In an industry racing to digitize, Mor Milo, co-founder and CEO of real estate marketplace Relli, offers a deliberately old-fashioned observation about what moves investor capital. “It’s all about relationship,” he said.
Investors Are Not Transactional
Most retail real estate investors, Milo says, are not looking purely at numbers. “They’re looking for trust. They’re looking for comfort. They’re looking for de-risking their investment opportunity.” Even with a strong deal, he argues, an operator who cannot build a genuine relationship with the person writing the check may struggle to secure an investment.
More Data Makes Relationships Matter More, Not Less
The counterintuitive part is what happens as investors gain access to more information. Rather than making investing more mechanical, Milo says, an abundance of data makes trusted relationships more valuable. When investors face too many choices, they turn to someone they believe in.
“When you have a million things in front of you, it’s very hard to make decisions,” he said.
In Milo’s view, an operator who becomes a trusted source of deal flow is better positioned to earn investor commitments. He says he has seen operators with more assets, more deals and stronger results struggle to raise capital, while others raise substantial amounts through established relationships.
Treat a Six-Figure Check Like What It Is
Milo’s sharpest advice to operators is to respect what an investment represents to the person making it. He compares a $100,000 commitment to the price of a luxury car.
“Instead of buying that BMW, you’re investing in a piece of paper,” he said.
An investor who forgoes a purchase like that to back a deal deserves a fundraising process that respects the commitment, Milo argues. Even when that $100,000 is just one percent of a $10 million raise, treating it as negligible can cost an operator the investor’s support.
The Leadership Lesson
For founders and executives raising capital, Milo’s takeaway is that systems, data and technology can support trust, but cannot replace it. He encourages operators to make each investor feel valued before and after a commitment, while giving them the information needed to evaluate the opportunity. A trusted relationship does not eliminate investment risk or replace due diligence.
About Relli
Relli is a direct-to-sponsor private real estate marketplace connecting accredited investors with commercial real estate syndication opportunities. Relli was co-founded by Mor Milo (CEO) and Ross Iannarelli (COO).