Success with attracting foreign investors to investors.

[Pat G.]

I have an opportunity to present an apartment opportunity to a foreign investor with several million dollars to lead. My question is, based on your experience, what are the key items (bullet points, talking points, etc.) that need to be in the presentation to increase my chances of success with this foreign investor? Basic property details and financial projections are a given. Thanks, in advance.

[John Jacobus]

@Pat G. Some foreign investors I've met with in the past have needed additional background on the details and merits of property ownership in the U.S.  (i.e., how do syndications work, what role do property managers play, what are the basic tenant laws, etc.).  Additionally, including light details on the next steps foreign investors will need to follow in order to participate in direct investments in the U.S. has been key in getting them comfortable with participating.  Lastly, some foreign investors I've talked with aren't deeply familiar with the details of the sub-markets in which I'm investing.  Highlighting the demographic trends, employment growth, and job diversity materializing in my sub-markets have resonated with foreign investors and have helped them become comfortable.

I generally structure my presentations and conversations with foreign investors around the following:

• Basics of syndication and property ownership in the U.S.
• Demographic trends, employment stats, and job diversity in the sub-market
• Specifics of the property
• Business plan to enhance the property's value during the ownership period
• Financial projection and details on financing terms
• Overview of property management firm and other key team members
• Additional detail on the surrounding metro area and the location of the property relative to transportation hubs, retail, and employment centers

Appendix:

• Basic requirements for foreign direct investment in the U.S.
• Anticipated timeline for fundraising and closing