Managing Investor Relationships In Commercial Real Estate

  • Share:

This Money Monday$, learn more on how multifamily real estate syndicators handle investor relations!

VIDEO TRANSCRIPTION

00:00
so what is this what are we doin
00:01
mondays oh every monday
00:03
central welcome everybody 3 30 ish right
00:06
yeah
00:07
he’s a little bit late he needs to get
00:08
his his powder on the face
00:10
and kind of get his hair slicked back a
00:12
little bit
00:13
yeah it’s all about the hair you know i
00:15
gotta get i gotta run a comb through it
00:16
every
00:16
every day every day so what are we
00:18
talking about today man we’re talking
00:19
about money mondays and we’re talking
00:21
about managing investor relations part
00:23
two we talked about this last week not
00:25
two weeks ago two weeks ago i’m sorry
00:27
where’s your coffee at man come on no
00:28
i’m already done with it um and you know
00:30
basically just kind of talking through
00:31
right investor relations is an important
00:32
part of the role
00:34
important part of the business so really
00:35
kind of talking through what that looks
00:37
like right what are some key things to
00:38
manage and really it’s kind of
00:39
complement what we did two weeks ago
00:41
we had a lot of interest a lot of people
00:42
are excited so figure out hey let’s do a
00:44
second round and this was and and when
00:46
we had tarik on a couple weeks ago when
00:48
ferris was out
00:49
um not working because you know somebody
00:51
has to stay here and do some stuff
00:52
right you know but anyway it was kind of
00:55
high level folks right so
00:56
there’s a couple things that go along
00:57
with investor relations right it’s
00:59
ultimately getting new investors in
01:01
right and talking with them onboarding
01:03
them into
01:04
your crm right and then there’s the back
01:06
part of the process right managing them
01:08
on a monthly basis whether it be
01:10
through newsletters if they’re not a
01:12
current investor or if they are a
01:13
current investor keeping them posted
01:15
on your current deals through you know
01:17
your your monthly updates or
01:19
quarterly for some folks right but we do
01:21
monthly but there’s this whole process
01:23
in between right
01:24
that that really um can make or break a
01:27
relationship between a syndication group
01:29
and an investor right
01:30
and you need to not be able to you don’t
01:32
you don’t want to fumble through this
01:33
right
01:33
and what do i mean by that right there’s
01:35
a there’s a time when you launch a deal
01:38
and then you get somebody into that deal
01:39
right and what happens in between that
01:41
time right
01:42
and i think we’ve through tough
01:44
hardships and
01:46
you know um challenges and doing it the
01:49
wrong way and
01:49
and trying different things you know
01:51
we’ve kind of refined that process
01:53
to this day and and i think we’ve gotten
01:54
pretty good at it right
01:56
so you know typically what what i’m
01:58
going to talk about today is mastered
02:01
still we’re still we’re iterating we’re
02:03
iterating on it minus
02:04
yeah a minus i think that that’s
02:06
actually a good score right whereas it’s
02:07
higher than ben ever got school that’s
02:09
true
02:10
actually yeah that’s pretty probably
02:11
that’s probably true right but
02:13
we have to continue to be better right
02:15
and so we’re always looking for
02:16
ways to refine and streamline the
02:18
process but essentially what happens
02:19
right so let’s start from the beginning
02:21
right you’re launching a deal
02:23
right so typically you know we how we do
02:25
it right is we send out a teaser email
02:28
and we get people into a funnel where is
02:31
essentially like hey if you’re
02:32
interested in learning more
02:33
register for this webinar right and then
02:36
a few weeks later kind of go by maybe a
02:37
week later
02:38
we actually launched the webinar right
02:40
and as part of that webinar launch
02:42
process we’re going to also launch the
02:44
paperwork for the
02:45
for the uh investment as well right
02:48
now people are gonna say okay well
02:50
that’s pretty easy you know we just have
02:51
people watch a video and they go fill
02:53
out paperwork well there’s a whole tons
02:54
of things that have to happen in between
02:56
that right
02:56
because what ends up happening is that
02:58
people will say that they’re gonna fill
03:00
out paperwork and then they’re not
03:01
they’re not gonna be able to sign online
03:04
or they’re going to have
03:05
challenges opening this or that so what
03:07
we’ve done is we’ve essentially had
03:08
tarik
03:09
be kind of our liaison right and he’s
03:11
white gloves the whole entire process
03:13
for people right so he’ll load it all up
03:15
into hello sign which is like a docusign
03:17
knock off and all they have to do is
03:20
really literally get in
03:21
fill out a few pieces of information
03:23
right because he’s done a lot of it for
03:25
them
03:25
they have to sign and it’s done right so
03:27
that’s the paperwork process right
03:30
now on top of that you have to track
03:32
their investments right and we do that
03:34
through ims
03:35
we’re going to another platform which
03:37
we’ll announce here in a couple weeks
03:39
um you know that we’re excited about
03:42
you know that’s going to make that
03:43
process even more streamlined
03:45
and that’s a way that we can kind of
03:46
track everybody’s different investments
03:48
right
03:49
but now you’ve gotten the paperwork
03:51
you’ve tracked who’s investing in what
03:53
right but now you need to get the wire
03:55
right so there’s a whole process of
03:57
having to chase people and making sure
03:59
that things are actually getting
04:00
getting taken care of once again i think
04:02
this new platform is going to track that
04:04
more efficiently and you know and you’re
04:05
talking a lot about
04:07
really the raised side of things yeah
04:09
this is the in between right getting
04:10
people on board under the deal that
04:11
first episode there’s a lot that happens
04:13
beforehand
04:14
around finding investors meeting
04:16
investors how do you build that rapport
04:18
right
04:19
you know essentially someone investing
04:20
your deal is like getting married
04:22
to some extent right it takes a lot of
04:24
dates beforehand right to get to know
04:25
somebody yeah and so really it’s doing
04:27
that
04:28
now that you’ve gotten them through kind
04:29
of the door right what does it look like
04:32
from then on right in terms of
04:33
like ben’s talking about how do you
04:34
handle the process how do you handle the
04:36
post process that’s really kind of the
04:38
focus of today’s
04:39
yeah so you load you load the paperwork
04:42
up into their ims profile and
04:43
ims is investor management systems right
04:46
and that’s just
04:47
each person’s got the ability to to log
04:50
on to their profile and see all the
04:51
investments that they have right and it
04:52
can be various investments with various
04:54
indicators
04:55
right and that’s where we we typically
04:56
are going to load up the subscription
04:58
agreement the company agreement all the
04:59
signature pages
05:00
everything’s there and then on a monthly
05:01
basis we also load up the the financials
05:04
there as well so
05:05
it’s a one-stop shop for our investors
05:07
right and that’s going to ultimately
05:08
show you know i mean what percentage
05:10
of the dealer they own right so that’s
05:11
kind of that’s actually maybe probably
05:13
the more straightforward part of the
05:14
process right
05:15
but as as a syndicator the more
05:17
challenging part is
05:18
because it’s really easy to do that
05:19
hello sign thing you know the way that
05:21
we’ve set it up it takes maybe 10
05:22
minutes you know
05:24
now you actually have to get people to
05:26
actually send in the money and that’s
05:28
where it gets a little bit challenging
05:29
right yeah some
05:30
some systems will allow you to do it
05:31
online but ultimately you got to realize
05:33
right
05:33
most investors don’t wire 50 7 500 200
05:37
000
05:37
slugs of money yeah for anything besides
05:40
they’re buying a house yeah
05:41
so you’re gonna have to kind of realize
05:43
that and help put in a process that
05:45
people are comfortable with right yeah
05:46
people can trust and have faith in right
05:48
because again they’re gonna be nervous
05:49
and so really think through that
05:51
and how you deliver that right investing
05:53
needs to be an experience it’s not just
05:54
a thing
05:55
yeah no that’s that’s that’s actually a
05:56
great point right i’ve got plenty of
05:58
them then
05:59
you’re all doing a great job man you’re
06:00
doing a great job so you have to you
06:02
have to ultimately create a good
06:04
customer service situation here right if
06:07
you fumble through this
06:08
you’re not you’re not responding to
06:10
their questions or their concerns
06:11
you’re not getting back to them quickly
06:13
ultimately they’re going to have a bad
06:15
experience that’s that’s
06:16
this is literally leading into a
06:18
partnership that’s going to last the
06:19
next five to seven years right
06:21
and you want to stumble right out of the
06:22
gate so you need to think through this
06:24
whole entire process and and make it as
06:26
streamlined and easy for them and
06:27
seamless for them as possible
06:29
right so you’ve they’ve they’ve signed
06:31
the paperwork paperwork goes to ims
06:33
that’s where all that’s their hub right
06:35
that’s their portal
06:37
right now you gotta go chase them for
06:39
the wire transfer but as ferris
06:40
mentioned right
06:41
most people don’t wire fifty hundred
06:43
thousand dollars you know
06:45
just on you know on faith right so
06:48
at the end of the day you provide them
06:50
with the bank account details but
06:52
you ask them to call in and obviously
06:54
you know um
06:55
verify that the bank account information
06:57
is correct right there’s a lot of wire
06:58
fraud that’s going on right now and it
07:00
has been for quite some time and you
07:02
people need to be safe people should not
07:04
just be wiring in money just based on
07:06
some pdf right
07:07
so we always ask them to call verify
07:09
we’ll verify the the wire transfer
07:11
instructions
07:11
and they can take that to their bank and
07:13
ultimately make the wire now that’s if
07:16
things go smoothly
07:17
most of the time you’re you’re you’re
07:19
pushing your prodding
07:20
you’re following up you’re having to you
07:22
know go through a process with people
07:24
actually get them to wire them guys
07:25
investors are busy people too yes the
07:27
more you can put it on
07:28
a silver platter the better it is for
07:30
you yeah right at the same time
07:32
you’re going to have to follow up right
07:33
because some people don’t realize where
07:34
they are in the process
07:35
they thought they told their bank to go
07:37
do it and the bank came back and hasn’t
07:38
done it they thought they told their
07:40
whatever their trust custodian their i
07:42
mean who knows what
07:44
but it’s your job to kind of keep them
07:45
abreast of the process don’t wait until
07:47
you’re a couple days for closing
07:49
and then figure out yeah real life
07:50
lingering you know so right now we’re
07:52
tracking that obviously within ims
07:54
you know to keep it a little bit more
07:56
organized and i think the next you know
07:58
platform is going to make it even more
07:59
seamless
08:00
but you need to realize hey i’ve got
08:02
these five people that i’m still
08:04
chasing for wires right and then there’s
08:06
going to be two one-off things right
08:08
one’s going to be the ira right so the
08:10
ira typically is going to
08:12
expect maybe a little bit more paperwork
08:14
involved in the process you might have
08:16
to stamp some things sign some
08:17
additional things
08:18
provide some additional documentation
08:20
and ultimately realize folks that it
08:22
takes two to four weeks for people to
08:23
process an ira transfer
08:25
it’s not like an overnight process where
08:26
somebody has the hundred thousand
08:27
dollars sitting in the bank account
08:29
so you need to probably prioritize those
08:31
ira investors ahead of the cash
08:33
investors
08:34
because they’re going to take a little
08:35
bit more hand-holding and a lot more
08:36
time to actually process
08:38
the other people too is the the second
08:40
edge case is going to be the people that
08:42
for whatever reason want to send us a
08:44
check we’ve had that before
08:47
and that’s not always that’s not always
08:49
something that we want to see
08:51
right because checks obviously can can
08:53
have their own risks
08:54
involved but sometimes for whatever
08:56
reason people have done that right and
08:58
just be
08:58
you know having a place where they can
09:00
mail the check and having a mechanism to
09:02
go and quickly get it deposited
09:04
because sometimes right the the checks
09:06
especially bigger checks are going to
09:07
take they might have a hold on them
09:09
right it could be two to four weeks if
09:11
you’re waiting for your one of your last
09:12
investors and they have a big chunk of
09:14
money
09:14
then you know it takes three weeks for
09:16
the for the check to clear
09:18
that could blow up your deal so just
09:20
take that into consideration too but
09:22
i would say that’s a very very small
09:24
edge case and there’s probably
09:25
99 of the people are going to do wire
09:27
transfers so
09:29
you’re needing to check that and
09:31
ultimately as part of your closing
09:32
process
09:33
right what your lender is going to
09:35
expect you to provide is what’s called
09:36
an exhibit a
09:37
in our world right and what is an
09:39
exhibit a that’s a roster of
09:41
all of the the investors on the deal the
09:44
ownership
09:44
percentages the how many shares they own
09:47
how much money they put into it what
09:48
their information is
09:49
and ultimately all their company uh
09:52
agreement
09:52
signature pages right the lender is
09:55
going to want all that in a zip file
09:56
before because they’re trying to track
09:58
and say
09:59
who’s all an owner in here and they’re
10:00
trying to verify that nobody is more
10:01
than 20
10:03
owner in the deal right so there’s a lot
10:06
that’s going on folks and and you know
10:07
ultimately we can
10:08
maybe include this as part of a future
10:10
checklist just to kind of give you guys
10:12
some
10:12
some some more information on how we
10:14
kind of track this stuff
10:15
but you need to realize that you you
10:18
have to have this all lined out you
10:19
can’t fumble through it because once
10:20
again
10:21
this might be the first opportunity that
10:23
you’ve gotten somebody to invest in your
10:24
deal
10:24
and if you make it a rotten rotten
10:26
situation or process
10:28
they’re probably going to be less likely
10:30
to invest in you in the future
10:32
right so monday mondays you’re doing
10:34
this every monday 3
10:35
30 central right we’re talking about
10:37
investor relations part two
10:38
yep but again you can feel free to ask
10:41
any questions so we do we’ll
10:42
we will do q a the last couple of
10:44
minutes you have questions comments
10:45
concerns
10:46
go ahead and drop them we can go start
10:47
going through some of those i know we
10:49
had one question come in from
10:51
instagram actually um the question is
10:53
ultimately at what point in time should
10:54
you
10:55
look into getting an investor management
10:57
system right
10:58
you know i think i think there’s costs
11:00
involved there are costs involved
11:02
i would actually say the sooner you can
11:04
afford it the better yeah i would say
11:05
right it makes life a lot easier it
11:07
helps you avoid making mistakes
11:09
right there are some people we know that
11:10
don’t have them right and it’s a
11:12
challenge for them to do distributions
11:14
right like for us we do monthly
11:15
distributions right we would not be able
11:17
to do that without a proper
11:18
degree and so really the sooner the
11:21
better
11:22
right and keep that in mind i mean it it
11:24
will give you
11:25
back time in other ways and so yeah
11:28
no it’s one of those it’s one of those
11:30
ones once you get past 50 investors like
11:32
it’s going to become a headache for you
11:33
to manage them otherwise too so
11:35
the other the other thing that i’m not
11:36
talking about too which is another big
11:38
reason why you should have an investor
11:39
management system is the k1s
11:41
right because you should not be emailing
11:43
k1s around even
11:44
unless you have some kind of a secure
11:45
way or a portal that they can go to
11:48
right and most people aren’t just going
11:50
to have that willy-nilly so
11:51
the investor management system allows
11:53
you to bulk upload k1s to your investors
11:55
and that
11:56
because because that’s something that i
11:58
manage has been a game changer for us
12:00
right um because ultimately when i first
12:02
started out first deal
12:04
i was emailing k-1s right you know and
12:07
coming from i.t
12:08
that’s not the most secure way to do
12:09
that folks right so this is important
12:11
information this is
12:13
you know um sensitive information and it
12:15
needs to be handled as such
12:16
and so these investor management
12:18
platforms allow that to be done in a
12:20
secure way and in
12:21
a seamless way right so we’ve gotten a
12:23
couple questions in
12:24
um you know before this today and i want
12:27
to kind of go through those so what
12:29
should your monthly
12:30
or what should you include in your
12:31
monthly investor updates
12:33
and you know i’m just going to say this
12:34
is once again going about this is post
12:36
close um
12:38
we do monthly some people do quarterly
12:40
we typically have an executive summary
12:42
high level
12:43
numbers so people can quickly get in and
12:45
see
12:46
you know um how the property is
12:48
performing and then as part of that we
12:50
include the full financial package that
12:52
we get from our property management
12:53
company
12:54
right so not everybody does it that way
12:56
that’s how we want to do it we want to
12:57
just be completely transparent
13:00
you know we want to do that on a monthly
13:01
basis because with these deals a lot can
13:03
happen in a month
13:04
so if you wait if you wait for a quarter
13:06
the the deal could have fundamentally
13:07
changed at that point
13:09
so um another question how do you stay
13:11
in touch with your current investors
13:12
ultimately email is the best way to do
13:14
it right you know i mean we try to you
13:16
know keep our brand out in front of
13:17
people too through stuff like that
13:19
i mean emails general one but also
13:21
certain investors ben will communicate
13:23
with or
13:23
communicate with right you want to give
13:25
that personal touch regardless of how
13:26
big
13:26
absolutely it makes life better for
13:28
everybody people enjoy that
13:30
people investors are not because of the
13:31
deal it’s because they like no and trust
13:32
you no it’s absolutely you’re you want
13:34
to do those kinds of
13:35
things to really help build that rapport
13:37
and then obviously present the deal with
13:38
them
13:38
because if your deals aren’t performing
13:40
they’re not going to regardless if they
13:41
like know and trust you they’re going to
13:42
lose that trust piece of it
13:44
yeah you need to and and always be
13:45
willing to hop on the phone and explain
13:47
the challenges that you might be going
13:48
through right you know i mean
13:49
that’s you know when everything’s going
13:51
great and distributions are flowing
13:53
and there’s no challenges which i you
13:54
know i’m gonna be honest if anybody
13:56
thinks that everything is rosy every
13:57
single day is just lying to you
13:59
but you know whenever that whenever it
14:01
does get challenging right you need to
14:02
over communicate right and so i’d say
14:04
during coven all the way up until a few
14:06
months ago we were doing
14:08
bi-monthly updates right to our
14:10
investors which was
14:11
was very much appreciated and then if
14:13
anybody wanted a little bit more of a
14:14
touch and
14:15
you know hey give me a little bit more
14:16
color i would just set up a call with
14:18
them and that’s even to this day i
14:19
probably have
14:20
i’d say 20 or 30 investor calls a month
14:23
just with current investors and and
14:25
potential investors that i think are you
14:27
know um going to be
14:28
you know some folks that we want to you
14:29
know do some more business with and it’s
14:31
great because it helps you know ben get
14:32
the talking out of a system so you could
14:34
talk less in other ways right
14:36
then let’s talk and shop so nothing
14:37
wrong with that no no you know it’s fun
14:39
to talk to investors right you learn
14:40
people are up to what’s going on some of
14:42
these people got some really cool i mean
14:43
yeah
14:44
it’s really cool to see what they’re up
14:46
to so you know i mean i’m i’m always i’m
14:48
always amazed at how
14:49
yeah these guys and gals have been
14:50
somebody this is a golden nugget
14:52
the more you build rapport with that one
14:54
investor that investor probably has
14:56
friends too they
14:57
absolutely have those folks you know you
14:58
want to be that guy that they think of
15:00
i love that don’t underestimate the
15:02
power of just communicating with these
15:04
folks right and
15:05
and taking care of them and that goes
15:06
back to what i was talking about earlier
15:08
right make that process as seamless as
15:09
possible
15:10
you’re probably going to stumble through
15:11
it the first couple times and you’ll
15:13
learn
15:14
you know the best practices just like we
15:15
did but
15:17
try to think through that and and learn
15:19
that process because
15:20
the better you make it the the more
15:22
likely they are to probably come back
15:23
absolutely so one last those questions
15:27
and keep going let’s do it so let’s see
15:28
so
15:28
ali abdullah says ferris was a
15:30
residential
15:31
uh re experience enough to get you
15:33
started on commercial real estate
15:34
because you said in previous videos you
15:36
didn’t take any boot camp
15:37
and didn’t have any finance background
15:39
um i would say it was right i mean i
15:41
learned along the residential side but
15:42
ultimately i got educated on the
15:43
commercial side right
15:44
yeah boot camp is not the only way to
15:46
educate i read books i listen to a lot
15:47
of podcasts and
15:48
i knew enough to be dangerous and kind
15:50
of hop in and make sure
15:52
you know the big things right and then
15:54
you know figure the rest out as long as
15:55
you go right
15:56
bringing partners is another way people
15:58
do it right get you know
16:00
and it’s not about your first deal don’t
16:02
think about it as you just gonna
16:03
you’re gonna hit a homerun on that first
16:04
deal it’s not about making all the money
16:06
on that deal
16:07
it’s about performing and giving up get
16:09
educated
16:10
hitting a double these days is great
16:13
don’t ever you know because the other
16:15
you know i’m just gonna i’m just gonna
16:16
make a point here trying to look for
16:18
that home run deal you’ll be looking for
16:19
a long time at this point
16:20
try to find a double but i think the the
16:22
the biggest point that ferris made is
16:24
find yourself a a good partner too right
16:26
you know if you’re not going to go down
16:28
that guru trap
16:29
like i went um which i did learn some
16:32
stuff but i
16:33
ultimately met a lot of great people um
16:35
you know finding the right partner that
16:37
has already has that knowledge and can
16:39
kind of lead you through the traps
16:41
is uh probably one of the most important
16:43
things you can do right
16:44
you know so so let’s keep going got some
16:46
more questions let’s do it
16:47
trevor nice seeing you last week by the
16:49
way apparently you’re making the drive
16:51
down from
16:51
thanks buddy i know down to houston for
16:53
our meet up so for those who don’t know
16:54
we host a
16:55
meet up every thursday thursday first
16:58
thursday every month here in houston
16:59
trevor drove all the way down from
17:00
houston uh from austin austin thanks
17:02
trevor i know it’s loud there too man
17:04
but we’re we’re trying we’re we’re
17:05
working
17:05
on the audio reworking work yeah it’s
17:07
our second time at that venue
17:08
but he said 100 people 100 percent of
17:11
people invest with those they know like
17:12
and trust
17:13
the personal touch is great yep
17:15
absolutely absolutely
17:16
so one other question we got so how do
17:18
you communicate problems and challenges
17:19
of a deal to investors
17:21
i think once again it goes back to how
17:22
you’re already doing it right you need
17:23
to be communicating monthly
17:25
via email or over a phone call the other
17:28
thing that we’ve had a lot of success
17:29
with
17:29
and it’s not necessarily challenges it
17:31
could be successes too
17:32
is having a webinar right you don’t have
17:35
to have just one webinar
17:36
with your investors right you can have
17:38
other webinars throughout the course of
17:40
owning the property too
17:41
and that’s a good opportunity to record
17:43
you know your thoughts
17:44
on the deal and how things are coming
17:46
along as well as allow people to come on
17:48
and ask questions right we typically do
17:49
those
17:50
um live versus recorded which we do our
17:53
upfront webinars and it’s been wildly
17:56
successful it gets people more
17:57
comfortable hey we’re
17:58
you know we’re on track or you know if
18:00
we’ve had some challenges these are what
18:01
we’re going to do to solve those and
18:03
and people typically walk away with
18:04
those with with good feedback to us
18:06
thank you for doing that and
18:08
i’d say that’s another way to uh to
18:10
communicate as well is do another
18:11
webinar
18:12
you know and that’s and then you send
18:13
out the recording to people that can’t
18:15
make it because typically there’s going
18:16
to be
18:16
a majority that can’t right so
18:20
let’s keep moving can’t there we go open
18:24
q a we’re already there let’s see
18:25
if you have comments questions please go
18:28
ahead and drop them we’re happy to kind
18:29
of go through them live
18:30
we do this every monday 3 30 central
18:33
come rain snow sleet or hell although
18:35
there probably is one in a couple weeks
18:36
i will miss but i’ll be traveling
18:37
all right well we’ll make it happen
18:39
maybe i’ll dial in we’re gonna get
18:40
shanna in on this
18:42
yeah maybe thank you yeah she’s like no
18:44
i’m not doing that
18:45
she does not want to sit next to you and
18:47
have to listen to your bad jokes
18:48
um let’s keep going then so any comments
18:51
questions
18:52
bring them on otherwise let’s keep
18:54
rocking all right all right so
18:56
you can’t get away from money monday
18:57
without us talking about so our
18:59
conference
19:00
best multi-family conference in the
19:02
country right really meant to be a
19:03
neutral environment we’ve had some
19:05
tremendous success for
19:06
our big ones the one in our backyard
19:07
here in houston and that is coming up in
19:10
a while still well how many people are
19:11
we trying to get six seven hundred
19:12
people oh my god
19:14
i keep saying five to six hundred but he
19:16
you know he’s a pessimist i’m the
19:17
optimist here all right half cup of
19:19
empty half comfortable
19:19
we’re gonna get it 600 people plus that
19:21
should be awesome it’s our backyard
19:23
you know and again it’s really about we
19:25
don’t sell anything it’s really about
19:27
networking and content right we have
19:29
some awesome speakers coming up
19:30
and ticket prices will go up every week
19:32
for the next
19:34
20 weeks yeah maybe the math sounds
19:37
about right maybe i’m
19:38
yeah close um and you know obviously
19:41
book sooner than later we’ve sold out on
19:42
before in the past
19:43
what’s the coupon code buddy coupon code
19:45
early bird for kind of the best discount
19:47
180 bucks off are we making any money on
19:49
this thing no
19:50
we just look to break even it’s all
19:52
apparently we’re not making any money
19:53
which is fine
19:54
because we’re not doing it for that
19:55
folks we’re not there to sell you
19:56
anything we’re not there to make money
19:58
off of you
19:58
we’re creating a platform where people
20:00
can come and have a good time
20:02
learn and ultimately the most important
20:04
thing about this right and this is why
20:06
it’s in our namesake
20:07
is to network right so we did a really
20:09
cool thing in miami we’ll probably
20:10
continue to iterate on that where we’re
20:12
forcing folks to
20:13
to network early on and get to know the
20:15
folks that are in attendance
20:17
and we create you know events throughout
20:19
the day
20:20
to kind of encourage that so it’s a
20:22
one-day event february 12th
20:23
2022 here in houston where’s the venue
20:27
mfinvestornetwork.com
20:28
westin city center in houston boom um
20:31
let’s see
20:32
so okay a couple questions let me go
20:33
through some more comments ryan johnson
20:35
says i plan to be there awesome look
20:36
forward to seeing you there all right
20:37
all right guys annette asked a good
20:39
question
20:40
have you ever rejected an investor for
20:41
reasons other than financial and if so
20:43
how did you handle that situation
20:45
yes the answer is yes right not everyone
20:48
that wants to invest should invest in
20:49
your deal
20:50
and you gotta just like they want to
20:51
make sure they like no one trusts you
20:53
you want to make sure you like know and
20:54
trust them as well
20:55
right so a variety of reasons yeah you
20:57
gotta you gotta handle that one
20:59
very delicately right you don’t wanna
21:00
piss anybody off uh
21:02
you know there’s a couple ones i won’t i
21:04
won’t go down a rabbit hole but you know
21:05
typically you can i i came from sales
21:08
and i could
21:09
i could i could smell out or sniff out a
21:12
tire kicker or somebody that was just
21:13
trying to really just
21:14
shop the market and had no intention of
21:16
really buying from a mile away
21:18
and that’s the same thing with an
21:19
investor a lot of the times they’re just
21:20
trying to learn off of you
21:22
so they’ll ask dozens and dozens of
21:23
questions you know there’s always more
21:26
questions and
21:26
upon more questions than ever committing
21:28
anything and ultimately what i’ve known
21:30
too is
21:31
those folks will typically start off the
21:33
conversation with can i come in less
21:35
than
21:35
the minimum right and so you just need
21:37
to kind of feel them out
21:38
and realize that you know you’re
21:40
providing an opportunity for folks if
21:42
they
21:43
want to put you through the ringer you
21:45
know because they think that you need
21:46
them
21:47
then you’ve already lost the the you
21:49
know the point of all of this right
21:51
you’re providing them an opportunity
21:52
they should be clamoring to come and
21:54
invest in your projects and those are
21:55
the types of investors that you
21:56
ultimately want
21:57
now they’re allowed to ask questions we
21:59
love questions we want them to ask
22:00
questions
22:01
right but there’s a there’s a point
22:02
where it starts becoming a time suck
22:05
and you have to cut it off and say hey
22:06
look you know we already have people
22:08
that have already invested
22:09
you know it’s shut off it’s done you
22:11
know you’ve you’ve kind of missed your
22:12
opportunity
22:13
and ultimately if they come back and
22:15
they’re a little bit more you know i
22:16
guess
22:17
expedient in the process next time then
22:19
maybe they’ve learned that hey yeah they
22:20
can’t ask dozens it doesn’t matter
22:22
the other reason too is just people that
22:23
don’t really believe in the deal right
22:25
no no
22:26
you’re not going to talk anybody into it
22:27
you know and they’re they’re you know
22:28
it’s becoming a drag we’ve said hey man
22:29
it’s probably not the right deal for you
22:31
it’s okay right here yeah and doing that
22:33
early on too right don’t
22:35
don’t let them beat you up right you
22:37
know because there’s going to be people
22:38
that don’t like houston deals or don’t
22:40
like atlanta deals or don’t like
22:42
value-add deals or don’t like this or
22:43
that right you know i mean
22:45
typically we we’ve seen that on every
22:47
single one of the deals where somebody’s
22:49
trying to kind of poke holes in our
22:50
business plan and that’s fine
22:52
right they’re allowed to ask those types
22:53
of pointed questions but
22:55
you know if they’re ultimately just
22:56
trying to get you in a gotcha type
22:57
situation
22:58
and they really have no intention of of
23:00
investing in the deal because they don’t
23:01
really like the deal they don’t like the
23:03
area
23:03
then why waste time with them so it’s a
23:05
delicate situation i’m not saying go
23:07
tell them to go pounce hand right you
23:08
want to
23:09
handle it with you know politically
23:11
correct you know feedback
23:12
but it’s going to happen you know there
23:14
was a lady there was that one lady that
23:16
you know asked us what
23:17
50 60 questions multiple multiple times
23:21
and we ultimately just said hey this is
23:23
not going to work out and we we sent her
23:25
on her way
23:26
all right let’s keep going cool so
23:28
amanda larson who great seeing you last
23:30
week as well
23:31
glider having these meetups kind of
23:33
missing all the time i know right
23:34
said it’s a great conference if you
23:35
haven’t been i highly recommend it
23:37
different than the others
23:38
thanks amanda we look forward to seeing
23:40
you there and look forward to seeing you
23:41
hopefully in a month
23:42
and maybe we’ll make it out to your meet
23:43
up here we do it too we need you and i
23:45
are talking we will absolutely do it
23:47
we’re going to come support you um let’s
23:49
see your buddy ed
23:50
aguilo says i’ll be there planning on
23:52
bringing in friends
23:53
a friend as well awesome fast forward to
23:55
it
23:56
and otherwise let’s see if anyone has
23:59
any more comments questions please go
24:01
ahead and drop them in otherwise we’re
24:02
about almost
24:03
at the end of time so we’re going to
24:04
call it a wrap here in a minute or two
24:06
all right all right so before we get to
24:08
that what’s coming up next week man
24:09
talking about the types of multi-family
24:11
properties we buy
24:12
oh we buy guys will the home parks ben
24:15
we would but we don’t we don’t no do we
24:18
buy
24:19
d-class properties absolutely not no
24:22
we’re not buying the hood folks that’s
24:23
not our
24:24
business luxury ben no absolutely not
24:26
there’s not enough beat on that boat no
24:27
but we buy everything else
24:28
yes everything in between yeah
24:32
not to say that we wouldn’t there might
24:34
not on a d-class i wouldn’t i’d never
24:35
but
24:36
an a-plus you know if there’s something
24:38
there if there’s a story there let’s see
24:40
let’s go we got another question that
24:41
came in again ali abdullah
24:43
looks like he’s quite the diplomat
24:44
because now this one’s directed at ben
24:47
ben what skills would you advise a young
24:48
aspiring real estate investor to learn
24:50
and be good at
24:51
modeling underwriting so they can break
24:54
into the industry and add value to gps
24:55
because i feel like big players don’t
24:57
want to hear
24:58
that you want to learn they want to hear
25:00
what value you can add to their deals
25:01
and maybe they
25:02
break you in a small percent and what’s
25:05
wrong i guess i guess my question back
25:06
to you ollie is what’s what’s wrong with
25:08
that right you know you watch
25:09
that biggest question is ultimately you
25:10
know hey i can go learn a model and go
25:12
do that but that doesn’t really
25:14
if i’m still brand new i’m not adding
25:16
value to another guy but
25:17
you might be but you might be if you’re
25:18
if you’re adding value to a guy that
25:20
doesn’t know how to underwrite very well
25:22
yeah
25:22
i’ll turn it around there are guys with
25:24
a bunch of skill sets right
25:25
not everybody knows how to underwrite
25:26
not everybody knows how to use that
25:27
thing even people that have bought an
25:29
apartment or two
25:30
they may be constrained right i mean for
25:32
us we were literally talking about it
25:33
right before this
25:34
we have a really robust underwriting
25:36
pipeline right we look at a ton of deals
25:38
and we’re literally talking about
25:39
re-triggering that to look at even more
25:41
deals
25:41
right so most people have a bandwidth
25:43
problem so even if you’re still
25:45
newer right you may still be solving a
25:47
problem and i just say
25:49
roll the dice and reach out to people
25:50
and see what they say you know
25:52
i mean you just kind of never know i
25:54
would say in this business right you
25:55
know
25:56
if you want to just say a skill that you
25:58
should and i talked about this at a
26:00
meet-up last week
26:01
right a skill that i would say is very
26:03
important is is learning sales
26:06
right learning marketing i think that
26:08
ultimately as a business owner and as a
26:10
business person you always ultimately
26:11
always need to know how that works right
26:13
you’re selling yourself
26:14
you’re selling an opportunity you’re
26:16
selling to an investor you know whatever
26:18
it might be right if you
26:19
if you get comfortable with
26:21
understanding how that process works
26:23
you’re going to be successful in this
26:24
business right you know but i would even
26:26
say
26:26
so say you’ve learned underwriting and
26:28
maybe you partner with the guy that
26:30
already knows how to underwrite but
26:31
like ferris has said he has a bandwidth
26:33
problem he can only look at
26:34
and underwrite himself five deals a week
26:36
right you can add another five deals so
26:38
now he’s looking at 10 deals
26:39
that’s adding value so ultimately what i
26:42
tell people is determine what your
26:43
superpower is
26:44
and then go all in and then network
26:46
right the only way that you’re going to
26:47
find potential partners to even add
26:49
value to
26:50
is by stepping into these these
26:52
networking opportunities whether they be
26:53
in person
26:54
or zoom or whatever they might be put
26:56
yourself in those situations so you can
26:58
find those potential partners right
27:00
because i’m going to tell you
27:01
if you’re starting off you’re young
27:03
right regardless if you’re some rock
27:04
star underwriter or whatever
27:06
skill set if you if you’re not
27:07
partnering with somebody that’s already
27:08
somewhat experienced have already done
27:10
some deals
27:11
it’s going to be real hard for you to
27:12
break into the business unless you just
27:13
have vouchers of money
27:15
right and not everybody starting off is
27:16
going to be that luck that lucky
27:18
all right let’s keep going so all he
27:19
says directed at both of you sorry no no
27:21
it’s fine
27:25
so no don’t worry about this guy uh me
27:27
and ben just assume all questions are
27:28
interchangeable between us anyways there
27:30
you go
27:30
um let’s see uh and aguila says great
27:33
meeting guys thanks so much you’re very
27:34
welcome
27:35
and we are over time so i would say
27:37
let’s go and just call it a wrap
27:39
so if you have any more questions send
27:40
them to us offline otherwise we will see
27:42
you guys
27:43
next week awesome every monday 3 30
27:45
central
27:46
thanks

Leave a Reply

Your email address will not be published.