Quick! What's your elevator pitch?
I've got about 30 seconds but tell me what it is you're working on and what you need from me. Ready. Go!
Can you do it?…Can you tell someone what you do and how they can help you in just 30 seconds? And I don't mean just start spewing whatever comes to mind.
What I mean is you need to have what's called an elevator pitch – it's a clear, concise message that grabs a prospect's attention and makes them want to find out more while spending about 30 seconds on an elevator.
30 Second Pitch Key to Getting Private Investors & Financing
Why? Because other people you meet and already know are your best sources of financing. Let's face it. You will always be looking for additional money to fund your deals. Even Bill Gates, Warren Buffett, and Donald Trump have to raise money.
They still need financing from investors to run their businesses and to implement their dreams of buying new businesses, building new products, and expanding their services.
None of that will happen if they don't have people willing to finance them.
You may even be thinking, “But I'm not Bill Gates or Warren Buffett! I don't have a track record like those guys Russ. It's easy for them to get money, especially when they don't need it.”
True. It may be easier for them but again that shouldn't stop you from pursuing your dream!
Why? Because I've found that if you have a good story to tell with a logical plan that tells investors in plain-English your investment strategy and how you can give them a return on their money, financing won't be nearly as tough as you think.
Sell Your Investing Ideas
You have to sell your ideas! That's how you get the financing you need.
Before a company goes public and gets listed on a stock exchange for others to invest, they go on a whirlwind road show. I once launched an Initial Public Offering so I know firsthand what the experience is like. And after all the numbers are crunched and all the projections are made, the biggest thing investors want to hear is your “story.”
They want to hear about your previous success and how you intend to give them a return on your money.
Of course, they want to study the numbers too, but just as importantly they want to be able to tell their spouse, friends, and family members how smart they are because they invested in an innovative idea that will make them money.
The same is true in real estate or any other business in which you're trying to get the financing you need. You must have a short story; similar to an elevator pitch that you can tell people and get them interested enough to say tell me more.
Here's my story…
“We invest in multi-unit, low- and moderate-income properties where the markets are more stable and more predictable. We buy the properties at a substantial discount, fix them up and that increases the value of the property right away so we can get a quick return on our investment if you want or we can choose to hold it. Most of the time, we prefer to hold the property for at least 3 to 5 years and generate positive cash flow from rental income. We also have other profit centers built into our business model so we can usually get a 50% to 100% return on our investment. We're always looking for other investors so we can purchase more properties so if this is something that interests you, let me know and I can tell you more about it.”
The key is to explain your strategy and show how a potential investor can also make money by working with you. And then offer a carrot or teaser at the end of your pitch that leaves them asking for more.
Try it and I guarantee you'll get the financing you need.