Managing Investor Relations in Real Estate!

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This Money Monday$, master how multifamily real estate syndicators handle investor relations! ​

VIDEO TRANSCRIPTION

00:00
anyway welcome to money mondays
00:03
every monday 3 30 p.m central standard
00:06
i have a co-host here guest co-host well
00:09
you go ahead and introduce yourself man
00:10
because you don’t look like ferris but
00:12
you kind of look like fairs
00:13
not quite so i’m the more charming
00:15
younger brother actually
00:16
not by much but a little bit younger
00:18
than him um yeah background here
00:20
is actually in the more investment world
00:23
in general backgrounds in the finance
00:24
world
00:25
i spent years in new york city worked
00:26
for blackrock eventually made my way
00:28
back to houston which is home where i
00:29
was raised
00:30
and here we are working together on
00:31
disrupt equity love it love it so mr
00:34
tarik has been with us for i’d say over
00:35
a year now right
00:36
coming up on a year just coming up
00:37
coming up on a year you know um
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has a lot of great qualities one of
00:41
which he knows a lot about investing in
00:43
finance and so
00:44
we have him as the head of amongst other
00:46
things
00:47
investor relations so that’s what we’re
00:49
talking about today guys
00:50
is how to handle investor relations as a
00:52
multi-family syndicator but
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i would say a lot of the overlap is i
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mean this is this is obligatory for i’d
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say anything that you’re going to invest
01:00
in right you want to
01:01
you want to be able to communicate with
01:02
your investors right when you say is
01:04
that important
01:05
i think you’re no matter what you’re
01:07
doing in life and i’m you know i’m not
01:08
the first to say by any means you’re
01:09
always selling right and yeah when it
01:10
comes to
01:11
real estate syndications or just any
01:13
business in general you’re also
01:14
selling and this capacity for us
01:16
specifically we are selling
01:17
our deals our ourselves our entity our
01:20
trust
01:21
and ultimately selling ourselves to
01:22
these investors and letting them know
01:24
that hey
01:25
we we we are worthy of being in control
01:28
of your capital and being the custodian
01:29
capital to put it to work for you
01:31
yeah i mean i always say that we’re
01:33
we’re providing opportunities
01:35
to investors right where you know people
01:38
can
01:38
you know hopefully get an out weighted
01:40
return to say the stock market
01:43
and you know ultimately the the tax
01:45
benefits and everything else that goes
01:46
along with commercial real estate
01:47
right so my point being is folks is that
01:50
even if you’re not doing multi-family
01:51
maybe you’re doing single family or
01:53
maybe you’re doing some other investment
01:54
vehicle or whatever it might be right
01:56
these are some best practices and some
01:58
stuff that you know we wanted to just
01:59
kind of be forthcoming about how do we
02:01
do it right how do we go about raising
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you know equity we’re going to
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come up when we’re finishing up this
02:05
raise which we’re essentially done on on
02:07
our latest deal point at cypress woods
02:10
um we would have raised 23 million with
02:12
the help of the open door capital guys
02:14
which we’re excited about
02:15
and uh that’s going to put us over 30
02:17
million for the year now so
02:19
i mean we know a little bit about
02:20
raising capital and then me and your
02:22
brother have raised another 20
02:24
almost 25 million you know over the
02:27
course of our career
02:28
so you know you’re this is coming from
02:29
folks that have raised over 50 million
02:31
dollars people
02:32
so take some of this advice to heart you
02:34
know we’d love to
02:35
be interactive so if you have any
02:37
comments questions maybe you have some
02:39
best practices and some tips right
02:41
drop them in those comments section on
02:42
facebook and let us know what you think
02:44
right you know but we’re going to dive
02:45
right in it’s going to be a little bit
02:46
of a q a
02:47
i’m going to roast this guy a little bit
02:48
a couple times right throw some curve
02:50
balls i’m just messing with you man
02:52
that’s a typical monday looking forward
02:53
to typical monday right
02:54
so let’s get right into it what
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technology and systems
02:58
do we have in place to manage investor
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relations i think we’re gonna
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we’re also gonna talk about maybe we
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don’t name any names as the the
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platforms
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you know at least when it’s when it
03:08
might be negative but let’s maybe talk
03:10
about the positive one that we’re going
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to go to
03:11
sure so i mean this is kind of more of a
03:14
high level discussion about what is it
03:16
that you look for in a platform in
03:17
general and
03:17
from there which ones are capable or
03:20
lacking in their their competencies
03:21
right so
03:22
with regard to the actual technology and
03:24
system that we utilize there’s a couple
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pieces first of all
03:27
ultimately first step of the process is
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that people hear about you
03:30
some manner uh referral something that
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you do outline social media or marketing
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whatever maybe
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and they want to talk to you right so as
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part of that at least with our process
03:39
we actually allow them to have
03:40
a direct conversation with us it’s not
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just uh hey here’s a closed door and you
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know it’s a black box is what’s actually
03:45
going to happen behind the scenes we’re
03:46
pretty transparent in general as a
03:47
company
03:48
as well as with our investors so for us
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first step is
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schedule a call with us right get on a
03:52
call and and for that we use a pretty
03:54
typical
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uh software everyone knows about it’s
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calendly but you can use acuity
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scheduling any of these software’s
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they all do the same thing right just
04:00
for streamlining that piece of it which
04:02
is
04:03
a no-brainer but after that of course we
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we like to do face-to-face conversations
04:07
uh video chat these days you know post
04:08
covid world and so on um we use
04:10
microsoft teams but
04:12
zoom or anything similar same idea but
04:14
those are just the infrastructure behind
04:15
the scene so let’s pause that right
04:16
you’re doing
04:17
you’re trying to i’d say it’s not going
04:19
to be a marketing show we would probably
04:21
we probably should have that shanna
04:22
right maybe in the future about
04:24
you know how do we do some of our
04:25
marketing right because this is kind of
04:28
after we’ve marketed to somebody we’ve
04:30
got them interested in
04:31
reaching out to disrupt equity right
04:34
they’re going to hit us up through
04:35
one of our gener one of our various
04:37
channels right mainly our website
04:39
right right and then from there they set
04:41
up calls with tarik and his team
04:43
you know through you know whether it’s
04:45
teams or zoom whatever it might be right
04:47
we’re just trying to get some face time
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understand your goals right and make
04:50
sure that they align with our goals
04:52
right
04:52
you know if you’re a guy or gal and all
04:54
you want to do is
04:56
new class a development in new york city
04:59
well guess what we’re not the guys and
05:00
gals for you
05:01
that’s not what we do right so we want
05:03
it to be a good win-win or you’re going
05:05
to just be constantly disappointed in
05:07
the deals that we put in front of you
05:08
so that’s one of the reasons why we do
05:10
that and then the other reason is just
05:12
you know so you can understand you know
05:13
who we are as a company right as a firm
05:16
what is our culture right you know do
05:17
you and then ultimately went over your
05:19
your your trust so you invest with us
05:21
right and that’s that’s the key thing
05:22
right where it’s not
05:24
a it’s not a sales pitch it’s a
05:25
conversation right it’s a two-way street
05:27
here
05:27
so as part of that we we like to
05:29
understand what is your existing context
05:31
you know whether it be
05:32
uh your professional background and so
05:33
on how do you actually find us and get
05:35
into our world
05:35
and what interests you into real estate
05:38
generally and multifamily specifically
05:39
and that way you see kind of based on
05:41
your content and your context
05:43
historically
05:44
what the conversation needs to be like
05:45
right it’s kind of an off-the-cuff kind
05:46
of situation but
05:47
if somebody comes into the game and says
05:49
hey i’ve invested in the past and i’ve
05:50
had a terrible choose the real estate
05:51
well guess what that conference is
05:52
going to be very different than somebody
05:53
says i’ve invested in many syndications
05:55
i love real estate i’m sold
05:56
right yeah it’s more you have to sell
05:58
them on the concept you’re just you’re
06:00
you’re maybe more
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you know introducing the opportunity as
06:03
well using us personally the opportunity
06:05
itself and just
06:06
they have the context to know about the
06:07
general information now it’s more about
06:08
the specifics of hey why are you
06:10
different
06:11
why should i put my money with you as
06:12
opposed to into this asset class in
06:14
general
06:15
yep absolutely absolutely so you get a
06:17
lot of questions right
06:19
and i want to kind of talk about this
06:21
i’ll probably provide an answer as well
06:22
on this one
06:23
how do you streamline all the questions
06:26
that you get
06:27
right i know that it all ultimately
06:28
always starts with
06:30
the the initial phone call right so
06:32
let’s just say we we won them over to
06:34
the disrupt equity family and they want
06:35
to invest with us right
06:37
you know say we actually have a deal
06:39
right you know
06:40
is there a process that you have that
06:42
kind of allows you to streamline
06:45
you know all these different questions
06:46
and we talked about this this morning so
06:47
i’d like you to kind of talk about that
06:48
a little bit too right
06:49
yeah i mean first and foremost it
06:51
depends on who you’re talking to right
06:52
so so there are kind of two categories
06:54
of investors there’s institutional and
06:55
then there’s
06:56
retail right with our platform with our
06:58
reach with our our
06:59
uh rebels if you will we focus a lot
07:01
more on the retail we have the
07:02
institutional connection that’s not a
07:04
problem right with my background
07:05
in new york and blackrock and so on we
07:07
have access to all of that but
07:08
that said we like retail ultimately um
07:11
there are there are favorable situations
07:13
if we need to go with either side but
07:14
for where we are in our journey right
07:16
now we like retail investors primarily
07:18
um it makes a lot of sense so everything
07:20
starts with the conversation
07:21
right and first of all you have those
07:23
conversations that as you continue to
07:25
hear questions repeatedly then it
07:27
becomes a question of well how do you
07:28
obviously
07:29
uh how do you optimize this whole
07:30
situation right and as part of that
07:33
what we like to do is when we hear these
07:34
questions over and over and over we
07:36
first of all we do up a little script or
07:37
that we they’ll follow in these
07:39
conversations and they’re not
07:40
necessarily you got to follow more about
07:41
word but at least an outline is how this
07:42
concept is going to go to make sure that
07:43
you at least hit on all the appropriate
07:45
topics
07:46
that are going to be interested and
07:48
important in these conversations
07:49
so once you have those you know we even
07:52
can
07:52
take it a step earlier in the
07:54
conversation and try to preempt a lot of
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this where
07:56
if they heard of us because if there’s a
07:57
deal that we have that we’re raising
07:58
capital on currently
07:59
well then let’s incorporate into our faq
08:01
section right let’s kind of address a
08:02
lot of these questions
08:03
just to keep our time um first of all
08:06
you
08:06
make the most of our time and understand
08:08
that we have limited resources in terms
08:10
of how much time we available too right
08:12
yeah we’re not we’re not a car so many
08:14
capital folks right we don’t have 50
08:16
investor relations people right you know
08:18
you’re talking to both of them right now
08:20
right and then ferris obviously helps
08:22
out too so we have a big team
08:24
and that and therefore we always have to
08:25
be as productive and as efficient as we
08:27
possibly can right
08:28
so to kind of you know i guess you know
08:30
maybe elaborate a little bit on what
08:32
derek’s talking about so
08:33
we have faq section that will usually
08:35
include in every deck right
08:36
correct and those are going to be just
08:37
questions that we know people are going
08:39
to have right
08:40
not maybe not everybody but there’s
08:41
definitely going to be somebody that’s
08:42
going to ask
08:43
how much skin in the game do you have
08:45
because every single deal that i’ve ever
08:46
done
08:47
somebody has asked me that question so
08:49
we’ve tried to include those as well as
08:51
a few that are specific to the deal
08:53
yeah but even prior to that right what
08:56
we’re talking about potentially doing is
08:58
maybe even having
08:59
you know some videos that really kind of
09:00
describe disrupt equity in in detail
09:03
to kind of get past that initial bump of
09:06
you know i just want to hear from
09:07
somebody i want to see what they look
09:08
like i want to
09:09
you know hear how they they talk about
09:11
their firm right
09:12
and answer some of those real customary
09:15
or not customary the real
09:16
standard stuff that people are going to
09:18
ask and so we’re talking about rolling
09:20
that out as well right
09:21
yeah so i mean all conversations they
09:23
typically are going to have a few key
09:24
things that everyone wants to know right
09:25
pretty standard questions nothing out of
09:26
the ordinary but
09:27
who are you why should i invest some
09:29
money with you what makes you different
09:30
what are the risks you faced all these
09:32
things that
09:32
everyone wants to know these right so
09:34
rather than having to repeat yourself
09:36
like a broken record
09:37
let’s just simplify it and automate the
09:38
whole process ultimately we are a tech
09:40
company here that happens to apply our
09:41
technology
09:42
to real estate right so trying to
09:43
leverage where appropriate our time and
09:45
these technologies platforms that can
09:47
help us so one of the things we’ve been
09:48
talking about and what you looked at
09:49
this morning is
09:50
well you know what a lot of these
09:51
conversations we really do kind of
09:54
do most of the talking right and we know
09:56
that the questions we’re going to ask
09:57
and by time we go through
09:58
our script and we touch on everything
10:00
and we ask them at the end hey what
10:01
questions you have
10:02
most of the time people say hey you’ve
10:04
answered everything that i i had in my
10:05
mind without even
10:06
being able to answer any questions or
10:07
ask you any questions that is so we’re
10:09
trying to
10:10
build out a process now where we’re
10:12
going to kind of remove ourselves from
10:14
having to say anything in the first
10:15
place at all by just recording it one
10:16
time
10:17
allowing people to watch this video
10:19
which could save them time first of all
10:21
by not having to to talk to us for as
10:23
long and of course save our time by not
10:25
having to repeat ourselves with every
10:26
single person
10:27
and then from there once they have that
10:29
just about who we are
10:31
what we invest in what are our criteria
10:33
what are our assets the markets all that
10:34
sort of stuff that people want to know
10:36
then it becomes a question of if you
10:37
have anything else you want to know then
10:39
let’s jump on the phone right let’s use
10:40
that time
10:41
very efficiently so yeah what we’re
10:43
trying to do here is really just kind of
10:44
catch those you know the
10:46
like i said the real standard stuff that
10:47
everybody asks right you know how long
10:49
have you been in real estate and how
10:51
many
10:51
you know how many projects have you done
10:53
how much i mean what’s your unit count
10:55
what’s assets under management and how
10:57
to manage it yourself you know have you
10:58
had any exits and what are those returns
11:00
folks
11:01
every for the most part every investor
11:03
that i’ve ever talked to asks the same
11:04
stuff
11:04
right and so what we’re talking about is
11:06
maybe potentially introducing some
11:08
some videos and then at the end of that
11:09
right allowing them hey if you still
11:11
have questions hit us up here and it’ll
11:12
be a link to one of our calendars right
11:14
and so i think that that helps people
11:17
because at the end of the day
11:18
people have questions they need to get
11:19
comfortable with us and the deal right
11:21
ultimately they want to know
11:22
at the end of every single conversation
11:24
there’s never an exception everyone
11:25
wants to know
11:26
how can i get notified of your future
11:27
opportunities right so why would we not
11:29
automate that process in the first place
11:30
absolutely absolutely all right so we
11:33
got some questions that came in
11:34
ahead of time so what are your ques or
11:37
what
11:38
are questions you would recommend new
11:40
investors ask before investing with the
11:43
syndication group
11:44
yeah good question so first and foremost
11:46
understand their background right these
11:48
are pretty general conversation
11:49
topics right just understand who they
11:50
are who who makes up the team
11:53
do their investment strategies and their
11:55
ethics you know key one right there
11:57
um do they align with you and i say that
11:58
because some people
12:00
this kind of goes into the ethics
12:01
companies of how much skin in the game
12:02
do you have right there are people there
12:03
who just fee shops right they have i’m
12:05
sure we’ve all seen them or we will have
12:06
heard of them at least
12:07
where they just want to make their money
12:09
on the entrance and exit and they don’t
12:10
really care how the deal itself performs
12:12
they’re in it for the short term and
12:13
that’s fine you know there’s always a
12:14
handful of those people but they’re
12:16
never going to last right they’re
12:17
short-term players we’re not like that
12:18
and there’s a reason for that
12:19
but key things you ought to focus on is
12:21
well ask about their track record right
12:23
had they gone full cycle on deals and if
12:25
so
12:26
how well did their results pan out
12:27
compared to their original expectations
12:29
in the first place
12:30
uh beyond that is do you have any skin
12:32
in the game yourself right and if so
12:34
how much just say i have skin in the
12:36
game that doesn’t really mean
12:37
because it could be literally a dollar
12:38
and technically they could say that and
12:39
get away with it but
12:40
ultimately is it 10 of the deal is it 20
12:42
of the deal is it
12:44
negligible amount where it’s not really
12:45
anything meaningful ultimately you want
12:47
to know that there’s enough
12:48
carrot on the stick here where there’s
12:50
an alignment of incentives that
12:51
whatever they do on the deal itself is
12:53
going to be in your best interest
12:54
because it’s also in their best interest
12:55
right
12:56
and that both parties win here and then
12:59
one good question that i think
13:01
not enough people ask this question i
13:02
think is great is what is your biggest
13:03
failure right
13:04
have things what challenges have you
13:05
actually faced because inevitably if
13:07
you’ve done enough deals if you’re
13:08
actually a player here you face
13:09
challenges whether you want to admit it
13:10
publicly or not
13:11
you know it’s happened so it’s good to
13:13
kind of pull those those strings and
13:15
understand
13:15
well how when when was the time that
13:17
something didn’t pan out as you probably
13:19
and i think let’s let’s pause there
13:20
because that’s actually a really good
13:21
point folks i think you
13:22
that is one question that i’ve always
13:24
asked of other syndicators right you
13:26
know i mean we invest passively as well
13:28
and so the one thing is is what has been
13:30
your biggest challenge and how did you
13:32
handle it right because
13:33
everybody’s gonna have ups and downs
13:34
right i wish i could say that every one
13:36
of our deals was like a rocket ship and
13:37
it just took off because
13:39
we’re the best thing since sliced bread
13:40
right but unfortunately
13:42
the market and maybe management
13:43
companies that we had used in the past
13:45
and
13:46
and various other things that you know
13:48
maybe we couldn’t foresee
13:49
you know or we didn’t handle very well
13:51
ended up blowing up on our face
13:53
and so you’re the the biggest proof that
13:56
somebody is going to be a good manager
13:58
of a business
13:59
is how they handle pressure how they
14:01
handle those ups and downs
14:03
and you know and i think that that’s an
14:04
important thing to understand right
14:05
because
14:06
you know the other thing that i’d also
14:08
ask is if they are a new investor right
14:11
you know maybe they don’t have a track
14:12
record but i still might like the sub
14:13
marketer like the deal right
14:15
i’d ask them how much business
14:16
management experience do they have too
14:18
right because you’re really you’re
14:20
buying a business
14:21
which is what multi-family syndication
14:23
really is right and so
14:25
do you have any experience in doing that
14:27
and i’ll i’d say that there’s certain
14:28
people that i’m just like
14:30
you know what maybe maybe seems like a
14:32
good deal love the sub market
14:34
but you’re maybe just not the right
14:35
operator for it right because
14:37
if you have no experience running a
14:38
business and don’t understand some of
14:41
the the key
14:42
kpis that you have to really track in
14:44
this business
14:45
it’s going to implode almost immediately
14:46
yeah i think this will get conflated
14:48
with the
14:49
aspect of yes people see real estate as
14:51
a passive opportunity
14:53
sure but guess what it’s a past
14:54
opportunity for your limited partners
14:55
right as the gp the sponsor it’s not
14:57
passive it is a business
14:58
you are the head of the entire entity
15:01
and you have to operate as business
15:02
and track everything accordingly to make
15:04
sure that you operate it as though it
15:05
was like a mcdonald’s right just yeah
15:07
you’re there day to day
15:08
if once as an lp sure you can sit back
15:10
but as a gp you have to be involved on a
15:12
daily basis
15:13
yeah and i love that you bring up the
15:14
mcdonald’s franchise model right almost
15:16
right you know i mean we’re slamming our
15:18
processes
15:19
and systems on top of the management
15:20
company and it really should be
15:22
at most in most cases it’s a rinse and
15:24
repeat right now the business plan might
15:26
adjust a little bit
15:27
right but what we expect to see and how
15:29
we’re going to manage people and how
15:30
we’re going to manage the asset
15:32
should essentially be similar across the
15:34
board right so
15:35
we’re talking a lot about investor
15:38
relations as it relates to
15:40
prior to making the investment right you
15:42
know but there’s other parts of investor
15:44
relations that
15:45
that for the most part i’m handling at
15:46
this point right whereas
15:49
you get them to invest right now what
15:51
what’s next right you have to
15:52
communicate with them
15:53
right and i think i think one of the the
15:55
platforms that we do use is active
15:57
campaign
15:59
one more key question that i think you
16:01
definitely ought to ask and again
16:02
a lot of people don’t ask these
16:03
questions but one that i think is
16:04
fantastic is first of all ask them
16:06
who else in the industry do you
16:07
recommend i work with right because they
16:08
obviously come to you for some reason
16:10
they like that
16:10
but one of the key things is
16:14
what happened shanna
16:17
saying the the screen went blurry we’re
16:19
back so it’s all good it’s all good
16:21
yeah i think it’s it’s it’s important to
16:23
ask who else you recommend in the
16:25
industry because first of all you’re
16:26
going to see that’s true are they
16:27
arrogant enough to say that they’re the
16:28
best in the world out there
16:29
since you know sliced bread boy nobody’s
16:31
really the best if you will everyone has
16:32
their own area of expertise
16:34
and see who else do they admire yeah and
16:36
are they willing to
16:37
kind of get the best outcome for the
16:40
investors or are they just looking to
16:41
kind of hog it off themselves say that
16:43
ultimately we want all the investors to
16:44
invest in our deals only when in reality
16:46
we know all of our investors right the
16:47
investment orders
16:48
while of course we would be would love
16:50
to have them invest all their capital
16:51
with us
16:52
and in all of our deals we know that in
16:53
the day that they are looking for the
16:54
best opportunities that are out there
16:56
and if we can if there are opportunities
16:58
of what we provide at a given time then
16:59
hey we’d like to recommend people that
17:00
we trust people that we know are going
17:02
to
17:02
handle them well and treat them well and
17:03
not burn them because if they burn them
17:06
it even if it’s someone else who does it
17:08
it still reflects negatively on us and
17:09
our industry as a whole
17:11
i agree i agree and i would say the
17:12
other thing that i would add to that
17:14
right
17:14
you know is that we’re not we’re not
17:16
going to have a deal at every single
17:17
point
17:17
during the year right you know and so
17:19
there’s sometimes there’s a finite
17:21
amount of time especially as we get
17:22
closer to the end of the year people are
17:24
always hustling to try to get some
17:25
depreciation
17:26
losses right so those get those tax
17:28
benefits and you know especially last
17:29
year
17:30
i wish we had a deal in q4 because there
17:33
were so
17:33
literally dozens of people had reached
17:35
out to us and we just didn’t have
17:36
anything at the time and then literally
17:38
like right after q4 was done we got
17:39
porterwood going so but at the end of
17:42
the day it just it happens like that
17:44
so you need to be if you’re if you’re
17:46
forthcoming with that information
17:48
sometimes that builds a level of trust
17:49
too right because you’re willing to
17:51
to you know refer over somebody to a to
17:54
a competitor essentially
17:55
right what are you looking out for
17:57
yourself or for your investors
17:58
absolutely you know i mean i want people
18:00
to be able to turn their money that’s
18:02
the most important thing in this
18:03
business is i’ll constantly be investing
18:05
it doesn’t matter if you’re investing
18:06
with me but be investing that’s the
18:08
if you take away anything today is that
18:10
you should always be putting your money
18:11
to work right
18:12
you know but to kind of get back to the
18:14
platforms and the software
18:15
you know question here i wanted to kind
18:17
of we we currently use ims
18:20
but we are moving to potentially invest
18:22
next
18:23
there’s syndication pro that’s out there
18:26
and there’s juniper square that’s out
18:27
there there’s a few other ones but those
18:29
are probably the four main ones that
18:30
we’ve
18:31
you know had access to and demoed and
18:34
those are to
18:35
manage your investors right from the
18:36
paperwork process
18:38
to providing distributions to
18:40
potentially even communicating to them
18:42
right yeah so a lot of this is on the
18:43
category of software right and obviously
18:45
the biggest tip by and large and
18:46
managing investor relations is going to
18:47
be use software right and that’s
18:49
probably any part of your life if you’re
18:51
technically competent use software
18:53
make your life easier and to that end we
18:55
use activecampaign for communications
18:57
we have these different what we would
18:59
call these investment management systems
19:00
the one that we are currently using is
19:01
ims
19:02
it’s okay nothing’s perfect but it gets
19:04
the job done we’re probably going to
19:05
migrate at some point
19:07
in your future to invest next or
19:08
something similar where
19:10
these ultimately allow you to keep
19:11
everything in a centralized place
19:12
because
19:13
a lot of investors they always ask well
19:14
is there a portal or where can i get
19:16
this information
19:17
we don’t want to make them have to go
19:18
and dig up every email and
19:20
find something from years ago which
19:21
ultimately these deals go on for five
19:23
seven years
19:24
they could go on for longer yeah so
19:25
we’re not gonna make them go and dig for
19:26
it these are just
19:27
centralized repositories where you can
19:28
have all your communications attract
19:30
there
19:30
all the documents that they need for tax
19:32
purposes or accounting person whatever
19:33
it may be
19:35
and then similarly distribution of the
19:37
funds themselves right how to protect it
19:39
all in one place
19:39
so that first of all it makes it easy on
19:41
our investors to find the information
19:43
but also
19:44
you know from our sellers component it
19:45
makes it easier on us because we are not
19:46
having to field
19:47
all these questions and and emails that
19:49
are interestingly going to come our way
19:51
to ask us hey can you get me this
19:52
information or hey where can i find this
19:54
case of hey
19:55
go to the portal check there it’s
19:56
probably going to answer nine percent of
19:58
your questions
19:58
the exception come to us right we’re
20:00
happy to get involved and be a little
20:01
more manual with it but
20:02
that is a key piece of the process
20:04
software is ultimately the name of the
20:05
game here right so
20:06
that’ll do that absolutely but the other
20:08
piece of software too that’s kind of
20:09
separate from that
20:10
is having a crm right some people they
20:13
have uh their investors in their in
20:15
in their contact list on their phone
20:16
right which okay cool that well they got
20:18
business cards in a drawer
20:20
i mean we’ve all been there prior to
20:21
kind of setting up a system right you
20:23
gotta
20:24
you gotta get away from the business
20:25
cards and and then some people will
20:27
like you said they’ll take a picture of
20:28
it maybe they’ll be their their first
20:30
pseudo
20:30
crm or they’ll have something in their
20:32
spreadsheet but i think if you really
20:33
want to if you want to take it to the
20:35
next level you have to have a crm
20:36
which is what so customer relationship
20:39
management database
20:40
and when you’re small fine you can kind
20:41
of get away with you know these
20:43
let’s call them antiquated methods right
20:45
business cards contact
20:47
phone book if you will those are okay
20:49
but when you go to the scale that we’re
20:51
at and you’re managing
20:52
really work with thousands of investors
20:53
at this point you really need a more
20:55
efficient way to track things
20:56
so for us we have a crm system we
20:58
primarily use nimble for that which is
21:00
nice because it pulls a lot of data from
21:02
all sources across the internet into one
21:04
place so we can track and understand
21:05
who is this investor right and beyond
21:07
that more importantly is to be able to
21:09
segment that list of investors right
21:11
because at the day
21:12
the way we operate as a company we
21:14
provide a lot of content there a lot of
21:15
education
21:16
people for people who want to get into
21:17
the game but also a lot of information
21:18
people who are already in the game right
21:20
so we’re able to track who are the newer
21:22
folks um and
21:23
even from there a little more finder who
21:24
are the tire kickers who are just here
21:26
to
21:26
learn but they’re never really gonna
21:27
pull that trigger which is unfortunate
21:29
because they’re missing out on
21:30
opportunity
21:30
and then who are the actual players who
21:32
are invested and beyond that once
21:34
they’re investors
21:35
how often have they invested right you
21:36
want to take care of people who are
21:37
repeating this with you
21:38
constantly working with you they trust
21:40
you obviously they like your support and
21:41
you want to cultivate that further to
21:42
make sure that hey
21:43
you take care of them and that as you
21:45
have continuous deals in the future
21:47
you make sure that they’re aware of it
21:48
because there’s a good chance that
21:49
they’re going to invest you continuing
21:50
forward
21:51
absolutely so let we check facebook real
21:53
quick so i’m going to kind of i want to
21:55
recap i know we went through a lot
21:56
folks and this is probably a topic that
21:58
we might revisit you know just to kind
22:00
of encapsulate you know because this is
22:02
so important to understand right so you
22:04
have to get the investor in
22:06
right you need to have a mechanism to be
22:07
able to set up those initial meetings
22:09
right because you have to have
22:10
an actual relationship with your
22:12
investors if you’re doing a 506 b
22:14
and as people have seen on on past shows
22:17
you have a 506 b
22:18
which means you have to have a prior
22:20
relationship with those people or you
22:21
have a 506 c which means i can
22:23
go blast it on facebook if i really
22:25
wanted to right so you need to have that
22:27
that whole mechanism in place right then
22:29
you got to get them comfortable with
22:30
us and with the deal then you got to go
22:33
through the whole paperwork process and
22:35
getting their wires in
22:36
and actually getting them into the deal
22:39
right which can be a whole process in
22:41
itself and maybe that will be
22:42
you know part two of this right you know
22:45
it’s kind of going more into
22:46
when we have a deal because that’s
22:47
that’s that’s a big part of what you do
22:49
especially when it’s a big raise
22:51
you might have a hundred investors right
22:52
that’s 100 sets of paperwork
22:54
that’s 100 wire transfers you got to
22:55
keep up with 500 emails yeah maybe 500
22:58
emails you’ve got
22:59
dozens and dozens of questions right
23:00
because everybody’s gonna have at least
23:01
a couple
23:02
and uh you got to keep up with that so
23:04
we’ll probably maybe we’ll we’ll set
23:06
that aside for a part two version right
23:07
but
23:08
then you got em right they’re in the
23:10
deal they love disrupt equity love your
23:12
firm they love the deal that you’re that
23:14
you’re putting together
23:15
but now you gotta take care of them so
23:17
the one thing that i say is that’s
23:18
that gets that’s the easy part really
23:20
now you gotta do the continuing
23:22
communication with them and keep them
23:23
happy and then ultimately
23:25
you know execute on that business plan
23:27
and do distributions right because
23:28
people are investing
23:29
not for you know because they like you
23:32
they want to get some kind of level of
23:33
return on their money
23:34
and so we typically do monthly reports
23:37
which are essentially executive
23:40
summaries along with the full financial
23:41
packages provided to each of our
23:43
investors
23:44
on each deal each month right so and a
23:47
lot of that you know you know
23:48
obviously i have a team but i look over
23:50
every single one of those and i kind of
23:51
fine-tune them and then i’m also
23:53
ultimately the one that usually press
23:54
send on every single one of those right
23:56
but in between that you’re gonna have
23:58
questions yeah right
23:59
it’s mainly about you know what about
24:01
this or how about that or how are things
24:03
going right they’re going to have those
24:04
you know continuing communications that
24:07
they’re going to want to have with the
24:08
with the sponsorship group
24:09
and you got to take care of them and
24:10
then on the back end right you know when
24:12
you go to sell the deal
24:14
you know you’re going to have to be
24:15
communicating all of that as well so
24:17
investor relations
24:18
is not just about that front end process
24:19
it’s also about the back end
24:21
so take that into consideration but any
24:23
questions we got
24:24
any comments yeah and a lot of these
24:26
kind of tie together but mike
24:27
asks uh how do you communicate the
24:29
progress of a deal as it goes along
24:30
and you kind of hit on that right that’s
24:32
what i just hit so we’re doing monthly
24:34
updates
24:35
some people do quarterly some do some
24:37
people do less i would say i wouldn’t do
24:38
less than quarterly right
24:40
but once again it’s you know think four
24:42
or five paragraphs with some
24:44
some data points in there and then we
24:45
could we literally attach the full
24:47
financial package which is going to have
24:49
p
24:49
l balance sheet general ledger bank
24:52
statements the whole shebang it’s
24:53
usually 150 pages long
24:56
and allow our investors to ask questions
24:58
off of that yes
24:59
and a lot of this is uh one of my
25:02
favorite movies actually batman right
25:03
and in that movie
25:04
joker sets up he makes a comment to the
25:06
effect of um
25:08
if things go according to plan nobody
25:09
goes mad even if that plan is a crazy
25:11
one right
25:12
but when things fall away from the plan
25:13
then it’s a problem so in this case too
25:15
ultimately
25:16
a lot of it comes down to setting
25:17
expectations one way right and then
25:18
following
25:19
that fulfilling your promise on how you
25:20
set the expectations so if you’re gonna
25:22
tell folks hey we’re gonna do xyz
25:24
monthly
25:24
they’re cool with it right but if you
25:27
fall off one month and you don’t
25:28
week five passes and you haven’t sent
25:30
out investors are on top of this you
25:31
know a good hand for them they’re
25:32
they’re sharp
25:33
and they say hey why haven’t i heard
25:35
this but usually we hit our targets
25:36
that’s not usual problem for us but
25:37
we’ve heard from a lot of other folks
25:38
about what the experiences are with
25:40
other people where
25:40
they were promised monthly distributions
25:42
they don’t get them until quarterly or
25:44
communications where
25:45
they they try to get hold of somebody
25:46
and they can’t get a hold of anybody at
25:47
all and again yeah these rules are
25:49
invested
25:50
with you so it’s not okay and we’ve
25:51
heard that a lot right i think you know
25:53
it’s
25:53
you’ve got to it always err on the side
25:56
of
25:56
over communicating right it’s how i how
25:59
we approach every single
26:00
deal that we do right now there’s been
26:03
you know some
26:03
some challenges that we’ve had in the
26:05
past i’ll always admit it that we could
26:06
be better
26:07
and i think we’ve since kind of solved
26:09
that but it’s it’s a
26:10
it’s a lot of work right you know
26:12
between drafting all of those
26:14
refining those and sending those out
26:15
that’s a good day uh
26:17
each month that we have to put aside and
26:20
actually do it but it’s important
26:22
right because we’re being transparent as
26:23
far as things are going right
26:25
and so people appreciate that so i know
26:27
we’re running i know we’re running a
26:28
little bit short on time so which do we
26:30
have some additional comments
26:31
yeah the only other one was andrew
26:32
school you you kind of saw the question
26:34
where i got answer which is how often do
26:35
you update investors like you said for
26:37
us we do it monthly
26:38
but one of the key things too is within
26:40
our company and i hope more people out
26:42
there
26:42
are similar is that we keep our doors
26:43
open all the time right where anytime
26:45
you got a question whether it be
26:46
for me ben chan anyone on our team we
26:48
always keep our
26:49
lunch communication open and reach out
26:51
to us right they most people have my
26:53
phone number they can text me they can
26:54
call me they can shoot me an email
26:56
or anyone else here frankly that you’re
26:57
in touch with and ultimately if there’s
26:59
something that
27:00
you have a question about that was not
27:02
answered in that monthly update
27:04
let us know right we’ll get into as fine
27:06
as fine of detail as you want or as high
27:08
level and overview as you want to get
27:09
your questions answered
27:10
absolutely absolutely all right so and
27:12
probably the most important question if
27:13
i may
27:13
david asks the question is that taric
27:15
from flip or flop
27:16
ben am i from flip-flop is that my
27:20
wife uh no and you know i’m thinking
27:23
that guy might be a little bit more
27:24
handsome than you man
27:25
all right you know so just it is what it
27:26
is i will say the funny thing about that
27:29
is that you have been there’s been
27:30
several people that have asked that
27:32
question this guy though it’s funny
27:33
because
27:33
my whole life i barely met anybody with
27:35
the name tarek never anybody with the
27:36
name of tariq musa and then this guy
27:38
comes out of the world
27:39
on this very popular tv show with the
27:40
same first and last name and we’re both
27:42
in real estate right
27:43
so on these phone calls we’ll see my
27:45
name on these
27:55
as anybody that knows what ferris looks
27:56
like you know this is just his
27:58
his younger brother right you know
28:00
probably probably 30 pounds slimmer
28:02
than ferris as well i gotta throw that
28:03
in there but uh
28:05
all right man so let’s wrap up a little
28:06
bit if we can what’s what is the biggest
28:09
tip
28:10
that you would do in managing investor
28:12
relations
28:13
honestly it comes up to two things use
28:15
technology where appropriate right where
28:16
you can to to try to automate a lot of
28:18
process and number two which ties into
28:19
that is
28:20
have a system a script if you will right
28:22
so
28:23
have a system to architect which just
28:26
which software and system you’re gonna
28:27
utilize throughout the process but
28:29
when you get into these conversations
28:30
where it is more of a manual approach
28:32
where you are going to talk to them on
28:33
the phone
28:33
have a script to follow because
28:35
ultimately you don’t want somebody to go
28:36
and phone you
28:36
and kill a lot of time and next thing
28:39
you know a 30 minute call goes for an
28:41
hour an hour and a half
28:41
and you still you know the main
28:42
questions they’re just kicking the tires
28:44
asking about a question that’s just
28:45
irrelevant right
28:46
and you know ultimately you want to take
28:47
care of them make sure they take the
28:48
answer to get their answers
28:50
addressed or the questions addressed but
28:52
you want to make sure that the key
28:53
things are actually going to matter
28:54
they’re going to allow them to be able
28:55
to make a decision
28:56
about investing are always answered and
28:58
only to make sure you do that
28:59
is hey have a little little template or
29:01
an outline that you’re going to go
29:02
through to make sure that okay well it
29:04
may have gone out of order or maybe it
29:05
did go in order who knows
29:06
but you at least hit on all the
29:08
appropriate topics so that
29:09
there is no necessary repeat
29:11
conversation
29:12
no absolutely absolutely so technology
29:15
technology trying to try to outline the
29:17
streamline
29:18
and the the process right you know i
29:21
mean yeah and i love it i
29:22
you know i’d say that you and you kind
29:23
of hit on it there are going to be
29:25
people in this industry that you know
29:27
like the idea of investing in this stuff
29:29
but ultimately have a whole lot of
29:31
analysis paralysis folks so
29:33
be aware of your time and how much is
29:35
that is worth
29:36
because there’s a lot of people that are
29:37
just trying to learn on your dime you
29:38
know we had
29:39
we had a guy i won’t name his name but
29:41
you know last couple deals he’s had
29:44
25 questions on each deal and then he’ll
29:46
come back with another 5 or 10.
29:48
he’s ultimately just trying to learn the
29:50
business from us right i don’t know if
29:51
he ever really has the intention um
29:54
you know i haven’t seen one dollar from
29:55
him but we’ve probably between me and
29:57
uh tarik probably spent hours with this
29:59
gentleman at this point
30:00
and you know and that’s not fair so you
30:02
ultimately have to stop and say hey
30:04
you know once we have a deal you know we
30:06
can come back to it right
30:08
you know but you know just be you know
30:10
be respectful of your own time i think
30:11
that’s what is the other tip too because
30:13
you know people will just try to learn
30:14
on their own right so
30:16
and not even to just put it in a
30:17
negative way right i think first of all
30:19
of course you don’t want to
30:21
be wasting your time people are not
30:22
interested in actually getting the job
30:23
done but more than that also you
30:25
by taking so long the investors
30:27
themselves if they are actual serious
30:28
player not just a tire kicker they put
30:30
themselves in disadvantage because
30:31
they absolutely do that’s actually a
30:32
great point actually let’s let’s let’s
30:34
let’s stop there right you know
30:36
i think i think that that’s actually an
30:37
awesome point right which is
30:39
these things move fast faster than
30:42
people think
30:42
this is not like some stock where it’s
30:44
always going to be around and it’s a
30:46
look it’s a liquid market and i can buy
30:48
it in two months after i’ve done all my
30:49
due diligence
30:50
right you know these things fill up
30:52
within typically
30:53
one to four weeks and this last deal
30:56
filled up in one week
30:57
so we had a lot of people that were just
30:59
doing their typical
31:01
due diligence and it was already done
31:03
you know and i’m not saying that you
31:04
just have to go
31:05
on our good name and you know don’t do
31:07
any due diligence but
31:08
all i would suggest to folks that want
31:10
to invest with just
31:12
shops that have more of a track record
31:14
you know i would do your due diligence
31:16
quicker
31:16
because this is just sidelines that’s
31:18
the key thing i mean for this deal it’s
31:19
a perfect example a lot of these guys
31:20
are people who have known us in the past
31:22
right
31:22
this is even their first introduction to
31:24
us for this deal we raised 22 million
31:25
dollars and
31:26
you know even on our site we didn’t
31:27
expect to go as fast as it did and we
31:28
did in less than a week right which is
31:30
incredible
31:30
um now that said we have to put a stop
31:33
to things and say hey we’re full we
31:35
cannot take any more even if we wanted
31:36
to
31:36
now even after that timeline we have had
31:39
more than 100 people
31:40
still wanting on the deal guess what
31:42
these are people who
31:43
wanted to ask questions or whenever i
31:44
answered one question they came up with
31:46
a whole nother set of questions and the
31:47
question is ultimately
31:48
are they ever gonna participate we don’t
31:49
know we don’t that’s not really our
31:50
place to judge right we hope and we
31:51
welcome the two
31:52
but you gotta move fast because if you
31:54
don’t want it someone else does because
31:55
if it’s a good deal which is what we
31:56
like to reach the table
31:57
someone’s gonna jump on it and so that’s
31:59
that’s advice to the passive investors
32:01
right advice
32:02
to a syndicator is also if you’re
32:05
if you’re wanting to you always want to
32:07
create a sense of urgency i guess is my
32:09
point right
32:10
so even if it’s not there in reality i
32:13
would say
32:14
you know try to create that illusion
32:16
right because people have a tendency to
32:18
really kick the tires too long
32:19
or i’ll get around to that paperwork
32:21
next week or i’ll get around to that
32:22
wire transfer right
32:24
and you’re not necessarily lying to them
32:25
you’re just trying to push them along
32:26
right you’re a sales person at the end
32:27
of the day
32:28
you know i was doing i did sales for
32:30
quite a while at 19. you always had to
32:32
create a sense of urgency right
32:34
and in that case it would be like hey
32:36
this sale or
32:37
this you know this discounted product is
32:40
only going to be good for
32:41
the month of august right you know
32:44
everybody does the same thing now is
32:45
that true or not who knows right
32:47
you know but you’re trying to get them
32:48
off and actually take
32:50
action so i’d say that that’s another
32:52
piece of advice for the operators
32:54
as well for sure and from the side of
32:56
the operator as well i mean and then i
32:57
asked because i mentioned this because
32:58
there are there are some questions that
32:59
are coming about this which is how
33:00
important is
33:01
image or soft skills or networking
33:02
skills and how do you work on them right
33:04
huge
33:04
i think you know here’s maybe the best
33:06
way that i can answer this people want
33:07
to ask questions how do you actually
33:08
raise money right how do you convince
33:09
somebody to do that
33:10
and you know what the number one easiest
33:11
way to do so is have a good deal simple
33:13
as that right
33:14
if you have the deal that that helps i
33:17
mean hopefully
33:18
that’s what it all comes down to i don’t
33:19
care how good of a marketer or
33:20
salesperson you are if you have a crappy
33:21
deal it’s true you may get a couple
33:23
people but you know what
33:24
it’s gonna be short-lived but if you
33:25
have a good deal guess what you’re gonna
33:27
have people running through your doors
33:28
knocking on
33:28
and say hey we want to aim on it and
33:31
still but it goes back to the
33:33
the age-old argument right you you need
33:36
to have the deal first you need to have
33:37
the money first right
33:38
and i always tell everybody you need to
33:40
have both i’m sorry it’s just it is what
33:41
it is you need to build up your brand
33:43
you need to build up your marketing you
33:44
need to build up your investor list
33:46
so whenever you do have a good deal you
33:48
have somebody to actually market it to
33:49
right because
33:50
you know you could have the best deal in
33:51
the world if you don’t know anybody that
33:53
can actually put money into it right
33:55
you know then you could have a problem
33:56
too but that certainly helps
33:58
create that sense of urgency too when
34:00
somebody says oh i love that market or
34:02
man those returns look great
34:03
that’s going to create sense of urgency
34:05
too because they know that everybody
34:06
else is going to see that as well
34:07
right it moves from a hypothetical to an
34:09
actual it’s not exactly hey
34:10
ben i could get you this it’s the case
34:12
of hey ben i have this ready to go are
34:14
you ready to move now or not
34:16
and if the answer is hey it’s right in
34:18
front of me i want that golden goose
34:19
while it’s there
34:20
no i agree i agree any other questions
34:23
no i think that’s really it that we got
34:25
on this side so
34:27
that’s pretty much jay great great
34:29
questions great comments i think it’s
34:31
it’s an important thing i think we’re
34:32
gonna channel we should probably do a
34:33
part two on this
34:34
i want to dive a little bit more into
34:36
the paperwork process and just kind of
34:38
you know open up our kimono a little bit
34:39
as far as what we do right it’s not a
34:42
marketing this is more so just the
34:43
process that we
34:44
that we follow and it’s really
34:45
regimented at this point we’ve done
34:47
we’ve been we’ve done
34:48
this we’ve syndicated 12 deals at this
34:51
point
34:52
so we’ve had 12 times to get this right
34:54
yeah and uh each time we find little
34:55
fine tunings that we want to do and so
34:57
we can certainly share some of our tips
34:58
and tricks on that right but
35:00
in the meantime if you want to learn
35:02
some of the great stuff that we’ve got
35:03
shannon does a great job curating this
35:05
you got to get the toolkit folks right
35:07
so go to www.disruptequity.com
35:11
toolkit it’s got our checklist it’s got
35:14
our webinar replays including this
35:16
podcast that me and ferris have been on
35:18
right and a lot more
35:19
value right we’re not asking you to pay
35:21
for it we’re not selling anything
35:22
just pop your email in there and it’ll
35:24
all be there for you
35:25
so what’s coming up next week so next
35:28
week we’re gonna be talking about how to
35:29
actually vet potential partners in the
35:31
multimedia real estate industry and
35:32
from the sounds like primarily from the
35:34
co-sponsor gp side of things yeah
35:36
um and perhaps even for the lp side who
35:38
do you want to partner with with your
35:38
capital so
35:40
i think that’s important too right you
35:41
know so that’s gonna be next monday at
35:43
what time
35:44
3 30 p.m central 3 30 p.m central folks
35:48
we really appreciate you tuning in we
35:49
will see you then take care

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