Funds on Fire
Welcome to Funds on Fire, hosted by Devin Robinson—a seasoned fund manager with years of experience launching, managing, and scaling multiple successful investment funds. Devin has also helped numerous entrepreneurs ignite their own fund ventures. This podcast is your go-to guide for mastering the world of investment funds and capital raising.
In each episode, Devin dives deep into the essential aspects of fund management, SEC compliance, and strategic capital raising, sharing the insights that have powered his own success. Alongside solo episodes filled with practical advice, you’ll hear from top fund managers whose funds are truly on fire. These industry leaders reveal the strategies, tactics, and stories behind their remarkable success.
Whether you’re an emerging fund manager or a seasoned professional aiming for greater heights, Funds on Fire delivers the knowledge and inspiration you need to take your funds to the next level. Subscribe today and turn your financial ambitions into a blazing success!
Funds on Fire
Understanding the Six Types of Capital Investors | Ep. 4
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Navigating the complex landscape of capital raising requires more than just a compelling investment opportunity—you need to understand the psychology and preferences of different investor types. In this illuminating episode, I break down six distinct investor personalities using animal archetypes that make them easy to remember and identify in your fundraising efforts.
From the patient, wealth-preserving Elephants who move cautiously but commit substantially, to the lightning-fast Cheetahs who demand quick returns and rapid liquidity, each investor type brings unique expectations to the table. We explore how Lions (successful professionals) seek prestige and moderate involvement, while curious Foxes invest smaller amounts but crave education and hands-on experience. You'll discover how aggressive Tigers push for equity and substantial returns, and how patient Tortoises build wealth through long-term, stable investments.
I also share my vision for shifting the podcast's focus toward investment fund education and management—an area where minority representation remains scarce. This mission reflects my commitment to democratizing access to financial knowledge and resources that have traditionally been concentrated among a privileged few.
Understanding these investor archetypes transforms how you approach capital raising, allowing you to tailor your pitches, structure deals appropriately, and build relationships that truly resonate with each investor's core motivations. Whether you're syndicating real estate deals, launching a fund, or seeking joint venture partners, mastering these distinctions will dramatically enhance your ability to match the right investors with the right opportunities.
Ready to transform your capital raising strategy? Hit subscribe and join me on this journey to more effective, relationship-based fundraising that honors the unique temperament of each investor in your network.
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Introduction to Investor Types
Speaker 1When you're raising capital, you're going to encounter all types of people, from the conservative elephants and the fast paced to each type has their own preference, risk tolerance and deal structure that they prefer. Understanding how to approach and work with these different investor types can make all the difference in your ability to raise capital effectively. So remember, though, at the end of the day, it's all about building relationships and understanding your investors needs, as it is just as important to find the right deal for them. Welcome to Funds on Fire, the podcast that ignites the passion of investment funds and capital raising. Here we turn the complexities of fund management into clear, actionable steps that drive results. I've invested into diverse real estate across the United States and managed thriving funds, and I'm committed to transforming lives through the vehicle of investment funds and helping others to do the same. Join me as we document the journey of scaling businesses, raising capital and impacting tens of thousands of people around the world. My name is Devin Robinson and welcome to Funds on Fire. What is up? And welcome back to another episode. Oh man, I am so excited and sometimes you honestly just need a little bit of a kick in the butt to get back in. Recently got a kick in the butt to get back in, and it's a good thing.
Speaker 1One of the big things I'm going to talk about today is the different investor types. The reason I'm going to talk about our different investor types is because I've decided I want to change the direction of which the content I want to go in. What I mean by that is the direction in which I'm going to spend most of my time creating content for the direction in which this podcast is even going to revolve around from the solo episodes and really try to hone in with the majority of the people we bring on. The podcast is and what we talk about. I think I'm going to switch it and start talking about more of the investment fund side. There's so many podcasts out there that talk about real estate, real estate, this, grow your real estate portfolio, make money with real estate to get into multifamily, do this, do that, and we'll talk about that stuff, because that's what I'm currently doing and I still wanna document the journey. I still want to make sure that you guys are seeing the ups and the downs of the business and I wanna be really consistent with it, which I have not been. Let me see, I think the last episode I did was man, like three months ago, and so I'm really gonna start diving into this and really being consistent, putting out more content, because there's not many people that are doing the investment fund space really.
Speaker 1And, if I'm really really honest, if the really big reason why I am running a fund and want to bring opportunity to people is because, again, there's this disparity between access to capital and resources for minorities and women and, honestly, rich white men and that's really what we're seeing too and this space of education for investment funds, all you're seeing is white men teaching about it. There's not really. I mean, there's maybe like one or two women that teach about it, and there's really not any black people that are teaching about it, and so I really want to bring more awareness to this space. I really want to bring more access to this space. I really want to bring more access to resources in this space and really want to attract a different audience that doesn't normally get the opportunity to participate in this space, and so I'm excited for that because I think that's kind of the vision of where I want to go Teach more investment funds. Now I'm going to teach real estate, because I think real estate is what everybody wants to learn, and so I will teach that. I will have resources for that, as we're really really rolling with our first fund and then actually we're in the process of thinking through and looking at what it looks like to start a second fund. I'm honest, I'll spend the rest of my life doing this and I absolutely love it, and so I'm excited to do that. I'm excited to focus on that area, really really hone in on it, because it's going to be a really big part of my life for the next 40 years of my life, and so I'm going to focus on funds and finance and economics and I just geek out about those things which, if you knew me in college or you knew me years ago, you would never think.
Speaker 1And so I want to dive into this episode, because I think this episode is really important, as you guys are thinking through the different ways to raise capital, the different people to look out for, the different avatar types or the different type of people that you can raise capital from and partner with and have as investors. We're going to dive into this understanding the different types of investors. So, whether you're starting a fund or running a syndication or launching a joint venture. Knowing how to work with different investors is key to your success. Each type has their own motivation, risk tolerance, preferred deal structure, and today we're going to break them all down. We're going to cover six distinct investor types, from the patient elephant to the fast moving cheetahs. So let's jump right in. And yes, I've named all of them just because I think it's really easy to remember them. So we're going to dive into the elephant and this is also honestly.
Speaker 1This is referred to the whale. So if you're in any type of finance or if you're any type of like investments, you've heard of the whale, the elephants. They symbol wisdom, patience and power. Much like the high net worth individuals they represent, elephants move cautiously, preserving their wealth or overtaking risks for high returns. They've spent years, sometimes decades even, accumulating their wealth through successful business or high earning careers, and they prioritize keeping that money safe. When an elephant decides to back you, they decide to come with you. It's a strong and long-term commitment.
Speaker 1However, getting them on board takes some time. They really evaluate every single angle of the deal before they commit. And this is true when you understand, when you think of some of these wells. I have a couple of well investors and it takes them a little bit longer to get in. I mean, it's really great when they get in and I'm really thankful and it helps to really boost where we could go, but it takes them a little bit longer to get in and a little bit longer before they feel comfortable moving in, either because it's your track record or because of the thesis or because of how you're mitigating risk. They really look at that and they really care a lot more about that.
Speaker 1Their focus is on preserving wealth and so they're not really trying to make huge returns like you would think they would, or like other people would, or other people you may know would. They're like, hey, give me my 8% and I'm good. And these are where you're going to see like family offices, high net worth individuals, people who have a lot of money that aren't concerned about making more money because they're kind of at the point where they're like, hey, I'm chilling, I just want to preserve wealth for my family in the long run. These are those type of people. They're more concerned with ensuring their money stays safe than chasing aggressive returns. Their risk appetite is very low. They prefer secure investments with little volatility, so their decision making is slow, but when they decide they are good to go.
Speaker 1These elephants require detailed information and feel entirely comfortable before making a decision. Now they don't really want to be involved at all. They trust you to manage the project. That's why they do their due diligence. They don't want to be involved in the day-to-day operations and so they're going to want these simple interest rate loans with, honestly, no amortization. They don't care about it, they just want simple interest rates and it's going to be long-term usually five to 10 years so they're not in and out. For example, imagine like you have a retired CEO who lends you a million dollars at 8% for a multifamily project. It might take them months to decide, but once they're in, they expect consistent payments and minimal handholding. Here's how you approach them. To attract an elephant, you wanna emphasize the security of your deal. Stress on how your project is low risk. Right, it's low risk, well-managed, you guys got a really good track record, it's backed by strong market fundamentals or the underwriting is really strong. Elephants want long-term, reliable returns, so focus on safety and consistency in your communication.
Speaker 1The second one is the lions. Lions are strong and reliable and thrive in social environments. These are your professionals, like your doctors, your lawyers, your business owners, who have disposable income but they aren't ultra wealthy. And honestly, there's a lot of doctors and lawyers that I know that aren't wealthy at all. One, because they've got a huge amount of student loans and they're really trying to pay all that stuff off. But they have a considerable amount of capital to deploy and are comfortable with moderate risk as long as the deal looks exciting. And this is like the part they all know that you should invest. They don't have the time to do it.
Speaker 1Lions enjoy the prestige of investing and they wanna feel like they're a part of the action. While they aren't looking for reckless high-risk returns. They of the action. While they aren't looking for reckless high-risk returns. They like projects that feel dynamic, engaging, they can see what's happening, they can talk to their friends about it. They love bragging to their friends about it. They focus on moderate returns and engagement and they like to be part of something exciting. So their risk appetite is a little bit more moderate. They're open to short-term projects with really solid fundamentals. So they'll look at it. They wanna be. They're like hey, in and out. I'm good with that.
Speaker 1Their decision-making is typically pretty fast. I've noticed that once you give them the deal, you show them the deal, they're like okay, cool, I like this. And once they feel good about the opportunity, they move so quickly their involvement. They like to know. They enjoy receiving updates and staying in the aren't directly managing the project. They like the idea of being involved because their job and their lives are so busy that it makes them feel like they're doing something.
Speaker 1When you send them those updates, they're typically those short-term, one to three-year loans, simple interest rate loans, often lending on fix and flip projects at 10%, eight to 10% interest, and so anywhere between that six to three years is good. For example, you're going to have a high-powered who lends $250,000 for a six month fix and flip project at 9% interest and maybe a point or whatever. They wait for updates on construction projects and they even might attend, like the open house, or come and check out the project as it goes along. Maybe sometimes, but when you're approaching them, it's all about involvement and excitement. They wanna feel like they're a part of a winning team, so you wanna make sure to provide them with regular updates, photos, reports. They love to share their success stories with their other friends and their colleagues, and so keep them engaged throughout the project. It's really important. These are these people that love their monthly, their quarterly distributions because they keep seeing it in the mailbox. I wanna take their quarterly distributions because they keep seeing it in the mailbox.
New Podcast Direction: Investment Funds
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Speaker 1Now let's get back to the show. Now you have the Fox. The Foxes are clever, curious and always looking for opportunities to learn. They're younger, tech-savvy investors who may be new to real estate but are eager to get their feet wet. They actually want to be involved a little bit. They're sly, they have some capital from their main job, but their main goal here is education and experience. They're cautious, but they're willing to take more creative deals. They feel like there's something that they can learn in the process and they want to be a part of it. Their focus is really on education and growth. They might even want to end up doing this in the long run. They see your investments as learning opportunities. Now their risk appetite is kind of like in the middle. They'll take on some risk, but really only one, if they can feel that the potential of learning outweighs the risk that comes along with it. They decide fast but thoughtful. They ask a lot of questions, ensure that they're making the right decisions and they actually really want to be really involved. They don't want to micromanage, but they want to learn and absorb as much as possible.
Speaker 1I have a couple of investors that are like this they want to go to every job, they want to go and check out everything that we're doing. They want to be on every call, and I love that because that's the value and that's also the experience that we provide. Their loans are going to be a little bit smaller, though. They're going to demand the most, but they're going to have the smallest loans. So they're anywhere around like $50,000, $100,000 more short-term loans, and they want 10% to 12% simple interest because they want the learning that comes along with it. So you have somebody who's like a young software engineer who invests $75,000 on one of your flips or into your fund and they ask to attend the property walkthroughs. They want to learn, they want to see how that renovation process goes. In the financial strategy, when you're talking to these people, you got to emphasize the learning opportunity and be open to their questions, guide them through the process, because they're super hungry for knowledge. So offering mentorships can be just as valuable as the financial returns, and I even offer that in my fund, and so then people love that. They see that as a perk, as investing with us, so they're more likely to invest with us because of the openness to education that it comes with Now, more likely to invest with us because of the openness to education that it comes with Now.
Speaker 1The next animal is the tiger. Tigers are aggressive, competitive and always hunting for big returns. These experienced investors are savvy they're super savvy and they demand high profits. And tigers aren't interested in the small and safe deals. They want something with higher stakes and high rewards. They often push for equity or ownership in deals and want to be actively involved in major decisions, but they're going to come with a big check. They want to maximize returns and gain control. The Tigers are willing to take on substantial risk if they feel like they believe the upside justifies it.
Speaker 1I've got an investor right now that I'm talking to this about and he's like hey, I've got millions, which is great. And I'm like yo, bro, give me those millions, that's fine. And he's like we're expecting 20 to 30% on this. So, unless you can give 20 to 30%, don't expect my millions. And so then I'm like okay, I got to make sure that my offering is good enough to bring 20 to 30% on millions, and so it's good. And he's like as long as the upside's there, then we're there and it's a really, really cool thing, but that's a lot of return that you have to make sure that you could be able to get on even such a high amount.
Speaker 1They believe if the upside justifies it, they do it. They're quick in the decision-making but they're calculated. They won't hesitate to walk away from a deal if it doesn't meet their strict criteria In their involvement. They want to be high, they want to stay in the deal. They want to push for equity or profit sharing arrangements, but that's because they're savvy, they've been around the block and they've got the money to spend on it. They want 12 to 15 to 20%, like you heard, plus equity or stakes in the profit or profit splits. They're really seasoned real estate investors. For example, I've got an investor super seasoned real estate investor owns a ton of real estate in our area and has a lot of capital to spend. Now he's talking about hey, I want to be involved in this at a million or so dollars, but I also want either interest plus partnership or interest plus profit splits. They're actively involved in other projects and decisions. They expect a really hefty payout at the end. So they're all about the upside at the end.
Speaker 1Now, to work with a tiger, you need to be confident and prepared to negotiate. They're looking for a great deal with high returns, so make sure you have a compelling offer, be assertive and be ready to meet their demands for equity or control in the project. But it's going to come with a lot of help if you end up doing that. Now we have the cheetah. Cheetahs are fast, they're fast, they're agile, they're laser focused and they have short bursts of action right, so they're in and out. In and out, in and out. They're all about liquidity and quick profits. Cheetahs provide short-term funding, gap loans, bridge loans where they can get in and out quickly, and these investors aren't looking for long-term deals. They thrive on speed and efficiency. That's what they're all about Speed and liquidity.
Speaker 1The cheetahs want to see their capital return quickly, and this is you'll see this a lot of times where people I think the pace has like Gator method, where they fund on EMDs and you have people who want to come in a second position, but they're going to come in at a higher percentage rate, and so they are active. Right. They're willing to take an elevated risk as long as they can get their money back quickly. They move, move, move, move, move really fast and they expect you to act as quickly as well. They don't care about the involvement, they don't care about the details, they just want to be paid and be prompt and being paid back. They provide short-term or bridge loans, often charging Honestly. They're going to charge a little bit more in the short-term. So, like three, in like three months they went five to 10% flat in just a few months. So you got to make sure that you're ready to give those returns. Like a cheetah will lend 50K for closing costs on a property, expecting 5% total, not 5% annualized, 5% flat within 30 days. And these cheetahs are all about speed. They focus on how quickly they'll get their money back in the liquidity of the deal. They don't want to be bogged down with details, just show them the clear exit strategy and a high return. This is going to be a lot of transactional funding, the bridge loan funding, gator method, lending all of those.
Speaker 1Finally we get to the tortoise. Tortoises are patient, they're steady, they build for the long haul. They store up in their shell. These investors prefer long-term wealth accumulation, equity and stable returns. They're involved in larger projects like multifamily developments, commercial properties, longer debt funds and they don't mind waiting years for their payout.
The Elephant Investors: Patient & Powerful
Speaker 1These are the people that you want. These are people that are going to have a lot of their stuff in IRAs and 401ks that they're going to transition into you because they can't really touch it anyways. They're saving up for retirement. They want something long-term, stable tax benefits, tortoises value equity and long-term appreciation. Their risk is low to moderate. They really just want something that's not going to be very volatile. They understand that long-term investments can weather any short-term volatility and they're slow but steady. They take their time but are reliable. Once they commit, they're fine with being involved. Right, they're a little bit moderate on their involvement. They expect regular financial updates. They want the reports, but they don't want to be involved in the day-to-day management of it.
Speaker 1Now, these loan types these are sometimes their equity-based deals or preferred returns on large projects that are typically going to be between like 5, 10, 12, 15, 20 years, if you can, and they're high net worth individuals that invest anywhere between a million dollars and a 200 unit apartment complex with an 8% preferred returns and profit shares after seven years. That's the type of stuff they're looking for. That's the type of stuff they want to be involved in, and when you're approaching them, you want to emphasize the long-term stability and the potential for significant equity gains. They're not in a rush, so show them how your project will grow in value over time and provide consistent returns. Now, I know that was a lot of information.
Speaker 1We've got the six different animal types of investors, but it helps me to wrap my mind around these type of investors, remember what this type of person is and go okay, this is a cheetah, this is how they're going to want to act. I'm going to make sure I got these type of deals for them. So if you can put them I don't know, put them on a spreadsheet I don't know where you'd put them and then label the type of investors. Then it helps you know when you have this type of opportunity, this is who you should go with with this type. Now you can go to all of them If you want to. You could try to go to all of them or you could cater to what they're. You're gonna encounter all types of people, from the conservative elephants and the fast paced. Each type has their own preference, risk tolerance and deal structure that they prefer. Understanding how to approach and work with these different investor types can make all the difference in your ability to raise capital effectively. So remember, though, at the end of the day, it's all about building relationships and understanding your investors' needs, as it is just as important to find the right deal for them.
Speaker 1Thank you guys for tuning in. I hope this was helpful for you all. I know that this was a little bit like whoa that's a lot of different types of animals but it's really important to know the different type of investors. If you're gonna raise capital effectively, you gotta know who you're dealing with and you gotta know what they want and you gotta know the terms that they're looking for. So if you could categorize them even before you have that conversation with them, because you know them or after the conversation, you could put them in that bucket and then you could begin to start marketing deals specifically to them, and then you might have a bigger raise that comes up and you know, oh, I could go talk to that tortoise or that elephant, or if you've got the smaller ones that just need that little funding, which I've got a couple right now and I'm like, yeah, yeah, this is the cheetah. He wants to be in and out, he wants this deal in three to six months and he wants his sometimes 10% flat yes, that's right In three to six months, and so these are the type of people that you want to know who they are so you can quickly identify them and they can fund fast or they can fund slow, but you want to have the right amount of data ready.
Speaker 1Super excited to start making content that revolves around capital raising and fund management, fund starting, all things investment funds, and so thank you so much. I appreciate you for being here. From the bottom of my heart, thank you for tuning in and listening and continuing to support me, and I'm excited for what the future holds and I look forward to meeting you all soon, one day. And so, yeah, thank you so much. I hope you have a fantastic day to great success and greater impact. Peace, wow, I hope you enjoyed that.
Speaker 1I have a quick favor. If you've been enjoying the show, there's one simple way you can support us, and it's by hitting that follow button or that subscribe button on the app you're listening to. I want to level this podcast up in every single way possible, bringing you more value, incredible content and guests and new strategies. Following the show and leaving a quick review goes a really long way in helping us to grow and continue to deliver top tier content. It's the only free thing I'll ever ask you to do, and it makes a bigger impact than I can possibly put into words. So thank you for being a part of this journey and I'll definitely catch you on the next episode, to great success and greater.