Real estate syndication is the process of developing a pool of investors for funding a real estate project. So, technically, a syndicator needs to master the art of selling a concept, a real estate project that will bring profit shares to the investor’s accounts. However, closing real estate syndication deals is not as simple as it seems.
Most online courses and institutes may train aspiring syndicators in the paperwork involved. However, the ability to convince investors is the key to success in real estate syndication. There won’t be any paperwork possible without raising funds from potential investors.
Then, how can syndicators close deals faster? Are there any special techniques to pitch real estate syndication deals? How to close real estate deals efficiently? To succeed in real estate syndication consistently, syndicators must apply some crucial strategies to attain better results.
Here are the top 5 ways to do that:
1. Draw a Marketing Strategy
To close more real estate syndication deals, you must keep working in multiple directions. Keep finding profitable deals, keep finding potential investors, attract the potential investors to your ongoing or upcoming deals, and manage current deals effectively.
Spread your marketing efforts to find real estate deals and investors across multiple channels. To succeed on all these fronts simultaneously, adopt the latest technology-driven solutions like real estate syndication software. The solution helps you bring all your operations to one single user-friendly dashboard.
Make effective use of social media channels, forums, your network in the industry, and other sources to popularize the real estate deals. This multidimensional approach helps you get leads from various sources.
2. Listen To Them Carefully
Every accredited or non-accredited investor would have their own goals and priorities. Make them express their goals and intentions beforehand. Understanding the needs of your investors should be your top priority.
This communication may occur through an email newsletter carrying a questionnaire, a face-to-face meeting, over a phone call, or over an online virtual session. You must be a good listener first. That helps you present your idea as a solution to their needs and wants.
Segregate your prospects based on their investment capacity, location, property class they are keen to invest in, and financial goals.
3. Pitch Your Project Aligning To Their Needs
Usually, your project summary would be listed on the dashboard of the real estate syndication platform and other sales collateral you keep distributing to attract investors. Most importantly, along with the technical features, amenities, and further crucial details, your pitch must target the investment goals of your audience.
If you are pitching the idea to a prospect, try keeping first things first. Let the potential investors know what they will gain, how the project is profitable, and what period. Sweeten your deal to make it an offer the prospect would never want to reject.
Queries of accredited investors and non-accredited investors regarding the project might be entirely different. Try to include answers to common questions in your pitch itself. That helps you convince the investor and close deals faster.
4. Build Trust
Trust you develop among your pool of investors plays a crucial role in closing deals faster when the time comes. Following business ethics, best management practices effectively and consistently, and keeping your prospects updated about the real estate syndication deals should be integral parts of your work culture.
These factors help you build your rapport with the prospects. At the same time, they would feel closely associated with you, as you would be reaching their inboxes very often.
So, as and when the real estate fundraising process starts, they would be prepared for that. Thus, effective communication and trust help you close deals faster in the long run.
5. Understand and Implement Closing Techniques
Though closing real estate syndication deals is a process, you may get limited time to actually interact with your potential investors. Syndicators need to strategize your sales communication following some powerful closing techniques:
- Summarize
Emphasize the plus points in your real estate deals assertively.
- Sense of Urgency
Sometimes, you may need to make it a now-or-never kind of an offer to close deals faster. You can compel (without being pushy) investors by asking them to grab the investment opportunity right away.
- Ask the right questions.
Analyze their goals and ask the right questions that help them decide to be a part of your real estate syndication.
- Wrap up the real estate syndication deals innovatively.
Negotiate innovatively. Present your real estate syndication deals to create a win-win situation.
The Takeaway
The article covers the 5 ways to close more real estate syndication deals. We hope that the techniques briefed here will help you generate more leads and quickly take the leads through the sales funnel to close deals faster. Adopt the best real estate syndication platform to automate your workflow and get better results as a real estate syndicator.
