If you’re looking for smarter ways to put your capital to work in real estate, the latest episode of Raising Private Money offers valuable insights. Jay Conner sits down with seasoned real estate fund manager Mike Zlotnik, CEO of TF Management Group, to discuss the mindsets, risks, and strategies you need to consider before writing that first check into a real estate deal or fund. Here’s what you need to know and how you can benefit from Mike’s expertise in today’s market. Why Real Estate? The Power of Predictability and Cash Flow Mike’s journey into real estate investing began after a long career in technology and risk management. What set real estate apart for him was predictability—the opportunity to build fortunes steadily over time, particularly compared to the volatility of stocks. Initially investing passively in New York City, Mike realized real estate’s unique advantage. Real estate offered both appreciation and, when chosen wisely, dependable cash flow—something stocks rarely provide. This predictability, says Mike, is the cornerstone of financial freedom for investors seeking long-term stability, especially as compared with the unpredictability of the stock market. Raising Capital Is Harder Than Ever—So Don’t Ignore Investor Mindset In today’s post-pandemic market, securing capital is more challenging than finding deals. Many investors have become gun-shy after recent market resets and rising interest rates. Mike points out that many real estate investors fail here by not communicating the right story or preparing investors for a contrarian approach. He explains that it’s now critical to demonstrate why real estate offers better value today—not just through numbers, but by appealing to “predictable income, downside protection, and prudent diversification.” Mike warns against relying solely on fear, but recognizes that with stock markets at all-time highs, now may be the time for investors to diversify into more stable assets like real estate. Scaling from Tens of Thousands to Millions: The Mindset Shift What’s the difference between raising $50,000 from a private lender and millions for a fund? According to Mike, it comes down to scalability and connection. Raising larger amounts requires robust systems, credibility, and constant engagement with investors. The foundation, Mike says, is building “know, like, and trust”—without this, capital raising cannot succeed. Education is key, as is establishing authority through books, podcasts, and sharing expertise. The focus should always be on genuine connection, not simply selling your deal. Risk Comes First: Three Things to Ask Before You Invest Before even considering projected returns, Mike advises investors to invert their thinking. The main question: How could you lose money? Drawing on the wisdom of Charlie Munger, he advocates starting every analysis by considering downside scenarios: How could you lose your principal? What needs to go wrong (interest rates, operations, tenants) for things to fail?What due diligence is needed? Analyze leases, tenant quality, local economic factors, and supply-demand balance.Mitigation tactics: Can the risk scenarios be realistically addressed and managed?If the worst-case scenarios seem unlikely or effectively mitigated, only then should you evaluate the potential upside. Ask the Tough Questions—And Focus on Integrity Mike emphasizes that due diligence is less about seeking perfect answers and more about detecting inconsistencies or dishonesty. Questions like “Have you ever lost money? Why? What did you learn?” matter because integrity is more important than any projected return. If you spot a lie or evasion, walk away. The very best investors are those who answer tough questions with honesty and humility. Where Are the Real Opportunities Now? In today’s shifting market, Mike advises against catching falling knives in highly volatile asset classes. Instead, he suggests focusing on regions and strategies with consistent performance, such as medical offices, industrial properties, and first-lien lending. His current projects, for instance, emphasize predictable cash flow and downside protection over high-risk/high-reward gambles. Final Thoughts Success in private real estate investing isn’t about chasing fads or quick wins. It’s about disciplined due diligence, honest relationships, and focusing on predictable, stable returns—even in uncertain times. If you’re considering investing in a real estate fund, take Mike’s advice: prioritize risk management, build real trust, and seek out opportunities that stand the test of time. 10 Discussion Questions from this Episode What aspects of real estate investing does Mike Zlotnik find more appealing than stock market investing, and why does predictability stand out to him?How has the current economic climate impacted the process of raising capital for real estate deals, according to the conversation?What are some common mistakes that real estate investors make when attracting private investors, as identified in this episode?How important is the concept of “know, like, and trust” in raising capital, and what strategies do the speakers suggest to build it?Why is leading with education a key approach for successfully raising Private Money, and how has it worked for the speakers?What does it mean to “invert, always invert” when evaluating risk in a real estate investment, and how can investors apply this mindset?What specific questions should investors ask before deciding to invest in a real estate deal or fund to assess risk?In what ways does location contribute to mitigating risk in real estate investments, based on points raised during the episode?If you were starting a real estate investment business from scratch today with little capital, what first steps would you take to build relationships with private lenders?How should investors balance the pursuit of cyclical market opportunities with the desire for predictable cash flow and downside protection, according to the episode’s discussion?Fun facts that were revealed in the episode: Tech to Real Estate Switch Mike Slotnick, the featured guest, spent nearly 15 years in information technology, managing risk and complex systems, before becoming a full-time real estate fund manager in 2009.Education Over Sales One key strategy discussed was that both Mike and Jay Conner have built their capital-raising approach around leading with education rather than pitching deals, believing that teaching investors builds stronger relationships and trust.Big Mike’s Website Joke Mike affectionately refers to his website as "BigMikeFund.com" and even jokes that if you forget the "D" at the end (typing "BigMikeFun.com"), you'll still land somewhere safe—he promises it’s not a "kinky site"!Timestamps: 00:00 Raising and structuring private capital 04:33 Raising capital for real estate 09:43 Building investor relationships 13:15 Evaluating risks in real estate investments 17:33 Real estate investment considerations 19:51 Assessing investment risks and scenarios 25:00 Starting a Fund: Initial Steps 28:21 Investing for steady cash flow 32:26 Connect with Mike Zlotnik https://www.TempoFunding.com https://www.BigMikeFund.com 34:21 Sharing episode to fellow investors Connect With Jay Conner: Private Money Academy Conference: https://www.ThePrivateMoneyConference.com Free Report: https://www.jayconner.com/MoneyReport Join the Private Money Academy: https://www.JayConner.com/trial/ Have you read Jay’s new book, Where to Get the Money Now? It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book What is Private Money? Real Estate Investing with Jay Conner http://www.JayConner.com/MoneyPodcast Jay Conner is a proven leader in real estate investing. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $86,000 per deal. #RealEstate #RealEstateInvesting #RealEstateInvestingForBeginners