October 13, 2016
Joe Fairless

8-Step Outline for a Successful Private Money Investor Call

Here is the outline that I utilize to successfully prepare and present to potential private money investors. This specific outline can be followed verbatim for presentations to investors AFTER you already have a deal.

1. Welcome

Welcome and thank the potential investors for taking the time to attend the call.

2. Provide a summary for what the investors can expect

Outline the flow of the presentation and what I am going to be talking about. Then, explain that there will be a time for a Q&A session at the conclusion of the presentation.

A quick tip for an efficient Q&A session: Provide the private money investors with my email address. Say that they can email me their questions as they come up during the presentation. In doing so, they won’t forget their questions and they won’t have to interrupt the presentation to ask a question.

3. Introduce myself

Provide a brief bio, including my background, what I do, what are my strengths, and what are my overall investment goals.

4. High Level: Explain why this is a good deal

First, list the top factors that I look at when evaluating a deal. For me, I look at the deal itself, the market, and the team. However, this will vary from investor to investor, depending on your strategy.

Next, provide a high-level explanation on the reasons why this deal stands out, in regards to each of the top factors that I look at when evaluating a deal.

Here is a list of questions I answered for each of my top factors:

  • The Deal
    • What stands out about the deal?
    • Has the business model I plan to implement been proven?
    • How does this deal compare to other deals that I have done in the past?
    • What is the upside potential?
    • Will I put in new upgrades? If so, how will that affect the bottom line?
  • The Market
    • How well do I know the market?
    • How does the submarket compare to other submarkets in the same area?
    • What makes this submarket a good location to invest?
    • What is the demographic that will live in the property? Where do they work, go to school, shop, etc. and how close are these to the property?
    • Do I own any other properties in the area?
  • The Team
    • Who is a part of the team?
    • Are they invested in the deal?
    • Have I worked with them in the past?

Finally, quickly summarize this entire section.

5. Go into more details

Provide more details on the business plan. There really is not a right way or a wrong way to do so. However, below is an outline for how I personally provide my private money investors with details on the deal.

  • Overall Plan
    • What is your overall real estate plan? (i.e. value-add multifamily)
    • How does this specific deal fit into this strategy?
    • What are my target markets and submarkets? Why?
    • Why do I target those specific markets?
  • The Subject Market
    • Economy, jobs, rent projections, vacancy projections, etc.?
    • Do I own additional properties in the area? If so, how is that advantageous for this deal?
    • Other location advantages? – Accessibility to highways, X minutes from downtown, etc.
    • What is the competition in the area?
    • What is the demographic?
    • What are the rentals comps?
  • Exterior and Interior
    • What is the current condition of the property?
    • What, if any, are recent upgrades? (Be specific i.e. what, how much?)
    • What do I plan to upgrade, fix, replace, etc. on the exterior? Will that have a positive effect on income or expenses?
    • What do I plan to upgrade, fix, replace, etc. on the interior? Will that have a positive effect on income or expenses?
    • Any other projects? (Exercise room, pool, repaving the parking lot, water conservation, etc.) Will that have a positive effect on income or expenses?
  • Other
    • What aspects of the exterior and interior plan make you attracted to the property?
    • How will I mitigate risk?
    • What are the underwriting projections?
      • Rent growth, vacancy, cap rate, etc.?
    • What is the debt situation?
      • Loan type, terms, and conditions, interest rate, refinancing, etc.?
    • What is our exit strategy?

6. Conclusion

Conclude with a bullet point summary of why I like this deal.

7. Q&A

Read and answer the questions that have been emailed to me.

Here is a list of questions that I received during my most recent private money investor call:

  • How do you perform renovations with people currently living in the units?
  • How long have the current owners had the property?
  • What is the number one risk with this investment?
  • What is the frequency of investor payouts?
  • Why is the current owner selling

8. Next Steps

Conclude the call by thanking everyone for joining the call. Let them know that they can email me any additional questions that they have. Finally, let them know what the next steps are for those interested in investing in the deal.

Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.

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