All Forum Posts by: Matt Rodak

Hello,

We have capital to fund residential fix-and-flip properties in NY, NJ, CT, MD, VA and DC.

Our terms are 1-4 points and 9-14% APR depending on LTV and experience.

We can close in as few as 7 days.

By funding on our platform you will begin building relationships with our network of investors - helping you increase your access to capital and lower your borrowing costs over time. 

To qualify, you must have experience flipping houses and be able to contribute 20% to the purchase price. We can fund 100% of construction costs. 

No prepayment penalties or hidden fees. 

To learn more about how you can use crowdfinancing as part of your real estate investing strategy check out this blog post: RE Crowdfinancing strategy.

Thanks and looking forward to helping you fund more deals!

Matt

Hi @Russell Brazil 

Just sent you a connection request. Shoot me a PM with your phone number. We may be able to help you.

Thanks,

Matt

@Michael Yin 

I'm not sure my investor deck would work for you as we were focused on residential fix and flip properties. That said, your list is very comprehensive and an investor will want to know YOU are thinking about all of these things. Depending on the investor, they likely have less of an appetite to thoroughly go through all the diligence you will need to do.

Another way to think about it is having an understanding of where the investor is at in the "sales funnel". There are 6 stages:

Awareness - They are now aware of what you are doing.

Consideration - They are considering whether what you are offering is worth investing in.

Preference - They prefer your investment opportunity to others.

Purchase - You got the order!

Loyalty - They will invest in future deals with a much shorter conversion cycle

Advocacy - They are telling all of their friends about you.

Depending on where your investor is at, the more info you will need to provide them. At the Awareness Stage (which is where you seem to be), you can get away with having a lot less detail. Give them the high level mission statement, investment thesis, resumes, ideal property, ideal tenant, your diligence process, etc. You're selling yourself at this point as much as the deal. 

What will happen is that during the meeting you will get questions you don't have answers to. This is what you want. You simply say "we're still too early in the process of finding a property that meets our thesis, but as soon as we do, I'll be happy to provide that info to you." At the end of your Awareness meeting, get permission to follow up once you have more details to answer their questions. 

You achieve a few things this way:

1. You move them from Awareness to Consideration, giving you permission to follow up with them. Or they tell you that your thesis doesn't align with theirs and you can move on. 

2. You are armed with unanswered questions that you need to find answers to. They asked these questions because that's what's most important to them. If you get similar questions from multiple investors then you can prioritize what things you need to figure out first. 

It you look at it as a process - each meeting is to move them further down the funnel towards Loyalty and Advocacy - it will become apparent what you need to figure out in order to move them. You'll likely end up developing all of the bullet items you listed above but you don't need it all to start having conversations. 

The key is to remember its not about you. Its about them. Where are they at in their decision making process? How can you help them go from where they are to where you want them to be? You will never be able to go from Awareness to Purchase so there is no need to develop all of the material to do so right out of the gates. Focus on developing what you need to move the needle.

If you've not had an investor meeting before, role play with someone. Get them to act as an investor and pitch to them. See what they ask. What gaps might make sense to fill before your first meeting. This can be awkward but its totally worth it.  Happy to be a sounding board for you if you'd like.

Good luck!

@Michael Yin 

Building relationships with investors takes time. Unless you have a really deep Rolodex of investors who have experience investing in these types of deals and with you, you should start getting soft commitments before you have the deal. 

One thing we did for our start-up was to put together a hypothetical deal. We developed an investor deck, financials, business plan, etc. as if the deal was real. We shopped this deal around to some investors and said, "If we deliver a like-kind deal, will you invest?"

If yes, you can have them sign a non-binding letter of intent with how much they are willing to commit. Add them to a mailing list and provide periodic updates of your progress to keep them in the loop. 

A big benefit of doing this is it allows you to get feedback from your investors as to what they are interested in, what they like, what they don't like, etc. This provides info you can use later when you have the deal and need to close them. This is also a valuable exercise for those that say "no" as you may be able to overcome those objectives as you are negotiating the deal.  

Also, your hypothetical deal package can be reused once you have the deal by swapping out the "fake" data with the real thing. 

The only caution I will make is that you don't want to do this too far in advance of your ability to actually deliver. Investors may lose interest if it takes you too long to deliver. 

Good luck!

Thanks @Steve Pohlit 

There isn't nearly as much buzz on this forum as I expected considering they claim to have 100k+ users of their networking platform. Surely there is some crossover between BP...? 

If you make it all the way through, I'd appreciate you sharing what the cost is.

Does anyone else have any experience with their new launch?

Thanks!

Matt

Has anyone sat through the entire Connected Investors latest webinar? There are some big claims made in the teasers and wonder what the deal is. 

I gave up 35 minutes in after it started to smell too much of sales pitch and got distracted by other things. I'm curious to know if anyone sat through the entire thing and can share with the BP community the cliff notes.

Thanks!

Matt

Hi @Eddie Marcano 

Crowdfinancing is a new market that also helps fund fix-and-flip properties. There is a specific forum on this site dedicated to it. I'd also be happy to discuss with you.

Thanks,

Matt

@Jewel Starling 

I see you're new here and it might be beneficial for you to search the threads for how to find a mentor.

The biggest question you have to answer is "What's in it for the mentor?" You'll have much better luck finding people to help you if you first offer to help them. And everyone has something to offer...even if you're new to the game. Get creative!

Best of luck! Go Browns!

Hi @Kyle Pettit 

I'm not an attorney but know a bit about the JOBS act and general solicitation per my experience getting my company launched. 

While you could advertise for investors as you suggest, if you do so you will put yourself into the category of a Reg D 506(c). Once you cross into this space, it is difficult to get out. This means that for anyone you take investment money from, you must take "reasonable steps" to verify they are an accredited investor. This means even verifying people you have a pre-exisiting relationship with. 

The main difference here is that if you don't generally solicit, you can have your investors "self-verify" as accredited investors and that is the extent you have to go. Once you advertise, or "generally solicit", you will be subject to the "reasonable steps" law and self-verification will be out as an option - this could impact your current investor relationships.

I should note, this is only one of the perils of "general solicitation" and it also requires you develop sophisticated offering documents that clearly outline all the risks associated with investing with you and in your deals. We've spent a great deal of $$ perfecting ours. 

One way to help manage all of this is to partner with a Crowdfinancing platform. They will help you manage the JOBS act and general solicitation. It comes with a cost of course but if you'd rather focus on doing more deals and less fundraising the cost may be worth it.

Happy to hop on a call to discuss further if you'd like.

Thanks,

Matt

@Justin S. thanks! I'm a big fan of ReZamp and what you guys are doing. 

As long as the redeveloper is able to provide all of the information we need to properly underwrite the deal, we can get the deal funded in as little as 7 days.