REI Day 4 Session 1

So I'm gonna try and knock this out, but, uh, conversion process is life or death. So the first part that we need to talk about is how do we convert capital partner leads? So when we get leads in the funnel, we get them on a call, um, what do we do? Let's get through it. All right, the so the initial setting call. So let's talk about first. First, we have the discovery, which is typically there's an initial call. So when a lead comes in the pipeline, you have you call them, or you have a VA, or you have a setter call them. Okay, so if you don't know what that is, so we we have. People on the team, and I'll talk to you about what those are and the actual compensation package. But somebody needs to call as soon as they come in. There's a phrase called speed to lead, right? It's like how fast you get to someone who lets you know they're interested, or they give you their phone number or email. They come into your funnel, they come into your ecosystem, and the faster you can call that person, the faster you can, uh, talk to them, the higher chance you have of actually getting them to, uh, have a conversation about investing and actually putting their money into your deal. Okay, so just understand speed to lead is critical. All right, speed to lead is, is something you must optimize for. But in that call, when you first call them, what are you saying? When you first call someone that opts into your funnel and says, I'd like to Know more about your opportunity. They raise their hand. They give you their information. What is the goal of that call? Our goal is to is to typically find out are they qualified and are they ready to invest? And is this the type of deal that they'd like to invest? So it's typically are they qualified and do they have what I call intent, right? Qualified and intent. So intent means they actually are in a place where they need to invest now. It's not 6 months from now. It's not a year from now, right? Like, it's valuable for them to get on a call now if they're going to occupy our— our typical system goes, we have somebody who's a setter, somebody who, um, who, who will just call all the leads, and, and then they'll book an appointment onto either Thomas's calendar as our acquisition director, or someone who's just an investor relations person. Right. But for you in the beginning, and still for us, like we may jump on the call with the investor, right? We may, if they're on the line or if they're a high-level investor, we may still jump on the call and be the one conducting that call. Right. Larry may have his calendar open at certain points when we're in high, when we need to raise capital fast. Larry may have his calendar open. You know, um, But on that first call, we need to gauge, are they a good use of our time to put on the calendar, and are they qualified? Okay, so the way we do this is we find out why they reached out. Okay, that's the first goal. What was the reason you reached out, or you opted in, or why was the reason that you gave us your information? What stood out to you about the Messaging or the or the content that made you want to reach out, and then we just say how much are you looking to invest in an opportunity like this? How much do you have liquid? How much are you you know you could ask, and I'll give you a script in a second. But you could ask, are you investing with a 401k or are you investing with cash? Right. So that's the first question. They say cash. They say okay, how much how liquid are you? Right? And then just get straight to the point, right? Figure it out. And they'll say, well, depends on the deal or whatever. It's like, okay, what kind of deal are you looking for, right? It kind of gives you the ability to just go ahead and find out more about how they think about deals, what they're looking for. And you want to get that information. What is their past? This is a big one right here, guys. What is their past experience with this type of investment, right? What is their past experience? You need to know that question, right? Before you go and share all about your deal, have they done this before? Have they ever invested before, right? What is their experience there? Why is that important? Why do we need to ask their past experience? Because if we don't know the lens through which they're viewing me or this opportunity, we don't know how to really position it. This may sound like, oh, this is getting into psychological stuff, but I'm telling you, it changes the game. All right, you find out what's your past experience, what are you not— what are you, uh, what's been the losses, what's been the wins, what are you— did you not like about your past investment, what do you— are you looking for in a new opportunity, and then you can solve for that, right? Why are they looking at our opportunity versus other opportunities? Somebody comes on and they're they're not really in alignment, or they're talking about how great their portfolio is right now, how big a returns they're getting right now. I just say, "Well, why are you looking at our opportunity?" Why? I'm telling you're gonna identify this. You're gonna have people that want to sound all you know they've done so well, and you want to all back in 2015 I was doing. 30% IRR on all my investments. And, you know, I was just seeing what you guys got. Right? Your response is, why are you looking at our opportunity? What are you looking for? What's the challenges that you've been experiencing in getting the 30% IRR? Right? Because they're probably not finding that now. There's a reason they're on the call with you. Remember that. There's a reason that they're on the call with you. Okay, they're not here just because they're doing so great. They're here because they want to solve a problem. What's the problem? If they don't have a problem, you don't have a serious investor with intent, right? Timeline of deployment is also another thing you're going to gather in this initial call. All right, what's the timeline of, uh, that you're looking to deploy capital if the deal makes sense? How soon are you looking to deploy capital? All right, super high-level overview of the opportunity. So you just want to give them a brief. So thanks for sharing that information. Uh, I, I think that we can definitely help you here. Uh, we have an investment over— high-level overview. It's, it's achieving this kind of returns and this kind of timeline. It's a 90-unit in Atlanta, Georgia. We're going to talk about that in a second. Uh, you can just kind of talk about the opportunity just from a very high level, but the idea Is we're not pitching something they don't want, right? If we have to know what do they want, what's been their past experience, what's been their challenges, what do they want, how much do they have to invest, and then all we're doing is saying, that's awesome, we can definitely help you with that. Based off what you said, we have a deal that fits this criteria, this criteria, which is ideally just mirroring what they already said. Right. Tells them we can definitely have them. And then your goal, the whole purpose of that call, if they have— if they are qualified, they're accredited, and they have money, and they have intent, they want— they're ready to deploy capital now, and, and they're serious, we want to get them on another call. We want to get them on a call with the capital, uh, with, with Thomas or Larry, right? Whoever, uh, for, for our company, that's who we're typically setting with, especially in high times of Of raising capital. Okay, but for you, if this is you calling to start, you can continue the conversation. You don't have to go to another call. You can continue the conversation and just build more, just give a high level and then ask a few more questions. So we'll talk about that. Are they accredited? That's the next thing you ask. If they say they're looking to deploy $200K, you actually don't really have to ask. If they're accredited, the SEC rules for accredited investor, basically, if you're an accredited investor, just simply means you make $200K per year or more, or you have a million-dollar net worth or more, or with your spouse, you together make $300K a year. You would be considered an accredited investor. And that's for SEC regulations. We're They're only allowed to invest in, or we we can only take them if we're doing a Regulation D offering, 506 offering. Okay, that allows us to publicly advertise, right? But if we're publicly advertising under a 506, we can't bring in non-accredited investors, meaning people who make less than that, because the the SEC thinks that. They're, uh, they're not as astute, sophisticated— that's a better word. Um, whatever. Anyway, so the 506 is something where you can bring in non-accredited investors, and, uh, but you can't publicly advertise, right? So you just have to decide which direction you want to go. Um, And typically, we— if you're going to use these strategies as far as the marketing, all this kind of stuff, you can't market online about your deal if you're doing a 506, right? That's for friends and family, right? So what— so you're saying if you have investors lined up before— yeah, uh-huh, yeah, yeah.

Yeah.

Yeah, yeah, yeah. If you already have people that you've found online, um, and you've built a strong relationship with them, um, and then years later or months later you open up a 506 offering for, for accredited investors, um, I'm not an attorney. You know what I'm saying? No, no, no. I probably should preface that. Yeah, yeah. Yeah. Yeah, yeah. Yeah. I mean, the reality is like if they Come and audit you. That that may be a thing. I don't know. But it's just supposed to be family and friends for 506B, right? It's supposed to be. You can obviously bring family and friends into a 506C, but I think there's rules around what qualifies as a family and friend. You know how many times you guys have met together? All this kind of stuff, right? You've met a couple times. You know, you've you've been in person together. There's different rules like that. So you just kind of have to check with SEC attorney. But I'm still going to advise you guys to do 506C accredited investors. Paris? Yeah, 506B only 35 non-accredited investors. Right. So if you're thinking 506B. And, and you're thinking the average check size is going to be $25K or something like that, then you got to think about that, right? You got to have— it's still gonna restrain you. So, um, anyway, either way, the SEC rules made it where if they are investing $200K or more, they don't have to verify accreditation status.

Okay.

So if— that's why we open with the question, are you How much are you looking to invest? And then I may not even ask them if they're accredited if they have $200K. However, I must stipulate in the rules, it does say that you assume that they— it is understated they are accredited. So you are— they still need to be accredited. It's just they don't have to verify their accreditation status. But I just don't ask. Hype up the next call and confirm, uh, they, they can for sure make that time. So that's a big thing, guys. When you're optimizing your calendars or booking Thomas's calendar, Larry's calendar, you know, your calendar. Your time is extremely important. And so if you're going to set this for another time, you know, set another call to do a full process, which I'm going to walk you through in a second. You want to make sure the biggest issue is they just met you and they might not show up. So you got to make sure that they have high intent. They are qualified, but they have high intent. They're actually serious. You're solving a problem for them. That they're a serious investor. And then whenever you go to set that next call, you've got to make sure they're actually pulling up their calendar. I've had people, you know, set me on a call for another call like that. And they'll say, go ahead and pull up your calendar and let me know when you got that open. And they'll just sit there in silence and wait. You know, I'm like, you're serious? I got to pull up my calendar right now. You know, like, pull up your calendar. Let me know when you're there. All right, cool. And then a few minutes later, you got it open? You ready? You know, like, where are we at? Like, you don't want to just say, oh yeah, tomorrow at 9 AM, let's talk, right? Like, they're not going to show up for that. And that's so much wasted space. You may think I'm talking about nitty-gritty details. You want the macro stuff. But all this stuff adds up to a profitable capital-raising business. You've got to think about each one of these parts of the process. It's going to really help you. Okay. Set a triage sequence. So just really quick, I'm not going to go into this, but if you are looking to hire like a someone to help take those initial calls, set qualified people on your calendar, if you do want to do that, that's actually called a MDR, you know, or it also can be an investor coordinator. So an MDR is a marketing development rep. So calls, texts, qualifies, sets, and nurtures existing leads, calls all leads and takes calls after webinars. Um, what the— when you want to hire this person is typically when you have, uh, too many leads. You have at least 10+ new leads coming in every day, and you need someone to qualify and set existing leads. Okay, so the next opportunity— or the keys here: speed to lead, call within 3 minutes. So you want to make sure that person is calling within 3 minutes. Now the next person is an ODR, an outbound development rep. This is typically when you don't have enough leads and but you have budget to test a new channel and your conversion process is dialed in. All you need is more leads. Okay, but typically I'm advising start with marketing development rep because again, you could waste a lot of money just, you know, trying to get all these things going with outbound development rep. And if you're not able to actually convert, that can hurt you. But this person reaches out to find new leads through outbound efforts like cold calling, podcasts and speaking opportunities, social media outreach, DM setting, stuff like that. That's what an ODR, outbound development rep, is doing, right? So MDR, you're typically hiring this person whenever you have too many leads and you need somebody to filter those and then put the best ones on your calendar. And then ODR is when you have not enough leads and you need somebody to do cold calling, uh, cold email, podcasts, book you on podcasts and speaking opportunities, social media outreach, DM settings, stuff like that, right? Um, so key is pay these guys well if they perform, right? We win, they win. So they are worth a lot of money right there. But again, I think I gave you guys a compensation structure For this, for these roles in your overview. Should be. If not, I'll get that to you. But I mean, MDR, I believe you said it depends if you're going, you know, Philippines, you're going outside of the US. If you're going outside of the US, you probably pay just anywhere from $1,500 to $4,000 depending on how well they perform per month. If you're going inside the US, it may be anywhere from $3,000 to $7,000 depending on how well they perform. So same with ODR. All right, cool. Let's go into the investment call. This is the meat and potatoes right here, guys. If you nail this, you are going to be on the fast track to raising capital. I promise you. This may seem like, oh, I just need to get more investors in the pipeline. No, you nail this right here. you are going to be dangerous in the world of capital raising, right, Thomas?

Yeah.

All right. Discovery, pitch, the ask, and objection handling. Let's get into it. All right, so discovery. The first step is to build rapport. If the phone call— if it's a phone call, keep it short, less than 30 seconds. Example, how did you hear about us? How are you? Where are you located? Glad— welcome, uh, welcome to the call. Glad to have you. Frame, structure, and take leadership. So we want to frame the call. My name is Jonathan, I'm at— I'm the Director of Acquisitions at REI Capital. So my job is to connect investors with our team and to deals that make sense for them, right? Or you could put 2 sentences about your track record. I've been in real estate for a little while, and my team and I are experienced in being able to operate multifamily. Make that a little better. That's a little bit about me. So I'd love to hear more about you and what you're looking to do. Then we can go a little deeper in the numbers and it exactly what this looks like. Does that sound good? So I open just to structure the call and take leadership. We don't want to just have a call where we're just like— the person's wondering, where is this going? What's the structure? Where are we going? We want to make sure we open the call where we actually say, this is what— I appreciate you jumping on. This is what we're going to do today. I'd really like to hear more about what your goals are, what you're looking to do, how you're looking to partner up, or whatever that is. And, and then I can share more about this specific deal and we can get into the trenches, nitty-gritty of the actual deal details. Does that sound good? Okay, cool. Background problem. No pain, no problem, no investment. If you're not actually solving anything for the person, they're probably not going to invest, right? If there's actually no problem, if there's just a— if it's just a nice to have or nice, it'd be cool to invest in apartments. Again, you know, there may be people that do that, but you can't base a funnel and conversion process off those types of people, right? You got to actually know that you're solving something for somebody. What caught your attention about this opportunity or what? So as soon as I do the frame, hey, what caught— just first off, what caught your attention about this opportunity or what you saw that made you want to reach out today? Or catch me up on what you have going on and a little bit about you, right? And then our next question is, how much are you looking to invest in an opportunity? Answers: saw your opportunity and wanted to see what it was about, or not on track for retirement goals, too much cash sitting idle, high taxes. That could be some of the answers that you get to that, right? Follow up. So after they say that, so once you ask them about what they want or what caught their attention, or catch me up a little bit about you, what you have going on. You know, and how much are you looking to invest? Then they start talking about what was their real motivation for for jumping on, and then you can dig into that a little more. So so again, if they're paying too much in taxes or cash sitting idle or not on track for retirement goals, a big question you can ask is how is that? Tell me more about that. How is that impacting other areas of your life? All right, that may sound wild to ask a high-level investor that, but we want to actually build a relationship with people, and we want to actually be able to understand what the problem is we're solving for the person, because that's going to be key. Challenge and gap. So we— so have you invested before? Tell me about that. What has been the biggest, uh, challenge in solving whatever it is they're talking about that they're here for? In solving high taxes, what's been the biggest deal? Or, you know, a lot of people may say finding good deals, right? I just, you know, a few years ago I was doing 20% IRR on all my— or 30% IRR, and I was, you know, doing all these deals. Or maybe I had a portfolio myself and all this kind of stuff. And just lately I haven't been able to find good deals. Right. And so I'm just looking to be more passive. You guys seem like you got something good going on. Would love to just participate. Right. And so what's been the biggest challenge in really solving for that? Right. Haven't had time. Nothing pencils out. Right. So all this stuff is stuff you're writing down. You're learning about the prospect. And so goals and desires. So now we want to actually know where, where are they going? Can we help them get where they're going? Right. No target, no relevance, no decision. Right? What's the ultimate goal for you? That's the question you gotta stick with. Just what's the ultimate goal? Then you can get into what's the target returns, what's your financial goal personally, then non-monetary goals. All right? Need a number, not good returns or more. Say, yeah, just looking for a good return. What does that mean? What is a good return? You gotta get this, right? What is a good return to you? What is a good investment to you, right? What's the financial goal? And then we ask, by when? All this, you see how this is extremely relevant, guys? I mean, you're, you're about to— they're about to say, I gotta have a 25% IRR in 6 months. Well, guess what? You're about to come in and pitch them a 18% IRR in 3 years or whatever it is, right? You know, you're gonna have to do a little bit. Where'd you see that at? You know, like, have you seen a deal recently that was doing 25% in 6 months? You know, just dig into that a little bit. Try and dig out where are they seeing that and then correct their thinking, right? Like, okay, so that was on, uh, uh, an oil and gas deal or whatever it is, you know, like what was the exact thing you were looking at? Yeah, that was on Discovery Channel. That was— yeah, what did you look at? So dig into that. Maybe they're— they could say the opposite. They could say, yeah, I'm just really wanting a 13% IRR over the next 10 years. You know, I think that'll— if I can achieve that, I'd be really excited. Right? Well, you're about to pitch them something that may be too good to be true. Right? And so you need to ask more about, well, where'd you see that? Have you ever heard of real estate investments? Have you ever heard of apartment investing? Have you ever heard of value-add opportunities? What kind of deals have you participated Right? Because both could scare people off, right? One is just, you, he's wanting so much more and he's delirious. He thinks he can get this massive return and, uh, or maybe he can, it's just not in this type of vehicle. And he needs to understand the benefits of apartment investing and why real estate, because whatever that is, is some kind of, you know, some kind of, uh, not, not real estate. Right. Maybe it's, uh, maybe it's flipping. I don't know. But anyway, you know, so, so anyway, you gotta, you gotta think that both things need to be clarified. Um, maybe an institutional guy that's used to putting money in REITs, right? Real estate investment trust, right? If they're looking at stuff like that, that's going to be a lower return, you know, a little bit safer, right? Technically. You could argue that, but, you know, that's the idea. You're getting it. I mean, the higher returns, the bigger the risk, typically. If target returns are unrealistic, dig, right? Need challenges here. If they are too small, note that and ask why. Maybe overly cautious or used to Wall Street, which is what I was just saying. So the way you handle those guys is you start to understand, you know, do they have any context for the type of investment we're talking about? And then whenever you go and share about your deal, You're pro— you're first off in discovery, you need to ask, what is the challenges? Why are you like, what do you value most about an investment opportunity? What do you value most? What's most important to you? Oh, I'm really, I really want to make sure the operator's strong. I really want to make sure the, the downside is protected. So then whenever you're, you're sharing about your deal, that tells you that you've got to go extra hard on making sure you emphasize how conservative your underwriting was. Right? How well you did and how many people on your team looked over this deal, the lenders that are involved that also looked at the deal, right? We're we're talking about how cautious we are. Better to do no deal than a bad deal, right? You're thinking, okay, this is an extremely cautious investor that's used to a lot lower returns, and I'm going to be sharing them bigger returns, right? So we need to go into that, which will happen. All right. So partners, besides yourself, who else is involved in decisions like this? Right? Because look, you know, we want to know who else is involved in being a part of this, right? Being a part of this syndication or being a part of this apartment deal. Because partners, in case anybody didn't know, business partnership is like a marriage. You're getting, you're getting into a partnership with somebody. You need to know that they're a good fit right now. Obviously, there's stipulations. They can't just tell you to sell the property, right? That's that's obviously something that you got to put in writing, but you still want to make sure you've got the right people on the call. Outside of that, if you have just one decision maker on the call and really the major decision maker is not on the call, you need to try and get them both on the call and talk through it together. Because if you have one person that's like, oh, I love this. You know, I think this investment is exactly what we want to do. But then we, but then they've got to go and do your job for the other person. They're not, they're not going to be able to do as good a job. Oh, I heard, I met this guy and, you know, we got an investment opportunity. You know, they've already, they've probably talked to somebody else. The other decision maker probably talked to somebody else that day, right? So you just got to understand, it's ideal if, hey, When can we schedule a call and have them on board? Because I'd love to have both of them, or both of you guys on, so we can really talk through this together. Right? Because this is very important that we're both in alignment here. Okay? So, but you also are going to be able to understand, like, they may be wanting to consult their CPA. They may want to consult their financial advisor, which if they do, you could just say, yeah, please do. What do you think your financial advisor— I always say this— what do you think your financial advisor is going to say? When you're wanting to take money away from their, their, you know, them. You think they're going to be excited about that? Probably not. Yeah. That's a, that's a big one. So, all right. Must get these people on the call before sharing every detail. Many times the other party is the key decision maker and you cannot trust they will sell them the idea by themselves when there are tons out there, right? There's a lot of opportunities out there. Trust. Often can discover in past experiences. Okay, so trust is a big thing, right? Remember, we say capital raising essentially building trust at scale. Okay, so we've got to identify what are you looking for in the right investment? What is most important to you in a team or operator? Urgency, timing. Why now? This is critical. This may sound. Woo woo or whatever, but we need to know what they're actually looking to do. So earlier you said that you're really wanting to see, you know, wanting to save on taxes this year. You've got a massive tax bill. What has you looking at investing in something like this now other than that? Like other than that, what else has you really saying now is the time you've got to invest in apartments? And pause, right? You can also ask timelines, right? Is there a 1031 involved? What's the timeline for that? Any liquidity events, etc., right? Why not 12 months ago or 12 months from now, right? We want to understand that there's urgency because again, you know, if there— if people don't— are just, just shopping around or just like, oh yeah, I saw your ad online, I saw this stuff, right? They're, they're going to keep shopping around, right? We need to know that they actually have And also, you know, are they, are they really serious about this opportunity? I mean, you know, they're gonna— you gotta make sure you understand this. So answers. So they could say 1031 taxes, retirement approaching, inflation and cash, you know, their cash is losing money right now sitting around, market opportunities, internal, you know, life transitions, financial goals, family, etc. So other keys in discovery, listen for their why and why now. Okay, what are they looking to achieve through investing passively? Past experiences, fears, and goals in investing. Don't assume you know. You are positioned as a partner and on their team wanting them to win, but interviewing them as much as they're interviewing you, right? Because this is a partnership. Just because they're willing to meet with you does not mean they're a good fit. So here's a few more questions. Have you invested in real estate before? How did that go? How's it going? What are you looking to achieve through investing? Tell me more. What did you like, dislike about your current past investments? Dig right there. That's your, that's your gold, right? Because that's exactly what they're looking at. You know, that's exactly how you need to position things. Okay. What is your investment criteria? What do you consider to be a risky investment? So this is in discovery. Tell me about your team, the people you invest with. What is your current exit strategy for your current investments?

OK.

The pitch. All right, so now we're moving into actually sharing about the deal. So we got discovery. Got it. Sounds good. Sounds like there's something— some strong alignment here. Let me break down what we're looking at and see if it can make sense for you. Sound good? OK, now we share the pitch deck. Not too granular. We're not going deep in the pitch deck of every little thing. We're giving a high level that they want to know. So I'm going to give you an example. But this is just a mirror of what they said in discovery. Okay, you're, you're only hitting major highlights of the deal and emphasizing the things that the investor is looking for. So example is he got burned in the past due to poor underwriting. You should explain where you are very conservative in your approach, which is what I just talked about. Okay. Alright, so here's the 7 pillars to a great pitch. All right, sell the market, use great photos, sell why now, sell the deal, sell the plan, what is the expected returns, why you, what is the downside protection or downside slash objection. Okay, so sell the market and you want to have photos. So once you understood where they're at in discovery, you understand what their situation is, you can pull up your slide deck It can be the same thing as your webinar, the same pitch you're using for your webinar, right? Just just pull up your slide deck, share the market, use photos of market, sell why now? Why is this a great market now to invest in this deal? Why is this deal important right now, right? Why you have the advantage now? Sell the deal and photos. Sell the plan. What's the plan to execute the deal? What is the expected returns? What what their money gets them, pref equity tax benefits. Make sure it's clear. A confused mind does not invest, right? If they are confused, they're gonna say, "Send me the deal." All right, send me the documents. That should be the worst thing that you hear, right? Is send me the send me the deal. I'll look over it, right? It's totally fine. It makes sense. And theoretically, it's kind of the hardest thing to to really figure out because it makes sense, right? They're going to invest $100,000 to $500,000, a million dollars. They need to go and look it over, right? It makes sense. But the hardest thing is they're not going to tell you that they don't like the deal, or they're not going to tell you that they don't want to do it. We're going to talk about objections in a second, but we've got to make sure we know what is actually. What actually the problem is, because then they get off and they don't tell you why, and you have no way to iterate, right? Or to figure out what I got it wrong, or if I chose the wrong person, right? Maybe this person was somebody I should have never been talking to in the first place, right? Their goals didn't align with what we're trying to achieve, right? So there's all kinds of things there. Why you? Our team is exceptional. Um, at operations, or we have gone through hundreds of these deals and had the relationship— relationships to purchase this deal. What's the downside objections? Okay, keys to making your deal so good people would feel stupid saying no. Number 1 is exclusivity. Okay, 3 to 5 easy points, easy to understand points that make your deal stand out. So example 1, we are paying $10 million for this property that the owner paid $6 million 4 or 5 years ago. How much more property would you have bought back in 2019 knowing what you know today?

Right.

Example 2.

Huh?

Yeah, it would be. Well, 5 years ago. Yeah. A direct competitor to our property just sold 6 months ago and with similar amenities. For $95K a door, we are paying $75K a door. Okay, keys to making your deal feel stupid part two. Keys to making your deal feel stupid. Okay, all right. Abundance. Number two is abundance. You are bringing a bag of money, not asking for money. Amen. An investor is not going to give you validation in a check. We're not going to people asking to give you advice. On this deal, right? Just because you think, oh, this guy's got a lot of money. I need to ask him for advice. I'm less than him, right? That's something we can be subject to do. We're gonna go ask them for advice. Well, guess what? If if they give you a check as well, that's called charity, right? They can probably get do better than that, right? So we want to make sure we present ourselves as the person that's going to handle their money well. Plus, they're not going to give you as much. If they think that it's just a, it's just a, you know, test, right? They want to make sure you know what you're doing, you're determined, and you're going to do it regardless of them being on your team. Okay, we expect to be fully subscribed quite quickly. So this is how you share a persona of abundance. 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? So this is kind of your follow-up, or I'm about to send an email out to our list, and we have around 13,000 people on that. And so I just wanted to check in with you first. I want to make sure I reached out to you before I did that. So to give you an opportunity, scarcity is number three. We only need $1.5 million. We already have commitments of. Blank, and most people are investing around 150k. So we are just looking for about six to eight more people. You know, that feels a lot more scarce if you all if you break it down to you know maybe your average check size is 200k. How many people is that actually for a million dollars? Right? That's only five. Right? So it sounds a lot more scarce in that kind of situation. It really is. We are closing on blank date, right? So that's another way to obviously add urgency and scarcity. Obviously, you'll need more information. So ask. Here we are. We've gone through the pitch deck, which I'm going to share with you the webinar pitch deck in just a second. But share the investment minimum and the tranches after you have shared the opportunity. What questions do you have around that process specifically, or does that make sense? Is that similar to what you are looking for in terms of this type of investment? They, and then at that point, once you've shared about it, you're just going to say, does that make sense? Is that kind of what you're looking for, or what's your thoughts? Right? And then they should bring up returns, questions, etc. Then go into what I just shared with the exclusivity, scarcity, and then when the deal is closing, when you're expecting to fill it up. Okay? So awesome. What kind of range are you looking to invest in something like this? There's your easy way to ask how much they want to invest. What kind of range are you looking to invest in something like this, in a deal like this? Okay, if they say no, gotcha. What are you looking for? They say not right now, got it. And then we're going to go into objections. So let's go into objections. Don't defend yourself. You both want the same thing. Objections is not arguing. Objections is actually trying to get clear and understanding. Right? I don't want the person to be in the deal if it's not a good fit for them. We're on the same team. We both want the same thing. But the key for you as one that is trying to scale capital raising, you just want to get clear on exactly what they're looking for. Maybe you could connect them with a better opportunity, right? Maybe you can help them out or give them some thoughts, give them, you know, whatever it is. Maybe you can help them get to a Uh, better opportunity. But at the end of the day, you have to know what they are concerned about, so then you can better go back to your team and adjust for that, right? Does that make sense? You guys with me? All right, so ability to execute is a potential objection that they may have. Track record or experience, um, current invest events, market condition, uh, interest rates. They may bring up world events, sellers-buyers market. There's always something going on, right? There's always a reason to not invest, right? General uncertainty, lack of trust that comes with investing with someone new, right? But again, all this is handled in discovery. If you do a good job of discovery, all this is typically handled because you're, you're hearing this before they bring it up, and then you're able to solve for that, right? But timing is number 4, need to sell something else. Or they may say, looks good. Let me think about it and get back with you, or send me the docs and and I'll share with my partner or spouse. So those are the objections that you would get, and here's how we're going to handle it.

Right?

Give it a second. Four steps to handle objections: acknowledge. First thing we're going to do is we're going to acknowledge it. Okay, got it. I hear you. Tonality is key. Make them feel heard, right? Make them feel like that makes sense, right? Okay, got it. I hear you. Second step is clarify. We want to find the root, flush out everything, because we cannot iterate unless we know what the actual objection is. So when you say— so you tell the person, when you say market timing or worried about this, what do you mean by that? Or just repeat what they say. So market timing. World events, right? Whatever that is. If you have already shared the deal, so just so I understand, the biggest thing for you right now is just, you know, the bombing in Iran, right? Whatever it is, right? The biggest thing for you is just, you know, 401, you know, got to check in with your CPA. Is that the— but outside of that, you would, you would Jump straight into an opportunity like this if it made sense, or is there anything else holding you back? This is click. This is huge right here, guys, because they may say one thing, but they really you really lost them on another thing. They just don't understand it, right? That's a lot of times what happens. They don't understand the opportunity, so they came up with some random excuse to say to try and say I I don't I don't know, right? And so, but they may not want to sound stupid, right? So they they don't want to. Say, I didn't really understand what you meant by this or that, right? Is there anything else holding you back? So when you say this, so we're not directly addressing the objection, or we're not directly addressing what they said. We're just saying, makes sense, totally got it. Is there anything else outside of that? Is there anything else holding you back from feeling like this would be a good opportunity?

Right.

Is there anything else? So we need more. We need anything else, anything else, anything else. Just keep asking that until you know all their concerns, all their nerves, all this kind of stuff. Now some of you are like, I'm just going to go to family offices so I don't have to deal with these people, right? Family offices are obviously going to be more about the numbers, right? But you're going to give up more control. But the people who understand this gets cheaper capital. That's what the advantage of this is, right? So address— they say interest rates are going up. And, and, you know, besides that, you're helping people. These people are gonna— you're helping these people, right? You're helping them change their life. I got story after story, testimony after testimony of investors that changed their life from being a part of apartments like this. Like, this is not just changing your life, guys. This is changing investors' lives. Investors are gonna make 18 to 22% IRR while they sit, continue doing what they're doing, continue doing their job, or if they're retired, they weren't going to do it. I mean, this is actually going to change their lives over the next few years. OK? So you've got to think about that whenever you're really trying to understand how to help people. OK? Address. So now that we've heard the objection, acknowledged it, we've paced it, we've said, OK, just for clarity, totally makes sense. Totally understand you need to go check your 401. You need to go talk to your CPA. You need to go do all this kind of stuff. But outside of that, is there anything else that would be keeping you from being 100% that this is what you— This is the type of deal that you're looking for. They say, so if they're now we move into address. So if they say interest rates are going up, that's their objection. These multifamily guys are overleveraged. You say, okay, got it. Clarify. Then yeah, we have seen that as well. So we kind of go in there and just kind of talk about, hey, I totally get that. Our take on it, for example, in our recent deal, we bought at a much bigger discount and had a strong forced appreciation plan. Right? We essentially are giving them examples of how what they're saying makes sense, but this is how we've overcome it. And this is why it's even better of a time to invest than ever before because of this situation, right? So, or I can appreciate how you could feel that way. When it first came on my desk, I saw that and I thought the same thing you did. But hard evidence, right? Try to use someone more credible than you. And this deal is actually coming in at a strong blank cap, and we have the ability to get in at a 70% discount. So even if the market tanks, we are still good. Okay, or another way to say it is, great question, concern. I have actually had that same question a few times, so I have a breakdown of Share a breakdown, share a document, share something that goes more into it. You guys are going to be great at handling the objections. It's just about making sure you're talking about the right objection, right? The issue is we want to jump in as soon as they say something. We want to combat it, right? We want to— you're going to be passionate about your deal. You're going to know your deal. You're going to be convinced of your deal. So it's going to be very easy for you to want to address The objection—it's just are you actually talking about the real objection? Are you actually talking about what what this situation actually is, right? Or do you just jump off, you know, and say, okay, well, we'll talk about it later, you know, or you know we accept the initial thing they say. Okay. So good. Yes.

Yes.

Exactly. Exactly. I mean, that, that acknowledging and then pacing, making sure that that's not just that I totally hear you, totally on your side. You're on their side. I love how you relate it to marriage.

Yeah, yeah.

That's so good. You're hired. All right. Yeah, no, that's good. No, hey, you get this, guys. You'll practice it in your marriage. Practice it in your—

Full of it's not their chance, not the right time to invest. Okay, so I understand your journey is that hard to follow. The journey's no more fun. I absolutely understand that. What I'm trying to say is, here's the evidence that I have, what my teammates have done.

Yeah, that's so good. It's so much like a marriage. I mean, if you think about the whole structure— discovery, pitch, Objections. You know, discovery. I'm telling you, the deal is won or lost in discovery. If you don't understand the person you're talking to, you're not going to— they're not going to trust you. They're not going to want to actually hear what you have to say. And you don't really know how to position the pitch to make sure you meet them where they're at in their mentality, right? And how they're thinking about real estate and what they're wanting. You don't. So, so the thing is, we Underestimate how much time we need to spend doing discovery. You need to be spending probably 20 minutes or 30 minutes in discovery, just understanding what they're doing, what they want, getting to know them, stuff like that. I mean, if they're sophisticated, maybe you can go down to 10, 15 minutes. But at the end of the day, if you don't get those questions— now you think about that in a marriage, right? It's like, what do you do whenever things are hard in a marriage, right? You've got to take time to listen. Listening is the most important thing. Then we make our— after we've fully heard the person, then we— Say what we think, and here's our pitch, right? Here's, and then we find out, did that resonate? What else would be concern?

You're you're officially dating my boyfriend. Yeah, I would. Okay, so now we're dating series, and then okay, now we have a first deal. Now we're married. We are married to this property. We're married to this word, but we don't know what our close date is. They move, they collect, they come fill their debt, their you know all those things. So you can put the whole deal in eight time lines. But, but it really, it really is. And at the same point, okay, 6 months to prepare to from beginning to end, or potentially longer. So those are the main things.

That's good. All right, final steps before getting off the call: nail a follow-up meeting and make sure it is in the next few days, not weeks out. That's the other mistake I see people have. They, uh, they say let's, let's follow up. We call it BAMFAM— book a meeting from a meeting. Uh, every time you get off with an investor, if they say, if they say, yeah, let me look over the documents, whatever, obviously we want to find out, hey, look over the documents, totally understand. Is there anything else, or what are you looking for in the documents? That's probably the question I'm asking. If somebody's saying, what is the main thing you're looking for That's going to tell you if this is a good deal. And sometimes I may say, yeah, I'll send that to you right away. And just so I'm— just so I understand, what exactly would— what other information do you feel like you need to see to know if this is the right investment for you? Because all the documents are going to say is everything that you can say, right? Like, I mean, I'm the best source of information for you if you really want to know. Right, about the opportunity. So before we jump off, I might not say it just like that, but I'm just going to say, before we jump off, I just want to make sure that I understand exactly what you need to see. So maybe I can send you some more documents or something like that.

Right.

That makes sense. So we want to just— we don't want them to just go off the call saying, let me think about it. We want to actually know what in their mind are they needing to think about, right? What exactly do you need to think about so I'm clear? So I can help you the best. And then again, we know what we need to improve on for the next person. Okay. But that follow-up, even if that the result, it probably still should be that the result could be a follow-up call. We want to make sure that that's not like weeks later. Right. There's urgency on the deal, first off. But second off, if it's weeks later, more than likely they're not that serious. Right. They're not really like if this isn't a priority. So then you book a time on weeks later. And you just have somebody doesn't show up and blocks your calendar. Okay, how long do you need before making decisions? Another question you can ask: How long do you need? We have we have obviously these timelines for the deal, but how long are you needing? If no, find out why and add it to the list. So if they say no, which is very rare, but if they say no, it's not the right deal for me. Move to a one-on-one, or I mean, add it to the list. And put the objections in a clear list. Then we can go back through and look at all the objections. Okay, if yes, move to a one-on-one and send paperwork for them to review and send wiring instructions. Okay, ask everyone for referrals on the spot, write them down. All right, let's go into webinars real quick. So you can use DealFire CRM webinar or Zoom webinars. Add to the thank you page, last step, book a call CTA. Test it out first. So call to action, test that out first. If you are under contract, have the following set up. Speed to commitment is critical. What you want to do is have the EIN for your bank account and wiring instructions, PPM. So your private— so the EIN is just your, your business LLC, and then that'll allow you to set up the bank account and then make sure you have the wiring instructions for that. Right. Ideally, you have that set up. Now I have— it's kind of a tight timeline there. As soon as you get under contract, you're wanting to hit the— go full blaze and, and raise capital. Even if you don't have all the systems set up yet, which I would still probably recommend. However, if you have a strong base and you know that first webinar is going to be a big webinar, Or that first time you share about the deal, it's going to be big. Speed to commitment is critical, right? So as soon as they get on the phone with you, you want to have a place to send them, right? You want to have a place for them to actually get a hard commitment. We've made that mistake before. You know, we did a big webinar and then we hadn't set up the bank account yet. And you know, then then you lose people in the process. Because you don't, it takes too long for you to be able to actually get them to send the money, have them an opportunity to send the money. So it's good if you can immediately start setting that bank account up and have a place to send them. You can also use an investor portal. InvestNext is a good one. We've liked that. InvestNext is where you can set up your bank account with that portal to raise capital. It's also a portal for Your investors can go and look at their investments, look at the properties. You can even share that online and new people can come in and look at all your offerings and be able to invest directly on the website. So that's, I always think that's really big. I don't want to make it where investing in my opportunity is only reliant upon me being on a call with somebody, right? If somebody found me on a website or if somebody was just overnight looking around, I want them to be able to invest. Right? And I have no, no friction there. All right, so, um, reminder sequence. So after they register, invite everyone manually to the Google event. This is a game changer right here. This one thing could boost your, uh, show rates to your webinars by 20-30%. Just this one thing. After someone registers for a webinar, invite every single person, every single email that registered for the webinar, on an actual You're, you're going to manually invite them on the calendar. So on your Google Calendar, you're going to manually invite that person. It's going to show up better. It's going to actually put that on their calendar, right? And the show rates, I promise you, is— are going to double. Typical show rates of a webinar, just if you tell somebody— and typically you want to do it within, uh, 5 days of the actual webinar, 5 to 7 days max. Of the webinar, you want to actually advertise it. If you do it farther out than that, show rates start dropping. And you want to make sure you have these email sequences out as well. Okay, set up email reminders and post-event CTA emails. We have these same templates in DealFire as well. But 12 hours out from the event, 4 hours, 1 hour, 10 minutes, on time, 30 minutes in, we're texting and emailing. For the webinar, email after webinar within 30 minutes with a call to action. You know, book a call or you know check out our investor portal, check out our our training, whatever it is. Email after the webinar. You can even do with the recording. So email. So four hours after after the webinar, you can do a CTA and share the recording of the webinar. Uh, 8— email 8 to 12 hours or next day with CTA and recording. Uh, throughout, continue to post and share about the event. This is huge. As long as the people are in the pipeline, as long as the investors are in the pipeline, you must continue sharing on social media. It will put your name back at the forefront because if they've already been paying attention to you, they've already been nurtured on a webinar, those postings are going to hit them first. Right? And that's— they need— I mean, typically the psychology or whatever it is is like 7 to 10 touches before they commit, right? So that's gonna be huge.

All right.

So here's the Amazing 7 Perfect Deal Webinar Framework. Title hook, 3 minutes. Market shift, our strategy, 3 minutes. Our team and proof, 5 minutes. The new opportunity, 10 to 15 minutes. Investor offer, 5 minutes. CTA, call to action, how to invest, and then questions, 10 to 20 minutes. But as far as questions, you can go as long as they are asking questions. I would honestly keep 2, 3 hours depending on how many people you are potentially, uh, gonna bring on. Stay as long as they're asking questions. Again, you're trying to compress trust. You're trying to take what takes people— I mean, how long should it take someone To decide, I think I trust this person enough to invest $100,000, $200,000 with, right? How long should that take? And we've got to condense that into just a few months, right? If we're, if we're trying to raise capital quickly, or even shorter, we really want to scale, right? So as long as you stay on there answering questions, the more trust you're building with somebody. All right, so I'm not going to go through this in detail. We've got to hurry here, but the amazing seven. So the first is title and hook. Here's our slide from the recent ninety-unit Atlanta, Georgia deal live walkthrough. You're just welcoming everybody. Ask questions on there. What's more important to you? Capital preservation. We talked about that. Like just ask random questions like that. Live deal walkthrough. Ninety-unit deal in Atlanta, Georgia. Add crowd interaction. Drop in the comments. Where are you located? Stuff like that. Yeah, get the crowd engaged and make sure to tell them to drop questions in the Q&A so you can go through that at the end and make sure to get a lot of questions. If you don't have a lot of people on the webinar, stage some questions. Like, get some questions that a typical investor would want to ask on something like this. Ask ChatGPT, what would be some questions that I could see? I mean, you know, you could do if you don't have a lot of people. If you have more than 30, 40 people, you'll probably have tons of questions.

Okay.

All right. Then we're going into the market shift. Okay. What are we seeing in the market? What's the problem or opportunity that most people miss? So why now? One example is Blackstone's $8 billion distressed fund, Starwood Capital, $10.2 billion distressed fund they just rolled out. That's that's the big dogs telling you that now is the time to be investing in distressed multifamily assets, right? They just created an eight billion dollar multifamily or commercial real estate distressed debt fund. Starwood did ten point two billion, right? Our strategy. So what makes it so great in the market today? What's the problem? What how are we Solving for it. Our strategy. Here's how we're solving for it. Congruent with your website. Think upside opportunity while protecting downside. Okay. Our team and proof. So our team, we spend five minutes, right? We're not selling ourselves, but we are just sharing about our team. It shouldn't feel salesy, right? Tie it into the value. Biggest thing outside of the deal itself that you must have to ensure safe and winning investments in today's market is a strong team. That can deliver operational excellence. And I'm proud of this team. So we share about our team here. Each one of us goes and introduces ourselves. Okay, uh, and then proof. We share about past deals. You know, you have people on your team that already has deals, just find deals to share about, right? Share about deals that are happening in the market. And I mean, even if it's not your deals, like share about what is— what's examples of deals happening in the market. Right? This is the— this is the, um, and obviously if it's your deals, that's going to help, right? Because you're telling them it's your deals. Are you telling— if it's your deals, it just shows you your track record, right? But if you give them examples of what the deal is going to look like, other people's deals, the opportunity, 10 to 15 minutes, uh, property overview. So the story of the deal, uh, and this just goes into what you're already creating as far as your pitch deck. Okay, so you're highlighting the property overview, market highlights, business plan, financial snapshot. You know what if they invest in the deal? What does their money come out to? Which is right here. So the next part is the investment and the offer. The investment offer is five minutes. The structure and opportunity. So if you invest $100,000 today over the next five years, you're gonna get $180,000. Pretty simple, right? We're going to do a cost segregation study, and typical deals like this, if it's a $5 million deal, we get about $2 million in bonus appreciation split amongst the investors. So, you know, just show them what is your money actually equal. You know, typical— obviously the cost segregation study will be done after closing, so, so you're just projecting. You're just saying Typical deals like this, you know, $5 million deal, you get a just a 25%, 20%, um, uh, bonus depreciation year 1. And then you don't have to handle any of that. K-1s issued and all that kind of stuff. And you'll— and, and it's all done for you. Okay. Um, so tax benefits, any other benefits, list them. You're going to get access to our investor portal, start talking about what it's like as an investor That comes in with our team, what it's like. You're gonna get access to our investor portal where you can track real-time returns. We'll be doing investor updates frequently, um, exclusive calls. We will conduct a cost seg study, you know, give out K-1s, all that kind of stuff. Okay. Um, amazing CTA. Uh, 7 CTA. CTA, 5 minutes. So here's where we actually tell them how to invest. So let's jump into where we're at with capacity. We are at blank raised so far, and we only need about blank. More to fully subscribe this deal. It is on a first come, first serve basis. And just to let you know, I have not fully let our entire network know. So if you think you can come in, even if you need to move money around and go ahead, go ahead and reserve your spot so we can hold it for you. Okay. So how to invest. I typically put a text phone number and something to say on the text like canopy text a number canopy. And then I also have a Book a call link, so you can use calendly.com to make a link for your calendar and how to book a call for you. And so I'm constantly during questions during the CTA as soon as I share how to invest, I'm constantly copying and pasting a phone number with what to say: Canopy text Canopy to blank phone number. I'm copying that and a website link. For them to book a call, and I have a QR code on the screen. You can easily make that with ChatGPT. Just tell it what website you want to send it to, and it'll make you a QR code. All right. So I'm constantly pasting that the the phone number and the website link in the chat every few minutes. Right? Keep it at the top of their mind constantly. Remember, book a call. Let our team know if you want to reserve your spot. Um, all right, cool. I think we are. So then you're going to do questions, uh, go to the Q&A, stay as long as people are going, keep dropping those, uh, questions, or keep dropping those things. So no follow-up, no capital. Uh, last couple slides here. Most capital is raised during the follow-up. So your daily actions, uh, during this whole phase is call warm leads, text attendees, Email allocation updates, schedule investor calls, track soft commitments, track submitted docs, and track wires. Okay, and then you on the social side, daily you want to share. You can share between these different things. You can share things like webinar attendance or investor meetings, capital committed, due diligence updates, closing progress, right? Keep sharing stuff like that. And then here's the last thing. Final closeout. So we're gonna do a blast for the last remaining time in the deal, right? Here's where you get people to commit last minute. In fact, we had Bristol deal. That's the big $21 million deal. Somebody came in with $1.3 million within the last 3 days. $1.3 million on the last 3 days of the capital raise. Pretty exciting, but also pretty scary, right? But this is just the reality, guys. You're gonna do fine, okay? Just final closeout. Use clear deadlines. Examples can be last call allocation request due Friday, subscription documents due Monday, wire deadline Wednesday, schedule next webinar, continue posting deal updates. The best capital raisers don't disappear after the raise. They continue building trust for the next Um, opportunity. Okay, so, uh, post-close, the beautiful email we all send is, we are closed. Thank you to all the investors. Um, and if you missed this one, let us know. Book a call with our team. We typically still open it up. Still book a call with our team if you want to, uh, be the first to reserve your— on the next deal. That we get. So then I can, uh, generate more interest that way. All right, create a waitlist. Okay. Um, huh, I think that's it. Yeah. Oh, that was it. Okay, cool. Is that enough? All right, was that helpful, guys? We'll send out the recording. We'll send out the recording for you guys, so you'll have access to this. But this is about building a capital raising business. You guys can do it. All right, that 1.3 million was actually one of our members that came in. He just joined and heard about the deal. He's like, yeah, I'll put in 1.3 million. So. Lean into the relationships in this room. Lean into the relationships in the group. We all want to help each other. Amen. We all want to be a team here. We all hold relationships that are important for each other, right? I always say, even amongst our internal team, we're here to serve each other's destinies, right? There's a reason that the person around you is around you. Because there's something they have that you need for your destiny, and there's something you have that they need for their destiny. And so if you serve each other, if you think that way in a community environment, if you're thinking that way on a team environment, you're all going to succeed way more than you ever thought was possible because it's a compound effect. All right, cool. So we're going to go ahead and, uh, break off into groups. We're going to be