EP. 34 // How to Raise Tens of Millions of Dollars by Leveraging Prospecting w/ Sam Silverman
On today’s episode we have the founder of Silverman Capital, Real Estate Investor Sam Silverman out of Tampa, Florida. Sam has an incredible track record of raising over $25,000,000 in funds… before even going full time! In today’s episode, David and Sam talk about how Sam raised tens of millions of dollars in his first 16 months, how hard work is more heavily weighted at the beginning of your career, and Sam does a role-play call to walk us through how he raises funds over the phone.
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Key Points from This Episode:
Sam’s background is in tech and sales; since his W2 income was so large so quickly he knew he had to find somewhere to park the money. He invested in single family houses, building a portfolio of 10 properties before realizing his time was better spent elsewhere. He knew he would be more successful investing passively as a limited partner in multifamily and self storage.
The two most important things for him were finding the deal, and raising the funds for the deal. He built a network of high networth individuals. He found there was a big need for those who could raise capital, so he dialed in and focused on that niche.
Sam has been raising capital for 16 months and just crossed $25,000,000 in funds raised with his aim set on $100,000,000 by the end of next year.
It’s important to understand the persona of their investor; not just “high net worth,” but what does this person do daily, where do they live, how much specifically do they make. And then figure out how to connect with them most effectively.
The work you do up front is so much more heavily weighted than the work in the back end. He started raising capital while working his W2 job; 14 hours a day in the beginning of his career helped him gain a lot of inertia right off the bat. Shooting up the corporate ladder gave him his networth for capital raising. His track record in other areas always apply to other places you need to leverage it.
Sam performs way better when he knows that he is financially stable.
Sam talks about his first deal: one million dollars in 9 days. Funding a deal is 1.) Do you like the deal? And 2.) Are you liquid enough to fund the deal. The most people he spoke to liked the deal but didn't have the liquidity to fund. He made over 400 phone calls; the period of time was so short that most people couldn’t invest. But all of those extra calls that didn’t invest helped build future demand. The short timeline helped him overperform.
Sam discusses the differences between Fund to Fund and Co-GP
Sam walks David through how he runs a fundraising phone call with a mock roleplay.
In regards to the current economic environment, Sam finds this to be a unique time. Inflation is being framed uniquely; it’s pulling back dramatically, since supply is not being fixed, demand will continue to rise. The best way to handle market downturns is the ability to ride it out. The only risks come from having to sell a deal.
Relevant Links from Today’s Episode:
ABOUT SAM SILVERMAN
We help sophisticated and accredited investors passively invest in multifamily apartments communities to generate cash flow and build wealth. Through both limited partnerships and co-sponsorship, Silverman Capital has a portfolio of 14 assets, including over 2,700 doors, spanning over the following geographies: Florida, Texas, Arizona, Colorado, & Idaho.
