Executive Summary
Hector Garcia, founder of Passive Partners Capital, has successfully transformed his approach to capital raising in real estate investment through the guidance of Brad Blazar. This article outlines Hector's journey from relying on personal networks to engaging and building relationships with high-net-worth investors.
Results Snapshot:
Expanded Investor Base: Transitioned from funding projects solely through friends and family to engaging high-net-worth individuals.
Successful Capital Raising: Utilized Brad Blazar’s four-step blueprint to significantly increase capital raised for real estate projects.
High-Value Deals: Achieved a successful sale of a 20-unit apartment for $2.4 million after an initial investment of $1.4 million, leading to larger deals including a 100-unit hotel acquisition valued at $12.5 million.
Strategic Networking: Developed meaningful relationships with financial advisors and investors for future capital-raising opportunities.
Ongoing Success: Currently in escrow for a $12 million hotel deal, successfully raising $5 million from investors.
"There's a much bigger pool of fish out there...that you could tap into to raise millions of dollars worth of capital."
— Hector Garcia, founder of Passive Partners Capital.
Success in real estate investment means success in raising capital.
Initially, Hector had self-funded all his past projects converting hotels into multi-family apartments, including a deal involving a 20-unit apartment complex that he purchased for $1.4 million.
He invested everything he had—sacrificing his home and business for capital—resulting in selling the property 18 months later for $2.4 million.
However, the stress of such a high-stakes gamble along with the strained life-style was significant. He realized that if he wanted to continue in this industry without jeopardizing financial security, he’d have to master capital raising.
Deciding not to repeat such a limited and costly approach, he connected with Brad Blazar's Capital School. Here he learned techniques for moving outside his normal circles and into that of high-net-worth investors.
"Using Brad's four-step blueprint, I was able to go out and talk to other high-net-worth individuals in a very precise manner...and raise even more capital than I had previously ever raised."
Expanding Beyond Personal Networks
One of the most eye-opening lessons Hector learned was that there is a vast pool of potential investors available beyond friends and family.
Many self-proclaimed experts in the capital raising industry promote strategies that worked well for their situation. Unfortunately, these often don't translate well to other people’s unique situations and circumstances.
Instead of a magic bullet strategy, Brad’s approach emphasized the importance of diversifying outreach and focusing efforts on building genuine connections with potential investors.
Hector soon realized that tapping into larger networks required more than just a good pitch; it demanded a strategic approach to relationship-building and understanding where (and who) precisely to invest time and energy in.
Positioning Himself as an Expert
To earn the attention of these broader pools of investors, Hector needed to distinguish himself as an expert in his field. This meant putting in the necessary work outlined in Brad's blueprint.
Many aspiring capital raisers get stuck at this stage, hesitant to reach out or unsure of how to present themselves. Hector learned that, instead of pitching deals right away, it was better to focus on getting to know potential investors first.
Brad Blazar emphasizes that successful capital raising requires a relationship-building approach to lay the groundwork for future discussions about specific deals. During this time, Hector could establish credibility and trust with potential investors.
Through repeated interactions, Hector consistently found opportunities to showcase his expertise along with valuable contributions within his networks.
7 Steps Hector Took to Building Relationships
It became obvious that breaking into the world of high-networth individuals, winning their trust, and setting the groundwork for 7+ figure deals wasn't going to happen overnight.
After attending Brad Blazar’s bootcamp though, Hector returned home eager to implement everything he'd learned. His journey involved seven key steps to building the investor relationships necessary to achieve his capital raising goals.
Step 1: Initial Outreach
“That phone can weigh a thousand pounds if you don't pick it up, but once you pick it up, you just gotta start talking and move forward from there.”
Hector began by making calls—not to pitch specific deals but simply to introduce himself and share what he was doing in real estate. This initial outreach helped establish his presence in the industry and signal to potential investors that he was serious about his work. At this stage, he was focused on creating awareness rather than immediate sales.
Step 2: Networking Intensively
Next, Hector committed to networking more than ever before. He attended events and conferences where he could meet potential investors face-to-face. Building these relationships took time and effort, but it was part of the blueprint for long-term success.
Taking a proactive approach was instrumental in cultivating connections that would later prove invaluable.
"[People interested in raising capital] have those goals, they have those ambitions, but then they see that they actually have to put work into it and that's when it stops. You gotta keep moving forward. Just do it."
Step 3: Relying on Brad Blazar's Resources
Brad provided Hector with valuable resources, including lists of registered investment advisors (RIAs), financial advisors, and family offices that invest in real estate deals like his. This gave Hector a solid starting point for reaching out to individuals capable of writing seven-figure checks. From there, Hector was able to branch out locally and engage in more strategic targeting.
Step 4: Spending Time on the Golf Course
Hector found that social activities like playing golf with financial advisors helped him cultivate relationships in a relaxed setting.
"Their job is to go out and raise capital themselves, their clients...they're managing their clients' wealth. They're people people. You can just imagine, if they're managing hundreds, if not thousands of people's money, they had to have a good sense of humor and have a lot of people's skills. They're very easy to approach. I thought it was going to be harder."
Engaging in informal settings allowed Hector to build rapport and trust, a key step that Brad preaches in capital raising. These personal connections often lead to more fruitful discussions about investment opportunities.
Step 5: Nurturing Relationships Over Time
Brad’s methodology stresses the importance of nurturing these relationships over time rather than jumping into hard pitches. Seeking genuine methods of engagement with potential investors, and then waiting for them to show interest, offers a more natural way to foster trust.
Hector also recognized that patience is key; building a strong network takes time and consistent effort.
"It's been the process...I've actually put in the work up front of building the relationship for months prior with these investors."
Step 6: Landing 7-Figure Deals
After months of relationship-building, Hector was ready to present specific deals to the investors he had formed connections with.
Fast forward about a year later, and Hector finds himself in escrow on a $12 million hotel deal, successfully raising $5 million from investors throughout that time.
He confidently stated, "I feel very comfortable that we will reach the finish line."
Step 7: Continuous Learning and Adaptation
Throughout this journey, Hector recognized that learning from each interaction was part of the process.
He continually adapted his approach based on feedback and experiences gained during networking events and conversations with potential investors. Committing to incremental growth is a major aspect of Brad Blazar’s teachings—understanding that capital raising is not about immediate success but about building a sustainable network over time.
Hector’s Advice on Raising Capital
Hector emphasizes that capital raising is inherently a team sport; collaboration is important.
"I wish I'd learned the skill of raising capital before selling my business...I wouldn't have been in such a stressful situation."
Learning how to network effectively with investors and financial advisors not only opens up opportunities for raising capitals that are not available in pre-existing networks, but is actually enjoyable.
"Not all $5 million is coming for me. I've raised the majority of it, but I've also partnered with other individuals that raise capital and are also operators themselves for hotels to bring in the remainder of the capital as well. So, it's a team sport."
Final Thoughts on a Transformative Journey
Today, Hector Garcia stands at the helm of Passive Partners Capital with newfound confidence and expertise in capital raising. His recent achievement—a 100-unit hotel acquisition valued at $12.5 million—speaks to the efficacy of Brad Blazar’s four-step blueprint.
The $5 million raised came from both Hector's efforts and contributions from other individuals skilled at raising capital alongside hotel operators. As Hector stated regarding his growth through this process: "If I didn't learn the skill of raising capital... I would never be able to do this."
With a dedicated partner by his side and a team that he communicates with daily, Hector has positioned himself well for future success in real estate investment. His journey serves as a testament to the power of education, networking, and strategic planning in transforming one's business trajectory.
If you’re interested in starting your journey out the same way Hector did, you can sign up for Brad’s next upcoming live bootcamp here.