A real estate investor network is a community of investors who provide financial support and solutions so your firm can flourish. All successful real estate investment firms, from general partners to large syndications, have a network they can rely upon when they need to secure capital. Establishing and maintaining these relationships is critical when developing a portfolio of real estate investments.
Below, learn how to build and sustain a network of real estate investors and discover a real estate CRM investor management platform that streamlines these processes.
Why Should You Build a Real Estate Investor Network?
Growing an investor base is one of the most significant responsibilities of your real estate investment firm, even if you already manage large property deals with returning investors. An investor base provides you with a financial safeguard. You might be able to afford the costs of some investments, but an ever-expanding group of investors can lead to new opportunities for growing your business. As the market continues to swell post-COVID, competition for real estate investments is fierce, with investors already owning 74 percent of rental properties in the United States. Investors provide much-needed capital to secure properties in a seller's market.
Going it alone means you won't have to answer to investors, but what about the costs of acquiring, listing and managing future properties? Your business can go only go so far without an investor base. A lack of capital or funding is one of the four most common reasons businesses fail.
A network is not all about financing.
Investors provide support, expertise and resources as you expand your portfolio. You can access contractors, property managers, real estate agents and mortgage brokers. Do you need advice about the hottest markets, emerging neighborhoods or properties that provide the highest ROI? Consult your network.
How to Grow a Real Estate Investor Network
Here are some tips for growing your network:
- A real estate investor network should be one based on trust. Improve credibility and generate more lucrative financial opportunities by proving yourself to potential investors. Post about high-value real estate investments on your website and social media pages. Network with investors on Reddit and community forums.
- Establish yourself as an industry leader on social media. Share your knowledge. Provide investment tips. Boost credibility. More than one-third of young investors use social media for investment opportunities.
- Try not to beg for capital or appear desperate. Investors will be more interested if you can exhibit your past achievements and future goals. Integrity is one of the character traits investors admire the most.
- Maintain relationships with all your investors, even if you don't think a particular partner can offer you much in the way of capital. Communicate regularly, talk about your progress during conferences and reach out if you need help. You're unlikely to secure any funds if you lack a business model or plan.
- Real estate investments are generally low risk. However, understand the terms and conditions of every proposal from investors.
- As your firm grows, so will the investment opportunities that come your way. Software solutions such as Agora’s real estate investor management platform helps with this. The portal lets you reach out to the right investors, manage partnerships and track fundraising campaigns from an easy-to-use dashboard. You can also collect signatures from investors, which can speed up processing and closing times. Book a demo here.
Factors That Impact the Growth of Your Real Estate Investor Network
Building a network can be tricky because each investor has different objectives. However, treat 'old' and 'new' investment opportunities equally. Just because a recent investor offers you more favorable terms than your first investor — perhaps because your investment firm is in a better financial position than when you started — don't play favorites. It's called a network for a reason and everyone has the same goal: To make money.
Keep your original investors sweet if you want them to spread good feedback about your firm, which, in turn, will attract even more profitable investor opportunities. The possibilities are limitless for everyone involved: Ninety percent of the world's millionaires have got rich by investing in real estate.
How to Leverage Technology to Maintain Your Network
Technology automates many of the tasks associated with real estate networks, from registering prospects to tracking real estate investments at different stages. Many investment firms use a customer relationship management (CRM) system for the administrative side of maintaining a network. Ideally, look for a more tailored software solution.
Agora's industry-leading investor management platform helps you build and maintain your investor base so you can free up time in your firm and focus on other tasks. This dedicated real estate CRM for investment firms comes with a built-in shared data room and manages almost every aspect of your investor operations, from sending Schedule K-1s to automating fundraising campaigns. Plus, it offers ISO compliance so you can safeguard your most sensitive data.
Every real estate investment firm needs a network of investors to thrive. By developing an investor base, you can increase financial opportunities, grow your portfolio of properties and establish your firm as an industry leader. The right technology will remove many of the problems associated with building a network, resulting in even more success for your organization.
Accelerate your investor base growth with Agora, the only investor management platform that makes real estate investments more profitable and more efficient. Book a demo here.