As a real estate investment firm, the ability to scale and grow your business comes down to a few things; access to good deals, efficiently managing the investor origination and reporting process, and the ability to broaden your investor base.
The investor management process can be solved by technology, deal flow is driven by on-the-ground partners, so the real challenge is expanding your investor base. The reality is that people want to invest in people they like and trust and it takes a lot of time and effort to build meaningful relationships with every potential investor.
At Atlas, we’ve been spending a lot of time thinking about how to build an online presence that resonates with potential investors and turns strangers into advocates and investors. Here are a few of the things we’re focusing on:
Always Look Your Best
Many investors first interaction with your company is through your website or online presence. Not only do you need great web design, but firms can build credibility and relate to potential investors through the team’s background, personal interests, track record, competitive advantages, social mission, and investment philosophy. Perhaps you’re an avid skier or deeply involved in non-profits focusing on solving homelessness; potential investors may connect with you through these passions.
Investors Want Great Reporting
Our investors love the deal-by-deal optionality we provide which enables them to create their own diversified portfolio. In addition to our quarterly asset-level reporting, we also provide portfolio level returns for our repeat investors. We’re working on implementing technology to provide a more in depth and seamless reporting process. At the end of the day, our investors are our clients. We want to ensure they have a great experience investing with us.
Create a ‘Cool’ Factor
Many HNW people invest on emotion so it’s important to create an emotional connection. At Atlas, we commit 1% of our upfront fees to select charities like our current partners focused on ending homelessness and strengthening communities.
Other things to consider:
– Under promise and over deliver – sweep your investors off their feet with a surprise
– Encourage Feedback and listen
– Educate the investor.
If an investment firm can successfully convey these elements (in addition to executing good deals), they’ll be able to organically grow their investor base.