Questions That You Will Be Asked While Presenting an Apartment Deal

9 months ago

I would like to start by recommending the real estate beginners to start small. You should look for the smaller deals with low risk rate in order to get better knowhow about your level and industry position. This way, you will be able to learn about the game of investment without consuming your resources in a risk taking practice. Moreover, this approach will help you to initiate your career with a successful track record as an investor or landlord. The advantage of following this approach is that you will be able to start business with your own raised money or with private loans. By maintaining a successful track record from the start, you will find it easier to expand your business up to a level of apartment complex management and then you can logically expect investors to contact you.

With that said, a different game of investment business involving partnerships initiates. As a property owner, you would have a few questions that you may like to ask from your investors. In return they would ask you a few questions, and if you listen to those questions carefully, you will realize that they are asking the same questions you asked them. It’s really not a matter of surprise because you and potential investors are looking to do the same business and, hence, the concerns would also be the same.

The three questions that you will be asked, may be with the different wordings, are as follows.

Are you a trustable person?

Since it’s the harsh question, it is worded differently and you need to understand what answer the investor is really looking for. The investor might ask about your track record or he/she might ask for the past references.

What is the way my money will be protected?

If it is the private loan deal, you may be able to answer this question fairly quickly and easily. But if you are going to take investment in order share ownership of an apartment building, this question is surely the complicated one to answer. What you really need to be good at is giving proper explanation of the real link entity structure and their association with the investment that they have made using their ownership of LLC or LP.

When will I be able to get my money back?

The above questions may be related to virtue of parties involved in business but this question is purely about the deal. The main focus in this regard is on the exit strategy or terminating the deal by returning capital to the investor. If you have answered the first two questions satisfactorily, you may be in a position to talk about financial returns.

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