An investor credibility kit is crucial to the multifamily investing sector. Whether you are set on acquiring a multifamily investment property through a sponsor or forming a syndication yourself, it’s important to make a good impression that will get people to commit funds.
Trust is the very foundation of business, and people will need to know if you can be a valuable partner to them right from the get-go. That being said, your working relationship with other investors depends on how you introduce yourself to them.
In my own experience, I had to build my investor base right from scratch. I was able to get friends and family to invest in this business I am building, but I also knew I had to go beyond my inner circle and find investors who have a high net worth. It was hard to pull off, but it eventually came out successful. All I did was to go to industry events like conferences and seminars. I also joined local investment clubs where I sought people who offered large sums for a multifamily investment property.
Meeting a bunch of investors for a luncheon or dinner presentation to educate them worked great also for us. The emphasis should be to educate the investors and then set up appointments to visit with them second and third time to go over their feelings about investing in real estate and answer their individual questions.
Meeting potential investors for the first time is one thing; giving them a compelling reason to invest is another. That being said, you will need to realize the importance of preparing a credibility kit that perfectly sums up your value as a real estate investor.
So, what should you include in your investor credibility kit?
Include a document that aptly introduces you to potential business partners. Think of it as a resume you give to employers. The main purpose of this is to help people decide if you can be valuable to them. So, when crafting your introduction, make sure to include relevant data such as the number of years you have been engaged in real estate investing as well as your educational and professional experiences. People will respond positively when you provide them with your background in the business.
Right after the summary, you may want to include a glimpse of your portfolio. It should include pictures of the properties you have bought as well as crucial details such as the acquisition cost, NOI, and cap rate. You can also include a description of how you were able to gather funding for the acquisition. Make sure your numbers are right so that potential partners won’t have to make second guesses.
Media about you
If you have been featured in magazines or newspapers before, you can include clippings of these articles in your credibility kit. If you plan on creating a digital version of your kit, you can include links to podcasts or videos you attended. Media exposure can help you improve your influence and enable potential partners to form a professional relationship with you.
Finally, give people a way to contact you. If you plan on leaving a brochure, you can always provide your contact details. On the other hand, you can also provide URLs to your social media profiles if you want to grow your network.
Once you have your investor credibility kit set, it’s only a matter of perfecting your elevator speech and creating an impressive presentation. You will be closing a multifamily investment property in no time.
Want more tips and tricks to forming a multifamily syndication? You can join me and other like-minded people at my Multifamily Syndication Academy.