It is important to understand the space you are operating in and the target audience when pitching a project to investors. Anticipating the questions investors will ask can help make a more compelling pitch.
When pitching a real estate investment to potential investors, it is important to gauge their interest in advance by sending them a teaser deck or sales sheet. This will save time for both parties if it becomes clear that the investment is not a good match for the investor.
Michael Doyle is the founder of Brand Iron, a company that specializes in creating pitch decks for investors, real estate developers, and other business professionals. In this podcast episode, he talks about the importance of pitch decks in today's business world. He stresses the importance of telling the right story and being persistent and consistent in order to be successful. He also talks about the importance of branding the content of the pitch deck, in order to make a lasting impression on potential clients or investors.
Michael discusses the importance of telling a clear and concise story in order to engage potential investors. It is recommended that presentations be kept to 20-25 slides in order to avoid overwhelming investors with too much information. The financial story should be highlighted, with a buildup to a peak or crescendo, followed by a tight close that reiterates the main value points of the investment.
He discusses the importance of researching one's target audience and understanding their needs in order to create a successful pitch deck. He also mentions the importance of understanding the target investor and tailoring the pitch deck accordingly.
In order to raise capital for a real estate project, it is important to have a clear and concise pitch deck that outlines the model and financials involved. The pitch should include information on the product type, the expected returns, and the timeline for the project. Additionally, it is important to consider who the target audience is for the pitch, as this will help to tailor the information included.
This highlights the importance of research when pitching a new or different type of project to potential investors. The pitch deck should convey that you understand the marketplace, the model, the targets, and the financial potential returns. Going to different markets and seeing similar projects that have been completed can help investors feel more comfortable with a new project.
Michael recommends that if you are pitching a redevelopment project to investors, it is important to have experts on your team who can answer questions about the project, even if those experts cannot be present at the pitch itself. Other critical elements of a successful pitch include addressing entitlements and having a strong branding strategy.
It is important to have a professional and well-designed pitch deck when trying to raise capital for a real estate investment, as most projects never find investment. The pitch deck should be consumer friendly and tell a story that is easy to understand.
