Investment requirement questions for private investor
Real Estate Investor · Conyers, GA · Member since 2017 · 18 posts · 2 votes
Good morning, I am preparing for an upcoming meeting with a private real estate investor and I compiled a list of questions to better understand his investment requirements so I can present the right deals to him. He has been in this space for a couple of decades and has a broad portfolio ranging from small multifamily properties, to 100+ unit apartment complexes and shopping malls.
Please let me know if you think these questions are appropriate and if I should ask additional questions.
Thank you for your help.
@Xavier Cabo good start, however, what will the role of this private real estate investor be to you and your business such as a money partner, loan sponsor, mentor, etc.?
Let's assume you are asking this person for money. I would flip the dialogue around a bit when you meet this person.
Something like "Hey NAME, my business is to buy FILL IN HERE and my strategy is to FILL IN HERE and I invest in this market because of reason X, Y and Z...
Ask the question "NAME based on what I have shared so far, if I bring you an opportunity as I have described, does this align with the types of deals you are looking to participate in?
"If not what are you looking for?" and continue the discussion until you clearly understand what this person is looking for.
You shared that this person has lots of experience. When you show-up to the meeting, you need to believe and showcase yourself as an expert, that you have done your homework and you know with the utmost clarity and confidence why this person should work with you and no other.
Good luck!!
Thanks @Brian Adams for taking the time to provide some feedback. I have actually read a bunch of your posts and am familiar with your company since I have been reading a lot about multifamily and apartment complex investing in the last few months.
The role of this individual would be to provide money for this potential deal.
Your points make a lot of sense. The reason I chose to frame the dialog from this angle is that I wanted to keep the discussion open, learn more about his current investment criteria, and not close any door. This would be my first deal and even though I like the multifamily property niche and as long as it aligns with my goals, I am open to another real estate play to get started and build the right team, especially since he would be a great long-term partner.
Regarding your last point, I still need to finish a few items to clearly show him that we should work together and that I am the right partner for him.
Thanks again!
Xavier,
Read my free eBook on my website on how I raised $1m in two weeks and listen to some podcasts on my BP profile. I deal w/investors daily. Show respect, interest in them and share your passion for what you are doing without being too focused on selling. Educate them and share ideas. If someone starting asking me a list of questions I'd feel they were a newbie. Be yourself, think about how you'd like to be treated and relax. Let the conversation go where it wants to go for awhile but have some basic structure around what you want to accomplish and look at the potential investor more on what you have to offer that he / she may have not considered before.
You are there to build a relationship and see if there is something that you two can work on together. Don't force it. If I share an educational experience with them and they are more informed about me and what we do then that's great. Once you find alignment keep the person on the radar screen if they are not ready to do something now. It's really about customer service and follow through, feeling out what they want to do, providing that fit and then its just about timing. When they are ready, great, show them how to move forward in the process to get them in your deal. Make it easy and clear.
@David Thompson, thanks for your advice! I will definitely check out your website and listen to these podcasts. You are bringing up a very important perspective of how to best engage prospective investors.
Since I have a business consulting background I am used to go through series of questions with clients without making it feel like an interview or investigation so I will make sure to do the same when I meet with him.
He has been in this space for a very long time so I will see on what topic(s) other than my business and its strategies I can educate him. He is more of a traditional real estate investor so I have some innovative ideas to share that would add value to his investment business.
I appreciate your feedback.