Updated over 6 years ago on . Most recent reply
Convincing investors when a deal is presented
So I have an investor in my hometown that I use. I found two properties SELLER FINANCED with an extremely low amount down. I am a construction project manager/estimator so I know how to fix and evaluate the renovation costs for a property. The cap rate was going to be 18%!! My investor didn’t bite... does anyone have any advice on how to approach an investor with a deal without trying to sound salesy? The deal was in Attleboro MA
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#4 General Landlording & Rental Properties Contributor
- Real Estate Broker
- Hyde Park Tampa, FL
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#4 General Landlording & Rental Properties Contributor
- Real Estate Broker
- Hyde Park Tampa, FL
The best time to approach an investor is BEFORE you have a specific project in mind. Find out what type of properties and returns he/she prefers rather than bring to the table those that you prefer. I have flippers daily who pitch their deals to me - and 99% are not of interest to me. It may be the market, the timeline for completion - or not having one documented at all, the valuation, and most times than not - the financial risk is all mine and the gain diluted.
It doesn't sound like you actually have an investor - just an occasional source of funding. A serious investor will have an acquisition plan for the year and a targeted ROI. That investor isn't waiting to be pitched to invest. Elevate yourself from a construction/flipper guy to the go-to source for meeting his/her financial objectives. Stop pitching and start consulting.