- June 30, 2014
- Posted by: John Fischer
- Category: Accredited Investors
You can use real estate investor leads to raise more money for your private placement. Real estate professionals and developers have experienced great success using Reg D private offerings to pool investment capital to purchase or build properties. Raising money from local investors is an excellent option for both the real estate professional and the investors themselves. Private offerings give the investor more control over the deal and the ability to vet each and every property before deciding to invest, an improvement from investing in REITs where properties are lumped together, and there is no ability to analyze each one.
Investors in real estate private placements, also have the opportunity to get to know the other owners and property manager. The additional communication ensures that investors are able to express their opinions and concerns to someone that is directly involved in the property, rather than simply managing the investor relationships. As a real estate professional, it is your job to communicate these benefits so that investors understand the value of participating in your opportunity.
In order to reach real estate investors, you need to have a way of obtaining real estate investor leads. You can purchase a current lead list from www.AccreditedInvestorLeads.com that can be narrowed down to your specific geographic area. This is ideal for professionals that want to work with local investors. If requested, the list can be national as well. By purchasing an up-to-date, qualified investor lead list, you will spend less time searching for leads and more time closing them.
When calling real estate investor leads, it is important to be the knowledge expert in what you are promoting. These investors are typically real estate savvy and have either owned, operated, or invested in real estate before. Expect them to ask detailed questions and use industry jargon that you would not hear from the average person. As such, you need to know the following prior to picking up the phone:
- Type of real estate deal. Are you raising capital to acquire a property that has already been renovated and leased up? Are you planning to renovate the property and raise rents? Is this a brand new build? Tell the investor what type of real estate deal this is so they can understand what the process will look like.
- Property type. Many real estate investors only invest in a particular property type or asset class. They stick with what they know because it is something they understand. If, for example, you are promoting a new industrial park you should know everything about that property type so that you can intelligently engage in conversation.
- Know the market. You should study the market and understand current vacancy rates, price per square footage, maintenance cost, how long it takes to lease up a property, etc. The more you understand about the local market, the better. Remember, most states do not have one single market. For example, the vacancy rates in Miami will be extremely different from those in Sarasota.
Once you have studied the industry and the particular property you are promoting, it is time to pick up the phone. Call real estate investor leads and make your pitch. Answer questions with as much detail as possible and remember always to follow up in a timely fashion.