How many no’s before a yes?

[Brett Deas]

I recently launched a fund for my vacation rentals deals. We have a pretty significant portfolio and are building more this year. 

We have used over a million dollars from investors in the past for individual deals, but ever since launching the fund it has become extremely hard to raise money compared to past deals, but we changed our terms to be more favorable to the LP’s. 

I’m wondering for anybody else out there who has or is trying to raise money, how many No’s should I expect before a yes? I’m still unsure if I am not talking with enough people or I need to change the structuring of the fund in some way. 

[Melanie P.]

Hundreds. Thousands. Unfortunately your competitors for these funds are scam artists who will say anything to get someone to hand over their money. Syndication deals are failing on a daily basis. STRs have been plagued by negative market news and legislative uncertainty. 

Take a hard look at your presentation and materials. If you didn't know you, would you invest money based on only those scripts and materials? You need to find something that sets you apart. Invite qualified investors to spend a free unreserved night in one of the properties that highlights your strengths. Have materials documenting the financials of the property they're staying in and every other property you've done behind that in a binder. Send follow up e-mails encouraging them to book a paid stay listing all of your units. 

Get to know rich people outside of your circle. Join a country club, classic car club, hunt/fish/yacht/racquet/rotary club. If you pray do it in a church with wealthy parishioners a town or two away where you don't know anyone. You get the idea.