Dave Debeau [00:00:08] Welcome to Free-Flow Friday, powered by the Property Profits Real Estate podcast, I am Dave Debeau 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. All right, so tonight, welcome, everyone. Our focus is on getting referrals and testimonials, that's what it's really all about when it comes to our investor partners. How do we get referrals to their friends and their family members and how do we get some kick butt testimonials? Who likes that idea? Thumbs up if that's what you signed up for. That's what she is getting. That's what it's all about here tonight. I'll tell you what. OK, good, good, good. Good to have you all here. So we're just going to do a quick little check in reminder, because some of you it's been a while since you've looked at the whole investor attraction process. If you guys remember the five step investor attraction process, my money partner formula that I call it is all about, you know, these simple steps. Now, they're simple, but there's a lot of moving pieces involved here. So step number one, if you recall, is all about creating that target group of a couple of hundred prospective investors, people that we have a preexisting relationship with. Right. They know us. We know them. They like us. We like them. And we're hoping we can get them to trust us with their money. That's that's a big thing. So we've got two out of the three taken care of. And then the next thing is we want to make sure that we before we go charging in and saying, hey, here I am, I'm looking for some cash for my deals that we break the ice first. Right. That we have that that connection, that warm up campaign first. Let's step number one. Step number two, even though that warm up campaign is not oh, there you go. Target money, say hi. OK, that's a pretty good diagram of it. All right. Step number two, even though the Obama campaign is not designed to start getting you calls and booking meetings, quite often that actually happens. So we've got to be prepared in that case with an investor presentation. And just like Rob is talking about, I highly recommend that you have a slide deck presentation that you can show people either on your computer or resume or on your tablet or what have you. It just makes things a lot simpler. And that way, again, you meet in person once all covid thing kind of passes. It's ugly, it passes its ugly head. We can meet back in person or meet on Zoom and we do this one on one or in small group settings as well. So that's what that's all about. And then actually, can I ask for a favor here and somebody here be my assistant. Is anybody willing to to be my assistant? All right, so here's what we do. I'm going to make you the co-host. And then if you see somebody coming and in the waiting room, can you let them in? OK, you know how to do that, it should pop up on your screen so somebody is in the waiting room that you can let him in and that way I can focus on on the presentation. OK, so step one target group, we can expect to have our presentation ready to go, you know, educational presentation. And then step number three is all about the marketing. It's all about getting top of mind and staying top of mind with our prospective investors. And again, you guys, what we got to remember is that all of us here are weird and wonderful real estate nerds, which I say with love and affection, because that's that's right. That's what we are. Right. But most people in our contact list are not right. They're not real estate enthusiasts. So we've got to remember not to overdo it and over educate people. Right. We don't want to overwhelm them with too much information. We want to keep it Reader's Digest level, which means that the average 13 year old would understand it pretty simply. All right. And we want to make it as much as possible. Entertaining, teeny, little bit educational, a little bit entertaining. So people enjoy getting it. And then what I recommend you guys is ideally we should be touching base with people once a week. Ding, ding, ding. Once every week. That's not overwhelming. You guys all get weighed more than one email a week for me and you're still around. So it's it's one email a week again with that agitating communication. And then step number four, we want to be seen as the authority in the eyes of our target group of prospective investors. You don't need to be a world recognized real estate authority. You don't have to have a gazillion deals under your belt, nothing like that. What we need is we need to be seen as a credible real estate expert in the eyes of those two hundred people. That's it, right, that we need to be one hundred one hundred to two hundred famous. That's all that makes sense, you guys. That's the authority we're looking for. So all sorts of different ways to do that. And then step number five, once we've got an investor or two on board or even beforehand, we can start getting referrals and testimonials and really start that snowball effect. Right. Connecting with our investors sphere of influence, borrowing on that credibility that they already have, bearing on the relationship that they already have. So that's really what we're going to be focusing on today in our brainstorming. OK, OK, so what are we going to talk about? Dark, about the who, what, when, where, why and how of referrals, rewarding for referrals. And then so we're going to first chunk is all about referrals, second shot. We're going to start talking about testimonials. Both are super, super important. All right. So what is a referral? Here's dictionary Dotcom's definition. A person recommended to someone or for something. What do you do that doesn't help? Very much. All right. By definition is it's getting our investors or prospective investors to get their friends or family members or associates, their cohort to meet with us and potentially invest with us. Make sense. That's from our standpoint. That's what we're looking for. OK, so why are referrals so powerful? Five big reasons, you guys. Five big reasons, number one. This is kind of cool. We actually have a higher likelihood of getting a yes from somebody who is referred to us from an existing investor than we do from a lot of the other people in our in our contact list. In our database. And here's what OK. Our investors know other people who are interested in investing, they're not going to talk us up to just anybody, they're going to refer us to somebody who has a good likelihood of being able to invest. The other reason is. That we get to bypass that whole. No, like and trust factor. OK, we get to piggyback on the know, like and trust factor our investor has with their friend, so their friend comes to us or we're introduced to their friend and let's say I'm going to pick two random people. I hope you're OK with this. Let's say we're talking about Sharon and Kevin. I'm just saying you guys, because on my screen, you're very close together. All right. So we've got Sharon shares, my investor, and Kevin is a friend of Sharon's. Right. So Sharon's been investing with me. She's happy with how things are going. And I've gone through the conversation with her about getting a referral. And she has referred Kevin to me. I've gotten a warm introduction to Kevin. And now if what I what I'm doing with real estate makes sense to Kevin, there's a very good chance he will invest. And here's what he knows, Sharon. He likes Sharon. He trusts Sharon. And we're all looking for shortcuts. So by that relationship, if Sharon's saying, yeah, Dave's the guy that I get to borrow that relationship, does that make sense, you guys? It's just the ultimate shortcut to getting new investors that we don't have that preexisting relationship with. All right. Now, much less expensive and time, effort and money to get a referral than to get a brand new investor from scratch. Right. It just it's I mean, think about it. To get a brand new investor from scratch. Let's say we meet somebody, a networking event, or meet somebody on LinkedIn and we start the conversation. Well, we have to build up that whole relationship right there. You have to build up the no factor, have to build up the light factor over time, have to build up that that trust factor takes a long time. So this is a major shortcut and it saves us a ton of time and money and effort. Here's a cool one. I really wasn't I didn't I never thought of this before until I started looking into this. Yeah. Good to see you, my friend. Welcome aboard. Psychological advantages. Right. So here's the thing you get going back to sharing a cabin shared my investor. When she refers Kevin to me, she actually reaffirms her original decision that investing with me was a good idea. Right. Because in the back of her mind, she's kind of thinking, well, I wouldn't be referring my friend Kevin to Dave unless I was already really happy with what was going on with Dave. Does that make sense, you guys? So it's kind of like a self-perpetuating type thing. It's going to encourage her to reinvest or to invest more just by the fact she isn't. She has referred Kevin to us some extra you guys. That's kind of cool. Very cool. OK, here's another big one. It's an ego stroke, you guys. Big time ego stroke. Right. So Sharon likes Kevin. And hopefully Sharon likes me. That's why she's recording me, right? So by referring me, she's doing Kevin a big favor, which makes her feel good. She's doing me a big favor, which makes her feel good, too. So it's just an overall nice ego stroke. If all along with me here are you guys catching what I'm throwing at you. Awesome. All right. Very good. And then last but not least, it sets expectations. Right? So we go into you guys. You might not be quite there yet, but once you've got a little bit of experience working with investors right from the get go, you can set these expectations. So let's say your art. So let's say Juraj coming on board as a new investor. Great to have you, my friend. Are really looking forward to working with you. And I tell you what, if things go according to plan and you're happy with how things go with your investment with me, we usually have our investor partners refer other people to us, and that's how we grow our investor pool and we're able to share the wealth. So if you're happy with how everything goes, are you comfortable referring to a one or two of your associates or friends? Yes, there you go. So we set that expectation, we just put it out there right up front. Does that make sense, you guys? I know it's kind of a ballsy thing to do right off the get go, because we're all just, you know, if you have to raise money before it's all about, I don't want to scare them off. But actually, if you say that. It shows a lot of confidence in yourself, would you agree if I got the guts to say that to her, I was going to make sense of IAP? Why wouldn't that? Right. OK, good stuff. All right. Who should we be getting referrals from? Kind of the obvious and the not so obvious. So the obvious is if you got some investors on board already and they're happy and things are going along pretty well, those are the first people. To talk to just make sense. When you get somebody on board and even if they haven't started investing with you, but let's say they've signed off on an expression of interest right there in our bench of prospective investors, that's a good person that we can get referrals to other people for as well. Here's the counterintuitive one. Let's say you do a presentation with somebody. The presentation goes, well, you know, everything everything goes well, except it's just not a good fit for them right now for whatever reason. Right. It's just they like it. It all looks good. They're just they're not ready to to pull the trigger. But if the conversation went well, you can still turn that around. And let's say I was presenting to Kevin, I said, Kevin, OK, well, I can understand this isn't a good fit for you. You know, anybody else who you think this might be a good fit for? And then I can get a referral, potentially get a referral from Kevin to somebody else, just from. In turning me down as an investor in this particular deal or this particular presentation, does that make sense, you guys? Again, it depends on how well things went. OK, so how to ask for referrals? Are you guys from Iowa, Dan Sullivan, strategic coach? Anybody heard of that? Yeah. Good guy, in fact, I'm just signed up for strategic coach myself this year, anyhow, you got together with a guy named Ben Hardy, make a time best selling author, and they wrote this book, Who Not Right. And one of Dan Sullivan's big things about all of his philosophy about business is to be easily referable. And don't take lightly what his suggestions are, because it's really common sense, but how is one of these things where common sense is not very common? Right. And I know I've got weaknesses in some of these areas. We all do. We can all improve on it. But it's really quite simple when it comes down to it's show up on time. Right. So be punctual. Do what you say you're going to do when you say you're going to do it. That's kind of the punch show up on time. Part of things finish what you start. And be polite. I mean, think about it, it's pretty basic, but don't take it lightly because it's very, very powerful. I mean, this these are the the only four things you really need in order to be super referable. You really are up on time, do what you say you're going to do, finish what you start and say, please and thank you. OK, so who's very learned? My take again, you guys, I'm just show you my take on how to get referrals. If you've got something that's working really well for you, just take what works for you and ignore the rest. If you haven't started doing this, maybe start with this, try it out, see how it feels for you as well. OK, so how do you reverse what we kind of put this out there, like let people know that you're looking for and you appreciate referrals, but don't do it the realtor way. Nothing wrong with realtors. I'm not coming down on realtors, but you know what I mean. We really appreciate your referrals. That's kind of on their calendars and all over the place. And it's just kind of white noise. We want to we want to do it and a little bit more high impact fashion. So what I suggest you do. If you start using case studies of people who referred you back, you mentioned them, you give them recognition, you kind of show what you're looking for and more people would do it. All right. And then again, we're going to use a lot more testimonials in our marketing. So let's say. Let's let's say I'm meeting with Rob and Rob, you're my investor, OK? And we're having our quarterly meeting and we're going over the numbers and I'm showing you where we're at with the project we're working on and let's say things are going well. And you're happy with things, this is this is how I bring it up. So let's say we just had that conversation. So, Rob, how do you feel about how everything's going with our deal so far? So far, so good. You've been keeping me up to date on things now about the returns. You're pretty happy with that? Yeah, I am. Excellent. All right, Rob. I'm glad that you're happy. And we're always looking for other people that we can work with as investor partners. Do you know of anybody else who might be interested in these kind of real estate deals? Sure, I do. All right. Yeah, that's a that's a laid that's pretty easy. I appreciate it, but usually it's not quite that fast. So that's why we got to when when we when we say that we got to zip it for a little while, give Rob a chance to catch his thoughts and either a couple of different choices can be a grab might say, well, no, I can't think of anybody right now, but I'll let you know if I do think of somebody, I might think of somebody. Yeah. Yeah. In which case we want to get a warm introduction or I might just kind of not know what to say. All right. So if he's not sure, then what we can do is we can leave some things behind. Let's say I'm meeting with Rob in person. Right. So for me, I would probably leave Rob two or three copies of the book. It just makes sense because a few copies of the book, he can hand those out to people he knows, put my business card in with the book. He hands them out. That's a business card on steroids, you know, out of a book. No problem. You can just leave your business cards. So it makes sense, you guys leave him something that he can he can head on to somebody else. All right. Now, if Rod does say hey, yeah, let's say give me an example, Robert. Say you got somebody off the top of your head. That could be a good match. Let's just walk through that. So, yeah, you might be interested in these kind of deals, Rob. Yeah, I have a relative friend and an investor friend, Mike Mike's close friend of mine. All right, very good. So, Rob, it would be kind of weird if I just, you know, called Mike out of the blue. Right. So if it's okay with you, could you make a phone introduction with me? Do you think you might be reachable on the phone right now? Sure. All right, so what I would try to do is I try to get Rob to give Mike a quick call and just make a warm introduction right there. So that makes sense, you guys. All right. So Rob calls up. Mike has a little bit of banter. Hopefully I'm not going to coach him or try to give him a script or any, but hopefully talks me up a little bit. And then he says, if Mike's interested in meeting with and talking with me and Mike is, then I'll get on the phone with Mike. And here's the only thing I'm going to try to do on that conversation, I'm just going to see if Mike would like to have a meeting to see my presentation. I'm not going to try and sell Mike on investing with me right off the get go. I'm just going to see if Mike is interested and having that conversation to some extent, you guys. Thumbs up if we're following along here, OK? And if you don't agree, you can say horse hockey, Hawsawi Debow, I don't believe you. All right, all right. Where and when to get these referrals. So if you can in person would be ideal and after a positive experience in person or on Zoome and ideally after a positive experience. So. This could be a number of situations, right, you've just done your presentation, I've just done my presentation with let's say Jen and Jen says, yes, I'm in, I'm ready to sign off on the expression of interest. Great. Once we're done all of that, that would be a good time to ask for a referral right after I get a deal started with. All right. But he's excited. Things are going. They're up and running. There's there's proof of concept. It's actually happening. Good time to ask. Better time even is when I give Jen his first payment, whatever that looks like. It's a cash flow payment, quarterly payment, monthly payment, whatever that looks like. He's getting some money back from this investment. That's an exciting time, right? Because up until then. A little bit nervous, right? Is this really going to work, is it really going to work? Then you start seeing some some return on investment. That's a beautiful time to ask for it. Or when you cash out of a deal. Right. We refinance or we sell the property gets all of his money back. Hopefully a nice chunk of change on top of that beautiful time to ask for referrals that make sense. You guys all right now. Let me ask you this a little bit of audience participation. What are your thoughts? On offering a financial reward for somebody who refers an investor to us, what are your thoughts? Now. No. Why not offer a gift instead of your gift, why? Because what would be the dollar amount? Would it really make that much of a difference in his life? Good question. OK, anybody else you might insult them to? Anybody else have any thoughts? I would say, yes, do it. Carolyn says, yeah, again, show me the money. Show me the money to vote.
Caroline [00:21:07] Well, no, I would be giving the money, right?
Dave Debeau [00:21:11] Yeah, yeah. To somebody who's referring an investor to you, OK?
Caroline [00:21:15] That would be a good incentive for them. Maybe they would even offer more people.
Dave Debeau [00:21:19] All right. I guess the question would be how should we go about rewarding people? So Carolyn saying, yes, a financial reward, Rob saying a reward, but perhaps in the form of a gift might be nicer. What do you got? How how would we let people know about this? Negative thoughts about that. OK, I'll give you an example. So back in the day when I was doing rental deals, I was looking for. While I was looking for investors, but I was also really looking for motivated property sellers. I was looking for prospective buyers for my rental deals. Right. So my business card at the time was really all about trying to find motivated sellers. So in the back of my car, to add five hundred dollar reward, if you introduce me to someone who sells me their house. Five hundred dollars cash. All right. Had that splashed all over the place. No problem with that. Would it be smart to do something similar? For our investors, five dollar reward for an investor, a thousand dollar reward for investors, something they got no bread says no. Rob says hell no. Yeah, some people are saying, I'm not going to say I'm going to wait till I see what you what the next slide says about that and then maybe I'll give you an update everybody else on the ideas here.
Caroline [00:22:39] I have one there. Yeah, I have I have a picture company. So whenever I hired a consultant at even the first battle, a slip slipping a note to him. Well, we're always looking for other consultants like you. So if you have anybody in your network, we will outfit you find it on its. So. So we say that up front. So OK. And it is and it is quite common practice.
Dave Debeau [00:23:11] So it's OK. Why would you do the same thing for your investors.
Caroline [00:23:16] Yeah I think so. Maybe, maybe I will do that up front when I bring them in, when I, I'm just cold call. We also do that if they are to know up front that insulting at the end a dollar.
Dave Debeau [00:23:33] All right. OK, yeah. Go ahead Dave. So the way I would see this is you just mentioned on the back of your business card, there was a qualifier there. It was the qualifier was for someone who sold you the house. So so there needs to be a qualifier. I don't know what the dollar value would be if you chose to go the dollar route, but there needs to be a qualifier that that the investor actually invested with. You need to start with that for sure. All right. OK, thank you very much for your for your input, you guys and your participation. Really appreciate it. I'm going to show you one of my clients has done in the past that has worked very, very well for him and it might be something you guys might want to look at as well. OK, so this is Ron. Ron Geter and Ron has had a lot of success with referrals from investor partners because he does it in a very classy way, in a very classy way. So here's what I'm going to suggest. Ron doesn't necessarily do all of this, but he does a lot of it. I'm going to suggest that we always want to reward the action of somebody referring us whether it turns into a deal or not. Now, I'm not saying I'm going to cut everybody checks for 500 bucks or a thousand dollars. No, that's why I'm not talking. But I'm talking about recognize the fact. So let me ask you guys is, have you ever had the experience where you have referred somebody to some sort of a professional, maybe as a realtor, a mortgage broker, financial planner, God knows whatever? Right. Roofer, house painter or something like that. Right. You've referred somebody. To a professional and you know that they did business together. But you never, ever heard about it or heard anything from the person that you refer to as anybody else ever experienced that? Just a few of us, I think, in some way or another, most of us have experienced. Isn't that like the shittiest feeling? Right. I mean, it really is. It just kind of makes you go. Are you ever going to refer that person again? Probably, probably not like if you had somebody else that you could refer, you would probably refer to somebody else or just keep it zipped, right. So here's the thing. Let's say Kevin refers me to somebody, right? I get that warm introduction. Maybe I meet with the person, whatever it is. Here's what I'm going to suggest you do. I'm going to suggest we want to keep Kevin in the loop all the way through. Right. Because Kevin's taking a big risk, a relationship risk with his friend by referring me to his friend. Does that make sense? Kevin knows me. He's happy with the job I'm doing with him. But he's he might be a little bit nervous about referring me because he really doesn't want to screw up the friendship he has with that other person. Does that make sense? So what I want to do is I want to make sure Kevin is comfortable. So well, first of all, over there on the phone, he's going to know that I've set up a meeting with his friend. And what I say is, OK, Kevin, let's do this. I'm just if you're OK with it, I'm just going to keep you in the loop with how things go. I'd be all right. What would you say to that, Kevin? Yes, he just give me a thumbs up, that's all. Yeah, you'd be okay if I kept in the loop with what's going on with the person. Oh, yes, yes, yes, yes, please. All right, very good. So then I go let's say he referred me to Brant. So I go meet with Brant and we have the presentation. And let's say it's just not a good fit for Brant right now. What I'm going to do is I'm going to send Kevin either a quick little text message or a quick little emails. Again, thank you again so much for referring Brant to me. We had a great meeting. Is a hell of a guy really like him? We get along well. It's just right now it's not a good fit for him. But thank you so much for referring him. I really do appreciate some extent. You guys, I send that little email to Kevin. Chances are Kevin is going to feel good about it because I've recognized him giving him recognition of getting him. Thanks. I've shown no appreciation of that kind of magic. No, but I just common courtesy. Right. Does that make sense now, as you can feel more inclined to refer me to somebody else now? Probably. And then what we want to do. Take it to the next level, you guys. Takes five minutes, right, Kevin, a nice little thank you note, physical note, put it in an envelope, put a stamp on it, send it to Kevin. When was the last time any of us got a thank you note in the mail? This week, it's nice, you're very who else got one this week, very. You got I got to shut up. My examples are working. Most of us don't get that much out of those many things in the mail. Right. It's not that common. So it really stands out. It really makes a good impression. So, Kevin, how did you feel about getting that? Thank you. Yeah, and it was great. It was from a realtor, so it was a thank you note. Didn't expect it, but there it was. And was it actually happened and it was handwritten. Good. Yeah. So that makes a bigger impact. Right, because you can do this stuff through send out cards and that sort of thing which is OK, but it's not as good as actually handwriting it. Again, it just takes five minutes. You guys. So sad to think. Thank you. Right now, let's say that Brant turns into an investor for me. All right, same thing. I'm going to send Kevin an email. Kevin, thank you so much. Looks like Brent's good to go. He's very excited about working with me on a deal. So it looks like we're going to start working together. Thank you so much. Really appreciate it. And I'm here to kind of keep you up to speed as we go along. Just kind of touch base every once in a while and let you know that things are progressing nicely, OK, because it's probably going to take a little while to get Brant set up and ready to go as an investor. So let's let's say Brandt has actually done the deal with me using the we're in the process of the deal. Now here's where we're going to reward Kevin. OK, and here's what I suggest. You guys, hopefully at this point, I know Kevin fairly well and I kind of know what he's into. Like, if he's a if he's a Scotch drinker, hopefully I will know what his favorite kind of scotch is or whiskey or whatever the heck he's into or if he's not a drinker, hopefully I know that. So I hope I don't screw up by him a bottle of booze if he's not a drinker. Right. But I know what he's into. Perhaps he's really into coffee. So I go and I get an amazing gift basket, coffee gift and something like that. Something something very, very nice. Right. And then I go and I personally deliver this wherever whenever possible. I would personally deliver this to Kevin. I knock on the door. Kevin Rudd came on board as an investor partner. I appreciate it. Thank you so much. Here's a little token of my appreciation. OK, I'm going to hand him the gift basket. He's going to be thrilled. And then if you really want to be stand out with this, here's what rended. One included an envelope with a thank you letter in the gift basket, thank you note, and in it were 10 brand new crisp one hundred dollar bills. In the envelope, OK, Kevin opens up, the envelope, goes, Holy smokes, Dave, I wasn't expecting this. You don't have to give me this. I did it because I wanted to. Kevin, I appreciate that. I understand that. But this is how I grow my business. I really just want to show you my appreciation. And I tell you what, buddy, if you don't want the cash, that's fine. Why don't you donate it to your favorite charity? OK, this is just how I like to show my appreciation to my investor partners when they refer somebody who does business with me. Does that make sense, you guys? All right, now, Kevin, now that gives Kevin an out now he can say, OK, thanks, because in his mind, he can donate that money to charity and that charity very well might be Kevin's beer fund. I don't know. I'm not here to judge. It's whatever he wants to do with it. Right. It's it's his money. So here's the cool thing. Here's a cool thing. Here's what happened with Ron when he started this example. So let's pretend I'm Ron. Kevin's my current investor, and Kevin referred me to Brant, so I went over to Kevin to give him the gift basket, give him a thousand bucks. He was very happy. And then I went home. And then over the next I think it was over the next four or five weeks, Ron got three phone calls. Three phone calls for prospective investors reaching out to him. And here's a quote, a guest who referred all three of those. Prospective investors. Was it Kevin, it wasn't it wasn't the guy I gave the body to, it was Brant, because as soon as I did that gift and stuff for Kevin, guess who he told? He told his buddy Brant right around, hey, that's cool. And Brant told his some of his friends and Ron got another investor out of that whole process is not a good it is not a good use of his time. And his funds are very, very good. All right. So that's in my mind, that's a classier way of doing it. And here's the other thing. You know, Ron is not advertising this. Hey, thousand dollar referral fee if you send me an investor. No, this is a word of mouth thing. That's what it is. All right. So he's not he's not saying, hey, you know, I gave Kevin a thousand bucks for referring. Thanks so much for your referral, Kevin. No, you might have a picture of Kevin with the gift basket. I'm not going to mention the money. And you're sure a nice smiling picture of Kevin. 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 it is, the money partner formula. You get a PDF version at investorattractionbook.com