Table of Contents - Millennial Investing and Raising Capital on Social Media with Sarah Eder
Dave Debeau [00:00:08] Hey there, everyone, this is David Debeau. Welcome to this week's episode of the Property Profits Real Estate podcast. And today, it's my pleasure to be interviewing a young, up and coming inspiring. But real estate entrepreneur, Sarah. How are you doing today?
Sarah Eder [00:00:26] I'm doing great, Dave. Hi, guys. Thank you so much for having me on. This is great.
Dave Debeau [00:00:30] It's my pleasure. Now, Sarah has done some amazing things very, very quickly with real estate investing. Prior to real estate investing just a few years ago, she was actually a professional athlete. What was your sport of choice, Sarah?
Sarah Eder [00:00:45] Equestrian show jumping. So jumping horses that were very large sticks.
Dave Debeau [00:00:50] Yeah. And that's that's a heavy duty sport and very dangerous, actually, because that's what's it's Superman. And I recall correctly.
Sarah Eder [00:00:59] Yeah, absolutely. It was I took some good stills.
Dave Debeau [00:01:03] Well, I'm glad you're on safe ground now and you're focusing on real estate investing. Now, Sarah has done several different things anywhere from doing flips, getting into multifamily properties, getting into developments. And what I really want to focus on today, because Sarah, is what I affectionately call a young punk, a young person who is up to speed on social media and all this kind of great stuff. And she's been doing some amazing things around, attracting investors and raising capital, using social media. So, Sarah, that's what that's what we're kind of focus today's conversation on. But in the meantime, tell us, what the heck was it that got you going from jumping horses over big sticks into real estate?
Sarah Eder [00:01:48] Yes, that's an awesome question and it's kind of cool. I love to talk about it, especially from the standpoint of being a millennial. Hopefully will get some people like some inspiration because horses were my passion. Obviously, I don't think you would do a dangerous sport like that if you didn't love it. And I unfortunately started my own business when I was twenty four and had no idea what I was doing. I got myself into some ridiculous debt. It was a labor of love. I just kept spending so much money on my credit cards, just trying to keep my business afloat until I got to the point where I realized I was going to go bankrupt. There's no way I could do it anymore. And for anyone that knows anything about horses and how expensive they are, you can see why it's the ridiculous industry to be. And so I ended up taking a temp job just to kind of put my bills and property management company. And this company happened to do joint ventures. And I was like, why does this venture this is crazy. I didn't even know something like that existed. So do working with the company. I got to learn about investing, about joint venturing. And that's kind of how I decide to segway into real estate.
Dave Debeau [00:02:54] That's really cool because you got the inside scoop. You're working for a property management company. Go to. Yeah, there's better money of being the owner of the properties, managing the properties, and they're doing joint ventures. You said let's let me get some of that. All right. Perfect. So how did you go from property management and what did you start doing? First flips?
Sarah Eder [00:03:15] I actually started in small student rentals. I had ended up finding some people who had equity in their houses. So my first joint ventures were kind of like DTV style. They just didn't want to do. Student rentals are such high management. Luckily, I had the property management experience. So I'm actually grateful because as a millennial who had no portfolio, no track record, the only thing I could offer was my experience, which was managing tenants. So I said, OK, I'll come in a and your students, I'll take over these houses. And I want like an equity split because they were getting out of it. So that's actually kind of how I got my first entry into it.
Dave Debeau [00:03:54] That is so cool. And that's very, very good advice, especially for young people and not so young people. There's different ways that you can get involved in real estate investing. One is trial and error, which really sucks. That's a stupid way to do it. Yeah. Another way is you can go by somebody training and programing and mentoring and coaching, which is a smart way to do it. Definitely. And or if you're a little cash strapped, you go work in the field, do it just like you did, and then you bring that expertize in that effort to the table. And that's not just like you did with those first partners. That's what you brought into the into the game. And that's how you got going. So good on you for that. That's fantastic. Now, let's switch in to what I really want to talk with you about, which is raising capital. That's something that's near and dear to my heart. That's that's what my focus is on professionally. But I'm old school. I got lots of gray hair. The hair got gray. I'm I'm an old dog, but I'm an old old dog who's definitely open to learning new tricks. And we talking a little bit about this before we start recording. So typically, I mean, you've done very, very well using social media for attracting investors and raising capital. I being the conservative old guy, am I usually tell people to steer away from trying to raise capital and attract investors using social media, because I don't want them to get in trouble with the Securities Commission up here in Canada. Each province has their own and each one seems to be worse than the next down in the States. We got a lot of listeners in the States as well. So they got these they've got the trade commission. So tell us a little bit about your twist on using social media for raising capital. So how do you how do you do it without getting into trouble with the trade missions?
Sarah Eder [00:05:47] That's an awesome question. It's something that I explore from the very beginning, knowing that this would be an issue. Obviously, we do not want to get in trouble. The Securities Commission, we want to make sure that it looks like we're doing what we're doing, which is using accredited investors that we have a relationship with, then we are not trying to solicit business as securities. So how I get around this with myself and my clients is by taking an educational standpoint. So I never sell opportunities or if I do, usually on my social media, it will blatantly state at the bottom my post that this is for accredited investors only. And again, I would always suggest get your own legal advice when you're posting these sorts of things on social. But I think the more you can just educate people, talk about different types of investing, the types of projects you're working on and encourage people to reach out to you. I think you really kind of escape that loophole, I guess that the Securities Commission doesn't want you doing all right.
Dave Debeau [00:06:50] So so what I'm what I'm hearing there is you're not getting on Facebook or Twitter or Instagram or whatever the hell it is. It's that's popular these days and say saying, hey, it's Sarah. I've got this great UpDown duplex looking for a money partner. I'm guaranteeing seven percent your call one eight hundred. But you're not doing that. You're doing educational clips or posts or whatever. You're you're teaching people something. You're showing yourself as the expert authority. And then you say, hey, if you're interested in more information, reach out. Either give me a call or visit my website or whatever it is that makes sense. That definitely makes sense. And the reason I ask is because I do. I see on a fairly regular basis people posting deals on Facebook saying, hey, I'm looking for an investor partner. Give me a call if you're interested. And I just think that's a recipe for disaster sooner or later.
Sarah Eder [00:07:52] Like, definitely it's so risky. Yeah.
Dave Debeau [00:07:55] Yeah. Well, I mean, face it. It's up there. It's out there forever, right? I mean, that's that's a big, big challenge. OK, great. So that makes sense. Next question I have is let's say somebody is watching this or listening to this and that kind of in my shoes and they're a bit of a technophobe and they're a bit of a social media dinosaur and they're not really up to speed on this kind of stuff or maybe even somebody who does use it a little bit. But where would you suggest is if you have to pick one social media platform, what would be the best one to get started?
Sarah Eder [00:08:29] I think Facebook is definitely the most user friendly I think it's the one of all generations we all use it, whether we're checking in on Susie's kids or creepy people, as everyone likes to do on Facebook, it's pretty easy to take that knowledge, like people knowing how to post and click on things. You can translate that into creating a Facebook business page where you can just start posting. You don't have to even get as savvy as putting a video or Facebook Livas. I know that might be a little more advanced, but even just posting pictures of your property and talking about some cool tech that you have for your investors or something like that. Yeah, that's probably a good way to just break the ice and get started.
Dave Debeau [00:09:13] Yeah, that's a very, very good point. All right. So Facebook's probably the way to start. And yeah, like you say, it is very user friendly. It's very easy to I mean, my buddy can for crying out loud, he's already got the hang of doing Facebook lives from his cell phone and all that kind of stuff. So I see that working very, very well. OK, so educational trips, that kind of stuff. So here's the next question. I guess. So start with Facebook. Do you do any other kind of social media or is that the number one thing that you do?
Sarah Eder [00:09:42] I also use Instagram and YouTube, so I'm pretty active on all three. I find eventually you kind of need a web to you know, people will look at my Facebook, go watch my YouTube videos and then message me on Instagram. So they usually come across all of my channels before reaching out to me. So, yeah, I guess
Dave Debeau [00:10:01] like I always start with one thing. So, yes, it's probably the place to go. Absolutely. And I'm going to I could be completely wrong here, but I'm going to guesstimate at least my experience is most of the people that I'm getting on board for investors there, we're looking for one hundred thousand dollars plus kind of thing. So they tend to be a little bit higher up in years. They tend to be. Thirty five plus 40 plus plus, chances are they're not Instagram ing up the storm, they're probably primarily on Facebook anyhow.
Sarah Eder [00:10:33] So that's definitely the demographic for sure.
Dave Debeau [00:10:35] OK, so you covered my questions here. So let's say I do start posting on Facebook and it's educational type stuff about what I'm up to with real estate investing. How often should I be posting?
Sarah Eder [00:10:48] Excellent question, because you're right, frequency on social media matters a lot. Sometimes it's not always what you're saying, but even just to get Facebook's algorithms working properly so that enough people can see your content, they want to see that you're posting, I say, at least five days a week. So if you can get into like a Monday to Friday posting schedule, you'll really start to boost and get Facebook working for you.
Dave Debeau [00:11:12] All right. That makes sense. Now, let's wave the magic wand we've been posting for a while now. You're getting get not getting the hang of this whole thing and maybe even Facebook lives or maybe do a little tours of your properties, whatever it is. Yeah. And you get somebody who reaches out to you and says, Sarah, I'm interested. I'd like to find out more, maybe even invest with you. But you don't know that person. You don't know if that person is an accredited investor. Again, getting back to covering our butts, because the Securities Commission, unless we're licensed brokers of some sort, unless we have an offering memorandum that's we've gone through all that crap. We're not supposed to raise capital from the general public. The exceptions being accredited investors who are great, but the kind of few and far between and relatively close or what they call close friends and family, coworkers, people that you have a pretty significant preexisting relationship with. So a stranger reaches out to you through Facebook. How or do you transition that into becoming an actual money?
Sarah Eder [00:12:22] Yeah, excellent question. Again, we all always want to keep this within compliance with the law so that it doesn't come and bite us down the road. And navigating social media can be a little trickier than meeting someone at a networking event or something like that. So what I try to do is literally establish that relationship with them. So, I mean, I'll never I just don't think it's good business to do business with someone you haven't met face to face anyways. But I always make sure that I'll talk with them multiple times on the phone. I meet them and their spouses. I meet their family. Usually I meet them anywhere from three to six times before I actually invest with them. So, I mean, they'll have to, I guess, proof of burden onto what constitutes a long standing relationship. But at least I can say we do have some sort of friendship, some sort of relationship. I've met them and their sex and their families. So there is some sort of preexisting relationship there.
Dave Debeau [00:13:20] Yeah. So you become fast friends, fast friends.
Sarah Eder [00:13:23] That's a great
Dave Debeau [00:13:25] adjustment because, I mean, some of these some of these things are so arbitrary. Their rules of what do you know where the bathroom is in their home,
Sarah Eder [00:13:35] how long they've been married.
Dave Debeau [00:13:37] My best friend in high school. You've been best friends forever, right? I have no idea. I can't remember. Where the hell is bathroom business? Yeah. I mean, we're not friends.
Sarah Eder [00:13:46] Exactly.
Dave Debeau [00:13:47] Yeah. Smart, smart, smart. So become fast friends. Yes. Meet with them multiple times. And all of this is a case where making meeting them at their own would make sense, make sure you know about their family and all that kind of stuff. And and that's really just good business sense as well, because I find out if you've seen this with your students and clients as well, sir. But at the beginning, people are just, hey, if somebody can cut me a check, they're on as an investor as say no way. No. Yeah, you definitely want to know who you're bringing on as an investor, because if they're not a good match for you, not just deal wise, but personality wise, that's a painful situation to be in a couple of years down the road when you're not a hundred thousand dollars of their cash. Right. That's that's where you don't want to be. So very, very, very smart. OK, that's good. That's really good stuff there. So these interviews tend to run pretty fast and we're to wrap this up pretty quick. But tell me a little bit about I know you're a very active real estate investor and I see you've been speaking at different real estate clubs and doing a great job of that. Do you do some coaching and training with people as well?
Sarah Eder [00:14:56] I do, yeah. I specifically work with, I would say, kind of like intermediate level investors who they might already have a portfolio, their stock three to take the next level and start raising capital on their own. And obviously a huge focus of my program is on social media, but also just teach people how to avoid these sorts of things, how to make sound joint venture deals and do it the legal in the right way.
Dave Debeau [00:15:21] Excellent. Very good. So people are interested in finding out more about you. Sarah, what should they do?
Sarah Eder [00:15:27] If you visit my website, which is Sarah, our dot com, I have a lot of resources, obviously social media videos on raising capital. But I also do have a free ebook, which you can access on the main page of my website called The Ultimate Guide to Raising Capital,
Dave Debeau [00:15:41] which I just downloaded and went through. And it's very good. So, yeah, that's
Sarah Eder [00:15:44] awesome, really.
Dave Debeau [00:15:47] So Sarah's we're wrapping things up about a whole bunch of questions. Were there any questions I should have asked you? But I didn't.
Sarah Eder [00:15:54] Oh, that's a good question. Turning your back on me now. I don't know. I guess.
Dave Debeau [00:16:00] Well, actually, no, I do have one. Oh, good. Well, I just I was just saying, what are I mean, because you've been showing people how to do this for a while. What are some of the biggest mistakes you see people making? I'm trying to raise capital. That's the first part. And then when they're trying to use social media to raise capital, what are some of the biggest mistakes?
Sarah Eder [00:16:19] Great question. I would say that the biggest mistakes I see people doing is not getting clear on what they're posting. Some people think that they can just show up every day and just post a picture of themselves or a property, and that's going to be enough for people to reach out to them and be interested. But you have to have a bit of a purpose to what you're posting. You have to think through the eyes of the investor and think, OK, what would they want to see from me in order for them to say, this is the person I want to work with? And so on social media. Yeah, it's like people will just be all over the place. They're posting videos on Instagram and different stories on Facebook. And it's it's very scattered. I don't really suggest spending time in the beginning developing a really powerful like brand and self identity. So, you know, kind of where you're going with your social media strategy.
Dave Debeau [00:17:10] Very good. Good advice. Well, there you have it, folks there. Thank you very much for being on the show today and for sharing your your experience and your wisdom, especially around the video for raising capital. You've opened my eyes to it. I'm not I'm not as close to the idea as I was before. But when I get back to that educational marketing, it's about teaching, giving value and then not directly going for the cash. So makes a lot of sense. Thank you, everybody, for watching this week's episode and take care. We'll talk to you next time.
Sarah Eder [00:17:43] Thanks to everyone.
Dave Debeau [00:17:44] Bye bye. Bye. Well, 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 it. 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.