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Why Finding Capital First Beats Finding Deals
Most new real estate investors are told, “Just get the deal—the money will follow.” But what if that’s the worst advice you could follow?
Imagine locking up a property and scrambling for funds with just days before closing. That panic isn’t just stressful—it can cost you deals, money, and your reputation.
Instead, what if you could build your real estate business on the front foot—by raising capital first and creating a pipeline of potential investors who are already primed to work with you?
That's exactly what seasoned investor and capital-raising strategist Dave Dubeau discovered—after learning the hard way. His story isn’t just relatable—it’s a practical roadmap for any real estate investor who wants to scale fast, fund deals with confidence, and never be stuck chasing dollars under pressure.
And yes, this approach doesn’t just help you fund deals—it also frees you to focus on what matters most: building momentum, generating motivated seller leads, and closing fast with confidence.
Dave’s First Mistake: Finding a Deal Before Finding the Money
Like many beginner investors, Dave started by self-financing his first couple of deals. But after those early wins, he quickly hit the capital ceiling. When a perfect deal landed in his lap, he didn’t have the funds—and what followed was a scramble through cold calls, Chamber of Commerce meetings, and mass emails that all led nowhere.
One key moment? Dave spammed over 200 contacts with a deal pitch—many of whom hadn’t heard from him in over a decade. Instead of funding the deal, they ignored or rejected him. The deal collapsed, along with Dave’s confidence and reputation.
That experience taught Dave a hard truth: Capital doesn’t chase you because you have a deal. You attract capital when you’ve built trust and positioned yourself properly.
Why You Should Build Your Capital List First
Dave’s takeaway: capital raising should never start with desperation. It should begin long before you have a deal—by identifying your warmest audience and nurturing trust with them over time.
Who Should Be on Your Capital List?
Don’t chase strangers with deep pockets. Instead, start with people who already know, like, and trust you—even if they don’t yet understand real estate investing.
This includes:
- Friends and family
- Co-workers and business partners
- Clients and customers
- People from your community: church groups, sports leagues, networking clubs
These are your “warm” connections—and they’re far more likely to fund your first deal than an accredited investor who’s never met you.
From Cold Pitching to Warm Engagement: Dave’s “Edutaining” Strategy
After his first failed capital raise, Dave didn’t quit. Instead, he built a system based on trust-building and consistent communication. Here’s how it worked:
1. Create a Targeted List of Potential Investors
Start with a couple hundred people from your existing network. You’re not asking them for money—yet. You're simply reconnecting.
2. Launch a “Warm-Up Campaign”
This is a series of 2–3 casual, friendly emails that catch people up on your life. You're reminding them that you're human—not launching into a sales pitch.
Dave’s first email went like this:
“Hey, it’s been a while! Here’s what I’ve been up to with work, family, and life. What’s new with you?”
It ends with a simple request to reply back and reconnect.
3. Introduce Real Estate Casually
In the third message, Dave begins to share his passion for real estate. He says:
“Real estate’s been great for me. I think it’s the best way for regular people to get solid returns backed by real property. Who knows—maybe we’ll even partner on a deal someday!”
4. Stay Consistent with “Edutaining” Content
Now that people are warmed up, stay top of mind. Weekly emails, short videos, blog posts, or newsletters keep your name and credibility in front of your list. These aren’t technical lectures—they’re easy-to-digest updates that show you know your stuff without overwhelming the reader.
And here’s the magic: when someone from your list is ready to invest, they come to you.
The Cold Call That Crashed
In the rush to secure funding for a deal, Dave Dubeau turned to what he thought was a bold strategy—cold calling. Inspired by The Wolf of Wall Street, Dave imagined himself dialing for dollars like DiCaprio and Jonah Hill.
But reality didn’t match the Hollywood glamour.
After hours of rejections and uncomfortable calls, Dave realized this method was not only ineffective—it was emotionally exhausting. As he put it, “I’m too much of a sensitive soul for that.” The cold calling strategy fizzled out, burning precious time and morale.
Networking Events That Led Nowhere
Dave’s next move was to hit up in-person networking events—Chamber of Commerce meetings, Toastmasters, and anywhere that would let him speak. Armed with his elevator pitch, he tried to spark conversations and find funding fast.
Instead, he was met with blank stares, forced smiles, and people walking away to talk to someone else. Unsurprisingly, zero capital came from this route.
His takeaway? Raising capital from strangers doesn’t work when trust and rapport don’t already exist.
The Real Cost: Burned Bridges & Lost Trust
Perhaps the most damaging part of Dave’s failed raise was how it affected his long-term relationships. By blasting out a desperate pitch to people he hadn’t spoken to in years, he didn’t just lose a deal—he damaged trust.
Some of those contacts were promising potential investors. But as Dave reflected, “When you burn those bridges, it’s hard to mend them again.”
First impressions matter. And when your first outreach is a cash request, people are less likely to take your next one seriously.
Even the "Sure Thing" Said No
In one of the most humbling parts of his story, Dave hoped that at least one person on his list would say yes. Someone—anyone.
But no. Even that one promising lead told him to “go pound salt.”
It was a powerful wake-up call that good intentions and great deals don’t matter unless the relationship groundwork has been laid first.
Use Autoresponders to Automate Your Outreach
To manage your warm-up campaign efficiently, Dave recommends using simple tools like Mailchimp or other email marketing platforms. They let you schedule and automate your messages, track responses, and follow up with ease.
This ensures you stay consistent and organized—without manually managing hundreds of contacts.
Why It’s Critical to Reply to Warm Leads
After sending the warm-up emails, you’ll likely receive 30–40 responses if your list is 200+. Dave emphasizes that these replies are capital.
These aren’t just casual messages—they’re potential investor conversations in the making. Respond quickly, thoughtfully, and keep the conversation personal. This is where trust is built and interest turns into intent.
The Weekly Rhythm of Edutainment
Staying consistent doesn’t mean sending the same thing every week. Dave’s "edutaining" content strategy involves rotating formats:
- Week 1: Newsletter
- Week 2: Video update
- Week 3: Blog post
- Week 4: Personal story + lesson
By mixing it up, you avoid fatigue and keep your audience engaged. The key is consistency—not just in frequency but in value and tone.
From Expression of Interest to Deal-Ready
Once a lead reaches out, your next steps are crucial. Dave’s process is structured like this:
- Lead shows interest through email or a call.
- You invite them to fill out a short application.
- You schedule a Zoom call to walk through your investment model.
- They sign an "Expression of Interest" (not legally binding but a commitment of intent).
- You add them to your list of pre-qualified investors.
Now you can go find deals with confidence, knowing you have backers lined up.
Building Trust Instead of Pitching
Dave’s strategy flips the script: instead of chasing capital, you attract it.
When someone reaches out to you, they’re already curious. You’re no longer pitching—you’re answering questions from someone who wants in. It’s a complete mindset and power shift.
This approach builds better relationships, increases deal flow, and positions you as a professional—not a desperate deal hunter.
How to Structure Your Joint Venture Deals
Once you’ve built trust and your investor is ready, how should you structure the deal?
Dave recommends:
- One investor per deal (keeps things clean and simple)
- Investor provides: down payment, renovation funds, potentially financing
- You provide: the deal, execution, team, and management
- Typical split: 50/50 on profits (especially for smaller deals)
Yes, you give up half the deal. But in return, you gain the ability to scale, repeat, and take on more deals without tying up your own cash or credit.
Why Raising Capital Before the Deal Wins Every Time
Here’s why this strategy works so well:
- You can make stronger offers (even all-cash offers) knowing the funds are ready.
- You can act faster and with confidence—no scrambling last minute.
- Your business scales faster and more predictably.
- You maintain your reputation and protect your relationships.
- You position yourself as a leader in your market.
In short, raising capital first is about thinking like a CEO, not a solopreneur.
Ready to Raise Capital and Scale Your Real Estate Business?
If you’re stuck after a couple of deals or frustrated with banks slowing you down, it’s time to raise capital the smart way.
Follow Dave Dubeau’s blueprint:
- Start with your warm network
- Build trust with edutaining content
- Let people come to you
- Close deals with confidence
You’ll build a business that’s scalable, sustainable, and primed for growth.
Key Takeaways from the Blog
Raising Capital First Beats Finding Deals First
Contrary to popular advice, it’s smarter to raise capital before hunting for deals. This gives you stronger negotiating power, faster closing capability, and peace of mind.
Self-Financing Has a Limit
Most investors can self-fund only 1–2 deals. After that, capital dries up unless you access other people’s money.
Cold Calling Doesn’t Work for Raising Capital
Dave’s “Wolf of Wall Street”-inspired attempt at cold calling led to rejection, burnout, and zero results. It's an emotionally draining and inefficient method.
Networking Events Aren’t Effective Without Trust
Attending Chamber of Commerce and Toastmasters meetings didn't produce capital either—because strangers don’t invest without a relationship foundation.
Blasting Your Contact List Can Backfire
Dave emailed over 200 people with a deal pitch, many of whom hadn’t heard from him in years. The result? Rejection, embarrassment, and broken trust.
The Real Damage: Burned Bridges
Desperation destroyed relationships with potential investors. First impressions matter—especially when asking for money.
Even the “Sure Thing” Said No
Dave expected at least one warm contact to say yes. But even that person declined, highlighting the importance of preparation over assumptions.
Use Warm-Up Campaigns, Not Cold Pitches
Instead of pitching deals out of the blue, Dave now uses 2–3 casual emails to reconnect, catch up, and slowly introduce his real estate business.
Your Best Investors Are Already in Your Network
Friends, family, co-workers, business associates, and community contacts are the best place to start—not strangers or high-net-worth individuals.
Automate Communication with Tools Like Mailchimp
Using email marketing tools helps manage and schedule warm-up emails and ongoing communication with ease.
Always Reply to Engaged Contacts
Warm-up campaigns often generate 30–40 responses. Each reply is a potential investor conversation and should be followed up promptly.
Educate and Entertain: “Edutaining” Content Wins
Weekly content should be light, consistent, and engaging. Rotate between newsletters, videos, blogs, and personal updates to build authority without overwhelming readers.
Structure Conversations and Sign Expressions of Interest
Once someone expresses interest, move them through a structured onboarding process: application → Zoom call → Expression of Interest form.
Aim for One Investor Per Deal
For clarity and efficiency, Dave recommends using a single investor per deal who funds the down payment, renovations, and possibly the mortgage.
50/50 Joint Ventures Are Common (and Smart)
Sharing profits equally allows you to scale faster—even if you give up part of the deal, you gain access to repeat capital.
This Process Attracts Capital Instead of Chasing It
By educating and staying visible, investors start reaching out to you—turning the traditional fundraising model upside down.
Consistency Builds Credibility
Trust is earned through regular, valuable communication—not one-off pitches. Weekly edutaining contact keeps your name top of mind.
With Capital Ready, You Can Act Like a Pro
When funding is pre-arranged, you can make confident offers, close faster, and avoid the stress that derails deals and relationships.
Your Next Step: Activate the Capital-Raising Advantage
Want to scale your real estate investing business, close more deals, and capture motivated seller leads with confidence?
Stop relying on luck and start building your capital foundation the right way.
Create your warm list today. Begin your first warm-up email. Share what you’re doing with real estate. And build a community of investors who trust you enough to fund your deals.
