How to Build Better Conversations when Pitching Your Deals
Dec 06, 2024
Conversations are at the heart of building relationships, especially when it comes to attracting investors. A great way to foster meaningful dialogue is by using open-ended questions. Unlike yes-or-no questions, open-ended ones encourage deeper discussions, helping you uncover valuable insights about your audience’s needs and goals. This approach is particularly effective when pitching multifamily deals or other real estate opportunities.
If you’re serious about improving your ability to connect with investors, ask yourself, Why Would Someone Invest With You?. This blog dives into understanding your value proposition and how to make it resonate with potential investors.
Why Open-Ended Questions Matter in Investor Conversations
Open-ended questions open the door to better understanding your audience. They allow you to:
- Build rapport by showing genuine interest.
- Discover the investor’s goals, concerns, and experiences.
- Keep the conversation flowing and uncover insights that could be missed with simple yes-or-no inquiries.
When pitching a deal, the insights gained from open-ended questions can help you craft a personalized proposal that resonates with the investor’s specific needs and objectives.
Tips for Asking Effective Open-Ended Questions
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Focus on the Investor’s Perspective
Frame your questions around their experiences, preferences, and goals. This demonstrates that you’re not just pitching but genuinely interested in their needs. -
Use Broad Yet Relevant Questions
Avoid overly specific questions that could lead to one-word answers. Instead, keep them broad but tied to the topic of your discussion. -
Write Down Anchor Points
Carry a notepad or digital notes to list key topics (e.g., risks, returns, goals). This keeps the conversation on track while allowing you to pivot back to important points when needed. -
Follow Up Strategically
Listen actively and build on their responses with follow-up questions. This deepens the discussion and shows you value their input.
Examples of Open-Ended Questions for Deal Pitching
Here are some examples to use during your next investor meeting:
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Getting to Know the Investor
- What’s your experience with real estate investing?
- How did you first get started in multifamily investments?
- What do you enjoy most about your current investment strategy?
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Understanding Their Goals
- What are your short-term and long-term investment goals?
- How do you see real estate fitting into your overall portfolio?
- What’s your ideal investment opportunity right now?
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Exploring Their Investment Preferences
- What kind of returns have you been seeing recently?
- What risks are you most concerned about when considering a deal?
- Are there any markets or asset classes you’re particularly interested in?
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Discovering Their Pain Points
- What’s been your biggest frustration with past investments?
- What would you change about your current investment approach?
- What do you wish more investment opportunities offered?
How Open-Ended Questions Help Attract Investors
When used effectively, open-ended questions can turn a casual conversation into a meaningful discussion that builds trust. Investors appreciate being heard, and by understanding their unique goals and challenges, you position yourself as someone who genuinely wants to add value—not just close a deal.
For example:
- Asking, “What’s your biggest concern about multifamily investing?” opens the door for the investor to share their fears, allowing you to address them proactively.
- A question like, “What returns are you expecting over the next five years?” gives you clarity on their benchmarks and helps you tailor your pitch.
A Pro Tip from My Experience
Early in my career, I kept a list of anchor points—topics like risks, returns, and timelines—to ensure I stayed on track during meetings. Whenever the conversation veered off course, I’d jot down unrelated points to revisit later and guide the discussion back to the purpose of the meeting. This simple practice kept my conversations focused and productive.
Final Thoughts
Mastering the art of open-ended questions is an invaluable skill for anyone looking to improve their deal pitching or build relationships with investors. By encouraging deeper conversations, you can uncover key insights, build trust, and ultimately create more compelling proposals.
Want access to the playbook I use for attracting and building relationships with investors? Download my Unlimited Investor Leads book now and gain insider strategies that will transform your approach to deal pitching.
Start practicing these questions today, and watch how they open doors to new investor relationships!
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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.
