How to Get Investors to Know Like and Trust You
Dan Genzel
Building a cumulative investment & commercial real estate portfolio to $100 Million and helping others do the same. The content I share ?? is about the process. More ???? multiplycapital.com
Essentially, We’re Strangers…I Don’t Know You – You Don’t Know Me. You Have a Problem and I’ve Got a Solution That Could Fix That Problem
Your Investor is Hiring a New Babysitter for Their Capital (a major part of their life savings).
What’s Going to Make the Investor Trust Me?
- Alignment. Communicate my vision and goals and build bridges with my investors.
- Clear & Detailed Plan. Provide detailed Investment Summary and Deal-book/Deck. How we get in and how we get out.
- Assurances. Next best alternative to a guarantee which I can’t provide. Assure them that the way I structure the deal will produce optimal results. Assure them I have done this many times before. Do a Sensitivity Analysis. Express Risk clearly. Assure them if things go wrong…If something happens to me. 66% of LP’s can vote me out. Head Investor Representative is the "voice"
- Knowledge & Education. Let investors know I am always looking for the upper hand gathering knowledge and getting educated on this than the other thing. i.e. new tax laws.
- Reputation. Testimonials/Social Proof scattered throughout my marketing and communication with investors. Show experience.
- Positioning. Show my unique style or angle to market (i.e. my ALGO). My value add.
- Confidence. Investors are looking for confidence.
- Show experience. How long have you been doing this? What’s your background? “I’ve been managing Investors Capital Placed in my Real Estate Deals for 20 years” “I’ve Exited 25 Successful Commercial Real Estate Deals.” “I’ve been sending investors dividend checks, returning their investments back and delivering substantial profits for over 20 years” “The S&P Has Delivered a Return of 8.6% over the last 10 years. My cumulative portfolio appreciation alone on CRE has been 21.2%.”
Investors Want to Know…
- How safe is my money – can I trust you? It’s safe because we buy right, have a clear and defined conservative business plan, and multiple exit strategies.
- How fast can I execute on the business plan and I get my money back because I’m holding my breath on our 1st investment?
- What profit am I going to get? Show track record i.e. closing statements.
- Can I trust you to evaluate risk? As important as it is to show track record; I'm even prouder of the deals I've walked away from!
- Can I trust you to communicate with me? Content should show this…Provide Quarterly Reports. Show progress on projects – show investment update video? Investor events. Quarterly calls.
Hope this helps,
Dan