20 Questions for Prospective Investors

Sep 12, 2023

Ask episode

Chapters

Transcript

Episode notes

Most new real estate investors find it intimidating to talk with prospective investors to raise capital for their note or other real estate deals. What do I say or ask them so I don't look like an idiot? The answer to that question is pretty easy if are coachable and understand that it's more about asking questions an listening to the answers than looking like you know everything.

But unfortunately, if you are new to this side of business it can feel very uncomfortable the first couple of times you end up talking to a funding partner. So that's why we decided to share our version of 20 Questions For Prospective Investors to help you take the guesswork out of your prospecting.

20 questions to ask a prospective investor in the 1st and 2nd calls as you build trust and relationship.

1. Have you invested in (insert what it is your proposing / real estate, oil/gas, etc.) before?

a. How did that turn out for you?

2. When you invest, what are you looking for? Appreciation, income, tax benefits?

3. What's your time horizon? Are you comfortable with an investment of 3 to 5 years?

4. What has made the biggest difference amongst your most successful investments?

5. Tell me about some of your most successful investments?

6. What is your top concern?

7. If you could own this in your IRA/ qualified plan, would you invest?

8. Who are you connected to that we should meet? (Typically asked after they invest - get referrals)

· 9. What is the typical size/ amount of the investments you make?

10. How diversified do you think your investment portfolio is?

11. Are you looking for less volatility in your investments? Would you want something that has more predictability to it?

12. Can we do anything to improve our presentation/ pitch deck? (Inquire after they invest - get feedback)

13. How does this fit within your other investments?

14. What other investments do you have?

15. How important is liquidity to you?

16. What value might you add to my business other than an investment? (Can they contribute expertise in any way)

17. How important are the "tax benefits" of an investment? Would you be interested in an investment that can reduce your taxes?

18. Do you rely on anyone else in analyzing and/or reviewing investments? (CPA, financial planner, attorney, or other) Volunteer to send materials to that other person as well.

19. Are you looking for income at this stage in life? (Ask this if your proposed investment will generate income for someone)

20. What is your tolerance to risk in the investments you make?

Watch the original video HERE!

Book a call with Scott HERE!

Love the show? Subscribe, rate, review, and share!

Here’s How »

Join the Note Closers Show community today: