Today I have an absolute golden nugget for you – a real deal clencher, a game changer even….so pay close attention to this one. This is #4 of my series of 7 points to do due diligence on in YOUR business to ensure that it’s YOU who gets the investor on board. If you’ve missed any of them you can simple subscribe here and get them all: “#1 Secret to Building a Multi £Million Investor Bank.
Okay…..so one of the key things an investor wants to know, is if something goes wrong, what have you got in place to protect their investment? To not only make sure that they get their investment back (at the very least) but to demonstrate how you will still have the ability to make the profit return as if nothing had happened.
And this is key – it’s very basic stuff like you’ve heard me say so many times in my trainings and it’s not rocket science – but it’s crucially important.
Exits, Exits, Exits…….
I can’t stress enough how important this is and you’ll need to drill down on each one. Don’t just have 1 or 2 or 3 exits– have as many as you possibly can and this will all tie in to what we’re covering in this mini training series and what I’ve written about in the “#1 Secret to Building a Multi £Million Investor Bank” blueprint.
Refresh yourself with it, focus in on, because this is honestly gold.
So let me give you an example.
Let’s say that the market you’re focusing on is no longer buying. What’s your exit?
Let’s say that lending stops….like it did a few years ago, so what is it that you’ve got in place that allows them to still go on and exit the project?
- Could you rent and if so who could you rent it to?
- Understand your market and then if you went into the rental market is it professionals?
- Is it serviced accommodation?
- Could you turn it into an HMO?
- How would they know you could rent it to the HMO market?
- Show evidence of the potential end user demand and the returns
- How could you remortgage – who are the lenders?
- Can you then go into other exits with the building? Could it be sold to an investor?
- Prove it! – Validate and certify the exits to help them understand it.
We have a project we’re working on with some investors at the moment. We positioned it and worked it backwards from the beginning so that we know that they work for investors, they work for renters, they work for first time buyers, they work for serviced accommodation, they work for holiday homes, they even work for University students, there’s so many exit points!
THAT’s what the investor wants to know!
If plan A doesn’t work, here’s plan B, then C, then D, then E then F etc etc…..
Remember all through this series I’ve been showing you how to “de-risk” the project for your investor and this one is key .
If you can show them how this project you’re entering into with them has multiple exits, it means they can see how they can get their money back, it means they can see how secure their money is, and they can then feel that you’re the right person for them to invest with . So drill down on that, demonstrate that you have this covered off and that gives your investor serious confidence.
This is a B-I-G one – don’t underestimate the power of this – it’s huge!!.
Start using this and you’re going to see a big difference to your investor response I promise you!
Would love to hear from you over in our Facebook group – come and join the conversation – click here:
See you there!