Deal Presentation: Do's and Don't's!

10 Replies

Hello All,

From an investor's perspective, what is most attractive in the presentation of a deal (besides good looking numbers)?


Coming from a Commercial Banking background, performing the analysis, underwriting, and ultimately creating the deal presentation is a formulaic process. We have standard templates that are used and each deal looks identical, apart from the actual words written in the 20-50 page presentations.

I'm curious as to how this translates into the Commercial and Residential Real Estate Investment worlds, specifically from the eyes of the investor. I'd expect something with much more brevity than 20 pages (given the scope of the deal, of course), but to that end, what are the fundamental characteristics of a presentation that aids in securing a deal?

Thanks in advance,

Blake

Coming from a Business Development & Marketing background, layout is incredibly important. Clean and clear - I don't want to have to hunt for the important information.

Originally posted by @Jeff Senkiw :

Coming from a Business Development & Marketing background, layout is incredibly important. Clean and clear - I don't want to have to hunt for the important information.

 Jeff,

I definitely agree. Is there a particular type of format that you see most often (such as a nice clean PDF, power point, video, etc.)? And if so, do you have preferences?

Honestly man keep it simple. I regularly use private money and its something as simple as this. I have a house that i can get for x. It needs x amount of work and once rehab is done I estimate selling for x. Ill have your money back in 3-6 months and then a return of x. Just build a relationship and dont try and be a know it all. If your new say your new.

Hope that helps man

@Blake Billups It depends on whether you will be presenting this deal in person or not. If you are presenting the deal in person, a 1-slide PowerPoint is all that is needed. A few (small) photos of the property, overview of the financials, a few highlights/bullet points. You want to talk through the details, not highlight them. 

If you are not presenting the deal in person, a single page .pdf is all that is necessary, but include some detail behind the overview - the document will need to speak for itself. 

It is important to understand your target audience - if they are analytical, then text and numbers would be best. If they aren't, then you will want more visual aids. And as with your commercial banking experience, you should create a template. It will help streamline the evaluation process with your partners/investors since they will be familiar with your format.

Originally posted by @Blake Billups :

Hello All,

From an investor's perspective, what is most attractive in the presentation of a deal (besides good looking numbers)?


Coming from a Commercial Banking background, performing the analysis, underwriting, and ultimately creating the deal presentation is a formulaic process. We have standard templates that are used and each deal looks identical, apart from the actual words written in the 20-50 page presentations.

I'm curious as to how this translates into the Commercial and Residential Real Estate Investment worlds, specifically from the eyes of the investor. I'd expect something with much more brevity than 20 pages (given the scope of the deal, of course), but to that end, what are the fundamental characteristics of a presentation that aids in securing a deal?

Thanks in advance,

Blake

 If it is a simple single family house, I just want one page double spaced with the basic numbers. If it is a syndication of 200 units, I guess you need more in order to comply with the FTC. But simple is very, very good. Too much "fluff" and I think you're out to scam me with BS. ;-)

Good question @Blake Billups  

A couple of things I like to keep in mind when meeting with investors

1.  Is this presentation to a new or returning investor?  Who am I presenting to? Family member, friend, doctor, lawyer, investment professional (family office/wealth management)

2.  How much do they know about me, my company and business model?

3.  The Deal -  What's the big idea? Who's involved?  What's the process/timeline? What are financials of the project?

Keeping these things in mind helps me to tailor my presentation to the individual.  Tailoring the presentation gives you the flexibility to create a presentation that will resonate.  I agree with @Jeff Senkiw that simple is better than a lot of slides & data.

Originally posted by @Ryan Cox :

Good question @Blake Billups 

A couple of things I like to keep in mind when meeting with investors

1.  Is this presentation to a new or returning investor?  Who am I presenting to? Family member, friend, doctor, lawyer, investment professional (family office/wealth management)

2.  How much do they know about me, my company and business model?

3.  The Deal -  What's the big idea? Who's involved?  What's the process/timeline? What are financials of the project?

Keeping these things in mind helps me to tailor my presentation to the individual.  Tailoring the presentation gives you the flexibility to create a presentation that will resonate.  I agree with @Jeff Senkiw that simple is better than a lot of slides & data.

Ryan,

I like that. Tailor the message to the audience. A lot of these things seem common sense, but there's much value in hearing/reading them as well. Thanks for your input.

Originally posted by @Mike S. :
Originally posted by @Blake Billups:

Hello All,

From an investor's perspective, what is most attractive in the presentation of a deal (besides good looking numbers)?


Coming from a Commercial Banking background, performing the analysis, underwriting, and ultimately creating the deal presentation is a formulaic process. We have standard templates that are used and each deal looks identical, apart from the actual words written in the 20-50 page presentations.

I'm curious as to how this translates into the Commercial and Residential Real Estate Investment worlds, specifically from the eyes of the investor. I'd expect something with much more brevity than 20 pages (given the scope of the deal, of course), but to that end, what are the fundamental characteristics of a presentation that aids in securing a deal?

Thanks in advance,

Blake

 If it is a simple single family house, I just want one page double spaced with the basic numbers. If it is a syndication of 200 units, I guess you need more in order to comply with the FTC. But simple is very, very good. Too much "fluff" and I think you're out to scam me with BS. ;-)

 Mike,

Thanks for the perspective. I generally like the idea of less is more..less time wasted on preparing materials that may not be necessary yields more time to find and execute more profitable deals! Will definitely tailor my deals accordingly.

Originally posted by @Zachary Wilson :

Honestly man keep it simple. I regularly use private money and its something as simple as this. I have a house that i can get for x. It needs x amount of work and once rehab is done I estimate selling for x. Ill have your money back in 3-6 months and then a return of x. Just build a relationship and dont try and be a know it all. If your new say your new.

Hope that helps man

 I like it. Thanks for the input! 

@Blake Billups - the idea if "less is more" is beyond the time spent on the preparation; though my following response is not to downplay that aspect - your time is certainly valuable. If you have too much information, you run three risks: 

1) Information overload, which could lead to an indecisive investor

2) Incoherent/inefficient presentation of pertinent details

and 

3) You open yourself up to a lot of questions which, depending on your answers, could break the potential deal. Especially if you aren't prepared to discuss the details of these questions. 

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