Most people think you need to be rich before you start investing in real estate. That’s just not true.
I didn’t buy my first rental property until I was 34 years old. Today, I control over 10,000 multifamily units — and I didn’t do it all with my own money. I did it by using other people’s money to invest in real estate—a strategy anyone can learn.
In this article, I’m going to show you how money really flows, how to find deals investors actually want, and how to raise capital the right way — even if you don’t have a dime in the bank.
Understanding the Flow of Money: Main Street to Wall Street (And Back)
Money starts on Main Street — that’s where you and I earn our paychecks, build businesses, and create value. But when we deposit that money into a bank, the game changes.
To the bank, your savings are a liability. Why? Because they owe you interest. So what do they do with your money? They move it to Wall Street, where it’s reinvested in everything from stocks and bonds to real estate.
Eventually, that capital flows back down to Main Street in the form of loans and investment capital — into deals like mine.
If you want to succeed in real estate, your job isn’t to chase money. It’s to position yourself as the place where capital goes to grow.
The Truth About Money in Real Estate: The Deal Comes First
Here’s the first lesson I learned: money follows deals — not the other way around.
Most people think they need a big pile of cash before they can get started. But the truth is, if you find the right deal, you can begin using other people’s money to invest in real estate and grow your portfolio much faster than saving alone.
That’s exactly what I did. My first property was a modest two-bedroom condo in Las Vegas. I used $30,000 of my own savings and brought in a bank loan for the rest. It only made about $100 a month in cash flow, but it taught me how the game worked.
Once I was out of money, I realized something: If I wanted to grow, I’d need to start partnering with investors.
Why Simplicity Sells: The Napkin Rule
Forget fancy brochures and pitch decks. If you can’t explain your deal on the back of a napkin, it’s too complicated.
Good deals are simple. They cash flow, they’re in strong markets, and they solve a problem for your investors — whether that’s generating income, providing tax benefits, or protecting capital from inflation.
I’ve always said: the bigger the brochure, the worse the deal. Investors want clarity. They want to know: “If I give you my money, will it make more money than where it is now?”
If the answer is yes, and you’ve got the experience to back it up, they’ll invest.
How to Structure a Real Estate Deal with Other People’s Money
Let’s break it down.
Say you find a $10 million multifamily property with strong upside. Here’s how you’d typically structure the deal:
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Bank Loan: 70% loan-to-value = $7 million
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Equity Raise: Remaining $3 million from investors
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Your Role: You find the deal, structure it, and manage it. That’s the power of using other people’s money to invest in real estate—you don’t need millions in the bank, just the right opportunity and a solid plan.
Let’s say the $3 million in investor capital earns $300,000 in annual cash flow — that’s a 10% cash-on-cash return. That’s attractive to a lot of investors, especially compared to the 4-5% they’re earning in T-bills or savings accounts.
Plus, they get the tax benefits.
You, as the sponsor, earn your share after they get paid. That’s the key to building long-term trust.
Who Are the Investors? They’re Closer Than You Think
If you’re serious about using other people’s money to invest in real estate, you don’t need to look far. Some of your best first investors might be closer than you think.
Start with:
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Friends and family (yes, really — even if your uncle says no)
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Local small business owners
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High-income professionals (doctors, lawyers, etc.)
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Retired investors with 401(k)s or IRAs
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People at local meetups and conferences (like Limitless Expo)
Investors are everywhere. They’re just looking for someone they can trust with their money. That trust is built one deal at a time — by delivering results, communicating clearly, and treating their money like your own.
The Infinite Return: The Holy Grail of Real Estate
Once you master this process, you’ll start to unlock what I call the infinite return — where you return all of your investor capital, yet still own the deal and keep earning cash flow.
It doesn’t happen overnight. When I started, I focused on buying one solid cash-flowing property per year. That consistency, combined with good management and clear communication, is what helped me scale.
Eventually, the results spoke for themselves. Investors came back. They brought their friends. And the momentum kept building.
Another great place to meet potential investors is Limitless! This July, we’ll be hosting our fourth annual Limitless Expo in Dallas, Texas. If you’re serious about upping your real estate game and want to meet likeminded investors. This is the place to be. Use code KEN10 to receive a 10% discount on your ticket.
Final Thought: Raising Capital Isn’t About Selling
If you want to raise money, don’t think like a salesperson.
Think like a problem solver.
Your investor has capital, but no time, no tax strategy, or no access to good deals. If you bring them a well-structured opportunity that performs — and you act with integrity — you’re solving their problem.
That’s how I raised millions—by using other people’s money to invest in real estate, one good deal at a time. And here’s how you can, too.
I filmed a YouTube video on this. Watch it HERE to learn more!
