Table of Contents - Finding Your TRUE Reason For Real Estate Investing with Rich Danby
Dave Debeau [00:00:09] Well, hey there, everyone, this is Dave Debeau, another episode of the Property Profits Real Estate podcast. Today, I have the pleasure of interviewing Rich Danby, a very old acquaintance of mine. Rich has been in the real estate investing business for quite some time. Very, very accomplished real estate entrepreneur, coach, trainer. He's the current president of the biggest real estate club in Ottawa. Been doing that for years. I've had the pleasure of speaking at that club, an amazing, amazing club. And just overall, a great guy. So glad to have you on the call here today, Rich.
Rich Danby [00:00:42] Thanks, Dave. That's a wonderful introduction.
Dave Debeau [00:00:44] I do my best. So rich for those folks that don't know yet. Tell us about how you started the whole crazy adventure of real estate investing in the first place.
Rich Danby [00:00:53] Sure. Well, you know what? It just started out the same way that most people start, which is needing a place to live. At the time, my girlfriend's mom had some extra cash and she wanted to help out her daughter. So we ended up buying
Dave Debeau [00:01:06] not necessarily the son in law, but she wanted to help out the daughter, right?
Rich Danby [00:01:09] That's right. Yeah, not so much, but yeah, she wrote a check and we bought our first property. And a year later a realtor came to us and said that there were some people who wanted to buy the property. And long story short, we ended up selling it and making sixty six thousand dollars. And from that moment I was hooked. I was about twenty three, twenty four years old at the time. So I realized, wow, that was a really easy way to make money. And now I'm going to try to figure out how to do it again.
Dave Debeau [00:01:38] Nice. So that evolved into what is your main focus these days. So when it comes to real estate investment strategy, I know you've got a lot of experience with a lot of different things, but what's kind of your main bread and butter thing that you do?
Rich Danby [00:01:52] Yeah, well, kind of the history of what I've been doing is residential, it's been flipping properties, adding legal secondary suites, turning properties into cash flowing assets, buying, renovating, refinancing. That's typically been the strategy. But these days, things are changing a little bit. And I'm getting a little bit farther away from doing my own projects and spending a little bit more time helping other people do theirs was a couple of things I've realized in my wisdom as it accumulates, as I get older. And the one thing is, is that I truly wasn't stepping into the things that I was really good at, and that is connecting people and relationships. And as I was overseeing projects and knee deep in all of it, I just found that I wasn't truly satisfied. So now, instead of doing my own projects and now doing projects for other people, helping them raise capital, and I'm also helping people who have capital connect with great projects.
Dave Debeau [00:02:49] Very cool. So what was it that kind of made that realization come to you? What was it that was kind of to the point where you said, you know what, I've been doing this for a while. This isn't really what juices me up.
Rich Danby [00:03:01] Yeah, it was tremendous failure. That's what happened.
Dave Debeau [00:03:04] I started to do a poor guy water.
Rich Danby [00:03:06] Yeah, absolutely. I started a construction company last year and I was able to attract business right away because of my reputation and credibility here in Ottawa as a real estate expert. But unfortunately, I made a mistake that some of the crews I hired, one in particular I hired to subcontract out the work, this person ended up allocating funds, not doing the job properly. And I had to take over all of the projects, which was a very painful experience financially, emotionally and through all of that. That was a moment I realized that if I look back on the history of everything I've done, the things that I least enjoy is dealing with contractors. So I'm now going to stop it because I have gifts and I want to use them and I want to reach more people. And I can do that if I'm helping other people raise capital for their projects as opposed to being limited only by the amount I can manage on my own.
Dave Debeau [00:04:01] All right. So how do you know we don't have enough time to go over it in depth here? But how do you do that? How do you help other people raise capital for their projects?
Rich Danby [00:04:10] Everybody needs capital when they're wanting to do it themselves. And as you know, there's two types of investors. There's the active investor and the passive investor. A lot of these active investors, as you know, is a person who teaches them they don't know how to raise capital and they don't know how to properly present themselves. So what I do is when they come to me, they may have no money at all. But if they have a great track record and they've done some amazing things, what I'll do is I'll take what they give me all analyze it further and find out whether or not it is, in fact a safe investment to bring people into. And then on the other side of Canadians, they have very limited options outside of real estate as to where to put their money, where they're going to make decent returns. And as you know, first mortgages, second mortgages, those are secured assets against bricks and mortar. So I just teach people more about that as I travel around the country and just help them figure out how they can leverage what they already have and maximize their time and put their investment dollars to work for themselves. And I just end up connecting the two. I'm really essentially Dave, I'm just a connector. I've always been a connector and now I'm just realizing that this is what I should have been doing a long time ago.
Dave Debeau [00:05:24] Yeah. Now that makes that. So you find the act of real estate investor who's got a track record, who's doing a good job. You've got a good project on the go. They just need some more capital for it. They don't really know how to go about raising that capital for themselves. You also have a whole bunch of people that love the idea of real estate investing at the idea of doing it themselves. And they'd rather partner up with somebody. You put the two together and watch the magic happen because I've been pretty much it.
Rich Danby [00:05:50] That's it, too. And I also am a licensed mortgage agent, so know if they need help with traditional financing, construction financing or they just need private money. I mean, they could literally have no money at all and I can help them all the way from start to finish.
Dave Debeau [00:06:06] Very good. All right. So, yeah, that was a question I was going to have to ask you, because, again, that there's always a bit of a gray area there. You know, you've got to be careful that you don't get in trouble with the associated bodies that are in charge of these kind of things. So, yeah, you've got that covered because you are a mortgage agent. So that's great. Rich, in your experience with people, especially when it comes to raising capital, you know, when people are trying to do it themselves, what are some of the biggest mistakes you see them making
Rich Danby [00:06:34] from trying to raise capital? I think the reality is, is that most of them don't actually know what they're selling. So what they do is they show up at these networking events and they understand the importance of networking, but they don't actually have a product. So what ends up happening is they say, yeah, let's get together for coffee and then they sit down. They have a wonderful conversation where they establish that both parties really love real estate because they don't have a proper product and they don't have a proper sales package, they don't have a proper business card, which nowadays isn't a business card at all. It's actually it's a link that you send people through email so they can see what you've done, not here, what you've done. And I think with YouTube, I've done a ton of videos myself where I just show here's what's happening before, here's what's happening during and here's what it looks like afterwards. That is the best business card you can have. If you're trying to raise capital.
Dave Debeau [00:07:29] Exactly. Show them what it is instead of telling them what it is. I completely agree. Another big challenge I see a lot of people having is they don't they don't quite clue in some people to go the opposite direction. Right. They'll they'll have too much information about the deal. They'll have too much data, too much just spreadsheets, all this kind of stuff. And quite often, especially if you are meeting with somebody who's not that experienced with real estate investing, they overwhelm them with too much information, too fast. And they think it's all about the deal. And somebody very, very wise, much wiser than me once told me. Let me know if you agree with this. Is the people at the end of the day are investing in you. And the property itself really is just the collateral. Would you agree with that, Rich?
Rich Danby [00:08:16] No. One hundred percent agree with that. The other thing is that I think when people are trying to pitch their deal and providing so much information, a lot of times they're nervous, maybe just getting started and their approach is just all wrong. And not everybody is made to raise capital. I mean, if they have to have the right type of personality. So a little bit of sales training goes a long way. It's one of the things that I coach my coaching clients through. It's actually the most common thing that I have to coach them through is how to raise the capital. I teach them you have to become a person that people will be willing to write the check to. So you have to believe in yourself. You have to look the part. And that starts way beyond way before you even go. Ever sit down with somebody.
Dave Debeau [00:09:00] Exactly. So what are some of the some of the things that you suggest that people do to look the part of someone that of a real estate professional that someone would feel comfortable investing with?
Rich Danby [00:09:12] I think it has to do with confidence and repetition. So if you are getting in front of a coach or a family member or anybody who you can practice on, that would be a great start. The other thing is to remember that if you truly are adding value, you have absolutely nothing to be nervous about, because, as you know, there are way more investors out there than there are deals. So if you are actually the real deal and you have a great system, you have a great model, you have a great plan, and you've really looked at the numbers and you know, it's a great deal, then you should have all the confidence in the world to raise the capital and that confidence alone will be enough to get it done.
Dave Debeau [00:09:51] Exactly. Now, Richard, I know you're a master at this and in fact, you've run the Ottawa club for a number of years. So you're very, very good at meeting people and networking and talking to people. You're not a shy kind of guy for those folks who are maybe a little bit more on the introverted side or the shy side, what kind of suggestions do you give people about getting out there and and going to these networking events and actually making them worthwhile instead of just an exchange of business cards?
Rich Danby [00:10:22] Yeah, I'd say if you're shy and get over it, because that means it's about you and your ego and you're worried about what people will think of you and how they'll judge you. And that is not productive. No matter who you are and what your approach is. You just got to get over it, get out there and shake a hand and say hello. And just being at these meetings and networking, you have to come in with intention, like, why are you there? You know, there are so many times I meet people and I asked him the question, so what brought you out here tonight? What is your main objective? And they don't know the answer. And so if you're going to go out to any event and you're going to invest your time into something, you should know in advance what you want to walk away with.
Dave Debeau [00:11:02] Yeah, that is very, very, very good advice for sure. And that question that you pose there, that's a good way to break the ice, because I find a lot of people, myself included, because I'm not naturally an extrovert, believe it or not, even though I enjoy speaking on stage and and all that kind of stuff, I'm not naturally extroverted. But the question that you have, that that could be a good icebreaker when you're meeting somebody. And that's the other trick to that, I find is being willing to be the person that extends the hand and introduces yourself to the other people first instead of waiting for other people to come to you. And you can just get started with something like that. What brings you out here tonight or what are you looking for from coming out to this event tonight? Would that be a good place to start for folks?
Rich Danby [00:11:45] Yeah, I think it's always a great place to start. I think the place you don't want to start is is trying to get in. Conversations where you can make it all about you and make it all about what it is that you're trying to sell or pitch, because people can smell that a mile away. So relationships aren't built in an hour. They're not built in five minutes. They're built over time. And I think if you just go into it with a genuine curiosity about other people and adding value where you can, then there is no reason to be nervous to approach anybody.
Dave Debeau [00:12:16] Yeah, well said. So I imagine you're not a big fan of the traditional 30 second commercial.
Rich Danby [00:12:22] The third? No. I mean, if somebody has something really awesome and they want to share it, then then. Sure. But I think pitching yourself as a business, it's really just about creating awareness around what you do. And hopefully people will be intrigued enough to follow up, to learn more. But you can't take somebody from A to Z in 30 seconds, that's for sure.
Dave Debeau [00:12:42] Yeah, definitely. Definitely. All right. So, rich, when it comes to real estate investing, I know you've been doing this for quite a few years now. What would you consider to be your unfair advantage or your super power as a real estate entrepreneur, as an investor yourself?
Rich Danby [00:13:00] Yeah, I'd say there's two things. One is the way that I choose to interact with others. I am a person who I'm a Christian. I put people first. I try to love on them. I try to live a good, honest life. And I think people who come across me can see that. And I'm not afraid when somebody says, hey, I bumped into somebody that knows you because I feel like, oh, that's a good thing for me because I'm not afraid of what people would have to say about me. And the other thing is habits. It's what you do. I think really what stops most people from having success is that they just have bad habits and they have to get over them. One of the things I do through my coaching is I, I kind of working through that exercise. I write down everything in your life that you think is a bad habit that's not serving you, and then write down all the things that are good habits and then write down some things that you think you could be doing that could create better habits. And let's eliminate a couple of things to start with so that we could start moving in the right direction.
Dave Debeau [00:13:58] What have you seen over the years that typically are the biggest bad habits that hold us back?
Rich Danby [00:14:04] Yeah, I think there's so many of them, to be honest with you.
Dave Debeau [00:14:08] There must be something to just show up on time after time.
Rich Danby [00:14:12] I think the bad habits mostly is around technology, like the scrolling of your phone. If you're scrolling on your phone half an hour a day, let's say that's at nighttime or in the morning before you get out of bed. You know, you're like you have seven days in a week. You could be wasting seven hours a week, 14 hours a week, twenty one hours a week that you could be using to be really, really productive. So I feel like one of the bad habits is bringing technology into the bedroom. I don't think technology belongs there at all. And it's proven that screen time and the light that comes off keeps you awake and impact your sleep. So that would be the biggest one for sure.
Dave Debeau [00:14:48] Yeah, very, very well said. Well, that's excellent. Rich time flies when we're having fun, my friend. So if people are interested in finding out more about Rich than me and what you're up to, how can they get all the.
Rich Danby [00:14:59] Yeah, they can send me an email Rich Rich Ortal investments dot com. And actually, one of the things that we were talking about earlier that you asked me is if I had anything free that I wanted to give away. Yeah. Yeah. One of the things I do have I want to is reading, obviously, is where knowledge comes from. And obviously the application is way more important than the knowledge. But one of the books that greatly impacted me is called Outwitting the Devil by Napoleon Hill. Now everybody knows about the think and grow rich book, but the Outwitting the Devil book wasn't even released until well after he passed away. I think it came out in about two thousand eleven. I have that. I also have outwitting the devil. Sorry, I have outwitting the devil and and the other thinking rich book. So if anybody wants a copy of that, just send me an email and I'll send you the audio files. They're both fantastic books.
Dave Debeau [00:15:48] That sounds. I never even heard of that. And I'm a big fan of hell, that's for sure. So then send it to you. Thanks, buddy. Appreciate the call. All right, my friend. Well, thank you very much for your time on the podcast today. It's always fun and I appreciate your insights, especially for people that are feeling a little shy about how to break through that and some suggestions about how to get started with raising capital. Really, really appreciate it. So thanks for your time.
Rich Danby [00:16:13] No problem. Thank you, Dave. And by the way, I've listened to so many episodes of your podcast and you're doing fantastic work and you have some incredible guests. So good job and
Dave Debeau [00:16:22] thank you very much. I appreciate it. All right, everybody, take care. We'll talk to you on the next episode. Bye bye. Thanks very much for checking out the property profits podcast. And you like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review. Very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live. Online demonstrations, and you can check that out at Investor Attraction Demo Dotcom Ticker.