10/25/2024
Stop cold pitching your deal!
If you want an investor to get to “yes”...
Guide them through these four steps:
1️⃣ Get them to believe in alternative investments.
Too many operators and lenders make the mistake of pitching to an uneducated (but still high net worth) investor base.
Before pitching your deal, the potential investor needs to understand that they can (and should) invest outside of their traditional stocks portfolio.
Get them to understand and believe in alternatives, and then you can walk them through the next step.
2️⃣ Get them to understand your investment strategy
Make your investment strategy make sense to them.
You can’t pitch a note fund if the investor doesn’t understand how it works or why someone would pursue this strategy.
They need to thoroughly understand your asset class, strategy for creating value, the opportunity at large, etc.
Get them to understand and buy into what you’re proposing and you’re ready for step 3.
3️⃣ Get them to believe in your team
Now that they’ve bought into your investment strategy, you need to show them why you’re the best option to execute this strategy.
For example, there’s hundreds if not thousands of value-add multifamily operators out there…
Why should they choose you over others?
This is where track record comes in handy.
4️⃣ Get them to believe you will be a good steward of their capital
They believe you’re capable, but can they trust you?
People are more inclined to leave their kids with strangers than to leave their hard earned money with strangers.
Convince them that they can trust you with their capital, and now you can finally pitch the deal to them and get some results.
Follow these four steps, and you'll be much closer to getting an investor to "yes".
