Apr 12, 2024

How to Build a Brand that Raises More Capital

Megan Lamke
How to Build a Brand that Raises More Capital

Building a brand is essential to any successful business; your real estate syndication brand is no exception. Creating a strong brand for your real estate syndication business can help you establish credibility and trust with potential investors, ultimately leading to more pooled resources.

Your brand can also help you attract an audience and stand out in a crowded market. With a strong brand, you can differentiate yourself from other syndicators and showcase your unique value proposition.

Defining Your Approach to Real Estate Syndication

Generally, a real estate syndication is when multiple investors pool their resources to purchase an investment property. The goal of each syndication deal is to achieve economies of scale by acquiring larger assets than one could purchase on their own.  Ultimately resulting in a more significant return on investment and a more reliable cash flow for all active and passive investors alike.

While risk is always involved with any investment, group real estate investing can be attractive for passive investors who prefer not to manage their own investment real estate assets or those looking to reduce risk by becoming one of many limited partners.

As a deal sponsor, you're in charge of deciding:

  • In which asset classes will you invest?
  • Will you hire a property management team or take that on as your full-time job?
  • Are you accepting accredited investors only, or is there room for non-accredited investors too?
  • What kind of fee structure should passive investors expect?

and the big one...

How will you execute all of this smoothly, professionally, and on time?

Luckily, most deal sponsors like you were once the "little fish" in a big pool of passive investors, and you experienced what it's like to invest in real estate syndications from the outside. You’ve seen the good, the bad, and the ugly regarding sponsors and their business management skills. Now that you've become a more experienced and general partner, you have the opportunity to implement systems and strategies to ensure your investors' experience with your business’ brand and your commercial real estate selections are stellar.

Do I Need to Build a Brand as a Real Estate Syndicator?

Your real estate syndication brand is not just a logo, website, or Instagram handle. It's how people perceive and experience interacting with you and your business.

Building a brand that aligns with your personal values and mission will help you attract other real estate investors who share those same values, leading to a more cohesive and successful commercial real estate investment group.

Look at it this way: You're asking people to hand over $50,000 or more of their hard-earned money with no guarantees they'll get it back and to rely on your due diligence of the commercial real estate property and any key sponsorship partners you've brought into the fold.

These potential investors need to see if they can trust you. Simple ways to earn trust in the commercial real estate space are:

  • Sharing your track record - both sides - the good and the bad
  • Communicating well and being personable
  • Openly discuss how you evaluate and manage your commercial real estate investments
  • Being accessible in reliable ways - website, social media, networking groups, etc.
  • Building up testimonials and success stories

Your thoughtfully designed brand and systems that support your real estate syndication business can help you do all of the above and present you as a deal sponsor in the best light. When a passive investor performs due diligence on you as their potential deal sponsor, they should experience transparency and ease.

Ultimately, building a brand for your real estate syndication business will help grow your influence, increase your deal flow, and build a reputation as a trustworthy and successful syndicator.

3 Simple Steps to Building a Brand for Real Estate Investing

As a real estate investor and syndicator, how do you create a brand that inspires confidence and generates interest?

Step 1 - Highlight Your USP

Your USP or Unique Selling Proposition is the "secret sauce" that makes your business outshine your competitors. Building a brand that resonates with potential investors is essential to raising capital. Here are some tips to get you started:

  • Determine who is your target audience and who isn’t. The sooner you determine who you aren’t targeting, the easier it will be to connect with your ideal investor.
  • Develop concise messaging and an aligned logo/color combination highlighting your unique focus and personality
  • Create a professional website that is easy to navigate and showcases your experience
  • Build a social media presence and engage with potential investors through targeted advertising and content

Using the right technology, like fundraising software, comes with significant benefits, primarily making fundraising easier and saving time through automation.

Step 2 - Streamline Your Processes

Implement CRM (customer relationship management) & email systems that allow potential real estate syndication investors to opt-in and, in turn, for you to communicate with them easily, provide the PPM (private placement memorandum) for e-signature, and regularly communicate updates about cash flow and improvements expected to impact the property's appreciation.

One excellent solution that checks all of these boxes is SponsorCloud's Syndication Pro software. With features like email automation, integrated eSign, a robust investor portal, investor reporting, distribution management, and deal tracking, SyndicationPro can help you save time and money while improving your overall efficiency.

Step 3 - Raise Capital

Once you've built a strong brand and found the right tool to manage your investments, it's time to start raising money.

  • Create a pitch deck: A pitch deck should include your business plan, investment strategy, and financial projections. It should also include a clear value proposition for potential investors.
  • Offer attractive terms: Investors are looking for returns, so offer attractive terms that are competitive with other real estate syndications. This may include offering a competitive asset management fee.
  • Be transparent: Be upfront with potential investors about the risks involved in investing in real estate syndications. Provide regular updates on the progress and any potential challenges
  • Get visible: Invite your email list to a webinar to share about the investment property, the tax benefits you anticipate, and what limited partners can expect.

How to Find Deal Sponsors and Syndication Opportunities

Finding syndication sponsors and real estate syndication opportunities can be a challenging task for many investors, but there are several steps you can take to increase your chances of real estate syndications success:

Network: Build transparent, trustworthy relationships with others in the commercial real estate investment space, including service providers, software reps, brokers, and property management companies. One great place to start networking with active deal sponsors and experienced syndicators is SponsorNetwork by SponsorCloud. Pitch ideas, make meaningful connections, and send referrals all through SponsorNetwork’s robust platform. 

Conduct Research: Perform your own research on potential deal sponsors, asset classes, property management firms, financiers, and other investors. Knowledge is power.

Stress-Free Real Estate Investing

Investors know that real estate is key to a diversified investment portfolio which is key to achieving their passive income and financial goals. Most investors are simply looking for the investment properties and the right sponsor with whom to invest their money.

It's up to you to show up consistently and professionally, establish a trustworthy relationship, and provide them with an outstanding real estate syndication investment experience so they invest with you repeatedly AND tell all their wealthy friends about your business!

With SyndicationPro operating in the background, you'll save time, stay organized, whiz through administrative tasks, and effortlessly produce financial statements and distributions for investors.

By simplifying the entire real estate syndication management process, SponsorCloud's SyndicationPro allows you to focus on what you love most about real estate investing. With more time and energy to devote to your investments, you can step into the freedom you originally desired when you first became a real estate investor.

So why wait? Sign up for SyndicationPro today and experience the benefits of streamlined real estate syndication management. Sign up for a complimentary consultation with one of our syndication success managers to get you started!

Frequently Asked Questions

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