Investor Relationships | Multifamily

[Daniel Reyes]

Good evening BP! One of the critical, and oftentimes elusive relationships in multifamily investing and deal syndication is the capital investor/LP. The Sponsor/GP has the option of fundraising from family and friends, especially in the beginning stages. My questions are: 1. How did you secure your first investor? 2. Do you have a system for securing investors? I’m excited for your feedback! All the best, Daniel Reyes

[Theo Hicks]

Organically bring up investing with people in your current network. Ask them what they are currently investing in and the types of returns that are seeing. Then, mention that you are starting a business where you raise capital to buying apartments and share in the profits. Talk about the previous business and real estate experience you have and why that will allow you to successfully transition into this space. Tell them the types of returns you expect to provide to your investors and ask them "If I find such an opportunity, would you be interested?"

If they say yes, add them to your email list. Try to send out content to that list at least once a month to keep them in the loop. Then, once you have a deal, send the deal information to that email list and set up a conference call where you go over the deal in more details. From there, it's just following up after the call to secure commitments for the deal.