Table of Contents - #FreeFlowFriday: 8 Capital Activators Part 1 with Dave Dubeau
Welcome to Free-Flow Friday, powered by the Property Profits Real Estate podcast. I'm Dave Dibble and I'm very excited to give you an over the shoulder learning experience around raising capital, as well as other tips, tricks and strategies to help you on your real estate investing journey. So let's start let's discover together what we're going to be talking about here today are what I'm calling the eight capital activators. Whew. That sounds kind of sexy. Eight capital activators. I cannot claim that I came up with this. I am swiping this from a really, really smart marketer, a fellow named Dean Jackson. He came up with the eight profit activators for any business. And I think that ourselves as real estate entrepreneurs, we are in the business of doing real estate deals. So this is a business and I'm going to do my best to translate his eight profit activators to our situation. Agreeing on investors and raising capital does that makes you guys OK. So where does this kind of encompass my whole five step money partner formula? It covers all of it, right. And then so I think you'll see that as we go along. So who's Dean Jackson? The guy that I first learned this from, like I say, very, very sharp marketing. He's actually originally from Toronto these days. He resides in a warmer, sunnier place down in Florida. Originally, he was a realtor for many, many years and became very, very good at that. In fact, now part of his old business thing is he helps realtors really dial in their lead generation systems, get listings, all that kind of good stuff. But he's also a marketer's marketer. So I had the pleasure of spending two days with him in a small little zoom mastermind group late December or January. I can't remember. Time flies not that long ago and it was really, really good. So if you're interested in finding out about Dean Jackson, I highly recommend that you check them out. You've got a couple of really good podcasts I love. Marketing would probably be a really good one just to kind of get a good just about marketing and especially listen to the first seven or eight episodes of that. That's really, really good. And then he's got another one that he calls more cheese, less whiskers. You can check those out as well. So what Dean has done, he's a he's a very smart guy and he kind of he dumps things down so guys like me can even understand what the hell he's talking about. So he's broken business down into basically three main categories, three main categories. Any business, including ours. Right. There's A, B, he calls them units, three units, the before unit, the during unit and the alpha unit pretty much says what it's all about. Right. So then before unit is what are we doing before an investor actually starts working with us? What's what's all the stuff that goes around goes along with that now? My whole business is revolved around helping you with the before unit, but that's just one part of the puzzle. So once you get an investor who agrees to have a meeting with you, well, then we get into the during unit. This is when the relationships really started to kick into gear, especially if they decide to move forward with you. So that's all that part of the whole thing. So from the meeting to getting the ball rolling, to getting them into the actual investment, to maintaining that investment and and doing all the reporting and the meetings with the investor, meetings with them during that, the process and paying people and then exiting the deal, that's the during unit. All right. So that makes sense, you guys. And then the after unit is OK, what do we do after we have completed the deal with that person? What happens after that? OK, so we're going to go through each one of these before, during and after units. And when it comes to investor partners, again, I'm trying to translate this into how does this apply for us? So before you do it, it's all about finding the investors, identifying the perfect investors, educating them and motivating them to reach out to us the first time. That's what this is all about. OK, so that's the before unit. During unit is where we deliver the experience, whatever that looks like, so that it could be starting with the first meeting, getting them to invest with you. That whole process, the duration of that time, of them actively investing with you, all of that is part of the jury process. And then the after unit is all about really maximizing the experience. Right. So focusing on that lifetime worth of an investor survey, remember that where we talked about that lifetime worth of investor, if you close your pretty little peepers, does that number pop out in the inside of your eyelids and neon like? I hope it does. Hopefully it does. So it's all about really working on that. So. Getting repeat business from that investor, getting them to reinvest with us, getting testimonials from them and referrals. I really just maximizing that whole experience, so he's chunked it down into these three different parts of our working relationship and then eight capital activators that go along with those different before, during and after units. All right. So there's three activators in the before you get three activators in the gearing unit and two activators in the after unit. So before unit, you guys, what happens here? Well, capital activated number one, according to Dean and I completely agree with them, is we're going to be much more effective if we select a single target market, a single target market that we're going to focus on. And again, from my perspective, the easiest money, the most logical money to go after first and the safest money to go out first is that which is within our sphere of influence. Right. Because remember, in order for somebody to invest with us, they need to know us. They need to like us and they need to trust us with their money. Well, who already knows us, who already likes us and who is most likely to trust us people that we have that preexisting relationship with. Right. So friends, family members, coworkers, et cetera. We've already got two out of those three taken care of. Now, once we have maximized that, once we have squeezed all of the juice out of that group of people, then we start to look at, OK, how do we expand our sphere of influence? How do we start reaching out and perhaps bringing on accredited investors, especially folks who are getting into bigger deals, working in multifamily properties, that sort of thing? You know, once you once you've gotten all of the capital we can out of your current sphere, how do we grow that sphere of influence? So that's what that's all about. All right. So within the whole money partner formula thing, this is all about step number one green, that target group of prospective investors and then also breaking the ice with them. So things that we do for you to help you with this, help you put together your contact list, launches help to do that. And also doing the warm up campaign, which is to reconnect with people before we start talking business. OK, so that's that's profit deactivator number one is that's great. That's focus on that target market. Capital activator number two, compelling our best prospects to reach out to compelling people to reach out to you. Now, this is what our marketing is all about. All of our marketing is designed to get people to put up their hand, self, identify and ideally click on the button that says book a call with. What if you go on your Web site, click on the book or book a meeting, but so that's what this is all about, compelling people creating that curiosity, that desire for more information. Now we need to focus on what's in it for them. It's not just all about how great we are, how smart we are, how much experience we have. We have to tie all of that into what's in it for the other person. What what makes us a good, compelling thing for them. And then again, our goal is let's get them to self identify. Let's get them to reach out to us. So what are some examples of doing this? Well, probably the fastest way to do this is getting people to sign up for a webinar or getting people to opt in for something. I could even actually be part of your whole warm up campaign. The people that reply back to you, that is that is a kind of self identifying the higher level. Things like this would be people coming to your book launch party registering to that, people reaching out, requesting a copy of your book. Any time we get people to proactively reach out and do something and kind of virtually put up their hat. All right. So this is all the the constant and consistent communication. This is all about the marketing side of things. So one example of this would be the ninja strategy. That's an example of this marketing, getting people to put up their hand, having your website as part of this whole process so people have a reason to opt in. People have a reason to self select for things doing your webinar. This is a way to get people to kind of self select and we see who the the keener's really are if you're working with us on one of our book projects. Well, the whole book launch event is another way to make this happen. Right. So make sense, you guys. You kind of follow along with me here. We're going to go through this and then we'll kind of review back on how this might apply for you. Plus, you know, get everybody's input on on what kind of resonates most with you and where where we think we need to work on things. All right. Capital activator number three. Again, this is the whole marketing thing. Educate and motivate people to meet with you. Right. So I. I talk a lot about entertaining marketing, that constant and consistent communication, staying top of mind with people. That is absolutely, absolutely vital. Now, here's I love the way that Dean Jackson talks about this. He says patiently and systematically educate and motivate your prospective investors to book a book. He talks about it slightly differently. But, you know, he talks about educate and motivate your prospective clients or customers to reach out to you. So when it comes to it with our investors, motivate our prospective investors to book a meeting with us. That's what it's all about. But here's the thing. It's also remembering, always remembering that just because we're ready and hot to trot to get them to invest with us does not mean that they are ready and hard to try to invest with us right now. Does that make sense? Just because we want to do it doesn't mean they're ready to. So we always have to keep that in mind. And we need to be persistent but not pushy. Persistent, but not pushy. Does that make sense, you guys, all right, so that that person will be ready when they are ready? Now, I don't know if you guys remember the training I did a few months ago about when an investor will actually pull the trigger and invest with you. But the reality is, if, for example, you guys have a list of two hundred people, for example, that's what we usually talk about, a list of 200 people. And let's say you do some different marketing over the next few weeks to a couple of months, you do your normal, normal marketing. We do the outreach for the warm up campaign. We do, let's say a webinar or something like that. Let's say you get a group of 20 people out of those two hundred who have put up their hands. All right. Now, if those folks can invest. Here's what the realities out of those 20 people over the next two years, if we do everything right, about ten of them will become investors. Let us know if they're able to. About 10 of them, about half of them actually will become invested with us. Half of them walked out in the next two years. But what's really important to understand is that out of those 10 people who do become investors, the vast majority of them will not invest with you right away, might get one or two who are ready to go in the next 60 to 90 days. But the other eight. We'll come in over time between four months and twenty four months, that's just statistically what's likely to happen now might be a little faster for you, I'm not sure. But statistically, that's what's likely to happen. Does that make sense, you guys? So the challenges and I understand this our our tendency is we want to just focus on the people that are ready to invest right now. We kind of think of everybody else's tire kickers as not really serious is wasting our time. That's not true. They're just not ready right now. Just because we want to do doesn't mean they will. And so that's why it's so important we have that constant, consistent communication to stay top of mind. Now, here's another big tip. And I love this example the Dean talks about. We need to be proactive about showing people what the next step is. So when it comes to our marketing, what is our goal? The goal of our marketing. Is to get a meeting booked, goal of our marketing is not to sell a deal per say. The goal of our marketing is to get somebody to say, yes, Rob, I'm interested. Tell me more. All right. And then that's where we have the meeting. So but here's the thing. A lot of us, when it comes to our marketing, we're very kind of bamsey pansy at the end of it as far as telling people what to do. So a lot of our marketing is hate. If you're if you've got any questions at all, please feel free to reach out, give me a call or or send me an email any time. Right. That's kind of the normal thing that we see. However, that's not very effective because that's putting all of the all of the pressure on them. Now, on the other hand, when we show them exactly what to do, it makes it very, very clear and very easy for them to do that. So it might be something like that. Hey, you know what? If you'd like to get if you'd like to find out how this can work for you and get a free copy of my book, click on the Blue Link. Book, an appointment, and let's have a quick meeting and see how this can work for you. All right. So you're very specific on what you're telling them to do. And the example Dean uses for this and I really enjoy is let's imagine you've got somebody you've invited somebody over to your house. Right. And it's a friend of yours and you're there over at your house and you've got to do something. You say, hey, you know what? If you're hungry or thirsty or anything like that, please go ahead. Go into the kitchen and help yourself read it. Right. If we if we tell somebody to do that. Now, the question is how many people will actually do that? Like nobody. Nobody is going to do that because it seems like we're imposing on the person, it seems like it just kind of seems weird. Now, on the other hand, imagine you've invited somebody over to your home and you sit them down and then you go into the kitchen and you come out with a plate of freshly baked cookies and you put that in front of them. You say, hey, Paul, would you like a cookie? Chances are, even if you're not particularly keen on cookies, even if your kind of gluten intolerant, you'll probably take a cookie anyhow that exists. So, again, is we're putting it right there in front of them. We're making it as easy as possible. So we want to do that within whatever way we can with our investors will be very, very explicit about what we'd like them to do. So always have a call to action in your marketing that is specific. So you tell them exactly how to get started. Right. And then again, you guys, it's all about that constant and consistent communication. So I always recommend you should be working up to where you're having at least four communications a month, like one a week. So ding, ding, ding, ding, ding. Always staying top of mind. Keep it light. Keep it entertaining. A little bit educational, hopefully a little bit entertaining, interesting. And then every once in a while have some sort of a quote unquote special event. What could that be? That could be a webinar once this whole thing goes away. That could also be a pub night. I know I've had some clients do pub nights very, very effective, get a bunch of people together. It's kind of like a it's not really a client appreciation event because a lot of these people are not investors yet. But it's that idea. You get a bunch of people together and instead of doing just a blasé webinar, you buy everybody a drink or two and you do your presentation at the pub. Here's a key to do it before everybody gets soused up. Don't, don't, don't let them get too carried away. All right. So it's that constant, consistent communication. So again, where we help you guys with this is what they've done for you, Marty, with the electronic newsletters, the video logs, the blog posts. So, again, it's all about having something coming out, ideally once a week, keeping you top of mind with your prospective investors, because we never know when they're going to be ready to invest. Right. It's up to them. So if we're not there when they're ready to invest, what else are they going to do? They're going to go talk to their financial planner and say, hey, you know, say they come into an inheritance or whatever happens, refinance the house or something like that. Hey, I've got this chunk of money. What should I do with it? Well, their financial planner is going to have all sorts of good plans on what to do with that capital. So we're not staying top of mind with them. We're going to lose out. Just making sense, you guys. So always staying top of mind, keeping it easy for them to to take some action so that constant consistent communication. So other things that we do here, again, being interviewed, being on podcast very, very effectively, guys. So if you have the opportunity to be on a podcast, that's very, very effective. OK, OK, great, good. So the jury unit, you guys, this is where we're actually starting to work with somebody right now. This starts from the moment we actually have our investor meeting with him. So we want to make it as easy as possible to get them started with you. And again, this is what we cover with you kind of get started with your million dollar investor presentation. So my my recommendation usually is we're not going directly for the cash immediately. What I'm suggesting that you want to do is you want to get people. Committed in the sense that they have said, yes, I'm seriously interested. So what does this look like for me? This looks like them signing off on an expression of interest or a letter of intent and expression of interest or letter of intent. So that's that seems that that's the first step. It's not legally binding. They're not cutting me a check for anything. But just the fact that they've signed off on something tells me they're a serious prospective investor. And then depending on what you're up to after that, perhaps you're going to send them to your mortgage professional to get them pre qualified for financing, if that's part of your if that's part of your process. All right. So whatever that looks like for you. Now. Let's say they come on board, they they become an investor with us, however that looks for you. OK, next is now we're in the actual investment time itself. What are we going to do there? So this is where you have your your regular reporting, whatever that's going to look like. If you're going to be reporting to them on a quarterly basis or a semiannual basis every every six months, make sure that you're doing that like clockwork. If you're if you're having meetings with your perspective with your investors, make sure you get those scheduled in in the books like Clockwork and that it's happening very, very consistently. Just this sure that you guys OK? So this is all the during side of things, so the way we can we help you out with this part of the way is with that investor presentation to help you smooth the way for actually getting them on board. Well, hey there. Thanks for tuning into the property profits podcast. If you like this episode. That's great. Please go ahead and subscribe on iTunes. Give us a good review. That would be awesome. I appreciate that. And if you're looking to attract investors and raise capital for your deals, that may invite you to get a complimentary copy of my newest book right back there. It is the money partner formula. You get a PDF version at investor attraction book, dot com again, investor attraction book, dot com ticker.