How can real estate sponsors reach family office investors?

Short answer: Richard says a $40 million check equals 400 checks of $100,000. For a sponsor whose investor database can't meet the scale of an opportunity, he describes using a larger group's balance sheet and credibility to help take down a portfolio.

At a Private Investor Mastermind closing session, Richard C. Wilson answers a real estate sponsor's question about reaching larger check investors.

Richard on sponsor credibility

Richard says most sponsors lack a one page pitch or video that explains their vision. He recommends an institutional look and feel, a credible track record and an association with a respected person or group in the field.

Richard on searchable investor mandates

Richard says the club has searchable investor mandates, conference recordings and 52 niche investor databases for VIP members. He describes one member who followed up persistently using the databases and secured checks of $8 million and $40 million.

Richard on personal outreach

Richard calls a mass email blast the worst use of an investor database. He recommends checking who is near an upcoming trip, then sending a direct note with a specific reason to meet and a clear account of how you could add value.

Richard on relationship timing

Richard says one client took six years to close a first deal, while another deal closed two months after meeting. He advises sponsors to move quickly when an opportunity is present while allowing time for relationships to develop.

"The worst use of a database of any type that you get access to is just to send out an email blast to everyone"