“Treat every investor like they are a million-dollar investor.” ~ Vinney ChopraTaking this real estate investment philosophy a step further, always treat your investors like they are investing $1M. Because when you do so, it will, eventually, be a million as word-of-mouth comes into play.
Automating The Process of Raising Capital
Back when I started off with syndications, my daily schedule involved a lot of monotonous tasks like:
- Making calls,
- Having the same conversations with different people,
- Sending out a bunch of personalized emails, sometimes with PDFs,
- Maintaining a spreadsheet to keep track, etc.
Following this routine for 10-12 people became grueling and laborious, that’s when I started looking for efficient ways to do all this, ways that will save my time as well as energy. We decided to automate the entire thing, give our active investors the ability to create accounts, have a dashboard, post an investment, review the details, and much more. That was the inception of SyndicationPro - a Real Estate Syndication Software.Realizing that investors were in dire need of such a platform, I decided to take it to the next level, polished up the corners, and formalized SyndicationPro, which is now a licensing platform allowing syndicators to raise capital in their own unique ways.
Listen To The Podcast Here: Building Relationships and Raising Capital With SyndicationPro
Some Crucial Things A Platform Like This Does
- Raising money along with an element of customer service.
- Investors have their own corner with a dashboard and an environment for updates, documents, and distribution history.
- Time-saving: While raising $2 million from twenty different investors, we end up spending around 120 hours when moving from A to Z. Platforms like these help us cut down to 30 hours, saving our precious time.
- Verification of the shared documents. How much are they investing? How are they investing?
- Helping investors streamline the entire process, answer to “What they are supposed to do next?”
- An opportunity to interact with more serious investors - Not all the 5 -10 investors registered on our platform are serious ones, so instead of calling all of them, we let the investors schedule the call. Others are going to be in your email base who will circle back when they’re ready to invest.
Ways to Increase The Number of Investors
- Pick a few channels to create awareness like Podcasts, Blogs, etc.
- You can leverage BiggerPockets for this as well. It has a huge community of investors that can help you land a spot in meetups, conferences, and events - networking basically.
- You can get leads by touching base with the local news outlets, like The Business Journal, sharing your plan for the next several months.
- Being an active member of communities like BiggerPockets and staying connected with your active investor community as they are your source of “word-of-mouth referrals”.
Check Out Our Podcast: Unveiling Best Strategies To Find Multifamily Deals
Building Relationships and Growing Your Database
- Getting on a call, that’s the first step as it's a chance to know them, understand their background, their investing experience is, understanding who that person is from an organizational standpoint, etc.
- Sending out emails (not too many), at least once a month either about an upcoming deal or the updates from the quarter.
- Having a webinar session about the good and bad things that happened in the quarter and highlights from our future plans - what we’re working on and what’s coming ahead.
It’s simple - People have registered with you, they’re interested, keep them updated and touch base with them once a month at least.
Technologies To Leverage
- MailChimp to professionalize and manage your contacts.
- Calendly to get in touch with people rather than doing the generic contact form.
Hardest Part of Syndication Journey
Taking our syndications outside of our network - our first syndication online and at scale. The biggest hurdle was raising capital for that first deal. It took us a little over a few months to raise $350,000 on that first deal. Cut to a few weeks from the first deal, we raised money for the second deal. Now, we can raise a million or more in just about 24 to 48 hours. All praises to SyndicationPro.“The major fortunes in America have been made in the land” ~ John D. Rockefeller
Number One Way I’ve Improved My Business
A monthly update with the investors, write up some bullet points, and have a written narrative. The more opportunities people have to see your face and watch you speak, the more intimate relations you’re able to build with them. Once the investors trust in you, you can raise money within no time.
Number One Thing That Contributed to Our Success
Being in the right place at the right time. Early on when I first started with real estate I luckily got in touch with an experienced investor. This started with a wholesaling deal - I was wholesaling a house and he ended up buying it after which I took all my deals to him first. It was with this first experience that I was able to catapult my experience and steer my way to success in real estate syndication.Learn More About SyndicationPro: Real Estate Syndication Software: SyndicationPro