If I Had to Raise $1M in 30 Days for an Apartment Deal, I'd Do This

There's no reason you should be not able to raise the capital if you just follow these steps. Despite what you may think, there is a lot of capital out there. There's a lot of opportunity. People are wanting to put their money in deals to save on taxes, to, you know, whatever that means, right? To protect themselves. People want to put money in these deals, including myself. There's a distressed owner that needs to sell fast. Class A is the nicest out there. It is the nicest. It was just built recently. Or it's in the nicest area possible. The distressed owner needs to sell fast. Perfect condition. Alright, just assessed by the inspector. Purchase price, $4 million. That's about $160,000 a door. It's really good. Alright, this is a killer deal, and obviously nothing in life is guaranteed, but just suppose we live in a guaranteed situation here. Buyer in Miami committed $6 million. Said, if you buy that deal right now, I will give you $6 million $1 million for it. So your net profit if you buy this deal and then sell it to the buyer in Miami is $2 million. But the catch, you must buy it in 30 days and you cannot use your own money. You must raise the $1 million down payment for that $4 million from other people's money. Now, if you knew 100% that if in 30 days if you just get that $4 million together, if you buy it for $4 million and you raise $1 million $1 million, if you were guaranteed, there was no doubt in your mind, you're about to pocket $2 million, you're about to put $2 million in 30 days in your pocket, how many of you think you could raise that million dollars? Come on. All right. All right. So look, if you think you can raise that $2 million, say yes as loud as you can. All right. All right. So look, the situation here is You gotta understand, you do not lack resources, you lack resourcefulness. You do— it's about how passionate you are about it, how convinced you are. If you know that you're about to pocket $2 million, you're gonna figure out a way to get that money, all right? And every single one of you has that killer instinct or you wouldn't be here. Key number 1, troubleshooting low/no conversions. This is very important. Why you aren't getting interest. Here's one reason. Number one is the deal is not in their buy box. So you're targeting the wrong person, right? Why you aren't getting interest in your deal is potentially because, and we're gonna talk about who is the right person, we're gonna talk about where to find the right person, but if the deal is not in their buy box, it doesn't matter how good of a deal it is, they're not gonna do it, right? So if the deal is not in their buy box, we've gotta adjust who we're going after. Okay. I see some people come in, they're from the, uh, you know, the, the institutional, they work for whatever private capital group, whatever that is. And they're, they've got a contact list full of institutional investors, right? People that are, you know, very sophisticated. And then, you know, they're bringing an opportunity of a value-add apartment and they're wondering why that just doesn't resonate. Right. So you gotta know who, who your person is. And you gotta know what their buy box is and then present deals in their buy box. Okay? So if you have a bunch of people in your contacts, you wanna first find out what is their buy box. Alright? And then not iterating. This is an iterative approach. If you are getting told no and not adapting, talking to more investors will only result in burned bridges. Alright? I've had this happen before with people. I would send them 10, 20 leads and every one of them says no. And it's just, and it wasn't poor leads, it was just the fact that they were coming at it from a beggar standpoint. They were not iterating, right? If you have 5 people that say no in a row, we need to go in and look at those calls, look at why, what is their reasons, list out their reasons, keep a track. I mean, just because someone says no, that's, that's a great, that's exciting. Cause as long as they give you a reason, right? They just say no and hang up, then That's not exciting, right? If, as long as they give you a reason, you know what to do. You have an arsenal, you have ammo for the next time, right? If you approach every investor call this way, you're going to make massive progress and you're not going to repeat the same mistakes. I was just hearing a guy say, uh, you show me the student. It was a really successful guy. He said, if you show me the student who does not repeat the same mistake twice, he will skyrocket to the top of his industry. It sounds simple because it is simple. If you just do not make the same mistake twice, you will go really fast. Okay. Return of capital is more important than return on capital. All right. Capital preservation versus appreciation. Investors want to protect their downside more than anything. Right. I think it was Charlie Munger. I talk about this quote a lot. Charlie Munger, he said, uh, Show me where I'm going to die and I will not go there. That's all I want to know is show me where I'm going to die and I will not go there. Right? Saying I just want to protect my downside. So just remember that. We've got to show that you've thought through the downside. You're not just pitching this pie-in-the-sky opportunity. What happens if things go wrong? How do we know that your capital is going to be protected? So if you truly have a life-changing deal, people will be excited. Keys to making your deal so good people will feel stupid saying no. All right, number 1 is exclusivity. Write this down: exclusivity. First, we need to create exclusivity, and what that means is 3 to 5 easy-to-understand points that makes your deal stand out. So let's go over an example. We are paying $10 million for this property that the owner paid $6 million for 5 years ago. How much more property would you have bought back in 2019 knowing what you know today? Right? Example 2, a direct competitor to our property just sold 6 months ago with similar amenities for $95K a door. We are paying $75K a door. Okay, exclusivity. We need to create exclusiveness. So those are a few examples for you. Next is abundance. Number 2 is abundance. Remember this, you are bringing a bag of money, not asking for money. An investor is not going to give you validation and a check. I see this happen sometimes, right? We go to an investor and a very successful person and we want to get their advice on the deal, right? We're thinking maybe I can pitch them to jump in. Maybe he's going to love it. They're not going to give you validation and a check. That's called charity. All right. They want to know that you are determined and you are going to do it no matter what. All right, no matter if they give you money or not, you're going to get that deal funded and it's got limited opportunity. All right, we expect to be fully subscribed quite quickly. So this is something you can say, or I do not, or I do need to let you know that I have several people looking to invest and I need to get back with them, but I wanted to make sure I reached out to you first. Where are you at with the investment? Okay, or I'm about to send an email out to our list and we have around 13,000 people on that list. Okay? Which if you're using us, if you go through the REI funding system, we have about $80,000, but may sound a little bit unrealistic for them. Scarcity is number 3. We only need $1.5 million. We already have commitments of, say, you know, $200,000, and most people are investing around $150,000, so we were just looking for about 6 to 8 more people. Sounds a lot fewer people in that context, right? You gotta raise $1.5 million. Well, that's only, you know, 10 people at $150K. So you got 2 people already in, you just need, you know, 6 to 8 more people of an average of $150K. So that makes it sound a lot more scarce, right? There's only a few more spots left in this deal. And then we are closing on closing day. Obviously you'll need more information. Right? You saw that in the script yesterday, but that brings down the barriers. They can continue the conversation and not feel like they need a yes or no right there. You don't want to ask people for capital over text, right? You want to ask them to make a commitment over a call, right? In your contact list, and so it could be any type of investor. So what you're doing right now is you're taking all the people that say, yes, I'd want to know about an opportunity, And you're just, you're finding out what their desires are, what their buy box is, what their goals are. And you just need to make a list of those people in a spreadsheet. All right. Or in your CRM, DealFire CRM. Okay. And so that's just a full list of all the people in your current contact list with different goals, right? So then you can match the opportunities, but to scale, to actually take your capital raising efforts and create like the $40 million in 12 months to be able to do things at scale, we've actually got to narrow down who is our avatar, who is the person that we are typically targeting, so then we can create marketing efforts around that. Because if you're going to start targeting cold investors, that's where you really need to say, this is who I'm for. All right, your investor avatar is a clear profile of the exact person you want to attract as a passive investor. Okay, example is dentist, right? I don't know if I have Yeah, so here's an example. So research your avatar. So this is going to guide you in posting and attracting endless leads later on. So pains, what are they struggling with? So example, dentists, doctors needing to work with their hands and everything is dependent on, on them continuing to work, right? So dentists and doctors, if that's your client, I know several people. We have a friend that, that's scaled an entire a capital group that's just based off targeting investors who are dentists, right? Dentists and doctors, right? Basically, if you're going to target somebody, you just got to find out what is your background? What do you feel like you resonate with the most? You know, business owners, you know, who are the people? And even, even past that, like, what does that look like? How can I say I'm for this exact person? So then when they look at that, they're like, oh, that's for me, right? And then you gotta study their pains, fears, and desires. So again, Dennis, if my hands go out, I'm out of a job. I need passive income. I need some type of continual residual income. Fears— what are they worried about? They may be worried that they are unable to work and not have any income. What are their goals? Dennis wants to create retirement-worthy income that allows them to not depend on using their hands. So that's what you're using in your post and all the attraction methods you're going to be doing. Okay, I help niche achieve goal through passive real estate investing without pain points. Okay, so going back to the dental practice owner, I help dental practice owners replace their income and create generational wealth through passive real estate investing without the stress of managing properties. This is going to be huge, guys. It may seem like I'm juggling a lot at once. I'm trying to find deals, keep up with brokers, I'm trying to talk to investors, but I'm telling you, you just Stay in that grind for a little time and you will build relationships and create and attract these relationships. You're gonna be attracting deals. You're gonna be attracting capital partners. It's just a short time of an uphill climb that will pay off. Amen? All right.