The Capital Raising Challenge and the Biggest Fish.
In June 2022, Luke joined the Ferrari Capital Multifamily Mastermind. He diligently attended the multifamily mastermind and completed weekly assignments in order to dive deeper into commercial real estate.
While specifically focused on multifamily investing this mastermind had many CRE industry applicable lessons. Luke gain knowledge and experience while working on building a network for taking down commercial real estate projects.
Luke had just left Estoken, in October. He had a couple projects under his belt and had a few in the works. He had 6 months of expenses banked and a spirit full of faith in the future. Now he was completely self employed and he was ready to take it to the next level.
In November Josh Ferrari released the capital raising challenge. The point of the challenge for Luke was to raise capital for commercial real estate projects. In any of the verticals of multifamily, self storage, or land development.
Every day for the month of November Luke went live on Facebook, Instagram, and LinkedIn. In his live videos Luke shared his life, his mission, his daily activities, and his real estate endeavors. All of these videos were tailored for gathering soft commits from individuals that are interested in putting their funds into real estate projects.
*No funds were collected during this capital raising challenge*
The results:
$15.7M in total soft commits of capital to deploy into CRE projects.
$700k from individuals interested in shorter term investments.
$15M from one big fish investor and land developer, Steven McCleery with the McCleery Company. When Luke brought up the capital raising challenge, Steve’s response was “I’ve got your back all day long”. Though this result wasn’t multifamily focused it was in line with Luke’s long term objectives. He had relationships with other developers and new that land development would be in his future. He did not realize that this capital raising challenge would bring that opportunity to front and center of his options.
A couple months before the capital raising challenge, Luke met Steve at a URIEA meeting when Steve was presenting on land development. Luke was intrigued with his processes and character. Luke got Steve’s number, and asked him to lunch. After their lunch appointment they stayed in touch. Connecting every now and then over inspirational content and potential development projects. The relationship was primed for when Luke started his capital raising challenge.
Steve invited Luke to find deals for the McCleery Company to rotate money into. Steve also invited Luke to look at all the operations of the company and see where there would be a good fit for him. Steve started inviting Luke to participate on some of the projects in the McCleery Company portfolio in addition to finding new projects.
In December Luke decided to focus 100% on land development. He started cutting everything out of his schedule that didn’t help him towards his goals and dreams in land development. This meant dropping weekly in person investor meetups and zoom calls focused on single family real estate. After consulting with Josh Ferrari, Luke also decided to leave the multifamily mastermind. Luke found more than what he was looking for with the challenge and needed to dedicate time to making this opportunity grow. Steve provided mentorship, industry experience, relationships, and capital to take down projects.
Milestones:
– Luke was able to soft commit $15.7M in capital to Absolute Foresight Enterprises for CRE endeavors, specifically in Utah Land Development opportunities.
Key takeaways:
– Network, invest in yourself, and take time to gain education. Your educators might become mentors in the future.
– The next step you need to take toward your dreams is finding good and honest mentors in your industry.
Do what they have done.
– This lead Luke to raising $15.7M from following Josh Ferrari’s capital raising challenge guides.
– This also lead Luke to a mentor in line with his long term goals and plans in real estate development.
– When you have found an opportunity worth pursuing, completely focus on it. Cut out all distractions and time sucks that divest your attention from your #1 priority. This One Thing focus will lead to incredible results.
See capital raising challenge recap here: Capital Raise Recap Video
