The time has arrived! You have found a sponsor that you know, like, and trust! You have done your research and gotten educated on the market(s) of your interest and how to vet investment opportunities. Now awaiting in your inbox is an invitation to join an informational webinar on a new investment your sponsor has carefully curated. What is next?
You may feel nervous about what to expect, especially if this is your first investment. Not to worry! In today’s quick snippet we demystify the typical webinar structure and what to expect so you can be well prepared.
First, ensure you register for the webinar, so you can receive the recording as unexpected or last minute scheduling conflicts may arise.
Logistical set up
The sponsor team would typically open with covering logistical matters such as reminder of the forthcoming recording and when to expect it, mute/unmute etiquette, how and when to ask questions, and outline of the call.
Intro of the team
They will then proceed with introduction of the company and the management team and will briefly speak to their background and the collective track record. This is particularly helpful if you are not familiar with the other team members. At the end of the day, the sponsor can make or break a deal – getting clarity on the captains and co-captains and what role(s) they play is key.
Introduce the market, property, financials, returns, any other relevant info
The presentation will then flow into describing the market and submarket and why the sponsor likes those followed by an overview of the property (which overview will showcase key amenities, if any, and photos). They may even include a drone video of the property and neighborhood, so one can get a better (live) feel of the property.
The fun part of the presentation (at least for me) is usually the financial overview where the sponsor will walk through the sources and uses of funds, how capex will be utilized, debt terms, projected performance over the intended hold period, and expected returns. Naturally it may be difficult to follow that many numbers on a screen. In addition, the sponsor will likely not monopolize the call going through assumptions line by line. Thus, should you feel you want to dig deeper, you can always reach out to the sponsor after the call and request a copy of their model and underwrite.
Lastly, any other information pertinent to the investment will be covered in this section of the call.
Next Steps
Before they open the forum for questions, the sponsor will provide clear instructions on next steps –how to submit a soft commit and link to the investment portal, funding deadlines, types of funds accepted (e.g. if investing via a self-directed IRA or via a 1031 exchange is an option), min and max investment amount, etc.
Q&A
In the end, the sponsor will open it up to questions. Usually they will start with pre-submitted questions to kick things off, followed by questions in the chat, and lastly live questions. Especially if this is your first webinar, you can learn a ton from the questions of others and apply those learnings as you evaluate future investment opportunities.
Follow up one on one with the sponsor post the webinar
You likely have the sponsor’s contact information by now, given your pre-existing relationship. Thus, should you prefer to ask questions one on one or if you have follow up queries, you can always reach out to him/her directly. They will be more than happy to address all your follow up questions and comments to ensure you make an informed investment decision.
You can expect a copy of the presentation, a link to the recording, and link to the investment portal after the call.
Should there be multiple follow up queries, it would not be unusual for the sponsor to set up a Follow Up Q&A call, dedicated solely to addressing follow up queries. This is where many investors will dig deeper into the details or seek further clarification, i.e. attending those calls can be not only informative for the particular deal but also educational (in terms of what other investors are looking for when making investment decisions, how they ask the questions, how the sponsor handles those).
The more investment offering webinars you attend, the more familiar and comfortable you will be with the structure and participation live. Attending those calls will also help you get to know various sponsors better – you will start seeing the difference in investment philosophy and approach across various groups and sponsors and deals. And over time before you know it you will be one of the experienced investors taking part in those calls!
Vessi Kapoulian
Peeling back the layers of passive real estate investing, so you protect the downside and invest with clarity and confidence.
Disclaimer: The information presented does not constitute legal, accounting, tax, or individually tailored investment advice. Past results do not represent or guarantee future performance.
P.S. You are reading this on social media or the web. I also send a direct email edition that carries more: additional teaching notes, access to special events, and periodic subscriber bonuses. If you would like that version, you can subscribe here.
P.P.S. The second edition of The Busy Professional’s Guide to Passive Apartment Investing is now on Amazon in paperback, audio, and digital. I expanded the diligence chapters and updated the material that had aged since the first edition. It is written for investors who want to vet a passive deal with confidence and clarity.