Do you need to attract real estate investors? Well, first of all you must be specific and transparent. The lack of real estate transparency is the main cause of not investing in plots of land and in projects that are really profitable for real estate investors.
To sell a real estate project, land or any real estate asset, you have to invest time, effort and money in preparing the strategy. There are real estate investors out there waiting for your project; But you must follow the protocol that investors expect you to follow. Find investors profiles on Bloomberg
When recruiting real estate investors you must follow the "unwritten" fundamental principles to specifically find the investor you need for your real estate project. It is enough to do a little searching on the internet to realize the amount of information there is on how to find investors for any type of project or joint venture. However, my experience, dealing with real estate investors in various countries, has taught me that most of this advice and information is mere literature if applied to the real estate sector.
Although it may seem strange to you, in real estate investment, emotion, feelings, and the "sixth sense" tend to prevail over logic, what the data reflects, what the real estate market is supposed to say and the supposed final profitability . Yes, I know it sounds crazy, but this attitude has an explanation.
Attract Real Estate Investors: Transparency
This lack of real estate transparency happens due to two factors. First due to the ignorance of those who are looking for a real estate investor. Marketing and public relations must be mastered in this field, something that developers and architects (I say with respect) do not dominate at all. The second factor is the bad faith of some land and / or project owners who try to attract a real estate investor from the typical “let's see if it works” approach. And this is well known to real estate investors.
Watch this video to learn more about this topic.
Attract Real Estate Investors: Due Diligence.
There are still delusions in the real estate sector who believe that a serious investor is going to put $ 4 million on the table without doing the due due diligence or data verification; That incidentally takes time and money on the part of the investor.
Real estate investors, (the good ones, the ones I know and deal with), have developed a sixth sense for finding pearls in the sea and can smell a good investment from miles away. They have learned to read between the lines all the documentation that is given to them and when making a decision, (and if the numbers more or less add up, of course), the attitude of the one presenting the project is what usually tips the balance. This is the reality; And those who have been there successfully presenting projects to real estate investors know it.
This is one of the "unwritten" rules of real estate investing. The problem of selling to investors begins when the seller or owner presents a "real estate business opportunity" that, when it begins to crumble; that is, to ask the right questions, you have little opportunity.
Not because the project itself is not viable and profitable, which may very well be; but because the presenter or owner does not know how to demonstrate that “business opportunity”. A characteristic shared by most of the offers, ideas or business opportunities that are sent to real estate investors, are poorly written, incomplete, poorly presented or clearly unviable proposals and projects.
It is easy to reach a real estate investor when the protocol, "not written", that investors require to grant a meeting is followed. You only need to do what few do and do it well. More Demand than Supply? It may surprise you to know that in the real estate investment sector there is more demand than supply. There are more investors looking for good business opportunities in the real estate sector, than projects, land or real estate in production that are feasible to be financed.
Attract Real Estate Investors: Demand.
There is demand, quite a demand, for investments in all types of real estate projects in Southern Europe and Latin America: unfinished buildings, residences for the elderly, hotels, well-qualified land and even for agricultural land such as vineyards. Real estate investors abound; what is not abundant are well-presented projects.
In today's market there are few well-structured and well-presented real estate projects that inspire confidence and realism in investors. There are many real estate projects, there are more project ideas, there are many land for sale; but owners, entrepreneurs and businessmen who know how to sell a project, an idea or a piece of land to an investor, there are very few.
Which is good news for you, if you know how to take advantage of this situation. On average, (according to the same investors tell me), a real estate investor operating in several countries receives between 5-10 emails a week and around 10-15 phone calls a month, with offers of new opportunities of business, offering them the sale or participation in a project or real estate company.
Of course, not all real estate investors receive this amount of offers, especially since a significant number of them are only known in certain circles and to reach them you have to do it through advisers: lawyers, financiers, brokers, real estate advisers, etc. who are the ones who purify information and select the best projects.
And it is in your interest to debug well if you do not want to lose credibility with your customers.
Keep in mind that the best projects are NOT those that offer the highest profitability; but those that are well presented. And a real estate project, (land, or property, etc.), well presented is always viable and profitable. The real estate investor is always looking.
A false rumor that circulates in the real estate investment sector is that investors do not consult the internet in search of business opportunities; or that they have so many offers that they don't bother to search anywhere. This is not like this.
Structure your project well, present it properly, put it into circulation in the right places and you will get the real estate investor you are looking for. Know more at al hartman.
I would appreciate it if you would leave us a comment on this article. What other factor apart from transparency do you think is essential when it comes to attracting real estate investors? Your opinion interests us. Thanks.