Often principals prepare business plans, develop financial statements and projections, and begin reaching out to their contacts expecting their good looks, exceptional personality, and reputation to draw capital. Perhaps this was enough in 2005. But in the year 2010, times have changed. The landscape is different now. First, you may have to contact a much wider group of investors. Second, even experienced investors are very focused on substance and preparation. Third, investors need very clear and detailed help understanding the commitment they are making, the risk mitigation included, the preparation applied, and the process this investment will go through. Presenting your investment with this in mind is a key step toward accomplishing this and the process of putting that presentation together is absolutely critical and possibly the preiminent first step to accomplishing this end.

What are the steps to developing a great rental real estate investment presentation?

The major steps are:

1. Prepare a presentation that presents the investment fully.
2. Rehearse the presentation developing compelling supporting information and highlighting defining investment factors.
3. Study your audience so that you are fully prepared to answer their questions and inspire confidence.
4. Ensure you all equipment and materials prepared and ready to distribute to the investors.

Let’s discuss each item in more detail.

The presentation should:

• Define what the investor is buying, what the total investment is, what the terms of the investment are, what the return is projected to be, risk mitigation steps and risks to the project.
• Define how the project or projects to be purchased are targeted.
• Provide a clear description of management, marketing and leasing, maintenance and support, and accounting and finance.
• Explain the exit.
• Define the financial and operational assumptions underpinning the investment.
• Provide photos of the project or representative photos of the projects intended for acquisition.
• The presentation should be an easy read and slides should be structured to provide a reasonable amount of information. Break up information if you have more than 7 items on a chart.

Prior to presenting to your investors, you should plan and conduct two or three rehearsals. The rehearsals will tighten up the presentation material and will allow you to organize thoughts and key points for each page. Work during the rehearsal to develop a pointed, sharp, compelling, emotionally commanding presentation. At the same time, the rehearsal should help you keep it brief.

Focus in preparing the presentation and during rehearsals on who your audience is. Understand their knowledge base. Try to determine what questions they will have. Rehearse your answers carefully.

Before the presentation, review your presentation material, your handouts, the condition of the room, check your equipment, check your appearance, and verify attendees. Check the night before and arrive early to reverify at the time of the presentation.

Taking this approach will provide a sharper more effective presentation and may be the difference between success and failure.