Your ability to raise money can be very helpful in building your real estate business. Unfortunately, money-raising is not something that comes naturally to everyone. There is a fear factor involved that one must overcome in order to be able to speak to investors. Having a plan in place on how to speak to investors, what to say, and how to meet objections can help to significantly reduce the fear and anxiety.
How to Pitch to Investors
If you’re raising funds for your deals, you have to convince investors to give you their time and money. First, you have to get meetings with investors. You’re asking them to give you one of their most precious resources: their time. One of the easiest ways to accomplish this is at events and networking functions. Attending an investor networking meeting, for example, is a great place for you to connect with potential investor clients. Second, you have to get the investor to give you another resource: money. To accomplish both, you have to present your deal to them in just the right way.
Here are five tips to ensure that your presentation gets the response—and the funding—you want.
1. Open Strong
Within the first 30 seconds, investors need to understand precisely what your business does and why it’s a good opportunity for them. Make it clear and easy for investors to understand your deal. If you provide too much data and detailed information right out of the gate, they may not get it and may lose interest. If they like what you’re saying, they’ll let you keep talking.
2. Tell Stories
Think like a comedian and forget the PowerPoint. Raising money is about building and fostering relationships with your potential investors. Instead of endless slides about your market, your properties, and your business plan, start out with a personal story. …read more