UNDERSTANDING THE MIND SET OF THE INVESTOR LEONARD ROSEN
Obviously, these are easy
questions to be answered with
a quick due diligence check
list.
I
ask
real
estate
syndicators all the time, what
is
your
investors
most
dominate question prior to
deploying capital? I receive
answers such as dividend
yield
is
concern.
the
predominate
After
further
discussion, we realize that the
dividend yield is used as an
excuse
for
not
feeling
comfortable with the investment proposal.
to begin a dialogue in the purpose of creating a trust
factor.
Investors participate in business deals with people
that they like and trust. If the trust factor is not
Rule number 2. Exchange contact information and
addressed, the likelihood of an investor participating
reach out to your possible investor by email or phone
in your deal will be low. Addressing the emotional
and thank them for the time they spent with you.
needs of someone who is asked to give you money is
a complex issue.
Rule number 3. Schedule a time for coffee to explain
in detail your investment strategy to determine if the
I believe you should follow my simple 4 step rule.
investment strategy fits into the investors comfort
level. You can speak about risk factors, dividend
Rule number 1. Never ask your investor for capital
yields and security interests.
on a first meeting, simply share some concept and
ideas and gauge their interest. This is a time to fact
Rule number 4. Be patient, move the relationship
find and begin your relationship. The ultimate goal is
along at the speed the investors feels comfortable
with. This is the time to gauge their interest for their
participation.
Always remember, Have testimonial letters available,
website address and a detailed executive summary
of the proposal.
Good luck!