Investor Call Script for Sponsors: The First Conversation About Your Deal
On this page
The first call with a potential investor decides whether they ever read your offering memorandum. Most new sponsors talk too much, promise too much or skip the questions that matter. This is a script you can adapt: what to ask, what to say, what to leave out and how to follow up. It assumes a Rule 506(b) raise where you already know the person, or a Rule 506(c) raise where you will verify them.
Before you dial
- Know which exemption you are using and who you may talk to. See 506(b) vs 506(c).
- Have your single-sheet deal summary and risk list open.
- Decide what you will not discuss on the phone, such as exact terms not yet in the documents.
The script
1. Open (30 seconds). "Thanks for making time. I'll tell you a little about me and the deal, then I'd like to hear what you're looking for. There's no pressure either way."
2. Ask about them (5 to 8 minutes).
- What made you interested in apartment investing?
- Have you invested in real estate or private deals before? What happened?
- What are you hoping this money does for you: income, growth, diversification?
- How long can you leave money invested without needing it back?
- Is there anything about private deals that worries you?
These questions help you judge fit and suitability. They also help show a substantive relationship in a 506(b) raise (SEC, Rule 506(b)).
3. Describe the deal (5 minutes). Say what the building is, the business plan, the equity needed, the minimum, the hold period and how you get paid. Then say the risks: "The biggest ones are rents not growing as planned, expenses rising, interest rates and a slower sale. Investors can lose money."
4. Handle questions. Use common investor objections. If you do not know, say you will check and write back.
5. Say what happens next. "If you want to look closer, I'll send the deal page and documents. Nobody commits on a call. You'd review them, ask questions and decide on your own."
What should you never say?
| Avoid | Say instead |
|---|---|
| "You'll make 18%." | "Our projections are in the documents. They are estimates and not guaranteed." |
| "It's basically risk free." | "Here are the main risks." |
| "Spots are almost gone, decide today." | "There's no rush. Take the time you need." |
| "I'll guarantee your money back." | "Investors can lose money, and returns are not guaranteed." |
Antifraud rules apply to everything you say about an offering (17 CFR 240.10b-5). See Rule 10b-5 for sponsors.
What should the follow-up say?
Within a day, send an email that thanks them, recaps what they told you they want, links to the deal page and documents, lists the next dates (webinar, deadline) and repeats that investing involves risk. Log the call date and notes in your CRM.
Our take
Treat the call as a conversation with a future partner, not a pitch. People invest with sponsors they trust, and trust comes from honest answers, including "I don't know yet."
Trade-offs and who this is not for
- Not for calls with strangers in a 506(b) raise. Build the relationship first.
- Common mistake: discussing returns before risks.
- Not a substitute for counsel.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5+ units from friends and followers who already trust them, under Rule 506(b) or 506(c). We are software, legal document preparation, escrow coordination and verification services. We are not a law firm, broker-dealer, investment adviser, funding portal, bank or escrow agent, and we do not hold investor money: investors wire their money to escrow at Enterprise Bank & Trust, in the deal's name.
DoorRaise keeps the deal in its own company with its own documents and a deal page, and runs an accreditation check on every investor, in 506(b) and 506(c) raises. Flat fees, never a percentage of the raise (see pricing). Create your free sponsor page.
FAQ
Should I record the call?
Only with the person's consent, and check your state's recording laws. Written notes and a follow-up email are usually enough.
Can I ask if they're accredited on the call?
Yes, in general terms. The formal answer comes through a questionnaire or, in a 506(c) raise, verification. See the accredited investor definition.
How long should the first call be?
About 20 to 30 minutes. Longer usually means you are talking more than listening.
What if they want to invest right away?
Slow down. Send the documents first and let them review before any commitment.
Sources
- SEC, Rule 506(b)
- SEC staff no-action letter, Citizen VC, Aug. 6, 2015
- 17 CFR 240.10b-5
- 17 CFR 230.501
This article is general information, not legal, tax or investment advice. Talk to a securities attorney about what you may say in your offering. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.