Table of Contents - #FreeFlowFriday: 8 Capital Activators Part 2 with Dave Dubeau
Welcome to Free-Flow Friday, powered by the Property Profits Real Estate podcast, I'm Dave Davies 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 once they're up and going. Our goal is well, as Dean says, to deliver a dream result. Right. So where does that start with? That starts with us keeping our word, whatever we told them we're going to do. And whenever we've told them we're going to do it, we do it. All right. So the regular reporting, regular updates, punctual payments, very important, you guys. So, you know, if you if you tell people, hey, you can automate this stuff, too. So there's there's really no reason not to. If you've got a CRM program, you can put this in your calendar. It can remind you a week at a time. You can prepare your reports. You can get them sent out on time. If you're making quarterly payments again, you can send yourself a reminder, make sure that all gets done on a timely basis. Right. And then here's the thing. Whenever possible, do your best to over deliver. So this starts with under promising. So hopefully when you've got them on board in the first place, you haven't promised them the sky. Right. You've kind of you've come in under in order to make your try and make yourself look like a bit of a hero. So if you under promise, it makes it a hell of a lot easier to over deliver. Right, you guys. So, again, very, very important when you're doing it. Just a reminder, a big problem I see with a lot of folks when they're doing their investor presentation is that the case study they use is one of their home runs or if they're a brand new investor, they're showing somebody else example. That was a home run. That's the temptation. I've made that mistake myself. The challenge is twofold challenge that No one is again for four most non real estate weirdo's. So folks, regular folks, not like us. The kind of returns that we're showing them there are virtually unbelievable. Right. So if we're showing them how people are getting double digit returns year after year, it might seem too good to be true and it scares them off. So your your home run could actually shoot you in the foot because it just seems fake to that. And the other challenges, if they do believe it, then guess what, where where is the expectation set out now? The expectation is set at your best deal ever, which was an anomaly for you. Right. So what you want to do instead is just show a plain Jane deal. And if possible and the numbers are still attractive, knock it down a few notches. Right. So that you have a good opportunity when you do an actual deal with them to over deliver. So what would be a good example, this you guys and gals out in Ontario? Right. The appreciation rate these days is off the charts. I mean, property values are going up a crazy amount, right? Is that going to last forever? Probably not. Will that last for a while? Maybe. OK, but here's the thing. When you're showing a deal to a prospective investor, I would highly recommend that you base your projections on the national average, not on what's happening locally right this moment. You guys fall in the air base on the national average, then guess what? So if your base, he had a three percent and then next year the property appreciates eight percent. Well, yee ha. Guess who looks like a hero? You do, right? But if the market doesn't appreciate at a present again and it goes down to four percent or three percent, then you're still safe. So under promise over deliver wherever you can. So here are the three possible outcomes for your investors are going to have after working with you. First outcome is it didn't work as promised. They didn't make that kind of money they wanted. They aren't happy with the reporting you did or you were a hit miss with that. And they just aren't very happy with the whole experience. So we obviously want to avoid that. The other option is what happens most of the time is hopefully, hopefully what matters most is they got what they expected. Right. You're told they're going to make X amount. You told them that you're going to meet they're going to be getting this reporting. You told them all of this stuff is going to happen and you did it. And that's what they got and that's what they expect. So that's OK. That's that's way better than the unhappy face. But it's just kind of there's nothing sexy. But on the other hand, when we exceed their expectations, when we get them an even higher return than they were expecting, when we give them even more perks and that what they're expecting doesn't necessarily always have to be a higher return, it could be other things that they weren't expecting while working with you. Then we create a really, really good experience for them. And that turns them into, I don't know, could be raving fans. If you do a really good job with them, or at least it makes them very, very happy, much more likely to reinvest with you and to refer you to other people as well. OK, so one of the ways that we can help you do this kind of stuff is with the whole of the module investors, which we're just getting started right now. But again, this is a great way to have all of your contacts in one place. And then you can segment your list and you can actually have specific files for specific investors and you can set this up with your calendar. So it gives you reminders. You've got everything in one spot. You don't have it spreadsheets here and this not all over the place. You've got everything in one spot there. All right, and then capital activated number six, the after investment service, so let's say we wrap up the deal with the investor. What comes next? Right. So how do we delight them? We surprise them after we've wrapped up the deal. So here's one way you could do it is once you've given them their final check, let's say the deal's done or you've refinanced the deal and it's kind of stabilized or whatever. Don't just give them the check, but give them a thank you gift is what, like something nice, something special, right? Go a little bit above and beyond. So if you know what their favorite kind of booze is by the very best bottle of that, that you can have that delivered to them, give them a spa weekend for two nice locals for something like this. Right. Because, again, remember, what is that investor worth to you? How much profit have they created for you with this deal? Take a little bit of that profit and invest it in that relationship. It will go a long way. All right. That's going to impress them even more. And that's going to increase the likelihood of them reinvesting with you and referring you to other people as well. So one idea here, you guys in addition to that, could be, you know, there's this whole program called Send Out Cards, and it basically allows you to create a card online with a lot of you guys have got these kind of cards from us. Create a card online. You can add a gift to it and you can set this up. So it automatically goes out to folks, your investors on their birth date, on their anniversary of when they first started investing with you for Christmas for special occasions. So Deng Dingding set up once and this stuff automatically goes out. You don't even have to think about it all right. It makes you look and you do, you are showing that you care and you're going above and beyond. All right. Now I think you're still figuring it out, all the bells and whistles with the whole mojo investors thing. But from what I can tell, we can actually connect your CRM with send out cards and automate that whole thing as well. Don't ask me exactly how to do it. We're still figuring that out. But from what I understand, that is possible as well. So that's kind of exciting. OK, so we've talked about that before you hit it, which is all about the marketing to select our target market and get them to put up their hand and book a meeting with us. We talked about the during unit, which is all about having that meeting and then getting the ball rolling with working with investors and hopefully delivering a dream come true kind of experience for them. Now, let's take a look at once they're completely out of the deal, what do we do? What comes next? And this is where a lot of people drop the ball and they just kind of forget about things. So this is really where the whole lifetime worth of the investor comes into play. So it's all all about staying top of mind, keeping in touch, remembering that it's six times easier to get them to reinvest with you or to get them to refer somebody to you than it is to generate another new investor way, way easier and less expensive as well. So, Shawn, love again those gifts that constantcontact stay top of mind with them. Keep them in your database, obviously. So they're going to be getting your regular weekly marketing as normal. Plus, you can do the other things, like to send out cards as well. OK, so it's all about, you know, showing a little TLC after the whole deal is done, because here's the thing, right. Once the deal's done, they're really not expecting anything more from you. So if you deliver something more after the transaction is over, you're really going to stand up and then capital activator number eight is all about the referrers, right? This if we do everything else up to this properly, it makes referrals so much easier. But here's something cool that Jackson talks about. And this was one of those little mini light bulb moments for me as well, because a lot of us think that when somebody refers someone to us, they're doing us a favor. Does that make sense? We kind of look at it like they're doing us a favor. The reality is they are only referring you to make themselves feel good. It's not about you. It's not even necessarily about the other person they're referring you to, it's really about making themselves feel good. Now, let me give you an example here. So, for example, you guys, have you ever. Gone to like a new restaurant in town that you just loved, it was just like an amazing just love. This experience went to this restaurant. You had a great time. Anybody from everybody's got crappy restaurants. They're tough, you know what I mean? You find a new restaurant. It's really cool. And you're kind of you're the first one in your group of friends that's been there. So you go there, you have a great experience. And then you tell everybody, you know about that. Right hate bar. You should check out the restaurant downtown L.A., the new Mexican place. I went there. It was fantastic. I loved as best Mexican food I've had outside of Puerto Vallarta. You should try it out. If you're like Mexican food, make sure you try that that restaurant. Right. So I recommend that to Martin. And then I'm kind of waiting to hear back from Martin about what kind of experience experiences. So Martin comes to talk to me or if I bumped into him later on, Martin, I was I was the restaurant. Great, Dave. It was awesome. Yeah. That was really good food. How does that make me feel? It makes me feel good, right. Because I've kind of you know, I've shared a secret with my friend. So it's really not about me trying to help the restaurant out. It's not even necessarily me trying to help Martin out, although I am and I'm helping the restaurant as well. But it's really so I can kind of feel good about being the guy in the know first. So this to a certain degree also applies with our investors, referring us to other people. Right. So they want to be seen as a hero. So. We also need to keep in mind that this is important because I think a lot of us, myself included, have very unrealistic expectations about what our investors are going to do to reverse. Right. We're hoping that they're going to run out like little soldiers and evangelize everyone they know about us. You know, they're going to be like little bitty Jehovah's Witnesses talking about the Church of Dave and what great returns I get people that eat how it works. Right? That's not how it works. So we've got to keep that in mind. They're not going to go knocking on doors and calling people up on our behalf. That's not how it's going to work. Here's how it typically works. It typically works in that something comes up in a conversation. So they're having a conversation with the friend and the topic of money comes up or the topic of investments come up or the topic of real estate comes up or the topic of financial planners comes to something around money and getting a return on money comes up. That's the conversation. They're kind of. Kind of. So what we want to try to help our investors do is we want to try to help them notice when that kind of conversation comes up, when they're talking with friends and the conversation leads into that, for them to notice that the next thing they need to do is they need to think about us when that conversation comes up. Right. We need to kind of pop into their mind. And then the third thing is. They need to interject us into that conversation. Right, so let's say they're having a beer with their buddy and their buddy. I use this example a lot, but it is a conversation that happens from time to time as the buddy is just gone their their mutual fund statement back and realize they haven't made a very good return on their money. Surprise, surprise. Right. And they might be bitching and moaning about this when they're having a beer with you. OK, so that's the conversation has turned to the financial stuff. Right. So A, they have to kind of clue into that. B, they need to start thinking about you and their investment with you. OK, and C, or number three, they need to interject that. Right. So it might be the conversation might go, hey, well, have you have you ever thought about real estate? It's something I'm doing right now. I'm investing passively in real estate. It's working pretty well, is way better than my mutual funds. Oh, really? OK, that's interesting. OK, yeah. Well, I'm investing with this guy, Paul. I'm invested with this guy Paul birdmen already. OK, so then we get that conversation going right. And then we give them some sort of a tool to use. So it might be giving them a bunch of your business cards to have around with them. I've had a few clients do that. It might be, you know, if you're one of our book clients or something like that, maybe it's giving your investors a few copies of your book for them to hand out to their friends and family members. We make it easy for them to refer us and we keep it top of mind with them. OK, so there we go, you guys. That was a very kind of quick run through there, the big four unit, the jury unit and the after unit. So let's open it up. What are some of your thoughts, some of your feelings about about this before, during and after ideia? When you see, guys. A day one thought I had, it is a process, it is about education, it is about setting realistic expectations. It is about communication and just staying standing in front of them. Yeah, for sure. Exactly. And again, this is the biggest thing for me and I still from time to time, forget this. I have to give myself a kick in the butt. It's. They're going to act on their timeline, not on my timeline. They're going to act on their timeline, not on my timeline, and really, here's the other thing, you guys, especially when it comes to bringing investors on board. Quite frankly, you're not going to convince anybody to invest with you. You're not going to convince them to do that, right? They're going to make up their own mind that it's a good idea to invest with you. So it's one of these processes that if you if you try to ram this down their throat too hard, too fast. You're going to turn them off. Versus if we're staying top of mind, right, if we're if we're keeping in mind that they're going to invest with us when they're good and ready to, and we're always we just keep that opportunity available without being pushy, without being overly aggressive. That's why we have that constant, consistent communication. Right. And that we have doesn't mean you can't have pushes you, doesn't mean you can't have things that they kind of really shake the tree and get that the low hanging fruit get to the keener's to put up their hands sooner rather than later. But we aren't only focused on that. Right. So, for example, a good example of this would be doing your your webinar where your webinar is really designed. Let's shake the tree. Let's see who that low hanging fruit is and let's get them on sooner rather than later. Your weekly marketing, the easy ones, the video logs, the blog posts. That's that constant little drip, drip, drip, drip. And at the end of each one of those, there's a hey. And whenever you're ready, here's a few different ways I can help you. Hey, when you're ready, click here to book an appointment. Let's see how this can work for you. Right. So we we keep that top of mind and it it's always that friendly reminder that we're here. We're ready to go interspersed with, hey, we've got some very proactive type marketing as well to to really get the keener's to put up their hand. So, for example, give you some examples here from our process, just the warm up campaign is kind of the first kick in the can. So the people that actually respond back to you, I would put those folks, you know, now that we've got this whole mojo thing going, I would tag those people, those responders, I would take them as responders. That would show me that that's one category of person that has put up their hand, at least had some interaction with me. Right. Then we do the webinar, the people that register for the webinar. OK, that's another table that shows me that these people are pretty interesting people that opt in for your video on your website. Well, that shows me that they're proactively more interested, right. Versus everybody and anybody else on the list who's not doing anything. Does that make sense, you guys? And then we could focus a little bit more on those folks. But we always want to keep that that drip going, because here's the way it goes, you guys, you'll find over time there might be somebody on your list. They did not reply to your warm up campaign. They never opted in for your book or your video. They may have registered for a webinar and didn't show up. They may have shown up and not booked anything but 18 months, two years down the road. As far as you've got that constant, consistent communication, poof, all of a sudden out of it. So supposedly out of the blue, they reach out to you. Why have they reached out to you? Because you've had that constant, consistent communication. It's all about the consistency. And again, the pictures you see with so many people as they're hit miss with it's right. If they don't get a ton of results right away, they figure it's not worth what now would be lovely to get a ton of results right away. But also, you've got to keep in mind, we need to stay top of mind with them for when they're ready, not just when we're ready. Just making sense, you guys. Dave, I'd like to I'd like to add in on that. Just to give you perspective. Finally, after I've known this guy for ten years, he finally reached out to me ten years and finally he reached out and I'm presenting tomorrow, eight years. So it's a question of being patient. And even though it may not seem as if nothing's happening, just planting seeds constantly, it does work. But sometimes 10 years, it takes 10 years for some people. Yeah. Good point. Thank you very much for sharing that. 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. There is the money partner formula. You get a PDF version at investor attraction book, dot com again, investor attraction book, dot com ticker.