Apr 12, 2024

How Great Sponsors Build and Maintain Investor Relationships

Megan Lamke
How Great Sponsors Build and Maintain Investor Relationships

Real estate investing via syndication has become an increasingly popular way for investors to pool their resources together and access investment opportunities they might not have been able to pursue independently. From raising capital by sharing investment opportunities to educating potential investors on how syndications work, being a skilled networker can net you longer, more positive relationships with a larger pool of private investors.

How?

Read on to learn how easy it is to network, build relationships with, and impress your potential and active investors.

As commercial real estate syndication sponsors ourselves, we know building and maintaining strong relationships with investors is critical to your success. Not only does it help you raise capital for your projects, but it also sets the foundation for long-term partnerships that benefit both you and your investors.

Key Ways to Build Relationships Throughout Your Real Estate Investing Journey

Your first role as a general partner or sponsor is to help investors understand the value of alternative investments and produce content that helps them anticipate the proper steps toward building a real estate portfolio that brings in reliable passive income. But before they'll listen to any of your advice, it's up to you to make a strong personal connection with them and establish trust. Here are a few suggestions:

  • Create a strong online presence — creating a strong online presence helps establish credibility and attract potential investors. This can include having a professional website that exhibits your track record, active social media accounts, and an engaging, consistent email newsletter.
  • Host investor events and webinars — hosting investor events and webinars is another effective way to connect with individual investors searching for a syndication deal and provide them with valuable information about your projects.
  • Personalized communication — showing investors you value their input and are committed to their personal success. Big crowdfunding sites lack personal touch and personality, and this is where you can stand out.
  • Regular updates on investments — providing periodic updates throughout the entire process - hiring contractors, construction progress, cash flow distributions, etc. - is another important step, as it helps limited partners stay informed and confident about how their investor money is being used.
  • Offer unique equity participation opportunities — offering unique real estate investment opportunities that align with your accredited investors' goals and interests can set you apart from other syndication sponsors.
  • Build trust and transparency — building trust and transparency is crucial in developing strong investor relationships. This means discussing securities and exchange commission regulations, exit strategy, and any risks in the real estate project.

Make Connecting with Commercial Real Estate Investors a Simple Process

As a syndication sponsor, you are responsible for finding the investment property and putting the deal together. Doing this legwork earns you asset management fees of anywhere between 1-5% of the property's gross monthly income.

Sponsors typically structure real estate syndications as either a limited liability company or limited partnership, which takes charge of managing the deal, and, crucially, updating the investors on the latest developments — and this last piece can prove VERY time-consuming!

This is where SyndicationPro comes in. SyndicationPro allows you to easily manage your investor database, share updates and performance reports, and communicate with investors in real time without spending hours on the phone or writing emails.

Easy Ways to Keep in Touch with Real Estate Syndication Investors

Maintaining investor relationships requires a dedicated effort to provide ongoing support, communicate transparently, and offer exceptional customer service. So, if you want to keep your investors happy, you need to keep those lines of communication open and build long-term partnerships with investors that benefit both parties.

Here are some ways you can show your investors you're genuinely concerned with making sure they're happy throughout the investment process:

  1. Provide ongoing support and education:
    Once you've established a relationship with your investors, providing ongoing support and education is important to keep them in your ecosystem. This can include hosting regular webinars, creating informative blog posts or newsletters, and providing access to a tax professional who can help them navigate complex investment decisions and how the tax benefits work in each investment.
  2. Offer exceptional customer service:
    Investors need to feel supported and appreciated, so offering exceptional customer service is an important way to provide this to your investors. This means responding to inquiries, providing regular investment updates, and promptly addressing questions.
  3. Address concerns and complaints promptly:
    It's essential to address concerns from investors as soon as possible. This will help prevent any small issues from turning into major problems and, in return, help build trust and confidence in your management style.
  4. Maintain open communication channels:
    Maintaining open communication channels with investors is crucial in building long-term relationships. This means being transparent about the status of investments, keeping investors informed of any changes or updates, and providing regular performance reports.
  5. Provide regular performance reports:
    Providing regular performance reports is an important way to keep investors informed about the progress of their investments. This can help investors make informed decisions about their portfolios while building trust and confidence in your investment strategy.
  6. Offering opportunities for continued investment:
    Offering further opportunities for continued investment is an important way to maintain relationships with investors over the long term. This can include offering new real estate investment opportunities that align with investors' goals and interests and providing access to industry experts who can help investors navigate complex real estate investments.

Save Time and Money with an All-in-One Investor Management Platform

Building and maintaining relationships with investors is essential for success in the world of real estate syndication. Syndicators who invest time and effort into building strong relationships with their investors benefit from continued investment opportunities, referrals, and positive word-of-mouth communications.

At SyndicationPro, we understand the importance of building and maintaining investor relationships. We understand working on these relationships takes time. While there are no shortcuts to creating a lasting relationship, there is a way to avoid headaches, wasted time, and stress with our real estate syndication software. Request your demo now.

We developed SyndicationPro as a powerful investor management platform to help you streamline your investor relations process. Our platform offers a suite of investor marketing tools to help you attract new investors and grow your network quickly and easily with minimal effort — leaving you more time to scope out the next big deal.

Frequently Asked Questions

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