Pitching to An Investor

[Moshay Laren]

Hi Friends, 

I am super new in Real Estate but currently mid-way through Temple University's Real Estate Institute to obtain a sales license. Meanwhile, there is property I am considering buying now and flip. It is a diamond in the rough, located in a booming neighborhood with development going on everywhere! Ran the comps and there is extreme upside in ROI, thus I need to act fast! Spoke to seller, we've agreed on price, ready to go. I wanted to pitch to a few family members and friends who I think might be interested in investing. Is there a basic investor proposal or template I should follow? If I need to create my own what important elements should be included?

Thank you in advance for taking to time to advise and counsel! 

[Arlen Chou]

@Moshay Larencongratulations on taking a decisive step forward. You should definitely access the investment calculators under the "analyze" tab.  Print out your findings so you will have actual information to show people.  You should also be very specific on who will be apart of your rehab team.  Don't just say "I will find a contractor"...  Let your investors know that you have already done the footwork and that you have guys who are ready to move forward.  Make sure your comps are up to date and print those out, with a map, so that people can see the upside potential in your building.  If your investors are not seasoned in this industry, I would have pictures of what the space looks like ALONG with pictures of what you want the space to look like after renovation. 

Your biggest challenge will be to defend your "numbers". Those numbers could be from the "hard" costs of construction, to the "soft" costs of your finishes, to your projected ARV. Anything you can do to defend your numbers should take a priority in developing your pitch.

Remember, everybody gets lucky.  But those who are prepared for luck are the ones that become successful!

-Arlen