When it comes to raising money for a real estate project, or finding real estate investors, most will want you to come to the table with a specific property. Although the management does play a role in real estate projects, especially
conversion and development, it is largely the property itself in many transaction especially related to lending and buy/hold situations. Therefore, it is important to communicate the information investors will request related to the
property depending on the type that it is including the location, type of property, projected financial indicators, and cash flow projections depending on the construction schedule.
Real Estate Pitch Deck
An effective real estate pitch deck shifts depending on the type of property or classification. For instance, developers may need short-term financing to cover their expenses associated with development. Those looking to acquire an
established property may seek out more conservative investors willing to fund the transaction, but many investors are interested in new development in hotels, resorts, and other commercial real estate opportunities.
Residential and commercial development projects may include hotel, resort, and other similar developments that build and then shortly sold with a fraction to possibly be held for an extended time. These real estate decks are generally
more complex and involve a feasibility analysis of the building site, along with an analysis of the cash flows – especially if the construction takes place in various phases with multiple buildings involved in the transaction. For
instance, some developments may include a shopping plaza, hotel ,and condos.
When it comes to rehab and short selling, it is best to have a relationship with a hard money lender accustomed to such transactions that you have developed trust with. Hard money lenders are most interested in the property itself, but
also the expertise of the short seller. Hence real estate pitch decks for rehab and short selling are generally focused on the value of the property itself, the investor, and the proposed schedule of cash flows/changes to forecast
Buy & Hold /REIT
When it comes to buy and hold real estate investments, opportunities for investors to come in is thin. Generally there must be a very good strategy behind the buy and hold approach and the deck must indicate why the team requesting the
money is uniquely positioned to acquire the funding. For instance, a person may have unique expertise and connections dealing with an area of the market posed for abnormal growth over the next five to ten years, or they may have access
to offshore investors that have an appetite for the investment type.