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Updated over 1 year ago on . Most recent reply

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9
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John Mack
4
Votes |
9
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How to find investors

John Mack
Posted

I'm starting to get deal flow for commercial real estate like apartments,  hotels, and development opportunities,  but I don't how to find investors for these deals. Where do I look for investors to present these deals to?

Most Popular Reply

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72
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173
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Joshua Michael Hauman
  • Investor
  • Cleveland, OH
173
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72
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Joshua Michael Hauman
  • Investor
  • Cleveland, OH
Replied
Quote from @Joshua Michael Hauman:

Hey @John Mack,

There is a guide one of my mentors put together that is 50 pages on how he went from unknown with zero credibility and zero experience to raising 10's of millions of dollars for his syndications. PM me if you want a copy and I'll send you the link!

Also, what I've done that has worked well for me is this method step by step.

Step 1:

Take a sheet of paper or an excel file:

Write down every name that you can think of that has the financial capacity to be an investor in a deal. Friends, family, colleagues, friends of friends, people you met at an event, church, old connections, people in mastermind groups you're a part of, folks on BP, any organizations you're affiliated with etc..

Step 2:

Rank order these individuals on how much capital you think they have the propensity to deploy.

Step 3:

Start with the bottom of the list and work your way to the top asking each person if they were to invest in a real estate deal what they would be looking for and what their expectations would be. Some prefer multifamily, some hotels, some development opportunities. If it was the right opportunity, how much would they consider investing? How long would they want before their capital was returned? What kind of return profile would make sense for them?

Step 4:

Aggregate your feedback based on the soft commits you get from these potential LPs and narrow down your acquisition criteria and make it a weekly practice to send these deals out to your network that has expressed interest. Ask them for feedback to better dial in your strategy. Over the course of time people will respect your commitment and you will start building authority and credibility.

When that next great deal crosses your plate you've already had so many at bats that you're locked, loaded and ready to swing.  

Best of luck sir.

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