A lot has changed in the post-pandemic real estate landscape, and one thing is abundantly clear—getting a sign-off from investors has gotten a whole lot harder. That’s why having a compelling real estate investment proposal is non-negotiable, whether you're looking to secure funding for a development project or attract buyers for an existing property. But how do you create one that converts and drives action?
In this post, we’ll walk you through actionable tactics that will help you elevate your proposal game, whether you're writing one from scratch or using the knowledge to amplify a pre-existing template like the one from Qwilr.
But first the basics…
What is a real estate proposal?
A real estate proposal is a crucial document that outlines in detail a property investment opportunity. It's your pitch to potential investors or buyers, laying out why they should consider putting their money into your real estate project.
Think of it as a business plan for a specific property deal. On a broad level, it typically includes key information like:
- An overview of the property
- Market analysis
- Financial projections
- Investment strategy
- Potential risks and returns
A good proposal doesn't just describe a property—it tells a compelling story about its potential. In an industry where significant sums of money change hands and long-term commitments are made, investors need to feel confident in both the opportunity and the people behind it. This is where a detailed, well-drafted proposal becomes invaluable as it shows them why your deal is worth their time and money.
What to include in a real estate proposal
A well-crafted real estate proposal is your key to unlocking investment opportunities and closing deals. But what exactly should you include in this crucial document?
Real estate investment proposal
At its core, a comprehensive real estate proposal should paint a clear, compelling picture of the investment opportunity. It needs to cover everything from the basics of the property itself to the nitty-gritty of financial projections.
Let's dive into these key sections and explore why they're critical to your proposal's success.
- Summary
A summary is a brief overview of your entire proposal, typically one or two paragraphs long, and presents the most important aspects of your real estate opportunity, including key property details, investment highlights, and expected returns. It sets the tone for your entire proposal and is often the first (and sometimes only) part investors read thoroughly.
- Property information
The property information section in a real estate proposal provides comprehensive details about the property itself and includes basic facts such as the address, property type, size, year of construction, and any significant renovations or upgrades to the property.
- Features
The features section on a real estate proposal lists and describes unique or notable aspects of the property that set it apart from others in the market. These aspects can significantly impact property value and attract specific types of tenants or buyers, influencing the investment's potential.
- Floor plan
A floor plan is a visual representation of your property's layout. It shows the arrangement of rooms, spaces, and key features, typically presented as a 2D diagram or, increasingly, as a 3D rendering.
It helps investors visualize the space and its potential uses, which is crucial for assessing value and planning any modifications.
- Financial & legal details
This section outlines the property's current financial status and any relevant legal information that is critical for investors to assess its current financial health and potential profitability.
It includes data on the purchase price, existing income, operating costs, and outstanding debts.
On the legal side, this may translate into factors such as zoning regulations, any existing easements or encumbrances on the property, details of current lease agreements, environmental assessments (particularly for industrial properties), and any pending legal issues or disputes related to the property or its current ownership.
- Investment summary
The investment summary explains your overall strategy for the property. It describes how you plan to generate returns, whether through rental income, property appreciation, development, or a combination of these approaches.
- Expected ROI
ROI projections provide estimates of the financial returns investors can expect from the purchase. This section on the real estate proposal typically includes calculations of potential profits over time, considering various factors and possible scenarios.
- Similar properties
This component presents information on comparable properties in the area. It shows how your property compares to others in terms of price, features, and potential returns, helping to justify your valuation and demonstrate market knowledge.
- Request information
This section clearly states what you're seeking from potential investors or buyers. It specifies the type of investment or partnership you're proposing, including any specific terms or conditions.
- Market analysis
A market analysis includes relevant data on market trends, property values, rental rates, demographic shifts, and other factors that could impact the investment's potential.
Lastly, ensure all this information is wrapped up in an impressive proposal cover page and a proposal cover letter, as it’s the hook that reels in your audience from the start!
Commercial real estate proposal
A commercial real estate proposal presents a comprehensive overview of the commercial property, highlighting its unique selling points and investment potential to help potential buyers or renters evaluate the opportunity quickly and effectively.
- Property details
This section provides essential information about the property, including its location, size, age, zoning, and current use. It may also include details about recent upgrades such as renovations, building systems, and any unique features that add value.
- Images
Property visuals help potential buyers or investors visualize the property and its potential, often including shots of key features or amenities. Poor-quality or missing images might raise red flags or cause potential buyers to overlook your property. However, high-quality photographs or renderings of the property's exterior and interior spaces (highlighted through a well-staged display suite) may tilt the deal in your favor.
- Floor plan
A clear, detailed floor plan gives viewers a sense of the property's layout and spatial relationships. For commercial properties, this often includes information about usable square footage, potential configurations, and any flexibility in the space's use.
- Price
This section outlines the property's asking price or lease terms. For a commercial property for sale, it clearly states the price per square foot and the total asking price.
This section often goes deeper for commercial investment properties, covering current annual income, operating expenses, the potential for revenue growth, occupancy rate, and cap rates based on market trends.
- Enquiry
The Enquiry section provides clear instructions on how interested parties can get more information or schedule a viewing. It typically includes contact details for the listing agent or property manager and may outline the next steps in the purchase or leasing process.
Real estate investment proposal template
Ready to turn your real estate knowledge into a winning proposal without reinventing the wheel? Qwilr’s real estate investment proposal can transform your insights into a compelling narrative that captures attention and drives action, all while saving you valuable time and effort. Let’s unpack the template:
Who is this real estate proposal template for? Qwilr’s real estate investment proposal is tailored for agents, brokers, and property developers, empowering them to create persuasive, clear, and well-researched proposals that stand out in a competitive market.
What features are included in Qwilr’s real estate template?
Qwilr’s real estate proposal template comes preloaded with key features such as summary, features, floor plan, property details, investment summary, capital growth calculator, and location. You can even add similar properties and request information in this proposal for your investors. In a nutshell, our template allows you to create a compelling, well-structured, and thoroughly researched property proposal, without spending hours on it.
Qwilr’s real estate template has helped companies and individuals save a ton of time and effort, helping them move forward quickly and effortlessly. But don’t take our word for it—Trent Michels from Commercial Carolina, sums it up:
“Qwilr is an amazing platform for our firm because it allows us to effectively engage our wide range of clients with a digital pitch deck or memorandum that is visually appealing and easy to follow. Providing us the ability to embed Google Maps, excel sheets, and other important documents allows us to address all our clients' concerns and thoughts in a flawless flow provided by the Qwilr platform. The utilization of Qwilr provides you the ability to show people what is possible and encourages confidence in the presenter that they will deliver.”
How to create a real estate proposal that stands out
Now that you've got a solid grasp on the core components of a real estate proposal, it's time to kick things up a notch, so that your proposal truly stands out in a competitive market.
Tailor your proposal to the main objective
When creating a standout real estate proposal, it's crucial to tailor your content to your main objective, whether that's attracting investors, selling a property, or finding tenants. Irrespective of the scenario, your goal shapes what information you prioritize and how you present the property's benefits, ensuring your proposal directly addresses your audience's specific interests and requirements.For example, when tailoring your offering to investors, your goal might be to secure a specific amount of funding for a development project by a certain date. In this case, your proposal would focus on things like projected return on investment (ROI), market analysis, or development timeline and milestones
On the other hand, when selling a property, your goal would be to close the sale at a target price within a set timeframe. Emphasizing immediate benefits to the buyer, such as how the space can accommodate their needs or save them money, will get the ball rolling in your favor.
Research your audience
Researching your audience is a business mantra that wins deals across industries. In the context of a real estate investment proposal, understanding your audience shows that you are not just trying to make a sale, but are genuinely interested in finding the best solution for the client's needs.
So where do you even begin?
- Gather comprehensive information: Study the company's website, annual reports, and press releases. Monitor their social media accounts and industry news. If possible, consult with someone familiar with the company to get valuable insights.
- Create a detailed profile: Identify key decision-makers and their professional backgrounds. Understand the company's business model and growth plans. Determine their current challenges and future goals.
- Analyze their property history: Examine their current locations and past real estate decisions. Look for patterns in their choices (e.g., preference for certain areas)
Bring the property to life with storytelling
The most successful proposals go beyond mere facts and figures—they tell an impressive story.
For example, instead of simply stating "4-bedroom house with a large backyard," you might say:
"Imagine waking up in your spacious master bedroom, sunlight streaming through the bay windows. As you sip your morning coffee in the gourmet kitchen, you watch your children playing in the expansive backyard, their laughter carried on the breeze. This isn't just a house - it's the backdrop for countless family memories waiting to be made."
This narrative approach engages the prospect's imagination and creates an emotional connection to the property. That being said, weave in how the property can benefit the prospect financially:
"As you enjoy your home, you can rest easy knowing your investment is growing. The property's location in a rapidly developing area suggests strong appreciation potential, while the energy-efficient appliances and recent renovations mean lower maintenance costs for years to come."
Addressing both emotional and financial interests is important as emotional benefits create desire and connection whereas financial benefits provide logical justification for the purchase. Together, they create a powerful argument for choosing the property
Clearly outline costs
Prospects need to understand exactly what they're getting into, and that’s why cost breakdowns are important. These values build trust, help prospects make an informed decision, prevent misunderstandings that could derail the deal later, and ultimately demonstrate your expertise and attention to detail
To approach this effectively:
- Break down all costs into clear categories
- Use simple language to explain each cost
- Provide context for why each cost is necessary
- Include any potential future costs or savings
Follow this with a brief explanation:
"The purchase price reflects the current market value of similar properties in the area. Closing costs are standard for this type of transaction. The annual property tax is based on current rates, which have remained stable for the past five years. We've estimated annual maintenance based on the property's age and condition. The energy-efficient systems installed last year can lead to significant savings on utility bills."
This level of transparency can set your proposal apart from others that might be vague or misleading about costs.
Provide supporting data and analysis
With data at their disposal, you will be able to back up your claims with hard evidence, help prospects understand the property's potential, and give them confidence in their decision-making!
Here's how you can approach this:
- Gather relevant data from trusted sources
- Analyze this data to extract meaningful insights
- Present your findings in clear, easy-to-understand formats
- Explain how this data relates to the property in question
You'd then present this information using graphs, charts, or infographics to make it easily digestible. By providing supporting data and analysis, you're not just telling prospects that a property is a good investment—you're showing them why—and giving them the tools to reach that conclusion themselves.
Outline expected returns and risks
When you clearly outline expected returns and risks, you're giving your clients a complete picture of the investment opportunity. Let's say you're proposing an investment in a small apartment building. You might outline the returns like this:
- Expected annual rental income: $100,000
- Estimated yearly expenses (maintenance, taxes, etc.): $40,000
- Projected net annual income: $60,000
- Potential property value increase: 3% per year
From there on, you can explain the risks such as possible vacancy periods reducing rental income, unexpected major repairs eating into profits, changes in local housing regulations affecting rental policies, and economic downturns impacting property values.
Include interactive elements and visuals
Interactive features can really grab and hold attention, and by including these in the real estate proposal, you're inviting them into a space and helping them see its full potential. This can be especially powerful for properties that are still in development or for clients who can't visit in person.Examples of these include:
- A 360-degree virtual tour of the space
- An interactive map showing nearby businesses and transport links
- A graph that changes when clients input different rental scenarios
- Before-and-after sliders for potential renovations
- Interactive calculators let clients adjust variables like down payment or interest rates to see how it affects their investment.
With Qwilr you can easily embed a capital growth calculator to showcase how an investment will grow.
Outline next steps
Last but not least, your goal is to make the path forward as clear and simple as possible for your investors; otherwise, it could create indecision, and they may not be keen on a follow-up. Here's how you can approach this:
- Clearly list the immediate actions required
- Provide a timeline for each step
- Explain what you'll do and what the client needs to do
- Offer multiple ways for the client to get in touch with questions
Build better real estate proposals with Qwilr
You're now armed with the knowledge to create real estate proposals that truly stand out. With the strategies we've shared, you're well-equipped to create proposals that not only convey information but also tell a compelling story about each property's potential. But why reinvent the wheel with each new opportunity? With Qwilr’s real estate investment proposal template, you can streamline your process and ensure you're hitting all the right notes every time! Sign up for a free trial to see it in action.
About the author
Brendan Connaughton|Head of Growth Marketing
Brendan heads up growth marketing and demand generation at Qwilr, overseeing performance marketing, SEO, and lifecycle initiatives. Brendan has been instrumental in developing go-to-market functions for a number of high-growth startups and challenger brands.
