The pitching of an investment deck can be diversified into various components which also focus on how one can really establish stronger relationships with their Investors. Let’s get started.
What should one pitch in an Investment Deck to Investors?
What should one pitch in an Investment Deck to Investors?
The pitching of an investment deck can be diversified into various components which also focus on how one can really establish stronger relationships with their Investors.
Always remember the fact that a solid start is appreciable and hence you need to begin with a sizzle. You have to create that sort of environment. The first step is the foremost step which needs to be phenomenal and ice-breaking. Don’t ever forget to mention the fact that there are tons of people who are imbibed with a lot of financial knowledge, wealth, and resources but still end up losing their shares.
Real Estate is proven to be an asset class that has built the world’s wealthiest people’s fortune, when you say something like that you build a reputation over the investors. Real Estate deals produce 7% to 8% annualized cash on cash return(CoC) and with some split at the back end, those Passive Investing deals are proven to create time freedom for busy professionals.
The benefits the Investors will be getting from the beginning if you tell this to investors at the beginning itself also that this is a recession-resistant market. It is a hedge against inflation asset class whether it is multifamily or assisted living, this asset class is going to ride the recession as of right now every investor has recession and inflation in their mind, if you address the biggest elephant in the room first, then investors are listening to you. You tell them we have been working on this asset class for a long time and we feel that if we invest in it right now this is going to create so much value for our investors that even we are investing so much money in this deal. It will create a 10% return or 20% annualized cash on cash return(CoC) or whatever your returns are. You share the good pictures of the property that you are buying and that should be in the beginning.
You have to address inflation, you have to address the recession, you have to give them what are the returns that investors are going to get and you do that in the beginning and you are telling them that those who invest in Real Estate are going to be among the world’s wealthiest people. You’re kind of telling their stories. You have gotten their attention, but now you have to repel.
How do you portray the Risks in the Real Estate Market to Investors?
How do you portray the Risks in the Real Estate Market to Investors?
This is important to convey that the actual disclaimer in real estate is that everyone lies since no one can anticipate what would happen. You remind them that although our projections are conservative, this is not the right option for someone hoping for a quick cure or flip. Real estate is a liquid asset, thus you will gain from liquidity. However, you won’t get returns right away; you’ll have to wait a while to reap the benefits of liquidity. They must be informed that there will be no quick repair.
If you are here for the quick fix, you’re losing your time.
It is important for investors to comprehend that those who pretend that people never lose money in real estate are probably lying because people do occasionally lose money in this industry. The sensible approach to business is simply how cautious we are in our daily operations.
How to establish your credibility in the Real Estate Market?
How to establish your credibility in the Real Estate Market?
You may have built your credibility as a person by describing who you are, what you have accomplished in real estate over the years, and what your track record has been.
Let’s say that we have been in the real estate business for seven years. Over the past many years, we have consistently provided returns to our investors of 25% IRR. Of course, past performance does not guarantee future performance, and you should never disclose your minimum. You need to make sure the investors understood that if they put in $500,000, they’ll probably end up generating this much money per year. People enjoy being complimented, so when you give them those numbers, they respond favourably.
Consider a scenario in which you ask for $500,000. They may not be able to contribute $500K, but you can at least begin to expect because your psychology begins to move in that direction the instant you mention “$50,000 to $100,000.” Still, you make an effort, to begin with, 500K or a million, and simply watch how people behave. Simply explain that if they invest $5000 or $1,000,000 with us, they will make this much money, and then they can take a seat back and unwind.
It’s as if you’ve already explained to the Investors what your project is and why they should invest in it in their subconscious. Then display to them some images of your project. After you’ve completed that, you can go on to your business plan. You can tell them to pay attention that you have purchased this property at this price or that you intend to do so. Over the course of this time, you’ll spend this amount. This will be the rent increment that we will attain. You can try to reiterate the returns to them.
Try to distinguish between returns that pretty much guarantee you will make a certain amount of money and returns that promise investors a certain amount of money. Just don’t limit yourself to the $100,000 example; your slide presentation should also include a million-dollar example to make people feel delighted whether they want to invest that much or not. The situation is different. So you can psychologically implore them to increase their investment in you.
Where can one introduce the Call to Action in the Investment Deck?
Where can one introduce the Call to Action in the Investment Deck?
You have completed your part of the work; the next step is to respond to the call to action by stating your level of investment during the webinar or in person. Ask for commitment, convey a sense of urgency by stating that we are closing shortly, that we are filling up quickly, and that there are only a few seats left, and specify the maximum amount that investors may invest. If the webinar is of the type where investors can arrange a call with you or you can schedule a call with investors fast, you should have some kind of action code or QR code, or landing page.
This podcast’s conclusion states that the discussion with these investors should be as humane as possible. We must remain true to who we are. We attempt to learn more about our investors and talk to them about their family history without having to pretend to be someone else.
Knowing more will benefit you as an equity raiser.
To avoid wasting your time, all the material must be conservative, and a little bit of negativity will help to pull out the weeds. Your time has been worth it. You earn more money by shaking hands with more people. In the realm of real estate equity, they say that. Spending time on activities that derive results is preferable to activities that do not.
