How can you build credibility with potential investors? How can you share information easily and most effectively?
My solution was to have a powerpoint presentation that I could carry around with me – in a nice plastic presentation folder. In the early days it came everywhere with me because, as you know I “tell everyone what I do” and it leads to deeper discussions. I’d pull out the presentation and turn to the relevant page that might aid the conversation. It seemed to work well for me as I’m a visual person and like to show the pictures of the deals.
The presentation included things like my background, reason why I was doing property investing, the area I was focussing on and the approach structure for investing. This was followed with examples of deals done with high level numbers and lots of pictures of before and after refurbishment. If you’ve not yet done your own deal – use an example of someone else you know (with permission of course). Be able to describe it and know the numbers.
Potential investors have very different requirements. Some are risk averse and require full security and involvement, others have experience and want to share the risks for a higher return. So higher risks require a joint venture approach, whereas lower risks might be a loan secured on a property.
Its easily forgotten that your experience can be beneficial and an investor who is learning might be keen to look over your shoulder – an added benefit.
Put yourself in the shoes of an investor – what would you like to see and be aware of? Perhaps the team they work with as tradespeople, perhaps to actually see an example rather than just a picture. That’s the next step.
My rule of thumb is never to rush an investor. It’s a 2-way street and you both need to be comfortable with each other to make it work. Imagine if you were relying on their funds as a deposit on a property and they changed their minds before exchanging! You don’t want that risk and you also need to make sure that an investor doesn’t use all their funds with one deal either. So getting to know each other through meeting, having lunch/dinner and sharing the values you have.
An excellent way to build trust is to give them names of other investors who they might like to talk to about their experience (make sure the investor knows and has agreed to this first).
So this might appear very daunting if you’ve not yet got experience, but don’t forget you do need to get a basic education first – the foundation steps to understanding how to find good deals. That’s something I can help with too. Here’s an example of a simple deal that was our first purchase.
Property Investor and coach, Bronwen Vearncombe, has built a successful business over the last few years and been able to give up her full time corporate job and find freedom.
Having been told she’d not be able to retire until aged 67 – she knew there must be a way to escape and to spend more time with her husband and two children, and maybe even be her own boss!
Learning from the best, she and her husband worked hard to get a great education and to understand the risks and opportunities that property can provide. This led to a portfolio of single lets, multi-lets and commercial guest houses in Hampshire, often purchased with private investor funds, and most importantly created to provide a passive income. As an ex-banker, she certainly isn’t afraid of borrowing and lending and is particularly skilled at finding investment and working collaboratively with others.
Featured in national property media, leading a monthly property networking group for over 2 years and a property Mastermind programme in Winchester, Bronwen loves to share her knowledge and to help others get onto the investor ladder of success. Her programme of pre-recorded webinars and coaching enables easy but supported learning of the very foundation steps and uses examples from her own portfolio too.
Whilst starting to follow her dreams, she’s currently travelling the world as her husband does the Clipper Round the World yacht race 17-18. Able to use technology to combine her adventures with the business and coaching too, she is proving that a passive property income can work.
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