Blackfriars June 2017 Meeting
Raising investment from private individuals – Frazer MacDonald
Fraser Macdonald is a property investor with 20 years experience. He was one of the founding partners of Prosperity Capital Partners in 2013. Prosperity build blocks of student accommodation. Prosperity have built and are currently building over 1,000 student rooms. Fraser's role at Prosperity is Investor Relations Director. His main responsibility is to raise investor loans to complete the debt required to acquire and build the student developments and to keep investors updated on the progress of these developments. In the last three years Fraser has raised £8.5M from investors. In this presentation Fraser will share the legal structure of how to raise private investor finance and the psychology of how to deal with investors who typically invest £100,000+ in a Prosperity deal.
Key Learning Points:
1) The psychology of dealing with Investors:
- Standard vs Unregulated Investing
- What is a good return?
- Investor attitude to Risk
- Types of Investor (emotional)
- Following Up
- AIDA – converting a prospect into an Investor
2) Legal framework for dealing with investors:
- Collective Investments
- Types of investor (technical)
- What is a professional client?
- Statutes & Compliance
- FCA & AR (Appointed Representative status)
- Anti-Money Laundering (AML)
- Proceeds of Crime Act (POCA)
ALSO …. Rent-to-Rent: Truth, Tips and a Running Start – Laura Crawford
Rent-to-rent has long been a popular and heavily publicised strategy, being one of the best ways to increase cash flow from a standing start. Whilst it can produce great success, so many begin this strategy without knowing the realities of a world within guaranteed rent.
In this 25 minute talk, Laura will be talking openly about the experiences she had starting off in rent-to-rent; both the highs and the lows, the challenges faced and the important learnings made in the process.
Laura will cover how she has adapted over the years to create a successful business in South East London, a city often cited as being almost “impossible” to find deals in and summarise the aspects she would incorporate from the beginning, with the benefit of hindsight, so as to give anyone thinking of this strategy a running start. This is a talk which will give learnings, no matter what your level of property activity (be it rent-to-rent or otherwise), from just getting started to experienced investor.
Additional learnings from Laura's talk:
- Workarounds to common arguments you hear from agents and landlords
- The optimal set-up and approach
- Misconceptions about Rent-to-rent and the realities on the ground
By the end of Laura's presentation, you will feel inspired as well as prepared to go out and find some incredibly high cash flowing deals, armed with a wealth of knowledge!