An Unlikely Pair: How Social Media Fuels Investment Cycles

August 18, 2025

Less than a decade ago, real estate deals were found through word-of-mouth, industry relationships, and private networks. What seems impossible now — social media was once an afterthought, nice to have but offering little real information online. Today, the landscape has changed completely.

Now, both investors and sponsors need a strong digital presence. The old-school way still works, but most capital now find its way through online channels.

If you’re considering investing in a fund, a syndication, or even a single rental property, your first instinct today is to research the sponsor online. That usually starts with:

  • LinkedIn to look at credentials and recent posts
  • Instagram & YouTube for project updates, property details, and behind-the-scenes transparency
  • Reviews, forums & website testimonials for third-party validation
  • Podcasts & webinars to hear how the sponsor thinks about market trends and risk

Whether we like it or not, this digital footprint is now the front door of credibility. Just like a patient will search up a Doctor and look at their reviews – Sponsors without an active, authentic presence immediately raise questions: if they aren’t showing up online, what aren’t they showing me, or why don’t they show up in a search?

The Investor Mindset Shift

This rise in deal transparency also changes how investors approach investment selection. The fear of missing out — fueled by flashy “home run” deals (whether true or not) — runs rampant online. The temptation in real estate, as in all investing, is to swing for the fences. Big returns are exciting, and in the age of viral content, the “home run” story gets the most clicks.

But here’s the truth: in private real estate, most investors build wealth steadily, through singles and doubles — not home runs. In private investments, targeting high annualized returns always means taking on higher risk. If a sponsor or investor does enough deals, we all learn that not all will go as planned. In some cases, focusing on doubles can help mitigate the downside.

How Social Media Shapes This Choice

Social media has an odd effect on investor psychology. Constant exposure to ‘10X return’ stories or 10-second ‘FIRE’ reels can make steady annual returns feel underwhelming. But the most disciplined investors use online transparency to verify fundamentals, not chase hype.

Here are some thoughts on how to use the social media environment to your advantage:

  1. Follow, but filter. Use platforms to track a sponsor’s consistency, project progress, and thought leadership — but tune out the “overnight success” noise.
  2. Look for repeatable success. Anyone can post about one great deal. Focus on sponsors who’ve shown steady, repeatable doubles over many years.
  3. Watch how they handle bumps. The best sponsors communicate openly during challenges — not just when things go well.
  4. Listen to their perspective. A webinar or interview can reveal a lot. Hearing a sponsor speak about market trends, track record and risk can quickly give you a sense of their depth and approach.

 

The Bottom Line

Today, social media is the handshake before the handshake. It’s where trust is built before you ever see a proforma or pitch deck. Don’t let the fast-paced, highlight-reel nature of the medium push you into swinging for home runs you don’t need. Take your time, diversify, and do your own research. In real estate — and in any investment — wealth is built deal by deal over time.