This is a great time to raise more outside money to fund real estate deals. Many investors are hungry for opportunities. Those with access to deals can be of great service while growing their own ventures and finding even more profit in the market. It is now easier than ever to raise money from a wider range of investors — just make sure you know what it takes and how to create a profitable system before you dive in.
Before attempting any new real estate fundraising campaigns, make sure you’ve considered these six questions and how you’ll handle them:
1. Who do you want to raise capital from?
Who you plan to raise money from will dictate virtually everything else when it comes to creating a successful real estate fundraising campaign. It will determine the projects you seek, the tools you use to reach investors (and follow up with them), how much you offer in returns, the minimum amount of investment you will require, the words you use on your website and presentation materials, the legal structure that is best to use, your branding, your overall and specific strategies, and the time and budget you will allocate.
Understand who the best investors are for your niche and the way you like to work — as well as who you want to work with. The better your picture of exactly who this person is, where they live and work, and how much money they have, the better off you’ll be when it comes to marketing.
Just as importantly, you need to accurately assess how many of these potential investors are out there and how…