Private Money

[Brian Keeler]

Dear Bigger Pockets people,

I am looking to put together my first Private Money presentation which I anticipate presenting in front of my NYC REIA and local meetup groups regarding the matter.

If anyone has a template or resource I can use it would be greatly appreciated. I do not actually have the deal as of yet, but I wanted to have some sort of idea where my equity raise would be coming from.  I am expecting to raise anywhere from $1M to $2.8M.

My education on market analysis, property analysis, and general acquisition of multifamily property to disposal of the property is pretty good.  I have sponsors available to me to help with the loan. It is time to put it into practice!

Thank you all in advance for taking the time to answer!

Kind regards,

Brian Keeler

[David Thompson]

Brian,

Once you get past the legal issues Michael raised and sounds like you are preparing for that, I'd structure the presentation around three ideas.

1) The market - the most important factor.  You can have a great deal and a great team, but if the market is not good, forget it.  Increasing jobs/pop growth to area or path of progress play.

2) The deal - focus on conservative underwriting / assumptions - under promise/ over deliver concept. Value add a must. Stay capital preservation focused. The returns should speak for themselves. How are you going to drive the NOI north? Is the strategy simple and sound. Can it easily be explained on a napkin. If grandma wants to invest, then it's simple.

3) The team - must be experienced.  Now, you can leverage experience if you don't have a ton.  This can come from other partners on the team, the property management company, both best.  Any previous deal examples or track records to point to helpful.

Then, for the investor, what's in it for them?

- Min investment ?

- Return expectations (CoC; IRR) - under promise....you want them back for more deals.

- Exit strategy - refi ? sale ? (time line targets) - investors want to know when they get their $ back.

- How do they get their money?  Distribution timing - quarterly is a good idea.

- How will they be communicated with?  monthly / quarterly and what to expect.

- Deal schedule for these events:  Cap Raise, PPM, Investor Funding, Close, first check?

In Sum: Be crisp and to the point.  Be authentic and confident, know you have a good deal and you want them to be your partner...but don't give them everything.  Just trying to get a high / med level view of the opportunity and get names of those interested for 1x1 followups so they can get a copy of your deal deck, property video and if you do an investor conference call, a copy of that in followup email.