
Approaching wealthy people as potential investors for your real estate business takes some thought and planning.
Approaching wealthy people and presenting your investment opportunity to them legally is kind of like, if you were a guy who was attempting to attract women into your life.
That being said, the first thing I would do when approaching wealthy people as potential investors for a real estate business would be to have several elevator pitches already designed and in mind for the types of people that you're likely to run into.
If you have a previous relationship with them, if you've already talked to them, if you've already bumped into them, if you've exchanged chit chat with them about their job, keep a file on particulars and information you know about them. It's great. It tells you all about human influence, how to find what motivates people, what people are interested in, and the principles of influence causing people to make one decision over another.
You could talk to people who sell cars, for example, and they'll tell you that if a black person walks in, they aren't going to buy a car.
Yet, those people have proven just by walking into the car dealership that they're interested in buying a car.
Let's get back to the subject at hand: approaching wealthy people as potential investors for your real estate business. It's simply throwing out a net and seeing if they step into it. Let them step into your marketing net, if you will, and then give them more information. You'll give that later-after you've established a relationship with these people. Remember, my advice is not legal advice; it's marketing advice. It's a loaded word that in our culture is highly priced-even by dumb people. If you're like me and you've got 25,000 or more people on your buyers list, you might only find 80 people who are willing and able to give you $100,000 or $500,000 and those people should hear from you regularly, whether you have a project to put them into or not. That doesn't mean the rest of the tens of thousands are unimportant, it just means you have to prioritize your time if you are looking to approach wealthy people as potential investors in your real estate proejects.
Other times, I'm completely oversubscribed, meaning other people invested.
Approaching Wealthy People As Potential Investors for Your Real Estate Business
Almost every business owner wants to see his/her business grow. If you are thinking about the future of your business you probably have more questions than answers. But making sure you ask the right questions in every area of your business should lead you towards solutions that can move your business forward positively.
These are all serious questions, which need addressing on a regular basis if your business is to continue on a pathway to success.
Choosing the right way to grow and the right strategy to grow through will depend on the type of business you own, your available resources, and how much money, time and sweat equity you're willing to invest all over again. If you're ready to grow, we're ready to help.
Step 1 Decide if you really want to be bigger
Hiring more people doesn't necessarily mean you'll have more time--in fact, the opposite is often true.
Could your growth hurt your business? Could my growth actually hurt my business?
The first thing you have to deal with is getting help and hiring the right people. You must set clear ground rules in advance and remind people that work is work and personal is personal.
Full-time or part-time? The other thing to think about, aside from the cost of full-time vs. part-time (benefits, taxes, etc.) is if you want/need these people as employees or contractors.
It also allows you to find the best people--not just the best people in your area.
Office space. First off, if you don't need the space, for example, if your small business is purely on-line or you don't ever have walk-in customers, why rent or lease space? So you need some space--what about a business center/business incubation center?
Equipment: Another killer of expansion is equipment costs. Time: Yes, that's right, time.
Step 4 Raising Capital
To grow beyond the start-up and initial growth phases, you will need capital to inject into your business. Keep your banker informed of all significant developments in your business and routinely provide copies of your annual business plans.
Revenue Stream Instead of selling equity to raise capital, consider selling part of the revenue of the business. In other words, investors advance loan capital and get repaid by way of a percentage of the sales of the business.
Direct Public Offering If your business has a strong relationship with its constituents (employees, customers, vendors and community), consider selling stock via a direct public offering.
Offer your business as a franchise or business opportunity.
Merge with or acquire another business.