How Real Estate Firms Can Organically Attract Potential Investors

Joe Stampone Start a Company 9 Comments

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.

Click here to learn more abut running your own real estate investment firm. 

  • dkoh

    Thanks Joe, this is a great and well-written article. I completely agree with how the “under promise and over deliver” philosophy helps build confidence and trust with investors. The “always look your best” point could be extended past the website to how the company portrays itself professionally as well – in terms of how employees carry themselves, dress, behave and communicate.

  • Charlie M

    Interesting article, but I think that the importance of ‘looking good’ is diminishing with the next generation of professionals entering the job market now. The old salts in the corner office may see importance in a fancy suit every day, but it seems more and more firms are relaxing dress codes and the related old-school mentality to make their young employees happier and more productive. Other than for important meetings or presentations, my suit sits in my closet and collects dust, and I couldn’t be happier.

  • Hey Charlie, thanks for reading. The “always look your best” sections refers to your online presence. Atlas actually prides itself on being comfortable and bucking the “suit” mentality.

  • I definitely agree. But the key is that the branding should be consistent. Don’t try to portray something online that is far from the reality of the firm. Thanks for reading!

  • Clover Builders

    Interesting and very knowledgeable article.Thanks

  • Proffit development

    Excellent post! Ideas presented here are practical and having strong point. Worth reading and is highly commendable.

  • NagaCity RealEstate

    Good and knowledgeable article! I actually enjoyed reading this! Thanks

  • Snowy

    Mind boggling post. Here the ideas are analyzed very beautifully.

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