MB276: Add a Zero to Your Next Capital Raise – With Jonathan Barr

07.26.2021 - By Financial Freedom with Real Estate Investing

Download our free app to listen on your phone

So, you want to go for bigger deals, but your current network is pretty much tapped out. Maybe you struggled to raise $500K for your last deal, and you’d like to add a zero for the next one. How do you attract new investors and scale your capital raise? Jonathan Barr is the Cofounder and Principal at JB2 Investments, a real estate investment firm specializing in 70-plus-unit value-add projects in high cashflow, landlord-friendly markets. Jonathan began his real estate career in 2009, facilitating the acquisition of 400 residential flips in the LA market that generated $22M in profit for his family’s business.  On this episode of Financial Freedom with Real Estate Investing, Jonathan joins me to explain what inspired him to invest outside the LA market, sharing the mental blocks he had to overcome to buy properties in the Midwest. Jonathan walks us through his first multifamily deal in Oklahoma City, discussing why he had a hard time raising money for it and how he built an online platform to solve that problem. Listen in for Jonathan’s insight on using Twitter to attract new investors and learn how to scale YOUR ability to raise capital through content creation! Key Takeaways  How Jonathan got involved in real estate  Grew up in real estate family in LA Join flip, development business The pros and cons of working in a family business Feel ultimate support and trust Hierarchy of parent-child relationship What Jonathan learned in SFH acquisitions that translates to multifamily Conduct due diligence, use checklists to mitigate mistakes Discuss deals with team and bounce ideas What inspired Jonathan to invest outside the LA market Buy-and-hold duplexes in LA only making 3% in equity Potential to triple cashflow by moving money to KC Jonathan’s mental block around investing out of the LA market Unable to drive to properties and manage himself Hard to feel comfortable delegating responsibility Why Jonathan made the shift to multifamily Margins on flips low, always chasing next deal Apartment buildings much more tax efficient Why Jonathan joined our mentoring program last year Left family business in January 2020 Used to having parents as mentors Jonathan’s first multifamily deal Closed on 72-unit property in OKC in September Cut expenses by 25%, beating projections by 30% Why Jonathan had a hard time raising money for his first deal First deal in OKC market (no track record there) Uncertainty of pandemic How Jonathan built an online platform to raise capital Offer free eBook to build email list Post content daily on Twitter Jonathan’s take on why content creation is so important Gives potential investors insight into business Shows thoughtful and thorough, builds trust Jonathan’s insight on how to create content Get ideas from questions you get, other podcasts Block off time to write multiple posts at once Jonathan’s advice for syndicators who are tapped out on capital Post video or blog every week Focus energy on single social platform Connect with Jonathan Barr JB2 Investments JB2 on Facebook  Jonathan on Twitter Jonathan on LinkedIn Resources Register for Michael’s Platform Builders Masterclass Learn More About Michael’s Mentoring Program Enter the Financial Freedom Podcast Launch Contest The Tax Stack Strategy: The Magic of Paying Less Tax Using Real Estate by Jonathan Barr Upwork Podcast Show Notes Michael’s Website  Michael on Facebook  Michael on Instagram  Michael on YouTube  Apartment Investor Network Facebook Group 

More episodes from Financial Freedom with Real Estate Investing