2026 Guide: How to Use Other People's Money to Buy a Business and Build an Empire
by Raises.com
You can use other people's money to buy a business, acquire assets, scale quickly, and preserve your own capital while leveraging debt and equity structures. The key is to structure the deal so that you control the cash flow, limit personal risk, and create a repeatable model that can be applied to real estate or any asset class you target.
Concrete Lessons from the Video
- Start with a Core Asset, Begin with a land development project, then expand into related verticals such as vineyards, restaurants, and e-commerce, as the speaker did over a 20-year span.
- Leverage Vendor Entities, Treat each supplier or service provider as a separate legal entity to lower costs and increase speed while keeping the barrier to entry high for competitors.
- Use OPM for Expansion, Raise capital from debt and equity partners to acquire complementary businesses, allowing you to own up to seven vertically integrated companies without using your own cash.
- Keep Operations Close to the Metal, Own the financing, development, and sales functions yourself to capture the maximum profit margin at each step.
- Build a Commercial Mortgage Brokerage, By owning a licensed brokerage you can source financing in-house, reducing reliance on third-party lenders.
- Structure an SPV, Create a special purpose vehicle for each acquisition to isolate risk and present a clean capital stack to investors.
- Document Everything, Use a private placement memorandum, subscription agreement, and operating agreement to meet investor expectations and regulatory standards.
- Scale with Repeated Deals, Replicate the same capital-raising playbook for each new asset to accelerate growth without diluting ownership.
Comparison of Deal Structures Discussed
| Structure | Advantages | Disadvantages |
|---|---|---|
| Vendor as Separate Entity | Lower operating cost, faster execution, high barrier for competitors. | Requires multiple legal entities, more administrative overhead. |
| Full Vertical Integration | Maximum profit capture, control over supply chain, easier financing. | Higher capital requirement, more management complexity. |
| OPM via SPV | Isolates risk, attractive to investors, enables leverage. | Setup cost, need for detailed offering documents. |
| Traditional Equity Financing | Simple structure, no debt service. | Dilutes ownership, often higher cost of capital. |
Applying These Lessons to Your Next Acquisition
First, identify a target business or property that fits a vertical you already understand. Second, draft a simple SPV structure and prepare a private placement memorandum using Raises.com templates. Third, use Raises.com to raise the equity and debt needed, the platform has helped clients raise over $300M across case studies. Fourth, close the deal, then integrate the new asset into your existing operations to capture additional margin.
Frequently Asked Questions
How can I use other people's money to buy a business without giving up control?
You can structure the acquisition through an SPV that issues preferred equity to investors while you retain common equity and management rights.
What is the best way to raise capital for a real estate flip?
Partner with a licensed commercial mortgage broker and raise a mix of senior debt and equity through a private placement.
Do I need a private placement memorandum for a $500,000 acquisition?
A PPM is recommended for any raise that involves accredited investors, even for deals under $1 million.
Can I combine vendor financing with OPM?
Yes, vendor financing can be layered with investor equity to reduce the amount of external debt needed.
How long does it take to set up an SPV and start raising funds?
With a prepared template package, you can have an SPV formed and a pitch deck ready within two weeks.
Next Steps
Ready to apply the OPM playbook? Learn how it works and book a call with Raises.com to start raising capital for your next deal.