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Matt Faircloth of the DeRosa Group on Finding Private Capital

Matt Faircloth, speaks at next DIG meeting

According to his website, Matt Faircloth was able to turn a $30,000 loan from his future father-in-law into a flourishing real estate investment career.

But that doesn’t mean his path to success followed a straight line.

There was the loan, which Faircloth, cofounder and president of the DeRosa Group, used to buy an East Falls rental property, which he then renovated and leased out.

There was the first time he read Rich Dad, Poor Dad, which led him to his first DIG meeting.

And there was his first experience as a landlord, leasing out the house where he lived to roommates who paid him rent. This provided him with early lessons in what it took to own and manage property.

“I had to start keeping books for the house,” said Faircloth, who will serve as guest speaker at DIG’s June 27 general meeting.

Keeping books

“I had to be more financially responsible than I was used to, not just letting my paycheck come in the door and my expenses go out and however much I had left, that’s how much I had left to save or invest for the month.”

Faircloth will center his talk on the concept of finding private money to finance real estate investments. It’s the focus of Raising Private Capital, his guide to helping investors source outside financing.

Kirkus Reviews called the book – published last year by Bigger Pockets – an “impressively accessible introduction to a complex subject” and a “valuable tool for the aspiring real estate tycoon.”

Faircloth divides the real estate investing world into two categories: deal providers, who have the information, network and skills, but not necessarily the financing to close the deal, and cash providers, who can put up the money but may not have the time or wherewithal to, say, renovate a house.

“Everyone out there, everyone reading this, knows people with money,” Faircloth says. “What I aim to give them the tools to do is approach the people they know with money and show them how they can invest passively and build their wealth outside of Wall Street.”

His talk next month will also stress that there’s no one way to make money investing in real estate.

Apartment building

“There’s a lot of energy out there now toward apartment buildings,” Faircloth said. Part of that is justifiable, as many people had success investing in that field.

But he adds there are “a lot of gurus that are presenting courses that are making them seem hot and sexy. They’re doing a very good job of selling the dream of what people think apartment buildings can create for them, which is financial freedom.”

Achieving that freedom is possible, Faircloth says, “but it’s not like you buy an apartment building, and then achieve financial freedom. There’s a lot of work in between those two points.”

What advice would he give himself if he could? Don’t grow too fast.

“We went from buying a couple of single-family homes to a few apartment buildings and then we bought an office complex pretty soon after that,” Faircloth said. “We stretched quickly…faster than we should have. We’ve since made lemonade out of lemons, but we probably went three or four steps further than we should have.”

Liz Faircloth DeRosa Group

When he says we, he’s talking about the DeRosa Group, but also about Liz Faircloth, his partner in marriage and in business.

“We’re not perfect, we still knock heads. We were having a conversation this morning something about the business and my 5-year-old son comes in and says “Mommy, Daddy, stop YELLING.” Because we’re both very passionate about this and we’re talking in an elevated tone.”

When it works, we leverage each other’s strengths,” he said. “We’ve acknowledged and figured out what each other is great at. Not good, great.”

Would you like to hear more from Matt Faircloth? Register for our June meeting.

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