Apr 12, 2024

How to Automate Capital Raising for Real Estate Syndications

TJ Lokboj
How to Automate Capital Raising for Real Estate Syndications

Real estate syndicators need to manage various fronts simultaneously in a synchronized and streamlined manner. There is no denying that a profitable real estate deal is the ‘heart’ of their business. Similarly, real estate capital raising is the most crucial aspect of acquiring any deal at the right time.

During the last decade, real estate investments have been opened to non-accredited investors with smaller investment capabilities. This change has helped syndicators to get more leads. However, capital raising by pooling financial resources from hundreds of potential investors may require adequate time.

In this article, let us figure out how to automate capital raising for real estate syndication. If you feel it is about closing the deals faster and raising funds- it’s beyond that. You need to automate the entire marketing process to succeed. Let’s drill down some critical aspects:

Start Attracting Investors Even Without a Deal

The biggest mistake most syndicators make is building the pool of investors at the wrong time. Technically, syndicators don’t need a deal handy to attract potential investors.

It requires considerable time to convince investors. When hundreds of potential investors show interest in working with you, a very few of them may actually convert as investors. Hence, start attracting investors as a parallel activity to finding profitable deals.

1. Create Impressive Online Presence

Having a website, business accounts on social media platforms and consistent updates on various digital channels help you stay visible to your potential investors. You can also adopt an investor portal to have an impressive presence with your logo and business details to gain trust.

Remember- You must be found online, and you must be active through multiple digital channels. Strategize your content, your campaigns, and keep spreading the word about your business. Creating an impressive online presence makes you the brand in your industry.

2. Be Their Mentor

As a real estate syndicator, you know about real estate investments more than your investors. Take advantage of your expertise to mentor your potential investors on how real estate syndication works.

Let the network of potential investors learn from your experience. Encourage them to ask questions and gradually become the go-to person to answer their doubts. Your mentorship will pay you in terms of a strong bond with your pool of investors.

3. Add Value to Investors

The potential investors will be happy to understand the industry and get assured ROI. You can design and execute some campaigns to add value to your investors. The best example can be periodic email newsletters with links to expert insights regarding real estate investments.

Another way to nurture the hunger for knowledge could be social media platforms. Try to reply to their messages. Work with a freelancer to manage your social media and email campaigns if you are too busy.

4. Marketing Automation is a Must

Being a modern-day real estate syndicator, you wish to accelerate your workflow. Your real estate capital raising can be faster if you effectively utilize the right tools and proper resources.

Automate your marketing activities leveraging a real estate capital raising software like SyndicationPro. Another crucial aspect is syncing your marketing and sales. That allows you to take the potential investors through the sales funnel faster.

Create Lead Magnets

Every lead counts, and you must manage it effectively to succeed in your capital raising initiatives. The most result-driven way to centralize your lead management is to adopt the investor portal. You can bring all your leads through various sources to a single dashboard.

Centralizing your leads helps you manage them effectively. You can send your replies, schedule calls, virtual meetings, and convince potential investors across various stages of your real estate capital raising journey.

Start Taking Soft Commitments

As discussed earlier, you don’t practically need to have a deal in hand while attracting potential customers. Though it is convincing to start with capital raising when you have a deal, you can gauge the seriousness of individual potential investors beforehand.

That saves you a lot of time. The best way can be taking ‘soft commitments’ from the potential investors. The potential investors will pay an advance up front and commit a date to pour in the rest of the funds. This exercise clarifies how much funds you will have and by what timeline.

As You Have a Deal, Accelerate

You must be ‘hungry’ to crack a profitable deal all the time. A good real estate deal is crucial to effectively take the business goals of your real estate syndication ahead. As you find a deal and enter into an agreement with the seller, it would be time to accelerate your real estate capital-raising process.

By that instance, you can promote your deal confidently to the network of your potential investors. You can segment your investors based on their investment capacity, financial goals, and locations beforehand. The secret to success would be pitching the real estate deal aligning to the financial goals of individual investors.

Automate Investing Process

Earlier, you had to rely on the hard checks coming by mail and the waiting period for clearance in the banks. Today, you can automate the real estate capital raising process by adopting capital raising software. The solution allows you to collaborate with cosponsors, get soft commitments from investors, and close deals to raise real estate capital faster.

The tool has an ACH Payments feature, allowing you to send and receive electronic payments. Payment transfers can be made to and from bank accounts within minutes. You just need to have your investors onboarded on the portal and sign the PPM beforehand.

Leverage Technology

Adopting the latest technology in real estate syndication is necessary to automate your real estate capital-raising process. Switching to SyndicationPro brings dozens of operational benefits to your syndicate.

Most importantly, the portal allows you to manage and synchronize all the sales funnel stages. You can:

  • Effectively communicate with potential investors,
  • Inspire and convince them to invest in your syndicate,
  • Take soft commitments,
  • Sign agreements and maintain the paperwork, and
  • Quickly get their investments transferred.

We have crafted an infographic to narrate the process of automating real estate capital raising briefly. We aim to compile all significant steps for capital raising in the infographic. We believe that the infographic will guide you through your capital-raising process. Let’s take a look at the infographic:

automate capital raising for real estate syndication

The Final Thoughts

The article and infographic cover significant steps to automate real estate capital raising. We hope that the various aspects discussed here will help you understand the importance of bringing modernity to your real estate syndication business. Raise capital for your ongoing and upcoming real estate deals faster by adopting SyndicationPro. Book a Demo Today!

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