Feb 1, 2023

How to Use the Reservation Method

TJ Lokboj
How to Use the Reservation Method

There is a powerful feature that helps real estate sponsors become more successful with fundraising and is called the reservation method. Some people may believe that this sounds very complex, but it’s actually quite easy. So, what exactly is the reservation method? Well, it’s a way of catching the attention of investors and leads before deals are available. With the reservation method, you don’t have to wait until there is a solid deal on the table before informing prospects and potential investors. Instead, you build anticipation well beforehand, and then there is a better response when the deal is finally available.

A Door with Key - Explaining how to use reservation method in real estate - SyndicationPro

When you play your cards right with the reservation method, you’ll do an excellent job of getting people lined up and ready. When the deal is available, those investors will take action quickly because, at that moment, they are scared of missing out. Yes, FOMO, which means fear of missing out, works alongside the reservation method. Here’s how you can use this to its maximum potential:

Create the Reservation Infrastructure

The infrastructure is where people can post the reservation and drive traffic through it. Of course, everything you do should have a definite structure. Platforms like SyndicationPro can allow you to give people a teaser through the reservation method. The function of this is to put them on a waitlist for when the deal is available for investment. So, they would have indicated interest, and you’re sure that these are the set of people who would be willing to go all the way to the final stage, the funding.

Make It User Friendly for Investors

Investors love to get a sneak peek to see the details of the deals that are available. When this sneak peek is catchy, you have succeeded in helping them get one foot in the door with the reservation. So, keep it as simple as possible. If you have pictures, include some of your best ones to add an element of visual appeal. Frame it up as an opportunity for the investor to secure priority in the deal. Everyone loves to be made to feel important, and when your investors believe that they are getting exclusive access to an important offer, they will be more inclined to make a move so that they don’t miss it. This is an excellent incentive for your investors.

Include FOMO

Fear of missing out is an important element you can include in your real estate strategy. In your reservation method, you should allow investors to self-commit, and this works best when you give the impression that the deal will be available for a limited time. Real estate sponsors usually go from deal to deal with a lot of space in between. So, what do you do during that time that you don’t have any deal available? Don’t keep your investors waiting without any message. Use the reservation method to talk about your firm, what kind of deals you offer, and even a record of your past performance. Keep it short and sweet, with enough features to catch anyone’s attention. Then, as you’re closer to a deal, you start to build the momentum and trigger the FOMO effect.

Include a Teachable Moment

Here, you can create a crescendo of anticipation in your audience that a deal will happen very soon and then take it away. This is a teachable moment where you talk about why you passed on this supposedly perfect deal. Let your investors know that sometimes the best deals are the ones that you don’t take. So, they will appreciate the transparency from you, which they probably don’t get with others. Make sure that the information here is as valuable as possible and not you just trying to fill up space with redundant data. When they understand its value, they will be anxious to track the status of the next investment, especially when it has your stamp of approval. The reservation method is known for its immense success. Several real estate sponsors are glad that they don’t have to pick up several calls from new prospects to inform them that you would reach out soon with a deal. They have found you already, and you can keep them from leaving when you use the reservation method.

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