Making a real estate syndication a profit-making entity is an achievement for every syndicator. However, as you move forward and crack more real estate deals, encourage your existing investors to team up with you again.
Retaining your investor community is a significant part of the syndication game. Your professionalism and proactive communication are crucial aspects that help you raise funds from the same set of investors for your upcoming real estate ventures.
In this article, let’s drill down the top 10 ways to encourage your investors to repeatedly invest with you.
1. Communicate Effectively
Effective and consistent communication with your existing investors can be a game-changer. Keeping in touch with your investors helps you win their confidence.
- Implementing well-designed email campaigns to educate your potential investors
- Consistent posts on social media promoting your business
- Regular insights on the changing market trends
- Periodic financial reports of the ongoing deals
- In-time information about the upcoming real estate deals
Your existing investor community expects instant updates regarding various aspects of any ongoing deal. Keeping them informed about the forecasts and your exit strategies will build trust. You can become their mentor in the real estate investment journey.
2. Maintain Transparency
Your existing investors don’t have control over their investment. You will be making appropriate investment management decisions using their funds. However, investors always expect transparency at the highest levels. May that be financial transactions or your strategic decisions.
As you disclose your syndication charges and distribution structure initially, your investors start relying on you. Maintaining transparency throughout the deal lifecycle will surely inspire them to work with you in the long run.
3. Guidance Throughout the Journey
Real estate syndication may also include accredited investors and non-professional, non-accredited passive investors. Usually, certified investors with higher investment capacities are well-versed in the technicalities of the real estate market. However, non-accredited investors may need guidance to understand the market and make better decisions.
During the lifecycle of a real estate syndication, if you act as a guide to take your investors through the process, it adds value to your relationship. Investors will admire it if your guidance brings them consistent success.
4. Timely Returns
You can keep your existing investors happy through in-time distribution. That will elevate their morale to be a part of your team for your following projects. Adopting real estate syndication software will make the distribution process smoother for you.
Investors can log in and glance at the investments and distributions on the dashboard. You can distribute profit shares through the ACH payment facility- So, no long waits for hard check deliveries and clearance.
5. Keep Them Updated
As syndicators, try keeping your investors on the same page throughout the journey. Keep your investors updated regarding the progress of the property you have invested in, the upgrades, repairs, and concerning financial aspects.
Apart from this, plan content for communication emphasizing how your syndication achieves success. This perspective improves the overall experience of your investors. Ultimately, they would agree to invest in your other ventures too.
6. Introduce Other Offerings
Design your campaigns to encourage your existing investors to continue investing in your ventures. Especially when you are executing an exit strategy for an ongoing project, start promoting your upcoming offerings or other ongoing projects.
Retaining existing investors will improve your reputation and reduce your marketing workload for the upcoming real estate projects. When the same set of investors continues for multiple deals, that builds trust among the potential investors for your next deal.
7. Complement Their Financial Goals
Every investor wishes to be a part of a syndication that offers returns to satisfy their financial goals. Syndicators need to group their existing investors based on their financial goals first.
This activity helps you to canvas your upcoming offerings with a focused approach. Promote your deals customized to every existing investor’s financial goals.
That way, you create a close personal connection with your current investors. When you present the upcoming offering, stepping into the investor’s shoes, they are encouraged to be with you again and again.
8. Encourage Portfolio Diversification
Diversifying real estate investment portfolios has its benefits. Convey these benefits to your existing investors tactfully. As they realize that the syndicator delivering consistent profit shares is launching another real estate offering, they will have an option ready to diversify.
You can grow by cracking real estate deals across property types, classes, and locations. Investors from your ongoing offering will also prefer investing in your other offerings. They believe in your strategies and experience transparency.
9. Let the Relationship Continue
If your investors continue investing in your multiple syndications, it is a pride for you. Following the business ethics, management best practices, and healthy communication with them at every stage are crucial to making them invest with you repeatedly.
Deploy innovative methods to develop, retain, and grow the network of real estate investors. Your sincere efforts to prioritize investors’ interests will pay off in the long run. Your calls to action and mentorship need to be convincing.
That way, you can continue succeeding in your syndication journey, pooling financial resources from the same investors repeatedly.
10. Leverage the Latest Technology
Adopting the most appreciated investor management portal helps you retain your existing investors for future ventures. Leveraging the latest technology in real estate syndication lets you centralize your communication, fundraising, distribution, and network nurturing activities.
Here is our infographic to help you quickly understand the top 10 ways to retain your real estate investors.
The Final Words
This blog covers the top 10 ways to continue raising funds from your existing investors for your future deals. We hope that the various aspects covered in the article will be helpful.
Adopt a well-designed investor portal to effectively follow these aspects. The investor portal will help you grow your syndication business by building trust among investors.