What’s My Biggest Challenge in Raising Capital???

Hi, I’m Stewart Heath, CEO of Harvard Grace. 

I’m often asked what’s my biggest challenge when raising capital for real estate transactions.

The simple answer is access to investors with capital. I would imagine every capital raiser would say that because a lot of it has to do with timing. You might have a great network of people, but they may not have the capital at the time that you need to raise capital, which is why I’m sharing my screen here.

I would like to say the real challenge with raising capital is the stock market. This is a year to date chart of the Dow Jones, the industrial average has been a fairly good year. It’s been a fairly good year and actually been a fairly good few years. If you watch my video, you will know what the market has done. The problem with the stock market is the volatility and the stability of the overall market.

Over long periods of time, the stock market has always gone up but I’ve known many people who ended up stuck with stock. When markets decline they need to retire right at the time . I’m not against the stock market. I have money in the stock market. I think there’s a place for it in everyone’s portfolio, but I want to maintain this. There’s a place for real estate in everybody’s portfolio and real estate has generated more wealth since the beginning of time than any other type of investment. It’s real, it’s called real estate for a reason. It’s because you can touch it, hold it, use it, and exploit it in various different ways. As people, as physical beings, we need real places to be in to be able to use.

I want to challenge you if you’re not allocating a portion of your portfolio to real estate. Think about it and consider it. I’d be happy to discuss it with you at any time. You can use my Calendly link to schedule some time with me or we can chat about it online.

Otherwise, think about it and talk with your investment advisors about it because the problem with stock market volatility is many times it will become volatile exactly at the time when you need to convert to cash. Take a look at that, think about it, and I’ll see you around. Thanks a lot. Until next time!