Looking for more capital to kick start your real estate investing startup?
Conventional mortgages are out and private money, venture capital and crowdfunding is in. So how can you improve your chances of getting funded to go out and scoop up the best investment properties and expand your real estate investing company?
What is it that those with this cash are looking for when deciding who to fund?
5 Tips for Getting Funded
1. Get Good at Pitching
It doesn’t matter how good you are or how valuable your services are unless you can get that across with a good pitch which carries across your enthusiasm, shows you know what you are doing and answers potential investors’ questions. Practice your pitch and improve your public speaking and sales skills.
2. Go Where the Money is
It is true that your odds of landing some types of funding like venture capital may be improved depending on your location. For example; 40% of all VC money goes to Silicon Valley. However, those with the money are now also pushing a variety of other destinations as the next startup hot spot including New York, South Florida and even Grand Rapids, MI. However, thanks to sites like Angel List and a plethora of new crowdfunding platforms you really don’t have to get off the sofa to get in front of the money today.
3. Take it High-Tech
While your real estate investing business doesn’t have to be high-tech at all in order to be incredibly successful and profitable or even to get funded there is no question that tech is a lot cooler and is likely to inspire more of those who are actively funding startups to consider putting their money to work with you.
4. Management Team
Having a qualified management team is a big thing for investors. If you are seeking a capital injection those investors are going to want to know that you don’t only have a great idea but have the experience to make it work and manage their money wisely. This can be a struggle for some new solo investors. However, by adding an experienced name or two to your management line up or even showing you are going to be using a proven system which has already been profitable for others you can come out on top.
5. Early Adopters
Contrary to popular belief and how banks work you don’t need to hit a certain volume or revenue level to get funding. In fact you don’t have to have made a dollar at all. However, potential investors do look for early adopters and to make sure it is something prospects will be interested in and to see what initial feedback is coming in.