Pitching to Investors

[Ryan Boutin]

I am curious what is a better way to pitch an investor. Which sounds more intriguing to an investor?

Example: Quick flip of 3 months

1. Cash on cash return of 3% in 3 months

OR

2. 30% of the total profit once the flip sells

OR are these both NOT intriguing for investors?

[Chris Seveney]

@Ryan Boutin

When pitching investors, they want to know your story and the property story of what you are planning the show numbers.

For example if an investor says they are not bringing money to table and just find the property to me it doesn’t matter what the numbers are, I am out.

What makes it intriguing for the investor compared to the other 100 deals that come across their desk, especially in todays environment where we are seeing people desperate for financing because of banks tightening their standards

[Ryan Boutin]

@Chris Seveney
I haven't pitched much yet. For my last pitch, I recorded a loom video showing my strategy and talking about the sale price, renos planned and ARV. I also show comps and breakdown everything.

I general the projects, and don't often put up the cash. Sometimes I put in sweat equity.

I've owned a marketing agency for 12+ years and am getting skilled at finding off market deals. Just not so skilled at finding investors... yet. 

I am mostly curious what return would intrigue an investor more. COCR, % of profit, Loan interest...

[Chris Seveney]

Quote from @Ryan Boutin:

@Chris Seveney
I haven't pitched much yet. For my last pitch, I recorded a loom video showing my strategy and talking about the sale price, renos planned and ARV. I also show comps and breakdown everything.

I general the projects, and don't often put up the cash. Sometimes I put in sweat equity.

I've owned a marketing agency for 12+ years and am getting skilled at finding off market deals. Just not so skilled at finding investors... yet. 

I am mostly curious what return would intrigue an investor more. COCR, % of profit, Loan interest...

 Similar to other marketing efforts, it takes time to get investors. I would be doing webinars on the specific market, what is going on in the market and what the potential opportunties are, then when you find that type of opportunity try and highlight it. 

[Ryan Boutin]

Yes, that's definitely an option I will look into. Thanks for your feedback.