Back To Basics: The House Flip Elevator Pitch
If you want to be successful in real estate investing, you need the house flip elevator pitch to fund your house flips-or so you have heard many people say.
Most house flippers think they do not need a house flip elevator pitch but in reality they do. Your mindset determines how you deliver your pitch and how you present yourself to other people.
There are plenty of ways that you can utilize the elevator pitch. You can use it to look for deals, to announce to your family that you are planning on venturing into the house flipping business or even when creating your house flipping team.
You especially have to perfect the art if you want to raise money to fund your flips.
Back To The Basics Of A House Flip Elevator Pitch
Let’s start with the elevator speech. The elevator speech is how you go about introducing yourself within the first 60 seconds. When you are new to the industry, you have to know how to explain to people what you do. You can do this in a number of ways and with time you will find something that works for you.
As you already know, networking is important in real estate investing and you will probably use your elevator speech more often than you think.
So when someone asks, “what exactly do you do?” what will you tell them?
It depends on who is asking. But if you plan on giving your elevator speech, you need to have these four things in mind:
- Don’t pitch. Instead, use statements that arouse people’s interest.
- Keep people’s interest and engage them. If they ask “how does that work?” then you are on the right track
- Talk about your business and yourself but keep it brief
- Adapt your speech to suit whichever situation your are in. for instance, if you are at an REIA meeting, you should give specific details but if you are at a Chamber of Commerce event, your pitch should be about general real estate investing.
Example#1 Elevator Pitch In A Non-Networking Situation
When you are hanging around the neighborhood or shopping and someone asks you “so what do you do?” you can reply with something like:
I show people how to make plenty of money through the power or real estate.
I am a real estate investor and I teach people who are interested in real estate investing how to do a flip-and-hold or how to flip a house.
This way, you haven’t mentioned your company name or where you work and it has hit all four points mentioned above. In most cases people will ask you so how does that work?
These are interactive statements and they get people interested in you and what you do.
Example #2 Elevator Pitch To An Investor
Before we go any further, make sure that your house flip elevator pitch is in compliance with SEC regulations and you have consulted with your attorney. When pitching to investors, you need to pique their interest. For instance, rather than requesting for money, you can say something like:
“We use other people’s money to purchase real estate. We use real estate to secure their interest. We also ensure that they get a nice rate of return on their investment.”
What follows next is a series of questions from interested investors. They would like to know more about what you do and how you can help each other. It’s more of a natural conversation as compared to approaching an investor and saying directly I need money for this and that.
Example#3 Elevator Pitch To Fellow Real Estate Investors
If you are talking to other real estate professionals, they probably understand the business especially if they are a real estate listing broker. If they tell you that they work with buyers or sellers, you can ask them if they would be interested in working with a real investor like yourself. You might just come to a business arrangement.
Do you have any other strategies that you can use for a house flip elevator pitch? I’d love to know.