The Art of Asking Good QuestionsJul 04, 2022
When you're looking to raise money from investors, it's important to ask the right questions. This will help you understand their thought process and potential biases when it comes to investing in your project. Some of these good questions are:
- How do you assess risk?
- What have you invested in before?
- How did it work for you?
- Do you know anybody that's made money in real estate?
- What's your timeline for this investment?
- What are your goals for this investment?
- Do you see yourself as a hands-on or hands-off investor?
These are all great questions that will help you get a better understanding of your potential investor. By asking these questions, you'll be able to gauge their interest level and see if they're a good fit to your endeavors.
Also, don't be afraid to ask tough ones (questions).
Investors are typically looking for projects that they can make a lot of money off. However, it would help if you also were looking for an investor that shares your vision for the project.
Having someone that is not parallel to the vision you are thinking of is either a bad investment of your time or an opportunity waiting to crash.
It can honestly be tough and at the same time overwhelming to compose the right questions or probably the most appropriate ones.
If you are struggling with this and want to know which "great"/"good" questions to ask, join our 5-Day How to Raise Capital Challenge where we will teach you how to understand, perfect and craft your winning pitch to investors.
The next piece is asking great questions.
You know, during the course of your meeting,
you're gonna be asking questions
of your potential investor.
One of my favorite questions to ask is
How do you assess risk?
What have you invested in before?
How did it work for you?
Do you know anybody that's made money in real estate?
These are things that open up the conversation
and let you actually understand their thought process
and their potential biases
around how they look at what you're potentially doing.
I can tell you right now, we all have different experiences.
We've heard different stories from different people
about things and projects and whatever it is.
But at the end of the day, you are not a mind reader
and until you ask them good questions
to understand where they're coming from,
it's not going to move things forward.
And by the way, this upfront contract
is best in your first meeting.
So literally, I have meetings with investors
while I'll meet with them for the first time.
I don't bring my materials. I don't bring my deck.
I don't bring any of that stuff.
I bring a notepad.
And I just sit down for a coffee
and I wanna know what are their goals?
What are their plans?
I'm not a financial adviser,
but I'm just trying to figure out conceptually
if the things that they're trying to
accomplish in life are somewhat
tied to the things I'm trying to do.
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. M1 Real Capital Inc, Marcin Drozdz is not a financial, legal or tax adviser. 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 M1 Real Capital Inc, Marcin Drozdz or any of his affiliates harmless in any event or claim.