How Property Reports Can Help 'You' Attract Investors

Finding a potentially good property deal is only half the battle.

If you want other people to invest alongside you, fund a purchase or take your opportunity seriously, you also need to present the deal properly.

An investor doesn't just want to hear:

“I’ve found a great property.”

They want to understand why it could be a great property, and that is where software reports such as those created by Property Stalker can make a real difference.

Investors Want Evidence, Not Just Enthusiasm

When presenting an opportunity to an investor, credibility matters.

You may have spent hours researching a property, checking the area, looking at comparable properties and working through the numbers; But the investor wasn't there while you did that work.

They need to be able to look at the opportunity and quickly understand:

• What is the property?
  

• Where is it?
  

• Why has it caught your attention?
  

• What do the numbers look like?
  

• What evidence supports the potential value?
  

• What are the risks?
  

• What should be investigated further?
  

A report created by an App such as Property Stalker helps bring that information together into a much more professional package and provides insights to that potential investor; this may currently be provided in a Word document or PDF

Turn a Property Lead Into an Investment Proposition

There is a big difference between sending an investor a Rightmove link and presenting them with researched information about the opportunity.

A property listing is designed to sell the property.

A Property Sourcer’s job is to help an investor assess the deal.

A Property Report can help you move the conversation from:

“Have a look at this property.”

to:

“Here's the opportunity I've identified, the research behind it and the information we should consider before deciding whether to proceed.”

That's a much stronger starting point for an investor conversation.

Make Your Research Visible

One of the biggest advantages of producing a report is that the work you've done becomes visible.

Instead of trying to explain everything over WhatsApp, email or a phone call, you have something tangible that you can use to walk an investor through the opportunity. That can be particularly useful for property sourcers, developers and investors who regularly present opportunities to other people.

Over time, the quality of the opportunities you present - and the way you present them - can become part of your reputation.

Help Investors Understand the Numbers

Investors ultimately need to understand the financial case, and that doesn't mean presenting the most optimistic possible outcome; In fact, a credible investment presentation should do the opposite.

It should make it easier to question the assumptions.

What happens if refurbishment costs are higher?

What evidence supports the expected resale value?

What costs haven't been included yet?

What happens if the project takes longer?

A good report gives you a framework for having those conversations, and that is much more useful than simply announcing an attractive headline profit or ROI figure without showing the thinking behind it.

Highlight the Risks as Well as the Opportunity

This is important; A professional investor isn't expecting a property deal to be risk-free, and they are expecting you to have thought about the risks.

Presenting potential issues doesn't necessarily weaken your pitch; Done properly, it can demonstrate that you're approaching the opportunity commercially rather than becoming emotionally attached to a deal.

The report can also become the starting point for further due diligence; It doesn't replace solicitors, surveyors, valuers, planning consultants, accountants or other professional advice where required.

Instead, a Property Report helps identify the questions that may need answering before money is committed.

Make Investor Meetings More Productive

Imagine approaching an investor in two different ways.

Approach One\

“I've found a property for £300,000. I reckon we could do it up and sell it for £425,000. Interested?”

Approach Two

“I've found a potential opportunity - Prepared a Property Report so we can go through the property, supporting research, numbers, assumptions and potential risks together. If it still stacks up, we can decide what further due diligence we need.”

Which of the above conversations feels more professional?

The second approach isn't about making the deal look perfect, and it's about giving the investor something they can actually evaluate.

Your Report Can Become Part of Your Personal Brand

If you're regularly raising money, sourcing opportunities or building relationships with investors, presentation matters; You want to be associated with opportunities that have been researched rather than simply forwarded.

A consistent reporting process can help you develop that reputation and become the person who constantly messages:

“I've found another amazing deal!”

you want to become the person whose investors think:

“When they send me an opportunity, I know they've done some homework.”

That's a very different position to be in.

Don't Use a Report to Sell a Bad Deal

There is an important point here; A professional-looking report cannot turn a poor investment into a good one, and it shouldn't be used to hide uncertainty or make projections appear guaranteed.

Property investment involves risk; Values can change, costs can increase, planning assumptions can prove incorrect, and circumstances can change. The purpose of a ‘Property Research Report’ is to help in organising and communicating information about an opportunity.

The investor still needs to make their own decision and carry out appropriate due diligence.

The Real Product You're Presenting Is Confidence in Your Process

Investors aren't only assessing the property; They're also assessing your or your business's credibility.

How did you find the opportunity?

How thoroughly have you researched it?

Do you understand the numbers?

Have you considered what could go wrong?

Can you explain your assumptions?

And when you don't know something, are you prepared to say so and investigate it?

A Property Stalker ‘Investor Insights Report’ can help demonstrate that process and not simply display property information.

Because ultimately, attracting investors isn't about producing the flashiest pitch; It's about giving people enough credible information to decide whether an opportunity deserves a closer look.

Find the opportunity - Research the deal - Present the evidence; Then let the numbers and the investor do the talking.

This article has been written by Christopher May of Property Stalker and Golden Trust Capital; Feel free to give him your feedback at [email protected]

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