Don’t Just Build Relationships; Build REAL-lationships
Relationships are crucial to the success of any business venture. Whether you want to crowdfund an idea for a startup or pool resources to form a multifamily syndication, you will need to focus more on creating valuable bonds with the people who are going to invest in your idea.
If you are thinking of broadening your investor network, pitching proposals just won’t work anymore. While it’s true that investors want to generate wealth quickly, they still need a more compelling reason to join your venture. Aside from profiting from your idea, they also want to know if your idea is worth their time and resources.
For this very reason, it’s important to build investor relationships that are valuable and not transient. You want your investors to be in it for the long haul. So, as you build your multifamily syndication from the ground up, remember to use these methods to creating partnerships that are REAL and relevant to your goals.
Communication is always important in maintaining close ties with your investors. Considering the technologies we have today, it has become easier for us to meet each other’s needs and create lasting bonds. I have used FaceTime, Webex, Goto Meetings and Zoom to meet my investors across the globe. I prefer Zoom for many reasons. It’s almost like you are sitting across the desk and conversing. This way we can read each other’s sincerity and drive during the whole conversation. I am huge on showing the presence or the documents and also the graphs to illustrate the points that I am discussing.
Other than that, you can also use social media and campaigns to reach out to your investors and update them on the progress of your syndication-building activities. You can also fill them in on your future plans so you can further motivate them to stick with you.
I always remind my students about the importance of passion. You need to have the right amount of enthusiasm to stay productive. Working in a group allows you to share your energy and achieve successes along the way.
Show your investors that you are fully absorbed in the idea. They will see that you are committed. You only need to show your brightest smile and be enthusiastic when you are having a conversation with them. Enthusiasm is contagious like they say. The excitement and the whole energy in communication are so important.
Influence and inform
If you are the sponsor of the syndication you are building, it helps to build your authority. They won’t make the effort of forging a relationship if you don’t know what you are doing. Trust, Integrity, being genuine, transparency and track record are so essential to answer the investor’s objections. We must communicate that you have the fiduciary responsibility to safeguard investors’ money more than yours.
Prior to setting up your multifamily syndication, make sure you have enough influence to show investors you are credible. To do this, you need to put yourself on the map by producing a constant stream of content through your blog. You can produce informative and relevant articles that show how much you know about real estate syndication.
I hope these tips can help you create investor REAL-lationships that are difficult to break!