Building Investor Pool For Raising Capital

6 Replies

Hello all, new investor here. I’ve been going through the process of learning the ropes of Multi-Family Apartment Investing/Syndication.

I’m now at a comfortable place where I can underwrite a deal confidently, I’m in touch with my market and the brokers involved. One area I want to begin putting more effort into is building my Investor Pool for when the Capital Raise is initiated.

I am looking for anything anyone has found for meeting new folks to invest in their deals. For me as a new investor I understand the challenge in front of me. I would really just like to learn off any of your experiences and what you have found to be most effective!

Any information would be greatly appreciated! Resources, books and so forth will be warmly received also!

HI Taylor! Good for you. My recommendation is to RIGHT AWAY start a newsletter. But you have to start something juicy in the newsletter to get people to sign up for it. For example "Get Off Market Listings in your inbox" or "The best markets for multifamily investing today." Then, these are the steps to make sure the newsletter is read and grows: 

1. Plan out your newsletters in advance so you aren't inconsistent. 

2. Use the rule of threes. Have 3 things in your newsletter that have different objectives: 1. Something that educates/is useful 2. Something that positions you as an expert. 3. Something that entertains. 

I hope this helps!! 

@Taylor Austin

@Jillian Sidoti makes a great suggestion and point. You have to find a method to start building your list. You'll need a large pool to bring them along an educational journey about who you are what you do, and why they should invest with you. It can be a long process, sometimes months, from the time someone signs up for your newsletter, etc from the time they get in touch and want to hop on a call. 

We launched a newsletter last May and went from a list of 40 investor emails to now having a list of nearly 1,000 potential investors. You could also launch a YouTube channel, Podcast, etc in addition to a blog. 

I would underline networking in general. First look at your existing network - they all need to be aware of what you're doing. Then "Who do they know."  You'll be surprised you may already know people that are already looking to invest but are looking for the right opportunity. Also local meetups, and gatherings where real estate investors frequent. 

Also network online like you are doing now on Bigger Pockets, I would also highly suggest Linkedin. 

@Taylor Austin

When I first started out and didn't have any deals to present, I created a sample deal. I made it in keynote (Mac's version of PowerPoint), and followed a template of an actual investment summary that I had seen. I would say keep it relatively high level and not get too deep into the weeds. You don't want to confuse or intimidate people. Focus on the market fundamentals and it's sound underwriting, and create a good bio for yourself. Maybe you can also leverage the track record of a partner or mentor. My first ever "lead magnet" (something of value that attracts investors into your funnel) was a sample deal. Of course, that lead magnet needs to be posted somewhere, so you will need a website. Don't be overwhelmed; it can be simple at first. You will also need an email manager like Mail chimp, Active Campaign, or Hubspot to manage your investors. I would post blog articles on my site with a simple form to sign up for my lead magnet, and then they would be added to my email manager, where I could track their interests. Remember, you are providing them a great investment opportunity; you are not asking them for money. It is all about authentically providing value and education to your investors. It is up to us to make them comfortable investing in the great opportunities we bring to them.

Once you set up these steps, you can build your platform by adding a newsletter, creating a Youtube channel, being a guest on a podcast, etc. It is a series of steps. Don't be daunted by it; just enjoy the journey of bettering people's portfolios.

Thanks @Jillian Sidoti , as a side note I love and appreciate your content! 

We use a combination of lead magnets primarily consisting of two e-books and our free multifamily newsletter "The Gray Report" where we aggregate multifamily research, data, news and analysis. We've also been doing podcast appearances, started a YouTube channel, and put out steady blog content. 

We have also been using paid ads in the fast few months with Google ads being the most effective so far. We've also used Facebook, Instagram, and LinkedIn ads with varying success. 

Hi Taylor,

I enjoyed reading Getting the Money by Susan Lassiter Lyons.  It was recommended at a flipping conference I attended last year, but the fundraising methods apply to any real estate strategy.