The 3 Keys to Starting a Real Estate Fund

How to Invest in Multifamily Housing | Fifth Third Bank

“Ninety percent of all millionaires become so through owning real estate.” – Andrew Carnegie

If you’ve read any of my other posts on real estate you would know that my biggest goal is to be able to help you do everything from syndicating your first deal, to starting a RE fund.

I truly believe that real estate is one of the most powerful wealth builders and that being successful at it all comes down to three keys:

  1. Hustle
  2. Knowledge
  3. Money

The best part about these keys is that you only need 2 of them to make it work!

Work Hard & Be a Sponge

Do I have the money in my checking account to go fund a 40 million dollar deal without batting an eyelash? I wish!

However, I do know how to structure a deal and I also have the hustle to put it together.

All that is left for me to do is to find the money.


Many wealthy people don’t have time to go and research deals, let alone actually put in the legwork to push the deal through. They are looking for people like you and me who can bring them the deal, knowledge, and hustle to comfortably do it for them.

50% of something is better than 100% of nothing

As a real estate fund manager you are only expected to bring two of the three keys to the table; Hustle and Knowledge.

Rather than needing to save up my money over a long period of time just to be able to afford a down payment, I can put what I have learned about how to create a real estate fund and my willingness to work hard into action now.

If I do wait a couple years until I have enough money, then I can own 100% of a say… $300K deal.


I can raise more money than I could ever save at a W-2 job and manage the investment for 50% equity of a multimillion dollar deal.

But we need to learn how to do this first.


I didn’t wake up one day and know everything about real estate, and I don’t pretend to know everything now. What I did is select a niche that I liked and relentlessly learned everything I could about it.

This actually makes me more desirable to investors because I am specialized.

The number one thing you can do is learn from a mentor or to get involved with other investors. You are the average of the 5 people you spend the most time with. But there are a lot of other resources that you will want to use to keep yourself ready as well.

Some of my favorite resources are:

If you’re looking for a more structured way to learn how to raise money then we offer consulting and help through our course as well.


Next we must learn to be able to work harder than others.

There are always deals out there you just have to ask yourself,

“How would I make this deal work?”

This changes your mindset into making something happen instead of being acted upon.

Hit the pavement and go look around where you live. Figure out who owns that strip-mall, those self-storage units, the apartments across town, and other commercial real estate investments and then call them up.

Some of them might blow you off, sure. However, I think you’d be surprised at how many of them are more than happy to answer questions!

Plus, you will build your network.

I have had friends who have gained mentors doing this very thing. Or to make it easier on themselves they just call and say they are the project manager for so and so. Takes the pressure off yourself.

Don’t be afraid to reach out. The worst thing anyone will ever do is say no.

Analyze deals and be ready to jump on one. Even if something doesn’t seem like it will work, analyze it. You will be grateful to yourself when you find a diamond in the rough.


As real estate fund managers we need to utilize our time and efforts into the keys that will make us successful.

Credibility comes with action.

Call a broker, analyze potential deals, listen to a podcast. Increase your knowledge and hustle to expand your network.

I think Ralph Waldo Emerson hit the nail on the head when he said,

“That which we persist in doing becomes easier to do, not that the nature of the thing has changed but that our power to do has increased.”

There are plenty of people willing to give you the money for that deal you found, you just need to prove to them why they should by working hard and continually learning.

What are some of the things you do to keep your mind and skills sharp?

Let me know below!

Bridger Pennington

DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.

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