Meeting—and then developing meaningful relationships with—investors is key to your success in real estate syndication. Here is insight on how to accomplish that.
Regularly Attend Local Events
Sam Freshman, author of the book, “Principles of Real Estate Syndication,” has been syndicating for over 60 years. He told me during an interview that he’s probably raised over ~$1billion. I asked him during how he did it, and he said “[by] regularly attending local events.”
I always advise clients to find investors locally but invest where the deals are. That means attending local business and real estate networking events regularly, talking about what you do, and getting to know the other regular attendees. You’ll eventually find local people who like the idea of investing in group real estate investments but don’t know anyone to invest with — that is, until they met you.
Attending local real estate meetups and Real Estate Investment Association (REIA) meetings is one way. But attending non-real estate events is even better, as those events won’t be saturated with other real estate Investors who are competing for investor dollars.
My philosophy is that it’s easier to be a big fish in a small pond than it is to be a big fish in a big pond. So go where your competition doesn’t. You can be the big fish if you’re the only “real estate person” in the room. But it’s hard to be the big fish if everyone in the room is a real estate investor.
What Kind of Non-Real Estate Groups Should I Attend?
Someone who married rich once told me, if you want to marry rich, you have to hang out where the rich people hang out. The same holds true for meeting wealthy investors. If you don’t know where that is, author Ginie Sayles has written several books on the subject including: “HOW TO MEET THE RICH for Business, Friendship, or Romance,” available at Amazon.
Meeting potential investors is one thing, but developing investment-worthy relationships is another. The key is to show up regularly, as you’ll build trust by familiarity. And you might even make some lifelong friends along the way.
If you don’t have the mindset to do this yourself, or if this is difficult because you live in a rural area, try to find with someone who already has connections in local groups and bring them into your syndication management team.
Remember: “Your Network is Your Net Worth.” If you’d like more information about that, check out the book of the same name by author, marketing expert and public speaker Porter Gale, former Vice President of Marketing at Virgin America, also available at Amazon.
How Can I Legally Raise Private Money?
While you’re at Amazon, get your copy of my #1 best-selling book, “How To Legally Raise Private Money.” It contains a chapter about maintaining investor relationships once you start them. With all three books referenced in this article, you’ll be on your way to raising all the money you need to legally fund your real estate projects.
If you’d like to create professional marketing materials to share with all of the high net worth investors you are going to be meeting, and an Investor Marketing Plan to keep yourself on track, check out our affiliate website at www.InvestorMarketingMaterials.com.
If you’d like to schedule a free consultation to discuss your syndication plans, click here.