8 Steps to Mastering Investor Presentations

Are you ready to captivate potential investors with a flawless presentation? This blog post includes the outline that I use to successfully prepare and present to potential investors. Keep in mind that this specific outline is tailored for presentations made after securing a deal. 

1. Welcome

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

2. Provide a Summary of What the Investors Can Expect

Outline the flow of the presentation and what you are going to be talking about. Then, explain that there will be time for a Q&A session after the presentation.

A quick tip for an efficient Q&A session: Provide the investors with your email address. Say that they can email you 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 Yourself

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

4. High-Level: Explain Why This Is a Good Deal

First, list the top factors that you 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 of the reasons why this deal stands out, regarding each of the top factors that you look at when evaluating a deal.

Using my top factors as an example, here is a list of questions to answer for each factor:

• The Deal
  • What stands out about the deal?
  • Has the business model you plan to implement been proven?
  • How does this deal compare to other deals that you have done in the past?
  • What is the upside potential?
  • Will you put in new upgrades? If so, how will that affect the bottom line?
• The Market
  • How well do you know the market?
  • How does the submarket compare to other submarkets in the same area?
  • What makes this submarket a good location to invest in?
  • What is the demographic that will live in the property? Where do they work, go to school, shop, etc., and how close are these locations to the property?
  • Do you own any other properties in the area?
• The Team
  • Who is a part of the team?
  • Are they invested in the deal?
  • Have you 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 no right or wrong way to do so. However, below is an outline of how I personally provide my investors with details on the deal.

• Overall Plan
  • What is your overall real estate plan? (e.g., value-add multifamily)
  • How does this specific deal fit into this strategy?
  • What are your target markets and submarkets? Why?
  • Why do you target those specific markets?
• The Subject Market
  • Do you have information regarding the subject market's economy, jobs, rent projections, vacancy projections, etc.?
  • Do you own additional properties in the area? If so, how is that advantageous for this deal?
  • Are there other location advantages such as accessibility to highways, proximity to downtown, etc.?
  • What is the competition in the area?
  • What is the demographic?
  • What are the rental comps?
• Exterior and Interior
  • What is the current condition of the property?
  • What, if any, are recent upgrades? (Be specific.)
  • What do you plan to upgrade, fix, replace, etc., on the exterior? Will that have a positive effect on income or expenses?
  • What do you plan to upgrade, fix, replace, etc., on the interior? Will that have a positive effect on income or expenses?
  • Any other projects, like an exercise room, pool, repaving the parking lot, water conservation, etc.? Will they have a positive effect on income or expenses?
• Other
  • What aspects of the exterior and interior plan attract you to the property?
  • How will you 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 your exit strategy?

6. Conclusion

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

7. Q&A

Read and answer the questions that have been emailed to you. Here is a list of questions that I received during my most recent 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. Let them know that they can email you any additional questions that they have. Finally, let them know what the next steps are for those interested in investing in the deal.

About the Author:

Joe Fairless is the co-founder of Ashcroft Capital, a fully integrated multifamily investment firm with more than $2.7 billion in assets under management, and the founder of Best Ever CRE. His podcast, the Best Real Estate Investing Advice Ever Show, is the world's longest-running daily real estate podcast with more than 500,000 monthly downloads.

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.