Being able to build relationships with investors is essential to your success as property sourcer. Investors want to know they can trust you and that what you have to offer is a good deal. So, how do you persuade them to sit down and listen to what you’ve got to say?
- Position yourself as an expert.
One way is to position yourself as an expert on property sourcing, your specialist sector (if you have one) and the property market in your locale. To do that, make sure you know exactly what you’re talking about. Consume as much relevant up-to-date news as possible, get to know who the ‘big players’ are and the type of deals which have been done recently. In other words, let investors know you ‘have your finger on the pulse’ of what’s happening in your sector/locale.
- Show them how a sourcer can help.
Let them know how your existing contacts in the local property market (or your sector) can allow you to be privy to information on properties before they come to market. Or that your expertise in sourcing renovation properties can reap huge results. Tell them your fees upfront, so you both know where you stand. Always follow up conversations, especially if you’ve been discussing a possible deal you’ve heard about.
- Highlight the particular benefits of working wit.
If you’ve taken time to build a network of property professionals over the years – such as estate agents, surveyors, architects, conveyancers etc. – then let the investor know this. Show them why you’ll be the first to get a crack at any good deals in your locale or sector, thanks to this wealth of knowledge you have access to. Don’t, however, expect your investor to bite initially – they will probably want to spend time getting to know you before they part with their cash. So be patient and never try to rush an investor you’ve recently just gotten to know.
- Make sure your numbers all add up.
There’s nothing more embarrassing than realising half way through a presentation to an investor that actually, your sums are wrong. Not only does this make you feel foolish, but it also shows the investor that perhaps you aren’t as knowledgeable as you say. On that note, make sure your spelling and grammar is correct too in any presentation you hand over for an investor’s perusal.
- Display a portfolio of previous properties.
These should be a detailed record (with photographs) of successful past developments (if any) or properties that you have sourced on behalf of others. Provide financial details and references of people you’ve worked with – if you believe that’s necessary. In other words, be as open and upfront as possible about what you do. That way, potential investors are more likely to both trust and like you.