If you are a multifamily syndicator, it is vital to creating a network of investors you can work with. The reason for this is that investing in an apartment complex involves a lot of twists and turns. You will need the cooperation of your investors to really get things going and achieve a steady cash flow. Once you have built your pool of eager investors, you can raise enough funds to purchase your very first multifamily acquisition. I started many moons ago with zero investors; it was quite tough. But the persistence and hard work paid off. Now I can bring a well-structured cash flow to my investor base. At present, I could typically raise $5 million to $10 million in a few days for about 130 investors.
All it takes is to take the most crucial steps in finding investors who are eager to join your venture. Starting your search shouldn’t be difficult. As we enjoy increased access to new technologies, it has become easier for a syndicator like yourself to find vast sources of funding for your multifamily acquisitions.
The first step will always be to determine a good place to start searching. If you have never experienced building any real estate investment setup before, it helps to know the best places where you can find potential investors.
Here are some tips that you might want to use:
There is money flowing all around you, I always tell that to my student investors. It’s so important that you put together an Educational Brochure and build a strong Credibility Kit you can show to potential business partners. Remember, we only get one chance to make the best impression. Have a good Elevator Script ready to ask if they would consider investing in Real Estate.
Events are great if you want a high turn out of possible names you might want to keep in constant contact with. You can do a quick web search to find forums, conferences, business seminars and workshops for real estate investors. Sign up for these events and remember to have your “elevator pitch” ready. Having one will make it easier for you to introduce yourself and what you do, and stir some interest in your venture towards multifamily property investing.
Another great place to find the best possible investors for your project is an investment club meeting. Prior to that, you should already be a member of an investment club. Once you get in, you are provided a lot of opportunities to pitch highly profitable ideas everyone can join in. During meetings, build rapport with other members and participate as much as you can. Once you make yourself visible and raise questions during important meetings, you will find yourself in a good position to pitch your investment idea. Before that, make sure you prepared a fun and informative presentation that will capture the interest of the other members.
Having a conversation over a hearty meal is a good way to pitch a valuable investment idea to a potential investor. All you have to do is to have a list of possible people you meet every day. It might seem like an odd strategy, but it works! You can still find investors wherever you go, and not only at business events. Be sure to exchange business cards (also, make your business cards stand out with a clean design. Once you have their contact information, you can now invite them over for lunch or dinner with other key people in your contacts list. Remember to state the purpose of the meeting so as not to keep potential investors guessing whether the meeting itself is worth their time or not.
Sure, using social media is more about selfies and memes nowadays, but you as a multifamily syndicator can still use platforms like Facebook and LinkedIn to find the right people for your investing network. For LinkedIn, make a search query containing the term “real estate investor.” Next, you might want to use advanced search settings to further narrow down the results. Make sure to review each profile you come across before connecting. Once the right investors respond, you can invite them over to an event.
So, you see, building your investing network isn’t that hard. All you need is to know where to look and know how to handle a diverse range of personalities with a smile.