It may come as a shock, but many of the real estate investors you will be approaching for capital are not all that up to speed with real estate investing. Most are regular people, so they probably aren’t all that interested in real estate either. Not understanding this key feature of your prospects leads to creating an overly complex presentation.This article will go over what we call the “Million Dollar Investor Presentation” and how you can create a killer presentation that will get you meetings with prospective investors and on your way to raising your first six figures in investment capital.This is part of the foundational phase and the third article in this series. If you haven’t gone over the first two articles, we suggest you go there right now so you have a good foundation to take in what we are talking about here.
Creating a Million-Dollar Investor Presentation
The presentation makes all the difference in how successful you are in attracting investment capital for your real estate projects. One of the biggest mistakes made by people getting into capital raising for the first time is they try to explain it without much preparation. They get on the phone, or they try to draw diagrams like the old Amway method of drawing circles.Presenting your ideas like this just doesn’t cut it. If you want to ramp up your success you have to be professional, and you have to have all the pieces of the puzzle to be effective.However, the great thing is, when you’ve got a great presentation put together, it will do most of the work for you.So, what does it take to create an effective investor presentation?There are a lot of moving parts to a presentation, but one of the most important things to remember is that your prospect probably isn’t all that interested in real estate. It’s a misconception we see all the time that leads to overly complex presentations that are more likely to overwhelm than inspire or educate.There are too many charts, too many graphs, and too much data and numbers. If you aren’t passionate about real estate, and most of your prospects won’t be, you will only sow confusion. A confused prospect is most likely to say no.You want a presentation that’s super easy to follow and understand, which means lots of pictures and case studies of the kinds of deals you are looking to raise capital for. Show off your different profit centers and discuss your power team members without going into too much detail.
Don't Just Talk About Rainbows and Sunshine
Another common mistake investors make when creating a presentation is they only talk about the positive. The presentation is all about rainbows and sunshine and doesn’t go into any of the pitfalls or risks.We suggest you do the exact opposite. Present the good and the bad as well as the pros and cons and the potential risks, but don’t stop there.Talk about the potential downsides but also discuss how your strategy includes plans to mitigate the challenges should they happen.
There are tons of different ways to present your information, but we’ve found that a slideshow gets the best results for a few reasons. Number one is that slideshows are visual. Most people are visual learners, so it’s easier for them to process and absorb the information.Number two is it helps with the flow of the presentation. A linear slideshow keeps everything in a logical order, so you avoid going off on a tangent and taking forever to get your point across.Number three is that once you’ve created a presentation with a good structure, logical flow, and concise format, it does most of the hard work for you. It’s a mini system you can use repeatedly to achieve predictable results.
Include a Case Study
One of the most powerful motivators for getting prospective investors to take the next step is to include case studies. This is an example of a real-world deal you can show to teach people the sort of results they can expect. Remember, most of your prospects aren’t the real estate enthusiasts that we are, so keeping it simple is key.Keep the focus on your main real estate strategy. Don’t throw too many different concepts at them, as the flood of facts and figures will overwhelm and confuse them. The one strategy isn’t all you do, but it will be enough to convince them of your capabilities.Another key feature of your presentation that most people find counterintuitive at first, is that you shouldn’t use your most successful deal. This is very important, and I can’t state just how important it is. We know you are proud of that deal and want to talk about it, but there’s a good reason not to.If you show a prospect your very best deal to a non-real estate person, chances are the results will be unbelievable. Remember, the average investor is used to seeing not much more than 3% returns on their money. If you start showing a 40% return, they’re likely to call BS on the whole thing and give you a big fat “no” for your trouble. In short, they will switch to the old “if it’s too good to be true” mindset.Instead, pick a decent deal, but one that a non-real estate person can get their head around. It should be one of your bread-and-butter deals. If you haven’t done many deals, but you’ve done exceptionally well, you might want to dial the numbers back, so they don’t call BS on your presentation. Include lots of pictures of that deal and use big, broad-stroke numbers without going into too much detail that just looks like you’re showing off.
Real World Results
It’s one thing to hear about how to create a presentation, but real-world results are what drive the nail home. Matt, one of our clients, does well with his presentation, which is a service we provide for all of our clients.After a little back and forth, Matt finally had a fine-tuned presentation that turned out to be very successful at attracting real estate investment capital.After showing the presentation, Matt receives a lot of positive feedback about the caliber of the presentation, the animations, the colors, and how the information is presented in an easy-to-digest format. Since showing the presentation to his prospects, Matt has received a lot of interest, with almost $400,000 raised.As I mentioned, we create a million-dollar presentation for our clients, walk them through it, and practice and replay it with them until they have it down perfectly.
We understand that reaching out to prospects, creating a website, and producing a presentation might be too much for your plate when you are just starting. Our service is a complete done-for-you system that takes care of all the hard stuff for you. So, the best thing you can do is visit our website to find out more about our reliable and affordable real estate marketing service that will help you attract six-figure investments in just a few weeks.