If you’re a property investor and you’ve been following my 7 step series on how to build a multi £million Investor bank then today I’m talking about how to make the deal “stack” to your investor.
To be the one who walks away with the investors money you need to make sure you’re able to demonstrate how you carry out due diligence when buying a project – something I’m sure you’ve heard many times is “you make your money when you buy it” so… What makes this deal you have stack up – and more to the point – what research did you do to come to your conclusion?
So I’ve just finished up a session with a client for today and some basic stuff that’s come up that I think will be valuable to share with you today about buying your projects – your property. It’s really powerful and has been really significant with this client where he’s ended up with key investment so I wanted to share this with you in case you’re overlooking it.
Show your findings, show your workings out of how you go about choosing your project. Show them that you look at the market in a wider sense – so you understand the moving market – for now there’s some uncertainty – how have you factored that in?
Show them the actual market you’re buying in and the niche, the exits around that and how you’ve structured your offer and what does it reflect? Have you taken into consideration that there’s lots of down valuations happening at the moment and what that adjustment means and how you’ve compensated for that? And how you’ve negated it effectively with your exits. There’s lots of work that goes into putting in your due diligence and getting it right and if you show them you know your “stuff” then show them because that’s hugely valuable to someone who’s going to invest their money with you.
So consider areas like how you’re certifying the information you’re getting around a project – are you using powerful data platforms -that’s key at the moment, to be tuning in to data platforms to be getting your information. It’s effective, it’s up to date, it’s quick and it’s accurate and provides you with the complete overview of the project.
With the client we’ve just worked with, this was key when he approached one of his investors as his investor recognized that by investing with him, that he had not been buying emotionally – the deal stacked up. The figures, understanding the market, how they were going to profit from it, the exits, so the overall message I want to get across here is to share your due diligence, tell them how you go about it, tell them the story of how you approach a project and what it means to them it gives them a lot of confidence in you and the investment itself and allows them a natural hook and interest to want drill down.
Make sure when you drill down you know your stuff. If you know your stuff share how you got there.
I hope you’re enjoying these videos because this is part of the training that we give our mentees and it’s coming off live results that we’re getting with them.
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