5 Rules I Always Live By When Dealing With Investors

Navigating investor relationships is both an art and a science. Whether you’re figuring out how to attract investors to your business or raising capital for real estate ventures, following a set of core principles can help you build trust and secure long-term partnerships. These five rules have guided me in every deal, and they’ll work for you too.

1. Always Over-Deliver on Promises

Investors don’t just want ideas; they want results. Delivering beyond expectations builds credibility and encourages repeat investments.

• Actionable Tip: When setting timelines and financial projections, under-promise and over-deliver. For example, if you promise a 10% return, aim to deliver 12%.
• Pro Tip: Create a system for tracking and showcasing performance. Use dashboards or quarterly reports to visually demonstrate ROI for private equity funds for retail investors or other deals.

2. Communicate Consistently

Consistent, transparent communication keeps investors engaged and reassured. Regular updates demonstrate your professionalism and accountability.

• Actionable Tip: Schedule quarterly calls or send detailed reports outlining project progress, challenges, and next steps.
• Pro Tip: Include visuals, such as charts or graphs, in your updates. Investors respond better to data they can quickly digest, especially when exploring how to raise capital for real estate investing.

Wanted to see the exact outline I use to communicate with my investors? Download my Unlimited Investor Leads Book for ready-to-use scripts, strategies, and templates to help you secure funding and build stronger relationships.

3. Tailor Pitches to Investor Goals

Not all investors are the same. Some prioritize steady income, while others want long-term growth or high-risk, high-reward opportunities.

• Actionable Tip: Research each investor beforehand. If they’re conservative, highlight a safe investment that generally attracts conservative investors, such as equity income funds. For growth-focused investors, emphasize scalability, like why multifamily investing is better for long-term returns.
• Pro Tip: Use localized data when pitching. For example, if presenting in New York or Illinois, mention specific market trends or success stories from those regions.

4. Be Prepared to Answer Tough Questions

Investors will challenge your assumptions. Confidence and preparation are key.

• Actionable Tip: Anticipate the most challenging questions about ROI, risks, and exit strategies. Practice your responses beforehand.
• Pro Tip: When discussing how to raise private capital for real estate, present multiple scenarios, including worst-case projections, to show you’re prepared for all outcomes.

5. Focus on Building Long-Term Relationships

Investors don’t just fund projects—they invest in people. Building a strong personal rapport can lead to more opportunities in the future.

• Actionable Tip: Take time to understand their interests and goals outside of investments. Send a personal note after a successful project or invite them to networking events.
• Pro Tip: Networking events in key regions like British Columbia can create warm leads and help you establish a reputation for attracting investors to your business.

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The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. Marcin Drozdz, M1 Real Capital Inc are not financial, legal or tax advisers. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. You understand this to be an expression of opinions and not professional advice. You are solely responsible for any actions you take with the content and hold Marcin Drozdz and M1 Real Capital Inc or any of it's affiliates harmless in any event or claim.