When Raising Capital Goes Wrong And How To Protect Your Investors And Your Reputation
After building a $320M portfolio, one developer faced collapse. Here are the real lessons on raising capital, risk, and protecting investors.
Real Estate Investing
✍️ By Debbie Balfour | WBN News | February 26, 2026| Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.
What if the very strategy that built your wealth could also unravel it overnight?
In this powerful episode of Let’s Talk Real Estate Investing, I sat down with Alejandra “Ale” Moreno, a seasoned developer who helped build a $320 million real estate portfolio, only to watch it collapse under the weight of rising interest rates, policy changes, and financing shifts. Her story is raw, honest, and essential listening for any operator raising capital today. You can watch the full interview here:
Ale’s journey began with a simple house hack at 19. Over 25 years, she scaled from small renovations to land development, student housing, multifamily projects, and large-scale builds across Canada. She raised capital from over 300 investors. For two decades, she never lost a dollar.
Until she did.
Post-COVID interest rate hikes. Municipal delays. Doubling development charges. Airbnb regulation changes. CMHC financing rules are shifting weeks before closing. What once was penciled out no longer worked. Even strong contingency plans were no match for eight simultaneous risk variables.
But this episode isn’t about fear, it’s about responsibility.
Ale broke down the three foundational pillars every operator must master before raising capital:
- Know Your Product – Stay in your lane. Don’t raise money for deals you haven’t successfully exited multiple times.
- Build Strong Systems – Capital follows competent management. Experience attracts investors.
- Choose the Right Room – Visibility matters. Fundraising isn’t about chasing money; it’s about positioning.
Then came the hard lessons.
Never raise capital without significant skin in the game. Ale recommends operators invest a minimum of 10–15% of total project capital themselves.
Never take “any” money. Not all capital is equal. Vet your investors the way a bank would. Ask about net worth. Ask about diversification. Ensure your investment does not exceed 10% of their net worth.
And one of the biggest warnings? Be cautious with friends and family. Emotional capital carries heavier consequences than financial capital.
Promissory notes, leveraged HELOC strategies, and high-interest short-term lending can look attractive in booming markets, but when cycles shift, risk multiplies quickly.
Ale shared the most painful moment of her journey: asking an investor and friend for forgiveness. That conversation reshaped her view of capital raising forever.
Here’s the truth: raising capital is not just about numbers. It’s about stewardship.
If you’re stepping into the operator role, understand that this money is easy to raise when times are good. Integrity is what sustains you when times are not.
Real estate creates wealth. But character determines whether you survive the cycle.
And cycles always come.
Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
📍 Website: www.DebbieBalfour.com
📧 Email: Debbie@DebbieBalfour.com
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▶️ YouTube Channel: youtube.com/@DebbieBalfour
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