As you prepare for your first meeting with potential investors, you need to think about questions.
You'll want to ask questions of your investors that answer their questions.
You need to know, what are investors looking for? What are the top questions all investors have?
Make sure you download ALL my resources for FREE at this link: https://themichaelblank.com/vault
Questions to Ask a Real Estate Investor
You may think the primary concern on an investor’s mind is how much money they can make, but it’s actually, how much money they can lose.
No one wants to lose money.
You'll want to remind your investors that emotionally-based decisions rarely yield the long-term results they are looking for. Begin by explaining your strategies for risk mitigation.
You know why multifamily real estate is the best investment on the planet, and you need to convey that to your investor, to put their mind at ease.
Your first question for them is an obvious one:
How much money do you have to invest?
Your investor wants to know what their cash on cash return will be. In other words, if they invest $100,000 with you, how much of that is going to be distributed as cash flow?
But understand that when you go into a meeting with an investor, you can’t start talking about making money until you address the risks.
Your second question might be:
What are your fears?
To answer that one, you need talking points that address why multifamily is a better choice than the stock market.
You have to do your own research about that, but the short answer is:
- Above average returns
- Extraordinary tax benefits
- Incredible risk profile
You want to position yourself as a multifamily expert but when you talk about yourself, do it not in terms of you, but your team.
Ask you investors:
What is your top concern about our team?
This gives you the opportunity to share what's unique about the people you're working with and the systems you have in place.
You want to talk about how you have the best property manager in town, the best real estate attorney, the best lender, etc.
Maybe you’ve taken one of our courses are participate in our online community. When you show your investors your dedication to your own education, you show them how serious you are.
Your investors want to know they can trust you.
They also want to know how long you are going to hold their money.
So, the question you’ll ask is:
How do you feel about this timeline?
You want to be transparent about how long this whole process will take and when your investors will start to see return.
Those are some of the key issues you'll want to think about before you walk into investor meeting.
Know your questions, and know your answers.
Educate yourself so that you can ask and answer questions with confidence and your investors will have confidence in you.