Does anyone have a good email introduction letter that has been successful? I have found a good project, but my email presentation to potential investors needs some help.
Hi,
What kind of letter? Are you looking to wholesale this property? Are you looking for a partner to fix & flip? Are you looking to sell this on a contract for deed or lease option? Is this a sandwich lease property? Are you sub-leasing this property? Is this inclusive of an operating business?
GR
Investor introductory letter. I have a project and I am sending an email to my potential investors. I need to tell them about the project, how much I need and what they get for their participation.
Hi Wayne,
So you would like me to send you an investor letter about investing in Condo's?
GR
I would suggest you simply start by capturing the attention of your prospects by offering to split “x” dollars in profits on your “x” project.
New guy here. SO not sure if my two cents counts yet. But do you have any type of a website or at least online presence / resume of any projects you’ve done? You can have the best intro letter ever but people are going to want to see a history and something tangible online.
Will
Always include some recommendations in your letter
What type of project? A full demo rehab? Or is this an investment that you want investors to go in on with you?
Also, do you already have relationships with these investors or is this your first time reaching out?
I have a 20 slide powerpoint that I sent out raising money for renovation projects that I’ve done in the past, but I wait to send that out until I know that they are at least interested in hearing more.
Like mentioned above, I would send an initial contact to the investors (whether that’s email, text, or call) giving them a few initial bullet points about the project. What you need. What they will get in return. And then ask if they want to hear more details OR if they know anyone who they think would be interested.
I think that is generally true what you say, but it’s not always true, and it wasn’t true for me, when I first started going for partners.
What I did was simply talk to a guy in my church that developed real estate, and told him that I needed a partner to help me reposition my apartment complex. He wasn’t interested at the time, but he knew of another person that might be. I called that guy, and he knew another guy who was prepared and able to invest in the project …without knowing anything about it at the time.
I met with the money guy and told him what I had. It was a completely non-performing property that I was willing to split the profits 50/50 if he supplied all the working capital. I took him on a tour of the property and explained what I had in mind. He like it, and gave me the money. I did all the grunt work, and all he had to do was wait for his money. He and I made a fortune (I made less of a fortune, because I didn’t know to negotiate my own pay while I was doing all the work, but you learn.)
Bottom line: Get the project under contract, start calling people with money and get referrals until someone says “Yes.” Experienced real estate financiers don’t need a lot from you, except safety in the event you bail. So, you just make sure they understand you’re in it to win it. Otherwise, greed pretty much overcomes all the downside risks.
Speaking of partnerships … I would avoid those if possible. I would instead offer and pay a great interest rate on a loan. Interest paid is usually MUCH cheaper than offering a percentage of the profits. Just saying.
Use a compelling subject line
Use a compelling subject line. Your first email to an investor could be the only opportunity you’ll ever have to get the fund’s attention. That means you don’t want to waste it by using an email subject line that’s easy to ignore or one that could end up in the spam folder.
If you’re emailing for the first time, make that clear with a subject line like, “Introducing [Startup Name], [brief description].” Keep the description to as few words as possible, since most email clients will cut off lengthy subject lines.
If you’re seeking funding for a later round, make that clear in the subject line, too. It can be as simple as mentioning your startup name and brief details of the funds you’re raising.
I don’t know the size of your project and how much capital you need, but I can 100% tell you that doing coffee meetings or phone calls is going to be WAY more effective in raising funds.
I would always start with a better form of communication than email. After you’ve met people in person or at least over the phone, you can then follow up with an email with more info.
If it were me I would be doing an investor intro over the phone. This is a much better way to get their attention and gives you the chance to show them you are credible. You should then send the email with all the deal details broken down for them.