Raise Private Money For Fix And Flips Without Sleazy Sales Tactics | Ep. 24

We share the FIRST framework to raise private money for fix and flips, then show the system that keeps deals, investors, and follow-ups organized. The result is a clean path from curiosity to commitment without pushy sales tactics or scattered spreadsheets.

• the $100k spread problem and capital gap
• foundation with deal clarity, terms, legal docs, one-pager
• invitation that sparks curiosity not pressure
• relationship building across multi-touch nurture
• ethical scarcity and the commitment ladder
• transformation for house, neighborhood, investor, you
• dashboards, automation, and Funflow OS overview
• free course, scripts, templates, follow-up cadences

If you want to check it out, links in the description. You can go ahead and grab 50% off your first two months down below, or use the code FIRE. I put together a free capital raising course that breaks down the entire framework, scripts, templates, follow-up cadences, everything. Links in the description. And if you're not subscribed yet, hit that button. Next week, I'm breaking down how the first framework works for syndications, bigger deals, more investors, different structures. You don't want to miss it.

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Transcript

The $100K Spread Problem

SPEAKER_00 0:00

All right, now you found your flip. ARV is 320, purchase price is 180, rehab is 40k. That's a hundred K spread sitting right there, but you can't close it because you don't have the capital. Does that sound familiar? Today I'm drawing out the five-step framework I use to raise private money for fixing flips, and I'll show you the system I use to keep it all organized without losing my mind. What's up, guys? My name is Devin Robinson. I help real estate investors and founders raise capital and launch investment funds the right way, compliantly, confidently, and without feeling like a used car salesman. And I've used private money to fund hundreds of flips. And I've also lost deals because I didn't have the capital lined up or because I let a hot lead go cold while I was juggling spreadsheets and sticky notes. And so I built a framework and a system to run it all. Today I'm giving you both. I'm gonna share with you guys my first framework: five steps, one system. And by the end of today's video, you're gonna know exactly how to raise capital for your next fix and flip and how to automate more than half of it. With the first, we've got our foundation here, and then we've also got the invitation with I. R is going to be relationship, S is going to be scarcity, T is going to be transformation. Now, let's go ahead and break these out. F stands for foundation, and this is really important. Here's the principle because with my foundation, right? With foundation, I want to build it right before I can build it fast. That's gonna be really important for me. I want to make sure before you ask anyone for a dollar, you need to have your stuff together. Because here's what happens when you don't like you've got you, right? You here, hey, my name is Devin. Boom. And there's a bubble here. And I say, Hey, you guys want to invest with me? And people are like, sure. So you call up your buddy, you're excited, you say, Hey man, I've got a deal. You want to throw in some money? And he goes, Okay, what's the return, right? So your friend's like, sure. Yeah. What's the return? How long is my money tied up? What happens if it goes wrong? And then you start sweating, and then you freeze because you don't think through the structure, you don't have answers, and now you look like you don't even know what you're doing, even if the deal is solid. And so before you raise a dime for your flip, there are four things I want to make sure you lock up on here. Number one is going to be deal clarity. Deal clarity is going to be super important. This is things like what is going to be the purchase price, right? What's the purchase price? What's the ARV of the property? What's the timeline going to be? And then what's going to be the profit on this deal? That's important. If you can't rattle these off in like 30 seconds, you probably aren't ready to raise capital. Number two is going to be what are the investors' terms. What is going to be the investor terms on this one? How are you going to structure this? Are you paying a flat 10% rate right here? Is that what you're going to do? Is this going to be 10% flat? Or is it going to be profit splits, maybe like a 60-40? Or if you guys are doing a popular like two and 20 model where it's going to be 20% and 80%? What's that going to be like? You need to know this before you pitch anyone. Number three is going to be what is the protections, right? So, like, what are the legal protections that you have in place here? Are you using a promissory note? Right? Like, is it going to be a note? Is it going to be a deed of trust? Is it going to get an attorney and you're going to have your docs ready where you're going to actually have a PPM for this thing? This protects you and it protects them. And then the last thing you want to have here is you want to have a simple one pager. And this one pager, this tells you exactly what's going on here. And it could be a one-pager, it could be a little bit of a deck, it could be whatever. But this is going to have the deal, right? It's going to have the numbers. It's going to have the timeline. It's not a 40-page pitch deck. It's just something clean that answers the questions before they ask. You want to make sure you have that. Now, that's your foundation. You build this first, then you can go and raise capital. Not the other way around. And here's a little pro tip: keep all of this in one place: your deals, your details, your investor terms, your docs. If you're scrambling through Google Drive, text threads, every time someone asks a question or you're in spreadsheets, then you're going to lose deals. I use a CRM from this specifically for raising capital, but I'll show you that a little bit later in the video. Now we are going to get to number two on here, right? So we got to the I. The number two is going to be the of I invitation. Invitation. I stands for invitation. And here's the principle here. Curiosity leads to conversion. Curiosity leads to conversions. Now, most people raise capital wrong because they pitch. They corner someone at a barbecue and go, hey, I got a deal. You should invest into it. That's not an invitation, that's a hostage situation. Nobody wants to be sold, but everybody wants to be invited into something exclusive. Here's the difference pitch is going to say, I need money. And people can sense this, right? It's called sales breath. People can tell when you need money, and that's going to make them feel sold. The invitation the invitation says, I'm working on something. Do you want to join? I'm working on something I thought you might want to know about it. So instead, the invitation is saying, come join me. Right? Not I need your money. It's more like come join me. And then we can say something like this: hey John, I'm working on a flip in your city. I've got a few private investors I'm partnering with on this one. I thought of you, wanted to send you over some details. I think it's something something you'd be interested in. We could partner on it. Like that's it. No pressure, no pitch, just curiosity. You're giving them a choice to lean in. And here's like the really important thing. And the part that I love about this, it's almost like a giant funnel, right? You have to think about this like a funnel. So we've got our funnel here. And in our funnel, right, at the top, we've got curiosity. And then that leads them into interest. And then now at the bottom of that is conversion. And just like any funnel, you're gonna have people, you're gonna have a bunch of people that you're engaging with to get curious. And then as you go through the different parts of the funnel, then the interest more and more people become interesting, or less people become interested, and then less people actually convert, but they're the people that really want to be in it. And here's what happens: the people who are interested will say yes. Now you've got permission to share the one pager with them. Now you've got a real conversation instead of an awkward pitch that you're trying to make with them. Here's where most people drop the ball they send the text, the person says yes, send it over, and then they forget to follow up or they lose track of who they talk to. You need a system to track every single person you invite. Who says yes, who says no, who ghosted. I'll show you exactly how I track all of that in a minute, but very, very important to have that stuff. And if you want to scale this, start creating content. Post about your flips, show behind the scenes, teach what you're learning. You become the person people want to invest with because they've been watching you work. Invitation beats a pitch every single time. Now let's dive into the R of this. The R is going to be the relationship aspect. Investors fund people, not projects, right? This is the one most people skip. They think capital raising is transactional. You give me money, I give you a return. But that's not how it works, especially for fix and flips with a private lender. And it's kind of like one of those icebergs, right? So let's come over here for a second. You've got an iceberg. So, like, let's say we've got the water right here, and then you've got one of these icebergs. Right here, we've got the deal. Above the water is the deal, but below the water, which is way bigger, right? You guys have seen these. Way bigger is trust. The deal only sits on trust, the deal is what they see. That, but trust is what makes them wire the money. And this trust takes time. And this is how it usually goes, right? So you have like on a timeline, you have day one, and then from day one, you go week two. These are small little incremental things. And then from week through week two, you go week four, and then you have week six. And then finally, somebody has a commitment. They're building up trust in you. Here's what most people don't realize the average investor doesn't commit on the first call or the second. It's usually the third, fourth, or fifth touch point. So you need a system for staying in front of them. This is so important to be able to have some sort of system that allows you, honestly, to nurture them over time. You want to follow up with people. And as you follow up, that's going to be text messages, email, voice calls, voicemails, all of those things, even videos. I love sending text video. This goes so far. And then after that, you've got the email updates, you've got phone calls, you've got coffee, Zoom. This is the nurture system. After your first conversation, you're not disappearing and going, man, that didn't happen. You're following up. Not pushy, but you're being present. This is where automation becomes your best friend. Imagine every time you move a deal to the demo phase or like the construction phase, your investor leads automatically get a text with a progress photo. You're not manually sending 15 texts, the system does it for you. That's what separates hobbyists from professionals. And that's what's really important as we build and start to scale and raise capital. And if you've done deals before, show it. Post the progress picks, share the wins, let people see what you're actually doing and how you're actually executing. Social proof accelerates trust like nothing else. I love making sure that I post on social media so people can see it and feel like they're a part of it. And remember, like they're not just investing into a flip, they're investing into you. So give them reasons to believe you're the real deal. S is going to be scarcity, right? Scarcity. And here's the principle with scarcity ethical urgency converts skeptical interest into decisive action. So urgency leads to interest, which leads to action. We want to make sure we're taking advantage of that. Now, look, I'm not talking about fake scarcity. I'm not talking about only three spots left when you've got 30. That's manipulation. And sophisticated investors smell that from a mile away. We do not want fake urgency. No fake urgency, right? We don't want that. I'm talking about real scarcity, something that people can actually feel and see, the kind that exists naturally in fix and flips, right? Think about it. You have closing deadlines, so that's one piece of scarcity. You're under contract, the deal closes in 21 days. That's real urgency. You have limited capital that's needed, right? So, like these are real pieces of scarcity here. You only need a certain amount. If you need 200k from the deal and you've already got 150 committed, then there's only 50k left. There's nothing you can do. That's real scarcity. The third one here is one deal, one opportunity. When it's funded, it's funded. They can't invest in this flip after it closes, but it's now or never. And this is how you communicate it. So, like, right, how do you communicate this? Here's what I say. I always say, hey, I've got 50K left on this raise. Closing is in two weeks. And if you're in, I need to know by Friday so I can finalize these numbers. That's that's not pressure, that's actual clarity. That's for them to know, it makes them understand exactly what's going on here. And so that's where we have this kind of commitment ladder, right? So if somebody's going to commit with you, then they're gonna have a ladder, right? So they're gonna have soft interest, and in that soft interest, it's gonna head on up to verbal commit. And then from there, they're gonna sign the docs, and then from there, they're going to wire their funds and use a commitment ladder. Get them to a soft yes first, then a verbal commitment. Then they're gonna sign the docs, then they're gonna wire. Each step moves them closer without feeling like you're pushing them. And here's the game changer: when you can see where every investor is in that pipeline, who's at soft committed, who said that there's interested, who's waiting on docs to be signed, who needs a little bit of a nudge, you can manage urgency without guessing. You know exactly who to call and when. Dashboards beat memory every single time. So scarcity isn't slimy when it's true, it's just honest. And this is where we get to the transformation. So let's head back on over here. So we've got here on the first transformation, right? So this transformation here, the flip isn't just a transaction, it's a story. Everything is about a story here. There's some sort of transformation. This is the part most flippers miss. They think they're just raising money for a deal. No, that's not what happened. You're inviting somebody into a transformation for the property, for the neighborhood, for the people that lived in the house before, for your investors, for you. And I like to think about these four transformations in quadrants. So we've got our four quadrants here. Okay, number one is the house before and after, right? So that's gonna be the quadrant here. This is gonna be house before and after. The property transforms, you're taking something ugly and making it beautiful. That's a story people want to be a part of. Then you've got the neighborhood. The neighborhood gets transformed. You're adding value to the block, you're helping someone buy their first home. That matters. You're cleaning up the area, you're making a difference, you're improving prices in the area. Um, number three is your investor. Right? So the investor is in here, and their money, which they want to see, is growing upward. Now, your investor transforms. They go from money sitting in a savings account, earning half a percent to earning 10% backed by real estate. You're helping them build wealth, and you're also helping them to be able to be a part of the transformation that's helping in the neighborhood, the transformation that's helping to the house, to the people that used to live in the house. And then number four, you. You have a small portfolio, you have a company, you have something that's growing, and you transform every flip you find, build your track record, your credibility, your portfolio. You're not just doing a deal, you're building a business here. And this is important, right? That is what we all like to talk about, right? This quadrant, a lot of times, is where you're going to find your why in what you're doing. So when you're talking to investors, don't just talk about the numbers. It's not always about the numbers. Talk about the why in here. Talk about that. Why this deal, why this neighborhood, why now, why you? Because what ends up happening is, and this is what I absolutely love to talk about all the time when it comes to raising capital that nobody is talking about. Purpose plus profit equals a partnership. A great partnership. When you connect purpose and profit, you don't just get investors, you get partners, people who want to do more deals with you, people who refer other investors to you. That's how you scale. And when that investor comes back for deal two, deal three, deal four, you want their info ready. What terms did they like last time? How much did they invest? When did they wire? A real system remembers all of this so you don't have to. And this is why I absolutely love Funflow OS. Now, I told you guys I was gonna, I promise I'd show you the system. And in Funflow OS, it's a CRM kind of I built specifically for people raising capital and managing private money and private lenders in here. So you can see all of the lenders in here, the deals that are in here, and helping them manage capital for these lenders. A real system remembers all of this for you, which is exactly why I love Funflow OS, because it helps me to walk through all that stuff, keep track of the capital that's committed, keep track of my investors, the deals, the communications, the loans, all of that stuff helps me to keep the first formula intact from the foundations, where all the docs, the invitation, the follow-up, all the systems for emailing and follow-up, scarcity, smart matching, all of that stuff. The transformation, everything is in here. You can do all this stuff with spreadsheets and sticky notes. I did it that way for years. But when you're juggling multiple flips, multiple investors, multiple conversations, things slip through the cracks, and slip cracks cost you deals. So that's why I like Funflow. It's a great system that I wish I had when I started. If you want to check it out, links in the description. You can go ahead and grab 50% off your first two months down below, or use the code FIRE, and then you could be able to get that as well. Now, whether you're using Funflow or not, I put together a free capital raising course that breaks down the entire framework, scripts, templates, follow-up cadences, everything. Links in the description. And if you're not subscribed yet, hit that button. Next week, I'm breaking down how the first framework works for syndications, bigger deals, more investors, different structures. You don't want to miss it. So here's what I love about the first system: you want to build that foundation, invite with curiosity, nurture that relationship, create real urgency, lead with transformation, and get a system that keeps it all together. You don't need to be a Wall Street guy to raise capital and have some fancy degree. You just need a framework, a system, and the guts to use it and make it happen. Go fund that flip. And as I always like to say, to great success and greater impact. I'll see you on the next video. Peace.