How to find investors?

Question

Can anyone with experience working with investors share how those relationships started?

My partner and I have self-financed into 7 properties, focusing on duplexes and triplexes.  We authored a prospectus to help us raise $300k for our next project aren't sure how to find people who might consider investing.  Any idea where investors "live" and what messaging resonates to show we are capable of managing the project?

Thanks!

Ben Firstenberg · Answer

I think the best messaging is "Proof of concept" that is, you talk to an investor and tell them: "We've done this before, it worked, we know the playbook, now we're raising money to go do it again"

As far as meeting investors, it's tough. People want to invest their money with people they know and trust. Your friends and family are a good place to start. It may feel... dishonest to ask them for money, but remember your goal is to MAKE them MORE money.

I would try to grow your investor list organically. Start with friends and family, ask if they know anyone who might be interested. Try to meet with those people, then ask if THEY know anyone who might be interested. Follow the path wherever it leads. At first, you don't need many investors. Two, three, maybe 5 will do it. Then build the momentum from there

Going to networking events and meetups can work, especially if those people are already looking to invest their money, but it's all about relationships and it's hard to build a great relationship with someone you just met at a meetup. It takes time.

Hope that helps! Best of luck!

Andrew Postell · Answer

@DJ Ockey If you are looking to network with investors there are several methods depending on your location and ability.  Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too.  Even facebook might have some good local groups for you.  Try those platforms and you can get connected pretty easily.