Anyone can provide numbers on a sheet of paper, but if you are hoping to successful raise capital online, especially during times like these, you will need to go beyond the numbers. The key to crowdfunding is building and sustaining momentum and one of the most effective ways you can do this is through the telling of a powerful story.
While the numbers are important, they are rarely enough on their own. Suppose you want to purchase a prospective property for $5 million. Is that a great deal? A terrible deal? Something in between? How do you articulate what is right when the markets are apparently in freefall?
In this example, it’s impossible to know because you have no frame of reference. Even if the price is supported by other figures—price per square foot, average neighborhood value, potential resale value, and accounts for the circumstances, etc.—the property itself is still an abstract idea that hasn’t made any sort of lasting connection.
In real estate, a story is what brings an otherwise abstract idea to life and the same is true during difficult times even more so than during good times. People will see numbers on a paper, such as falling REIT prices, and panic. But stories mean so much more than numbers: they are real, they are human, and they are powerful.
Just as we use storytelling to make connections with our friends, we can also use stories to make abstract connections between prospects and inanimate objects, such as real estate. The storyteller, who in this case is the person raising capital, can help function as an essential bridge between where the capital currently resides and where that capital needs to be.
The keys to creating an effective story
Let’s use the term “story” in an incredibly broad sense. Stories can come in many different forms. A beautiful work of art can be a story and while there aren’t many people using art to raise funds for real estate, there is no denying that there are stories all around us.
The internet has given us a seemingly boundless platform where our stories can unfold and be brought to life. Videos, article, eBooks, and more make it easy to transform our ideas into something more.
1. Establishing Credibility
When engaged in a digital marketing strategy as a property firm, establishing credibility will be absolutely crucial. Google, for example, ranks a majority of its content using an E-A-T model, which stands for expertise, authority, and trust. In real estate, people are naturally skeptical—they will buy from parties they can trust and pass over those that raise red flags. There is rarely a shortage of sponsors, lenders, or partners available, meaning it will remain up to you to prove why you are worthy.
Establishing credibility with potential investors is a bit more complicated, but remains essential nevertheless. Stating “I earned x degree” or “I’ve worked in the industry for y number of years” can be helpful, but this sort of credibility is much shallower than what you really need to succeed. Again, rather than relying on numbers, show that you have the credibility needed to successfully execute a project. Instead of saying, “these are my credentials”, show “I’ve been in a similar situation before, these are the things I learned from that situation, and this how I apply these lessons to my everyday life.” For example, showing how your firm weathered the 2008 housing crisis, or other potential crises, can help assure potential partners that you will be able to successfully deliver again, even when markets have dropped or variables such as COVID-19 emerge from out of the blue.
Framing past experiences into lasting life lessons is one of the surest methods for creating connections, capturing interest, and gaining trust.
2. Identifying Key Moments
In addition to being credible, it will also be important to be authentic. There is no need to “force” a story just for the sake of telling a story you believe to be more interesting. You probably don’t want to say “the last time a virus tanked the economy”, because that has never happened before. You have, however, faced unexpected challenges, both in real estate and in life. If you have been doing anything long enough, including simply being alive, there are probably multiple key moments in your life that have produced a lasting lesson.
Think of a story that you once found captivating. More likely than not, there were some conflicts or challenges along the way. If you simply recall, “we wanted to raise funds for a project, the contract was approved, and we were successful”, you are not going to captivate an audience. The audience is going to want to see that, against all odds, you were able to succeed. You were the hero, at least in a narrative sense, and you were the one they were rooting for. In today’s times of economic uncertainty, a hero is what a lot of people are looking for.
Without being arrogant, think of a time that you overcame great odds in pursuit of a larger goal. This could be anything, ranging from your childhood to a deal you recently executed.
What did you do in order to become a hero? How can you still be a hero when challenges inevitably emerge once again? If framed correctly and placed within the correct context, almost any key moment can create a lasting connection. And these stories will leave a much stronger imprint than any price cut, interest rate, or mortgage terms ever possibly could.
3. Creating Context
The last thing you’ll need for your story to be successful—whether being told in person or via a digital marketing platform—is context. Many real estate veterans, knowing how important contract terms and numbers tend to be, will lead with these figures and simply hope captivation will follow. However, for better or for worse, our heart usually leads and our brains will follow. Start by a building a connection through a story, then seal the deal with your hard-fought facts and figures.
When raising capital, you will need to effectively demonstrate a capacity for success within a specific context. Even if you have never completed a commercial real estate project before, proper storytelling can help establish a sturdy connection and give you a workable framework. If you can provide relevant context, however, your story will be even more effective.
Win the hearts of the audience with a well-told and relevant story. Then, once their foot is in the door, prove that their hearts were in the right place and that the numbers support their decision to engage in the first place.
In both commercial and residential real estate, we often hear about “curb appeal.” Curb appeal is so important because we do, in fact, constantly judge books by their cover. Just by looking at a property, a story is already being told. So, while it will be crucial to later mention how the HVAC system was recently replaced, you won’t even have a chance to have that discussion until you can convince the prospects to step inside in the first place.
In digital marketing and online fundraising, you’ll also need a “curb appeal” of your own. Your story is the gateway to every conversation you hope to eventually have.
Adam Gower Ph.D. is an authority in content marketing and online communications for the real estate industry. He has more than 30 years and $1.5 billion of transactional experience in commercial real estate finance and investment. Over the last five years he has built a digital marketing agency at GowerCrowd.com and you can learn exactly how you can also create effective online communications even while working from home by clicking here.