When Investors Won't Beat A Path To Your Door.

capital raising mindset small business tips for success Aug 30, 2021
real estate investment

Many real estate investors think that all they need to do is find a great deal and the money will just show up. No matter how great your deal is, investors will not beat a path to your door. Seasoned real estate investors know this and understand that the deal is just one part of the transaction and in order to attract capital, you need to put together a solid plan with a team of professionals who can execute on it. Beyond that, you should always be talking with potential investment partners because getting "Yes" from them almost always takes longer than you expect.

Let's put it this way... I've sourced 9 figures in private investment capital for various projects over 15 years and I've never said "wow that was so much easier than I thought!"

For most entrepreneurs, it feels like the next big raise is just around the corner. They jump from investor call to investor call, they're constantly checking their email for that coveted "yes" or "I'm in" message. That amazing opportunity that you're trying to capitalize on is so obvious to you but investors are not so sure.

The truth is that raising capital takes a lot of time so you should always be thinking about how to make your story more compelling and consistent. The most successful real estate entrepreneurs out there raising capital make it look effortless because they're focused on building long term relationships with the people they want as investors.

The easiest way to burn relationships with investors is to wait to pursue them until you have a deal tied up and need them at that exact moment. Investors can smell desperation from miles away and no one wants to work with someone that's desperate.

If you know you're going to be looking for investors in the near future make sure you plan ahead. There are many ways of doing this:

  • Connect with potential partners at industry events where they will be in attendance (many real estate conferences have opportunities for attendees to connect)
  • Reach out when a deal is close but not yet done and ask them if they're still interested in looking at opportunities
  • Create a list of potential partners and make sure to keep them updated on your progress. Correspond with them on deals you didn't do and why. This will show them that you're not just doing "just any deal"
  • Make it easy for them by inviting investors or groups through referrals when time permits.

The bottom line is that you need to be proactive in finding the money. Waiting until there's no other options will not get you the capital you need or (just as bad) get you investment terms that will leave a bad taste in your mouth.

If you're a real estate investor who's looking to attract investors, then download the E.A.S.Y System Webinar or attend one of our upcoming 1 DAY MASTERMIND so you can build interest with investors before you need them.

 

Marcin Drozdz

 

 

The information contained herein is for general guidance on matters of interest only. This information contained herein are 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. www.marcindrozdz.com is not a financial or tax adviser. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. www.marcindrozdz.com, its subsidiaries and affiliates, are not responsible in any manner for direct, indirect, special or consequential damages however caused arising from your use of the information contained herein.

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