How To Pitch a Real Estate Deal - Investment Memo Basics

How To Pitch a Real Estate Deal - Investment Memo Basics // With over $85 billion invested in real estate in just the first quarter of 2021 alone according to CBRE's Q1 2021 US Capital Markets Figures, there is clearly no shortage of demand for commercial real estate product.

However, along with that demand from capital, there has also been a flood of new investment firms into the market over the past few years.

This means more competition vying for the same capital allocations, which also means that it's more important than ever to showcase your deal (and your company) as the best possible option a potential investor could turn to.

This is where the investment memo comes in.

This document essentially pitches the deal you’re acquiring or building to potential equity investors, laying out the details of the deal (and the group that’s going to be running the deal, too).

And in my experience through working in real estate private equity, and also through investing my own money into projects presented by various different sponsors in the space, I’ve been able to spot a few patterns around what ends up being included in the most compelling investment memos I've seen (or put together).

And in this video, I want to share those patterns with you, by walking through each of these in more detail, and some examples of each in action.

*AFFILIATE DISCLOSURE: Some of the links in this description are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or create an account.

Research and articles referenced in this video:

[BreakIntoCRE]

What else do you add to your investment memos when raising equity for your deals?

[leahmcfly]

love this was really helpful I'm writing my 1st pitch deck and your smile in delivery help me feel less stressed ahaha thank you

[sunbelthomes]

Would you be willing to make a video on how to make a formal offering memorandum?

[lyleborces]

Very helpful. I am currently an intern at Project Destined and we had our first official pitch yesterday and we won 3rd place. Definitely missed some things. Gonna reference this video for the next project.

[lettykamati]

Very informative all the way from Cape Town..

[henrytaylor]

Ton of value. Your a beast man. Thank you

[garyjlizotte]

I am curious about your opinion in in markets like Boston, NYC. I do not see any apartment complexes for sale but million dollar units. In these markets do firms have to develop 300-500 units new construction and sell them off

[captaintom]

Where do you get information on these metrics such as reliable rent and sale comps, municipal development restrictions, etc?

[buenobomb]

We use metrics we use to quantify our social impact and environmental impact, does your team have any videos on this?

[yaer]

Is there a course on how to pitch a real estate deal? I work with new development and find it very hard to attract investor despite we delivered +15% ROI in our last 7 dispositions

[jordiortega]

As always, tremendous job! Greetings from L.A.

[trenttimmons]

I'm interested in finding the investor to pitch too. Help

[lucasthomos]

Am from Spain, my friend in Texas referred me to this channel you make a lot of sense but I do not understand anything until she referred me to a financial counselor in USA that help me to craft my portfolio and over a year we have been working together making consistent profit enough to get me a new apartment and care for parents.

[amabuwherecanwewatchful]

This is amazing sir. thank you so much for the video

[seansmith]

Hi there, I am interested in using your template to seek investors to help Us fund a major development project overseas. There’s proven success in the growing real estate industry in the Caribbean. Any advice?

[cancer]

I liked it. Do you do a deal Sourcing course

[cancer]

I'm from the UK is it possible to do a terminology paper and maybe do a workshop for those abroad wanting to invest in th US

[bigbrotherinlife]

Great video are these same or different courses from Udemy?