On Writing Cold Emails
Eight steps to write a great email to real estate investors
Thesis Driven’s case-based course, Fundamentals of Capital Raising, teaches emerging sponsors real-world skills to raise capital from HNWIs, family offices and institutional investors.
Today’s letter takes a few pages from our course, sharing the art of the cold email—one of many strategies we cover for unlocking conversations with target investors and partners.
The next Fundamentals of Capital Raising is happening on November 12-13th in NYC. Sign up here!
Family offices and institutional investors are programmed to ignore cold emails. And it’s not because they’re mean or don’t like your deal. It’s because they can’t differentiate your note from the twenty other sponsors who just sent them pitch decks promising 20% IRRs.
But cold emails can work. Sponsors have built billion dollar real estate portfolios off of cold emails. They just require time and effort along with empathy and creativity. And in today’s capital markets environment—when many institutional investors are sitting on the sidelines—being able to write cold emails is an important skill to have.
A good cold email does eight things:
Reads “how you talk”
When you read your email out loud it should sound like you’re talking to someone at a cocktail party.
Don’t say, “Bob, it’s a pleasure to connect” when you can say, “Nice to meet you, Bob”. Don’t say “meaningfully enhancing the NOI” when you can say “juicing the NOI”.
Using formalities doesn’t impress anyone–it just signals a cold email. You want the tone to sound like it’s coming from a friend.
Ropes the reader in with the subject
The subject line should give them no choice but to open the email.
If the investor just bought a Tampa office building and is friends with Tom Smith, then the subject line, “Tampa office, Tom Smith” will be more likely to get clicked than “Value-add opportunity in Columbus OH”.
Note we’re already making the email about them, not us (we just need to make sure to mention Tom and Tampa in the email… more on that shortly).
Provides immediate value
Guilt them into reading the whole email by giving an immediate compliment and tip.
“Congrats on the Tampa office deal! FYI, if you haven’t been, Fat Rabbit next door in City Plaza has the best wings in FL.”
This simple tip (which I got by googling “Tampa best food” and looking at Reddit threads for 15 seconds) takes you from a soulless spammer into a person in-the-know.
Creates a commonality
Identify a mutual connection–ideally a person that gives you credibility by association.
“Tom Smith recommended I reach out…”, or, if you can’t get Tom’s actual recommendation, then: “We have a mutual friend in Tom Smith…”.
Just make sure Tom knows who you are. And they know Tom.
Creates “theory of mind”
Explain why they’re a unique target for your email.
Show that you’ve done your homework. “I know you’ve been active in secondary markets, and with your focus on value-add multifamily, this opportunity in Columbus seems like a strong fit.”
Investors want to know you’re speaking to them specifically, not just firing off a generic pitch to everyone on your list.
Identifies and solves a unique pain point
Show empathy to their role.
“The property is off-market and comes with assumable debt at 3.5%.”
Recognizing their challenges (e.g., overcoming high interest rates) shows you understand their world and are thinking like an investor, not just a sponsor. The more specific you can be, the better.
Offers short, clear CTA
Don’t be pushy. And give them specific call times.
“Let me know if it’s worth a 15-minute call. If so I’m open Wednesday between 1-230pm EST or Thursday at 11am or after 4pm EST.”
Don’t leave it open-ended. Give them options that are easy to say yes to. And don’t ever send a first meeting invite for more than 30 minutes (nothing is more obnoxious than a 1-hour block in your calendar if you didn’t ask for it).
Gives them an “out”
Never look desperate, and always leave them with something.
Closing with “Look forward to your response” sounds anxious. Change it to: “If now’s not the right time, no worries. Will leave you with a short deck on our team attached.”
Offering an out shows confidence, increasing the likelihood they open whatever you attach–and respond.
Pulling it all together…
Subject: Tampa office, Tom Smith
Nice to meet you, Bob, and congrats on the Tampa office deal! FYI, if you haven’t been, Fat Rabbit next door in City Plaza has the best wings in FL.
Tom Smith recommended I reach out. I know you’ve been active in secondary markets, and with your focus on value-add multifamily, the attached opportunity in Columbus seems like a strong fit. Note: the property is off-market and comes with assumable debt at 3.5%.
Let me know if it’s worth a 15-minute call. If so I’m open Wednesday between 1-230pm EST or Thursday at 11am or after 4pm EST.
And if now’s not the right time, no worries. Will leave you with a short deck on our team attached.
Et Voilà! From a stranger pitching a deal to a vetted, confident friend who only has the investor’s best interests in mind–transformed in a single email!
Note: sleuthing Linkedin, an investor’s website, Google News, Reddit, and then Yelp (to confirm the wing recommendation is legit)—then crafting a thoughtful note tying the themes together—can take a lot of time and effort.
But over a few weeks, sending 3-4 of these daily will be a much faster path to LP checks than spamming a list of 300 investors with the same “20% IRR” email template.
In the Fundamentals of Capital Raising Course, students get to apply their learnings through individual and group exercises, including writing–and getting critiqued on–their own cold emails to target investors.
Sign up here for the November 12-13th course!
—Paul Stanton
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