What To Offer To Investors

[Alexander Forrester]

My partner and I have found a deal that we would like to pursue. We are going to be pitching the property to some private investors. My question is what should we offer as the return rate on their investment? We are first time buyers and I don't want them to think we have no idea what we are doing, but at the same time, I don't want to get killed in payouts. Any suggestions?

[David Thompson]

Seek legal advice.  Then review blog link below and get some ideas on what investors should be looking for from a sponsor (#6 and #7 discuss payouts / fees).  My investors typically want to know min investment; return projections (conservative underwriting and assumptions); why the market, deal and team makes sense; when they'll get their money back; etc.  The marketing deck should be logical, easy to follow w/a clear and simple strategy to create value.  If your bios are not strong yet, seek to add credible partners to the team (experienced advisor, property mgt, etc).

https://www.biggerpockets.com/blogs/9145/53959-vet...