Meeting with a billionaire investor this week (advice)
Member since 2022 · 32 posts · 12 votes
Meeting with a billionaire investor this week (advice)
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4yQuote from @Ian Loonce:
I have a real life shark tank scenario happening this week .A friend connected me to a billionaire who is always looking for deal flow..My friend who is a builder in FLA has agreed to give me 10% if I find investors for his projects
We have are pitching a 22million dollar condotel on the water and also a 46 million STR on the beach..
any advice before the meeting would be appreciated, I am a fairly new to real estate and a bit nervous.
You have every reason to be nervous. I don't know what it's like to be a billionaire, but I'm guessing they didn't get there by listening to pitches from amateurs. In other words, you need to bring your "A" game and have some hard numbers to present or you'll lose them quick.
If I had a deal like that, I would be partnering with a top REALTOR, the contractor, and others to ensure this pitch answered every question asked. You need a pro that can talk about the current market and the future, and not just someone that says, "It's a really hot market!" You need the contractor to demonstrate the quality of his product and past performance. Do you have evidence the developer can pull this off? Meet deadlines?
So many questions that I can't even think of on the fly. Start doing your homework!
The DIY Landlord Book4.7248 Reviews
11 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4y
Quote from @Ian Loonce:
I have a real life shark tank scenario happening this week .A friend connected me to a billionaire who is always looking for deal flow..My friend who is a builder in FLA has agreed to give me 10% if I find investors for his projects
We have are pitching a 22million dollar condotel on the water and also a 46 million STR on the beach..
any advice before the meeting would be appreciated, I am a fairly new to real estate and a bit nervous.
You have every reason to be nervous. I don't know what it's like to be a billionaire, but I'm guessing they didn't get there by listening to pitches from amateurs. In other words, you need to bring your "A" game and have some hard numbers to present or you'll lose them quick.
If I had a deal like that, I would be partnering with a top REALTOR, the contractor, and others to ensure this pitch answered every question asked. You need a pro that can talk about the current market and the future, and not just someone that says, "It's a really hot market!" You need the contractor to demonstrate the quality of his product and past performance. Do you have evidence the developer can pull this off? Meet deadlines?
So many questions that I can't even think of on the fly. Start doing your homework!
The DIY Landlord Book4.7248 Reviews - Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes4y
As Nathan said, you need to do your homework and go into this meeting extremely prepared. You say the meeting is happening this week? That is unfortunate, because I recommend you spend the next month preparing. If you're trying to sell a billionaire on lending you nearly $70 million dollars for some speculative waterfront deals, you need to go in prepared to talk about:
LOCATION - Access to property, comparable properties, demographics, schools, etc
LAND - Lot size, zoning requirements, entitlements, surveys, plot plan, utilities, etc
BUILDING - Isometric plan, unit count, amenities, how it conforms to zoning, what you will do if variance required, etc
TEAM - Who will be the architect, builder, structural engineer, mechanical engineer, electrical engineer, civil engineer, etc?
TIMELINE - How long will each phase of the project take? When will this project be stabilized?
FUNDING - How much money do you need? When do you need it? Are their any other capital partners proposed?
PRO-FORMA - What will the numbers look like and what will the return be on this deal?
Those are just the thoughts that come to mind right now. I'm sure there are a dozen other things to consider. And once you have all of this information together, you should put it in a professionally bound pitch deck. Something this billionaire can walk away with and study on his own time after the meeting.
- Member since 2022 · 32 posts · 12 votes4y
Quote from @Nathan Gesner:
Quote from @Ian Loonce:
I have a real life shark tank scenario happening this week .A friend connected me to a billionaire who is always looking for deal flow..My friend who is a builder in FLA has agreed to give me 10% if I find investors for his projects
We have are pitching a 22million dollar condotel on the water and also a 46 million STR on the beach..
any advice before the meeting would be appreciated, I am a fairly new to real estate and a bit nervous.
You have every reason to be nervous. I don't know what it's like to be a billionaire, but I'm guessing they didn't get there by listening to pitches from amateurs. In other words, you need to bring your "A" game and have some hard numbers to present or you'll lose them quick.
If I had a deal like that, I would be partnering with a top REALTOR, the contractor, and others to ensure this pitch answered every question asked. You need a pro that can talk about the current market and the future, and not just someone that says, "It's a really hot market!" You need the contractor to demonstrate the quality of his product and past performance. Do you have evidence the developer can pull this off? Meet deadlines?
So many questions that I can't even think of on the fly. Start doing your homework!
We have a sponsor/builder that can answer everything but he will not be there. My business partner is very good friends with a billionaire (he was born a billionaire, trust fund baby) and he introduced us to a friend of his that like's to make deals.
However me and my friend are so amateur at this it's not even funny. We own about 10 rental units in Ohio but that's it and only started 2 years ago.
Our sponsor is trying to prep us for it but we'll see how it goes, I'm not expecting anything. Hopefully he likes us enough to get the sponsor on the phone.
- Member since 2022 · 32 posts · 12 votes4y
Quote from @Scott E.:
As Nathan said, you need to do your homework and go into this meeting extremely prepared. You say the meeting is happening this week? That is unfortunate, because I recommend you spend the next month preparing. If you're trying to sell a billionaire on lending you nearly $70 million dollars for some speculative waterfront deals, you need to go in prepared to talk about:
LOCATION - Access to property, comparable properties, demographics, schools, etc
LAND - Lot size, zoning requirements, entitlements, surveys, plot plan, utilities, etc
BUILDING - Isometric plan, unit count, amenities, how it conforms to zoning, what you will do if variance required, etc
TEAM - Who will be the architect, builder, structural engineer, mechanical engineer, electrical engineer, civil engineer, etc?
TIMELINE - How long will each phase of the project take? When will this project be stabilized?
FUNDING - How much money do you need? When do you need it? Are their any other capital partners proposed?
PRO-FORMA - What will the numbers look like and what will the return be on this deal?
Those are just the thoughts that come to mind right now. I'm sure there are a dozen other things to consider. And once you have all of this information together, you should put it in a professionally bound pitch deck. Something this billionaire can walk away with and study on his own time after the meeting.
Thanks for the talking points.
- 4yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
I would have a binder (multiples) with drawings, pro-forma, samples, everything. This is a once in a lifetime opportunity.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes4y
Quote from @Ian Loonce:
I have a real life shark tank scenario happening this week .A friend connected me to a billionaire who is always looking for deal flow..My friend who is a builder in FLA has agreed to give me 10% if I find investors for his projects
We have are pitching a 22million dollar condotel on the water and also a 46 million STR on the beach..
any advice before the meeting would be appreciated, I am a fairly new to real estate and a bit nervous.
Having worked for several billionaires, here is some advice.
1. Remember they put their shoes and socks on same way as you everyday.
2. Do your research on them.
3. Make sure your presentation is at a high level. You probably have limited amount of time. The first meeting is not to go deep in the weeds on something but to pitch them on an idea / project. Make sure to explain why you are well suited for this deal and how they can help you.
4. Make sure to let them know whats in it for them? Why is this opportunity different. They see more deals and investment opportunities than you can imagine, why this one?
7e investments53 Reviews - 4yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
- Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes4y
Hi Ian,
One point of doing business together is does the person believe you're "Outfit" can do what you say they can.
I'd say just be yourself, and make a friend while you are there.
Even if this deal is a no go (things beyond your control), maybe something in the future will pop up for the two of you.
And just be yourself, and don't wear dirty construction boots into his home (or anything like that).
Good Luck!
- Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes4y
Quote from @Ian Loonce:
I have a real life shark tank scenario happening this week .A friend connected me to a billionaire who is always looking for deal flow..My friend who is a builder in FLA has agreed to give me 10% if I find investors for his projects
We have are pitching a 22million dollar condotel on the water and also a 46 million STR on the beach..
any advice before the meeting would be appreciated, I am a fairly new to real estate and a bit nervous.
All this input is great. I have really enjoyed this learners lunch questions https://www.johnmaxwell.com/bl... as well as his book "Good Leaders Ask Great Questions." This is just a tool for your tool belt later on.
I like giving visuals. I find the more confident and passionate you are then it helps people trust you more. Be confident and know why you are there.
- Member since 2022 · 32 posts · 12 votes4y
Quote from @Nathan Gesner:
Quote from @Ian Loonce:
I have a real life shark tank scenario happening this week .A friend connected me to a billionaire who is always looking for deal flow..My friend who is a builder in FLA has agreed to give me 10% if I find investors for his projects
We have are pitching a 22million dollar condotel on the water and also a 46 million STR on the beach..
any advice before the meeting would be appreciated, I am a fairly new to real estate and a bit nervous.
You have every reason to be nervous. I don't know what it's like to be a billionaire, but I'm guessing they didn't get there by listening to pitches from amateurs. In other words, you need to bring your "A" game and have some hard numbers to present or you'll lose them quick.
If I had a deal like that, I would be partnering with a top REALTOR, the contractor, and others to ensure this pitch answered every question asked. You need a pro that can talk about the current market and the future, and not just someone that says, "It's a really hot market!" You need the contractor to demonstrate the quality of his product and past performance. Do you have evidence the developer can pull this off? Meet deadlines?
So many questions that I can't even think of on the fly. Start doing your homework!
update, it went well.
He's meeting with our operator tomorrow to discuss.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4yCongratulations!The DIY Landlord Book4.7248 Reviews
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