Many new investors aren’t sure how to approach their first call with a potential passive investor who’s interested in learning more about a deal they’re raising capital for.

Let me pull back the curtain on exactly how I prepare for these calls so you can approach them with confidence.

Step 1: Understand Your Investor First

Before diving into deal details, I spend the first part of every call understanding who I’m talking to. This is sales 101 – know your audience.

I want to understand their investing goals, timeline, and risk tolerance. Are they looking for steady cash flow or aggressive appreciation? Are they nearing retirement or just starting to build wealth?

Then I assess whether my deal aligns with their objectives. If I’m talking to an extremely risk-averse investor at retirement age, my development deal probably isn’t the right fit. I’ll call that out directly because it builds trust and shows I have their best interests in mind.

Step 2: Master Your Deal Inside And Out

I ensure I understand every aspect of the deal: the legal structure, underwriting, market analysis, neighborhood details, and projections.

Ten to fifteen minutes before the call, I pull up all my materials on my computer so they’re easily accessible. I also ensure that I thoroughly understand the legal docs, tax implications of investing, etc (if you aren’t confident in discussing your legal docs, have a call with your attorney before speaking with investors!).

The goal is to answer as many questions live as possible because it demonstrates competence and preparedness.

Step 3: Say “I don’t know” When You Don’t Know

Here’s where most new sponsors mess up: they try to BS their way through questions they only partially understand.

This accomplishes two things. You seem less experienced and less trustworthy because you’re giving definitive answers to questions you don’t actually know.

Instead, I simply say “I don’t know, but I have the right people in my circle who do. Let me get back to you with the correct answer promptly.

The Most Important Thing

Approach these calls as if you’ve been there before. Speak clearly, speak concisely, be prepared, and do your best to control the conversation flow.

This helps the investor feel comfortable investing in your deal because you’re conveying knowledge around the process, opportunity, and investment structure.

Remember: These calls are as much about building trust as they are about discussing deal mechanics.