A good, solid base of investors is important if you are interested in investing in the real estate market, no matter if you plan to earn your income quickly through flipping houses or if you intend to earn a steady cash flow from rental housing. Getting the capital that you need from private investors is a viable alternative to working for years to pay off huge dividends.
The relationships that you build with your base of private investors are critical to your success as an investor in the real estate market. Here are some tips to help you build the best possible relationships with your private investors:
• Consistent correspondence is vital, even in the smallest form. You need to make an effort to send a statement to your investors each quarter, detailing how their funds are being used by your real estate investment company. Each statement should include the total amount of the investment, the interest that has been paid or accrued as well as show an annual return on the investment. Your quarterly statements need to have the look and feel of a professional. Be sure to include a personal note reaffirming your investor’s decision to invest in your company.
• Gifts are a great way to let your investors know how much they mean to you. Christmas, birthday and anniversaries are all occasions to celebrate with simple gifts of appreciation. A few hundred dollars a year is all it takes to keep your investors feeling special.
• Casual outings such as barbeques, picnics and dinners are a great way to get in some extra face time with your investors, and at the same time letting them know how important each one of them are to the success of your real estate investment business.
These are only a few ways to keep in touch with you investors and show them that you appreciate the decision that they made to support your company.
Property Options Australia
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Hi Sean,
This is very sound advice for keeping your private investors happy and committed. I think it’s just about making the effort to build genuine relationships where you value the other person.
Also, as long as the relationship continues to fulfill a need in each person; it will continue. I think this is true in real estate investment and life.
Investors are no different to the rest of us… show a little grattitude for their part and it will be reciprocated more than equal.
I don’t mean to critise but the last word of the first paragraph doesn’t seem to fit.
Like in any good business relationship it is important to build a good relationship to the people that give you the money to invest into property, so it is definitely a good idea to keep them happy.