How do you raise money for a deal fast when you have no investor list?
Each month, Apartment Investment Club paid members get 2 hours on Zoom with me during our members’ coaching call.
Often the topic turns to raising capital.
It’s one of the most important things a real estate investor must do.
It’s also one of the most daunting. Many people are intimidated by the process.
Usually, I say you must build an investor list, so when you have a deal, you don’t need to sell anything.
You just offer the deal to your list, and people raise their hands.
But what if you don’t have a list and you need to raise money fast?
People think to ask friends and family.
Or make a list of everyone they know with money and start reaching out to pitch the deal.
But it doesn’t work.
It feels icky.
It’s not comfortable asking friends and family for money, because everyone knows money can destroy relationships – the stakes are too high.
And it feels transactional reaching out to old acquaintances you have not seen for years to pitch them a deal.
So people give up. They don’t like feeling icky or transactional.
So, what do you do?
You treat those old acquaintances as if they were already your list.
You offer them the deal without asking them to participate.
And how do you pull this off?
Set up an investment webinar, as you would with an investor list.
Then reach out to everyone you think could be interested with a simple email:
“Hey, it’s been a while since we talked. I’m now sponsoring real estate investments. Given what I know about you, I think you might be interested. Here’s the time, the date, and the webinar link. If you’re not interested, that’s just fine. But if this does interest you, you’ll enjoy the webinar. Don’t worry, there’s zero commitment necessary. If you know anyone else who likes real estate, please help me for old times’ sake and forward this email to them. If you’re planning to attend, be sure to tell them.”
People will most definitely come.
And here’s the best part:
You won’t have to pitch anyone or ask anyone for money.
Just do the webinar and make it interesting. Those who want in will raise their hands.
When it’s over, send the recording around so people can see it if they couldn’t join live.
Oh, one last thing. Use the registration function on Zoom to get names and emails.
Download the CSV file to your CRM.
Now you have an investor list.