wanted over $16 million.

The deal had already fallen through—twice. Interest rates were up. Vacancy was over 35%. Most buyers were scared off.

But we weren’t guessing. We weren’t hesitating. We had the capital lined up before we even signed the LOI.

And that made all the difference.

We came in with a cash-heavy offer and negotiated a $5 million discount. We closed at $11.1M.

Just a few months later, we stabilized the asset, improved operations, and drove up NOI. The new appraisal? $17M.

We’re now executing a refinance to return capital to investors—ahead of schedule.

This deal happened because we didn’t wait. The capital came first. The deal came second.

The Funds First Formula™: Your Capital-First Playbook

Here’s how we help clients raise $1M–$10M+ before ever finding a deal:

1. Prime Your Audience

Before they ever see a deck, your audience should know:

• What you invest in
• Why you’re the safest hands in the market
• How you’ve helped others win

This is where most capital raisers fail. They think the first impression happens on the pitch call. It actually happens weeks or months before—through your content, emails, webinars, and how you position yourself.

2. Reveal the Opportunity

When it’s time to show a deal, you don’t “present.” You curate.

We use the E.A.S.Y. Method to create momentum:

• E: Make the opportunity exclusive—not everyone gets in
• A: Show them there's abundance of support and track record behind it
• S: Inject scarcity—limited allocations, timelines, oversubscription
• Y: Emphasize your allocation—why they’re being invited

Done right, investors feel like they’re the ones who got the call.

3. Offer With Confidence

You’re not “raising” capital—you’re inviting capital to participate. Shift your mindset from selling to sorting.

Position the opportunity like a backstage pass: “Here’s what we’re doing. Here’s who this is for. If it’s aligned, let’s talk.”

Confidence closes. Desperation repels.

4. Follow Up With Systems

Manual follow-ups = missed capital.

We use:

• Automated email campaigns
• LinkedIn and retargeting ads
• VA-led DMs and investor check-ins
• Pre-built investor flows and booking systems

You should wake up to “Hey, I saw your post—how can I learn more?” Not chase people down for a reply.

5. Influence With Your Unfair Advantage

This is where the trust gets anchored.

Whether it’s your background, your market knowledge, or how you’ve structured the deal—you need to stand out.

If you're a contractor who flips distressed buildings, say that. If you're a former banker who underwrites deals differently, lead with that.

Your Unfair Advantage is the X-factor that makes investors lean in and say, “This is different. I want in.”

6. Time the Close

This is what most miss: Urgency without pressure.

We create launch timelines with:

• Early access calls for past investors
• Inner circle webinars
• Public release countdowns
• Soft closes + “last call” campaigns

This gives investors a reason to act—without feeling forced. The close happens naturally because they were expecting it.

Follow me on: 

• LinkedIn: @MarcinDrozdz
• YouTube:  @MarcinDrozdz
• Instagram: @MarcinDrozdz
• 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.