Talk Less. Raise More Capital.Sep 20, 2021
Raising money is hard. There is no sense in sugar coating it. The fact is that there are a lot of people out there who need capital, but raising it is no easy task. Often times the process starts with cold-calling dozens of people to find potential investors. This can be exhausting and difficult for even the most seasoned real estate investor. Fortunately, there are smarter ways to raise money that will help you stand out in a crowded market.
The next time you speak with a new potential investor try this:
CLEARLY DEFINE YOUR NICHE IN UNDER 2 MINUTES.
- What kind of property are you buying?
- What market are you investing in?
- What is your strategy (fix & flip, buy and hold etc)?
- Why you're the right person to do it.
- What you bring to the table.
- Why that project instead of all the other options in the market?
This all needs to flow easily for someone to be able to what you're doing in under 2 minutes.
The purpose here is to quickly establish credibility and create a scenario where your potential investor can either buy in, ask questions or tell you that they're not interested.
If you approach them this way you can then turn the conversation and ask them (if they say that they're not interested) what specifically they don't like about your investment strategy.
You may be able to help clarify assumptions that they've made about (the market, the strategy etc... fill in the blanks) and work towards a partnership. Alternatively you'll learn about the kind of opportunities they do like and keep them in mind for the future.
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