Soft Commits

Understanding how much potential captial you have access to is a critical piece of your real estate business. A “Soft Commit” is just that… soft. This means that the investor has expressed an interest in investing a certain amount of money in deals if you bring them something, but it doesn’t necessarily mean that they’ll be interested in your deal. Having this number though is still important because:

1. It gets your investor emotionally invested in providing capital to you
2. It gives you an idea about how much capital raising you might need to do