The Best Ever CRE Show JF 3952: The Build Trap, Capital Raising Mistakes, and the 95/5 Rule with Richard McGirr
Jun 30, 2025
Dive into the pitfalls of the 'Build Trap' where overthinking processes can stall your capital raising efforts. Richard McGirr shares insights on the importance of direct investor engagement and relationship-building over perfectionism. He introduces the 95/5 rule, revealing that most results stem from key actions like sending emails and following up. The discussion emphasizes consistent action as the path to success, encouraging listeners to prioritize communication and take decisive steps to enhance their capital raising strategies.
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Avoid The Build Trap
- Avoid the "Build Trap" where focusing on perfect systems stalls actual investor calls and deal closing.
- Prioritize talking to investors over perfecting your CRM, pitch deck, or marketing setup to close deals.
Fund Manager's Build Trap Story
- Mike, a new fund manager, spent two months prepping his CRM and social media instead of closing deals.
- Despite the effort, he only spoke to one potential investor for $100,000 in that time.
The 95/5 Rule of Capital Raising
- About 95% of capital raising results come from a few key actions: sending emails, calling investors who engage, and following up.
- Polishing systems or marketing beyond those actions won't directly close checks.