EP 483 - Discover How Stella Han, through her platform Fractional, helped capital raisers raised over $600M in the last 5 years.

What if you could legally raise capital from friends, family, and your community without running into the red tape that derails so many first-time raises?

In this episode of the Hero Capital Show, we sit down with Stella Han, founder of Fractional, to unpack how her platform has facilitated over $600M raised in the last five years by rethinking how capital is pooled and deployed. Stella shares her personal journey from real estate investor to tech founder, including a failed early raise that cost her tens of thousands of dollars and sparked the insight behind investment clubs. We dive into how investment clubs work, why the SEC treats them differently from syndications, when they outperform traditional 506 structures, and how operators can responsibly scale capital raising while engaging both accredited and non-accredited investors. If you’re an investor or entrepreneur looking for smarter, more flexible ways to raise capital—and avoid costly early mistakes—this is an episode you can’t afford to miss.

5 Key Takeaways from This Episode

1. Why investment clubs aren’t treated as securities
   Stella explains how active participation—especially in deal selection and voting—is the key reason the SEC does not regulate investment clubs like traditional syndications.
   
   
2. When an investment club beats a syndication or fund
   For raises around $5M or less, investment clubs can unlock capital from both accredited and non-accredited investors while offering a more engaging “seat at the table” experience.
   
   
3. How to raise capital without a deal under contract
   By raising around a clearly defined investment thesis or buy box, operators can secure capital first and deploy it only after members vote on deals—similar to a fund, but without securities filings.
   
   
4. Turning soft commitments into real commitments
   Fractional uses a small upfront transaction fee from investors to replace verbal promises with real financial commitment, dramatically reducing last-minute dropouts.
   
   
5. Using investment clubs alongside syndications
   Stella outlines how sophisticated operators run clubs and syndications in parallel—using clubs to engage broader communities while still raising larger checks through traditional structures.

About Tim Mai

Tim Mai is a real estate investor, fund manager, mentor, and founder of HERO Mastermind for REI coaches.

He has helped many real estate investors and coaches become millionaires. Tim continues to help busy professionals earn income and build wealth through passive investing.

He is also a creative marketer and promoter with incredible knowledge and experience, which he freely shares.

He has lifted himself from the aftermath of war, achieving technical expertise in computers, followed by investment success in real estate, management skills, and a lofty position among real estate educators and internet marketers.

Tim is an industry leader who has acquired and exited well over $50 million worth of real estate and is currently an investor in over 2700 units of multifamily apartments.

Connect with Tim
Website: Capital Raising Party
Facebook: Tim Mai | Capital Raising Nation
Instagram: @timmaicom
Twitter: @timmai
LinkedIn: Tim Mai
YouTube: Tim Mai