Delivering Results After Selling the Faith

The real estate world is a small one—especially in an area like this. So it’s not unusual for another real estate broker, would-be developer, insurance agent or financial planner to come talk to me about their need to raise money for a deal.

 The one thing they all have in common is that they all seem to think they need slick, artistic, word-heavy sales material to sell the deal. I have to tell you, this completely misses the point—because all the sales material in the world can’t sell a deal. Only YOU can.

I’ve seen some of the most imaginative, artsy, well-structured, well-presented prospectuses and memoranda perform like rocks with beautiful wings. The biggest mistake is looking to your materials to create a belief in the potential investor. Instead, you want the paper documents to reflect and support your belief—your overwhelming faith that the concept will work. Because once a salesperson creates faith in a product or concept among investors, it’s hard to say no to the sale.

  It’s almost universally recognized that the one thing you don’t challenge is someone’s faith. Doing so could mean war. In sales, you don’t want war; you want to love and be loved. You want to create a bridge that helps investors come along with you on your journey of faith.

  I’ve never had to put sales materials together for my deals. My investors come by word of mouth. Some wait months to get in on a deal. Investment objectives are important and the right deal needs to fit the investor. That’s why qualifying questions are important, so you know what the investor is looking for. As an example of the word-of-mouth appeal, once the legal documents are signed, attorneys often become interested in learning more and potentially investing themselves.

 When you’re raising money for real estate, it’s not as simple as asking someone to give you money to invest. It takes representing your idea and approach methodically. At least, that’s how it works for me. Creating a presence and a record of success helps refine your potential investment community. Structuring your deals intelligently enough to appeal not only to the investor but the legal audience they might sit in front of is also key. Everyone in the investment community is always looking for a winner. That winner is you—not the investment alone.

 As your company assets grow, so too does the audience of investors participating in your ability to perform. When you later position your project as an investment option for family offices, you eventually reach the smart money investors that have been sitting on the sidelines watching your performance. At this point, you’ve established your self as a commodity, but remember: you’re only as good as your last ticket.

 There are a few real estate professionals in my investment pool. Most carry much more real estate wisdom than I do. They manage portfolios that represent tens of thousands of units in New York real estate—a true dynasty of properties. Still, they follow my lead when an idea is presented. That didn’t happen on the first call. It happened by letting them see my faith and then winning and leading by example of returns. It’s the only way you can stay relevant with your investors. Deliver.