In the realm of real estate investing, one of the most daunting challenges is securing the necessary capital to launch and sustain projects. During a candid discussion on the “Raising Private Money” podcast, host Jay Conner invited real estate powerhouse Maura McGraw to share her journey in raising private funds and scaling her business.
The Early Days: Learning the Hard Way
Maura McGraw’s introduction to real estate investing in 2018 was nothing short of a trial by fire. Driven by a hands-off mentorship approach from her father, Maura found herself managing a ground-up build in Birmingham, Alabama, with almost no prior experience. It was a monumental task for a newcomer and resulted in a $30,000 loss. However, it also provided invaluable lessons that would lay the groundwork for her future success.
Raising Private Money: The Initial Hurdles
In the subsequent years, Maura faced the perennial issue that many new investors encountered—banks were unwilling to finance her projects due to her limited track record. Determined to push forward, Maura turned to private money, guided by the belief that a good deal would attract the necessary funds.
Her journey to secure private funding was fraught with challenges. For two crucial real estate flips following her initial project, Maura had to navigate a whirlwind of networking and presentations. Meeting after meeting resulted in rejections until she finally secured funding through a connection facilitated by her general contractor. This breakthrough relationship with private lender Aziz Shannara became the cornerstone of her future investments and business expansions.
The Concept of the Trust Bridge
One significant takeaway from Maura’s story is the idea of the “trust bridge,” a concept emphasized by Jay Conner. The trust bridge leverages existing relationships to establish credibility with prospective investors. In Maura’s case, her general contractor served as her trust bridge, vouching for her capabilities and solidifying trust between Maura and Aziz. Jay also shared a similar experience from his own career, accentuating the importance of leveraging relationships and building trust in the world of private money.
The Challenges of Rapid Growth: Scaling Property Management
Maura’s story also serves as a cautionary tale about the challenges of rapid business growth. After founding a property management company in 2019, the venture experienced meteoric growth, managing over 600 properties within three years. This pace, while impressive, also introduced significant operational challenges requiring frequent halts and strategic overhauls to manage the increasing load effectively.
Maura and her team learned the hard way the necessity of scaling intentionally. By adopting more selective criteria for new clients and properties, they were able to maintain service quality and business viability. Maura’s experience underlines the importance of aligning growth with operational capacity, thus preventing overextension.
Building a Strong Team: Key to Sustainable Success
One of the pillars of Maura’s sustained success in real estate is her robust team. With seven key players, including her partner Aziz serving as CFO, Maura has established a well-rounded structure encompassing general management, construction, bookkeeping, executive assistance, and property management. This balanced delegation of responsibilities ensures that each aspect of her business runs smoothly.
Words of Wisdom: Persistency Is Key
Maura concluded her narrative with an important piece of advice: never give up, no matter how many mistakes you make. Her journey from a novice investor to a real estate mogul brimming with industry knowledge and a robust portfolio exemplifies the power of resilience. Mistakes, according to Maura, are the stepping stones to long-term success, provided one learns and grows from them.
Jay Conner also chimed in with crucial advice for aspiring investors— to seek mentorship early on. Lessons learned under the guidance of a seasoned coach can dramatically accelerate success and prevent costly missteps.
Conclusion
Maura McGraw’s experiences offer a masterclass in the challenges and rewards of raising private money and growing a real estate venture. Her story is a testament to the power of leveraging relationships, the importance of resilient adaptation, and the critical need for intentional growth strategies. As Jay Conner aptly noted, education is vital— it’s not about asking for the money but knowing how to secure it through informed strategy and trustworthy partnerships.
For those looking to embark on a similar path, tapping into resources like the Doradus Academy can provide essential guidance. Maura’s commitment to sharing her knowledge ensures that upcoming real estate investors are well-equipped to navigate their own journeys with confidence.
10 Lessons Learned in this Episode:
- Raising Private Money
Discover strategies to raise private money for real estate deals without directly asking for it through education and relationship building.
- Achieving Real Estate Success
Learn how Maura McGraw’s rapid rise to success involved flipping over 100 houses and generating $3 million in revenue.
- Overcoming Initial Hurdles
Emphasizes the importance of starting your real estate journey despite not having experience or resources, illustrated by Maura’s first ground-up build.
- Learning from Mentors
Shows how mentorship, even in a “trial by fire” style, can significantly aid your progress in real estate investing.
- Handling and Learning from Failures
Discusses the value of navigating and learning from early setbacks, such as Maura’s $30,000 loss on her first project.
- Importance of Private Money
Highlights why private money is crucial when banks decline to finance new real estate investors, as shared by Maura and Jay.
- Effective Presentation to Investors
Maura explains her experience and strategies for effectively pitching deals to potential private investors, even under tight deadlines.
- Leveraging Your Network for Funds
Importance of using your existing network to find private money, by leveraging relationships strategically like Maura did through her general contractor.
- Scaling Business Wisely
Understanding how to balance rapid business growth, as seen in Maura’s scaling of her property management firm from 0 to 600 properties in three years.
- Trust Bridge Concept
Introducing the concept of a “trust bridge” to leverage existing trusted relationships to secure new investors and funds efficiently, a method Jay used successfully.
Fun facts that were revealed in the episode:
- Maura McGraw started her real estate journey with a challenging ground-up build in Birmingham, Alabama, despite having no prior experience in construction at the time.
- Maura lost $30,000 on her very first real estate project but learned valuable lessons that contributed to her later success.
- Maura’s first private lender, Aziz Shannara, who helped her fund one of her early deals, became her long-term business partner for six years.
Timestamps:
00:01 – Raising Private Money Without Asking For It
05:03 – Guests unable to get bank loans, raise private money for real estate deals.
08:28 – Chaotic week balancing real estate case competition.
11:52 – Leverage trust bridge to raise private money.
13:13 – Trust bridge with general contractor for private money.
16:41 – Connect with Maura McGraw: maura@duratusproperties.com
https://www.DuratusProperties.com
https://www.DuratusAcademy.com
17:06 – Real estate investing tips and resources online.
21:19 – Rapid property management growth, and selectivity essential.
25:10 – Persevere through mistakes and remain focused.
27:21 – Jay Conner’s Free Money Guide: https://www.JayConner.com/MoneyGuide
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