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Stop Guessing! Here's the Ultimate Key to Attracting Accredited Investors to Your Real Estate Fund

November 15, 20235 min read

In the world of raising capital, success hinges on finding the right investors to partner with.

But here's the million-dollar question: do you know who your ideal investors are? Do you know what they do? What motivates them? What their investment goals are?

If you're not specific, you might be missing out on a key ingredient for your success—your Ideal Investor Profile (IIP).

What's the Deal with the Ideal Investor Profile (IIP)?

Think of your Ideal Investor Profile as your secret weapon. It's like having a treasure map that guides you to your dream investors. In simple terms, your IIP is a detailed portrait of your ideal investor, complete with their preferences, motivations, and investment goals.

Now let’s get straight to the point. Why does your IIP matter?

1. Laser-Focused Marketing

Imagine you're at a shooting range, but instead of having a high-precision scope on your rifle, you're using a blindfold. You take a shot, and it could hit anywhere, but more than likely, you'll miss the target. This is what it's like trying to market your real estate funds without a proper advertising strategy.

Having your Ideal Investor Profile in hand is like having that high-precision scope. It allows you to zero in on your target audience with pinpoint accuracy. You know exactly who your ideal investors are, where to find them, and how to appeal to them. No more wasted resources on generic, one-size-fits-all marketing campaigns. You can tailor your messages, advertisements, and promotions to resonate specifically with your ideal investors, ensuring that every marketing effort hits the bullseye. It's efficient, cost-effective, and maximizes your marketing ROI.

2. Speaking Their Language

Ever had a conversation where it felt like the other person could read your thoughts? It's a powerful and rare connection. Your IIP gives you the ability to create that connection with your investors. When building out your advertising campaign, make sure your creative, copy, and targeting options are aligned with where your target investors are within their investment journey. Your ad campaigns would look different if you’re providing educational content around the benefits of investing in real estate, compared to an ad campaign tailored specifically to investors who are ready to commit.

3. Boosted Conversion Rates

When your marketing efforts are aligned with your ideal investor's profile, you're attracting individuals who are genuinely interested in what you have to offer. When you’re running a campaign specifically to raise capital, this strategy will bring you serious accredited investors who are actively evaluating offerings, not casual browsers. As a result, you have better conversations and conversion rates soar. You spend less time and money fielding inquiries from tire-kickers who may not be a good fit and more time closing deals with investors who align perfectly with your opportunities. It streamlines your sales process and leads to faster, more substantial investments.

We’ve seen lead to close times (that’s funds wired) as quickly as 4 days. And that’s in today’s economic environment. Of course, our past performance does not guarantee future results and your experience may differ.

4. Building Trust and Relationships

Imagine you're at a networking event, and someone you've just met seems to know your interests, your goals, and your preferences in great detail. You'd likely feel an immediate sense of trust and connection with that person. In the world of real estate syndication, this kind of trust and connection is gold.

When you know your ideal investor inside and out, you're not just selling them something; you're offering them a tailored solution that aligns with their financial aspirations and personal values. This builds a foundation of trust from the very beginning.

Two tips on building trust and relationships:

  1. Mindset: your job is to ensure that your investment opportunity is the best fit for their goals. This means that it’s your job to disqualify the prospect as much as it is to qualify them. It’ll save you time trying to align something that doesn’t, and also builds even more trust with the prospect because when the right opportunity does come up, the investor will know you have their best interest at heart.

  2. When building relationships at scale, video is your friend. Videos give potential investors an opportunity to see and hear you, which let’s their gut know if you align with their values. If there’s a match, they’ll feel an instant attraction and you’ll give them this kind of a “I’m talking with a celebrity!” feeling. Video should be created in every step of the investor journey, and when jumping on a call with an investor.

So what specific information do you want to uncover when creating your Ideal Investor Persona?

  • Do you have a brand or a fund that’s specific to a demographic quality? Like one that’s aimed to empower women, for example.

  • Are you looking for accredited investors for your 506c or sophisticated for your 506b?

  • Are you looking to educate new investors or provide more experienced investors with options?

  • Are you looking to reach investors with minimum investment amounts of $25,000 or higher $100,000?

  • Are there any specific motivations your investors should exhibit? Like those looking to correct their exposure in the stock market or those looking to defer capital gains through a 1031 exchange?

  • What about goals? Are your investors looking for cash-flow, appreciation, or a blend of both?

  • Same goes for asset class, investment strategy and risk tolerance.

  • And of course, when you establish a personal connection, are you getting to know why your potential investors are interested in passive real estate investing?

This might look a lot but yes, this makes a difference to the tune of 10x ROI on your advertising and marketing spend.

If you’re a sponsor with at least $300M in AUM who is looking to raise capital from accredited investors for your real estate fund, schedule your complimentary strategy session with us by visiting raisereadysystems.com/call.

So, stop guessing and start moving.

Talk to you soon.

Vitaliy comes from an investor experience and product design background. He is a passive real estate investor and co-founder Raise Ready Systems on a mission to raise capital from accredited investors. Vitaliy enjoys teaching, photography, traveling, and design.

Vitaliy Gnezdilov

Vitaliy comes from an investor experience and product design background. He is a passive real estate investor and co-founder Raise Ready Systems on a mission to raise capital from accredited investors. Vitaliy enjoys teaching, photography, traveling, and design.

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