Raising Private Capital by Matt Faircloth Summary

Raising Private Capital provides a roadmap for real estate investors to secure funding through private individuals instead of traditional banks. Matt Faircloth explains how to build relationships with Cash Providers, structure win-win deals, and manage roles between Deal Providers (who find/execute investments) and investors. The book covers practical strategies for sourcing capital, negotiating terms, and maintaining transparency for long-term partnerships.

This book is ideal for real estate investors seeking alternatives to bank financing, especially those interested in fix-and-flips, rental properties, or commercial projects. It’s also valuable for beginners learning private funding basics and experienced investors aiming to scale their operations using other people’s money (OPM).

Yes, the book offers actionable advice, real-world examples, and a step-by-step framework for raising private money. Faircloth’s focus on relationship-building, deal structuring, and ethical practices makes it a trusted resource for investors prioritizing sustainable growth over speculative gains.

• Deal Providers vs. Cash Providers: Clarifies roles—Deal Providers manage investments, while Cash Providers fund them passively.
• Self-Directed IRAs: Highlights using retirement accounts as a capital source for real estate deals.
• Win-Win Agreements: Emphasizes tailoring terms to align investor goals (e.g., passive income) with project returns.

Faircloth advises tapping personal networks, attending real estate events, and leveraging mentorship. He stresses authenticity—sharing past successes and failures to build trust. The book also recommends creating a “private money pitch” to clearly articulate investment benefits and risks.

The book suggests starting with smaller, low-risk projects like single-family home renovations or duplexes. Faircloth emphasizes mastering one strategy (e.g., fix-and-flips) before expanding to multifamily or commercial properties, ensuring investors gain confidence and track records.

It details multiple models, including:

• Debt Agreements: Fixed-interest loans secured by property.
• Equity Partnerships: Profit-sharing based on project performance.
• Hybrid Models: Combining debt and equity for flexible returns.

Some note the book’s beginner-focused approach may lack depth for advanced investors. Kirkus Reviews praises its accessibility but highlights its conservative stance—prioritizing preparation over “get-rich-quick” tactics.

While Brandon Turner’s book covers broader rental strategies, Faircloth’s guide dives deeper into private funding mechanics. Raising Private Capital is more niche, ideal for investors seeking alternatives to traditional loans.

With rising interest rates and stricter bank lending, private capital remains critical for investors. The book’s principles—like building trust and adaptable deal terms—help navigate economic uncertainty and capitalize on off-market opportunities.

Matt Faircloth is a real estate investor and co-founder of DeRosa Group, managing over 370 units and $30M+ in transactions. His experience with fix-and-flips, tax liens, and multifamily projects informs the book’s practical, no-fluff advice.

• “Private funding isn’t about luck—it’s about preparation and professionalism.”
• “Your reputation is your most valuable asset; protect it with transparency.”

These emphasize accountability and long-term partnership building.