BY LANCE EDWARDS— When you present a potential investor with a multifamily property deal, probably the number one thing running through the investor’s mind is how good the deal is and how good the person running the project is.
This is why you need to have a credibility kit for your multifamily property deal and a credibility kit for yourself.
The bottom line is that you are what the investor is evaluating. You need to know what to include in your credibility kits.
Credibility Kit for the Multifamily Property Deal
This is where you fall back on your deal structure sheet. You need to use the features of your deal to build credibility. You could have the property information packet, flyers, pictures of the property, and a summary of the attributes made available for the investor. Not only does this build credibility for the multifamily property deal, but it builds credibility for you and it is another way to prove that you have thought through the process for the investor.
Credibility Kit for You
Starting out, you will need to collect referral letters or recommendations from whatever occupation you are in right now. Do not hesitate to include problems you have overcome, and projects you have completed – even ones that do not involve real estate. Everything you have done adds value so be sure and be thorough.
As you gain more experience, you can make it more real estate specific. You can include trainings you have participated in. Be sure and include any clubs and associations you belong to. Also include any volunteer work that you do.
If you have gaps in your experience, you need to “borrow” experience. You can bring in partners and get testimonials on your partners. Testimonials on your contractors could be included as well.
Testimonials can be extremely powerful. You need to be sure and build in testimonials from everyone who is satisfied with you into your credibility kit. Get their permission to use it because this is an influential marketing tool that does not cost you a dime.
You can start by carrying a notebook with your testimonials to show people. You do not have to go to the expense of a website. That can come later.
Photos are also very effective. Include photos of properties that you have rehabilitated as well as a photo of yourself in flyers that you hand out.
The importance of building credibility cannot be stressed enough. Your reputation is at the heart of what you do and it will build with each deal that you close. Your credibility kits play a significant role in getting your name out there.