The 4-Step Approach to Raising Capital

Foreign.

This is the no Closer show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property for panties on the dollar. Get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same. Now here's your host CEO of We Close Nodes, Scott Carson.

Hey everybody, Scott Carson here. Just want to say thank you again for listening to the podcast. If you've been listening for a while, you're subscribed to the podcast. First of all, thank you. Second of all, hey, you know if you're you're not one of our coaching students or you haven't signed up for one of our three day workshops, here's an opportunity for you. You want to check out our WCN membership. This is the biggest bang for the buck of the notice street. Besides our one on one coaching, this is our monthly membership for 97amonth that gives you access to all of our online training, our virtual workshops, our note weekends, our special one day master classes that we've taught in the past, anything that we have going in the future, as long as you're a live member, if I can't make you or save you $97 a month, I'm doing something wrong. But save you paying 997 or 99 bucks or 399 here or anything like that. We make it affordable at $97 a month and like I said, it gives you access to all of our past replays, our upcoming classes, our access to our special classes. We also do weekly coaching calls with our WC members and also our WC members also get first crack at tapes and lists of notes that we get in after our one on one coach to take a look at them. But it's a great way for you to go. You can also schedule call with me anytime to go through deals that you're working on marketing things, questions you got going on about a deal. We're here to help you. So how do you get signed up for that? Really easy. Just go to noteumbrella.com that's noteumbrella.com get signed up there for you 97amonth guys. Like I said, biggest bang for the buck of the nursery and we want seeds of the family. So let's get you signed up today. That's knownumbrella.com welcome to the no family everybody and thank you for always for listening. Hey. Hey everybody. Hey. Welcome this episode of the podcast. So honored to have you guys join us as we record this live and I Think it's a, a big. I get these questions all the time. How do I raise private capital? On this episode is designed to kind of button up to the recent episode. We Talked about the 20 different questions to ask investors. I referred to this kind of episode a little bit in passing. During that, for those that need a review, I went to a capital school raising event in Houston. Brad Blazer put on a great event for a couple days. He offered up to 20 questions asked which we did the the last podcast on. But his whole system of raising podcast raising on podcast Raising private capital is a four step process which actually lines up really close with where we're at. And on this episode we'll go through that. We'll talk about the pre, the after and why you really want to take this system to heart to help you raise capital. If you're having struggle raising money for real estate deals, no deals, whatever it is, it's probably because you're not marketing enough. All right. You're not getting the word out on social media, you're not reaching out to investors which would be the number one thing to do. And that's what this process is all about is that kind of direct approach to raising capital, contacting high net worth individuals or IRA investors and really going through that process. So I encourage you to ask questions in the chat roll. We'll make sure to get back to answer those. And if you love this episode, feel free to share it with somebody else out there. But I think you're going to enjoy the four steps for raising capital on this episode of the podcast. But anyway, let's get into. So many times people don't realize that raising capital actually requires you to do a four letter word and that four letter word is work. W O R K. Right. And we've done. I mean it's going to take you doing some things that maybe you're not comfortable with. It's outside of your comfort zone. I don't think anybody is, is born a natural capital raiser. It takes time, it takes practice, it takes building some skills, having some things in place. But it is so worthwhile if you'll do the things that are necessary to do. And this is not anything in the kill, you know, he's gonna show up with a gun, shoot you in the head, stab you, none of that stuff. This is actually goes what we're going to talk about that actually goes in hand in hand with what we've been teaching our note investors and one on one coaching students for quite a while. But the first thing Is obviously you're going to be networking with people and, and you can connect with high net worth individuals by going out networking at real estate clubs, meetup groups, you know, bni, you know, going out to fundraisers or charity events. There's a whole slew of ways to come across. The idea is not to, oh, hey, like most people do, I got a deal and I want to start pitching on the deal. That's the douchepreneur way of raising capital. Don't be a douche. Okay, we're going to talk you to how to do this in a smart, educated, systematic way that you can create follow up systems and follow up with these individuals and have a higher closing ratio and separate, separate yourself from the pack. Whereas most people are making one offer and then never falling back up, we don't want you to make an offer out of that. We want you to build rapport and build relationships for long term funding. And it's great if you've got a solid track record or a solid deal. If you don't have a track record, you're brand new to that, that's fine. Rely on your team of vendors, expertise, your coaches, you know, have some case studies. If you don't have any deals to talk about, you've done the past. Talk about some of your, some case studies of the individuals in your group. You're, you know, if you're part of a coaching program, I guarantee they've got some deals from other coaching students that can help you out like we do with our coaching students. But understand that you don't need to prove a concept. That's the one thing that stops people from raising capital. I gotta prove a concept first. No you don't. The concept works, the team is there, the systems work. If you just plug and play your ass into the system. Okay, the I need to, I need to prove a concept or I need to close deal myself first, stuff like that. That is a total cop out of wanting to put in the work. And you're going to delay your success long term because everybody needs to raise capital. I don't care how much capital you've got, whether it's a half a million to a million bucks or whatever, that's great. Congratulation, congrats. That will get you going. Now on the other side, if you don't have any capital, don't worry about it. You're actually probably in a better position because you can't rely on that crutch. You've got to start marketing, start reaching out to individuals and Follow this process immediately and when we've actually found it, where those that don't have any retirement funds or don't have a lot of savings to invest in their own funds, they're actually more successful in raising private capital because they've got no place to go but up. Okay, you're gonna have some follow up systems like a CRM, like keep.com. we use, you know, black book. You know, REI is a great thing. Damon Raymond's thing is also you want to have a calendar, some sort of calendar to be able to schedule in. Whether you're scheduling them individually, these investors, or you're giving a link for them to schedule time on your calendar or you're doing it for them.

Okay.

And you really do need to have the following. Now this is not designed to scare you. This stuff that I'm going to talk about are things you're going to use over and over again. If you're any type of business, you're going to want to have these things set up. They don't take a lot of work. It takes some creativity. I know creativity may be difficult, but there's plenty of sample documents that I'm going to share with you what you can use for your own business. And when I talk about, I'm talking about a website. You got to have a website these days. It doesn't need to be fancy, it needs to be something simple. I, you know, you could use a lead page, you could use a landing page, works very well for a website. You got a social media profiles that show professional. I don't care if you're working another job, as long as you're some sort of real estate investor or focused on real estate in your profile, that's great. I don't necessarily, I'd be on, I mean Facebook is great, but LinkedIn is going to be your number one place where people are going to check you out. Okay, you can have an executive summary, a one page executive summary talking about what you're doing, your business, you, your entity, how long you've been doing this for, why this makes sense. Some of those things like that case studies, deal examples, we've talked about that. And ultimately those things are going to get combined into a pitch deck. Whether it's past case studies or you're putting a pitch deck together on a deal that you're trying to close. Maybe it's an individual asset, maybe it's a note, maybe you are trying to raise money for a syndication, for an apartment complex, whatever it might be. These are things you're going to want to put in place and have the branding work well, have it look in a good positive matter. So many people don't even have those things and they wonder why they struggle raising capital because they just don't look professional. If you do these things, put these things together, guess what? You're going to be a whole new level above your competition. And that's just the getting a rock and roll. Now if you really want to take it to the next level, then you're going to follow the next step things. So let's start with where can you get a list of investors without having to go out and do the whole work of networking and schmoozing and pressing palms and that taking time to build a list. And most people struggle with building a list initially. You know, I know entrepreneurs are like oh I've been in business for years. I'm like how big is your email list? Like 2,000 people or 500 people here. I'm like that's great but that's not really a long term viable list. So there's some things you can do especially brand new to help you create a list of investors for you to reach out to. You could obviously like I said go to networking events, meetup groups, that's something like that. You could purchase a list of investors. You could use like a website like Exact Data or Melissa Data to identify high net worth individuals or high IRA investors all across the country in counties or zip codes. That's nice. It's kind of a cold list. I prefer more of a list, a warm list. And this is where we like to talk about pulling a list of self directed IRA investors or people have used their self directed IRA IRA to either a buy a piece of property and fund it with their self directed ira. And you can find those by going to the county appraisal districts where the where the counties allow for you to search by name by doing a search for Equity Trust Quest, Penscale, whatever, any of the 50 plus self directed IRA companies doing a search is that as the owner on the appraisal district they'll show up a whole list of people the address of the properties. A lot of times the mailing addresses will be the investor's direct mail address and that's a get ready to get started. You could also go to the recorder or the county clerk and do a same search for like a deed or a release of lien. Same thing. Equity Trust Quest pensco people have used their IRA and lent money other IRA to investors like you and me for Properties or other things. Okay, those are two amazing lists. And literally in most counties you can do a search on your county records and find 100, 200, 300, 500 people in just a few minutes. And even some counties will allow you to download that list to Excel or it's a mailing list. Some counties won't, you search by names, so you need the property. And you may, that may not work. Like California won't let you search by name. Maryland, Virginia won't do because of privacy. Arizona won't let you do. Minnesota won't let you do with it. But guess what, there's plenty of other states, other counties out there that will allow you to pull plenty of information or other IRA investors in just a few minutes. So if you get, if you're bogged down by one county, go to a different county or different state.

Okay.

And yes, I would market to investors that are either in my local area or they're in the area that I'm buying real estate or buying notes. So if you're investing in three to five states, focus on the biggest counties in those three to five states. Besides, you're just your home market. Okay, so like, well I'm in Texas and Texas is a great state. You know, we can find stuff here. You know, I look in Harris county, which is Houston, it's the biggest county out there. You look at Travis County, Bexar county, that's Austin, San Antonio, Williamson county is north Austin. Of course you've got the four counties around Dallas, Dallas, Colin, Tarrant and I can't, I can never remember the fourth county, Carter County. Maybe it is. Anyway, forgive me, but look at those counties out there. Like even if you're like in a smaller area, it's still, it may not have a huge list in like a smaller area. Like I grew up in South Texas, down by Corpus Christi, which is Nueces, and Rio Grande County. There's not many people down there that have used their IRA because there's not a lot of education going on in those areas. But it's still valuable enough that if I know somebody's used their self directed ira, I know instantly that they're a real estate investor, they've used it to fund a deal, they're probably looking for more deals. So it's not so difficult me having to explain what I'm doing. If you're going to target just a list from exact data and listed data, they may have an IRA but never pulled the trigger to buy a piece of property or buy. No, that's Kind of what we're focused on tonight, dealing with investors to fund your real estate deal, to fund your note deal. Not just going out raising capital for oil and gas or some, you know, crowdfunding thing or anything like that. We're going to talk about that now. Once you've pulled this list from the county records, I think it's worth skip tracing that list. And you could do it kind of manually through white pages or Spokeo. I prefer using a company called Baldwin Advisory Group. And if I send my list of IRA investors with the properties for those that say like equity trust for the benefit of Scott Carson, Stephanie Goodman, whatever it might be, Dickey's team is pretty good about being able to pull phone numbers and email addresses for a lot of those folks with a name. Now if it just says equity trust for the benefit of 1, 2, 3, 4, 5, 6, 7, they might be able to pull some information to property owner, but it's okay. You know, I'll give you an example. Like we pulled 2000 names across the top 25 counties. It turned out to be 1600 unique transactions. I let 1600 is about a 25 success rate finding emails and contact information. So that's still 400 plus people that we were able to email and start and contact directly. Right. And without you contacting them via phone or anything like that, I would still go ahead. Once you pull a list, go ahead and drop a postcard, go and drop a letter out to them. It's gonna be very similar to your first phone call that we're going to make and discuss here in the next slide. But it's literally just getting the word out. Drop you 50 to 200 postcards or letters out. You know, hey, came across information, public record. Thought you saw you're an IRA investor, didn't know. If you're looking for more deals, I'd love to talk about you if you're looking for more deals as we've got some deals or funding opportunities, okay, maybe it's got a deal you closed on. Maybe the postcard shows a property you just closed in that area or note deal or something like that. Just get the ball rolling, okay. And that's kind of your pre work. Get you a list, scrub the list a little bit and mark it to that list with your easy drip marketing campaign. And look, don't send out 10 send you 50 postcards, 50 letters. Get that ball rolling. And then you may want to add 50 investors at a time. So if you've pulled the list of 200 from accounting, then just pick your first 50 and work that list of 50 first.

Okay?

And I'll talk about that. Why 50 makes sense to begin with in just a few minutes here. Yes, you're gonna build a bigger list, and you're. But for many folks, you're kind of, you know, short on funds. You don't have a lot of excess capital in marketing. So starting with, like 50 letters, 50 postcards, you could order a cheap order from Vistaprint, or you could go and pull a postcard from a. You know, have a FedEx office or something like that. Send outcards.com like that, help you out with that. So keep it simple, keep it short. We're bootstrapping your marketing. You don't need to have a lot of capital for marketing, but you gotta have some. All right, this is gonna help you get that bra rolling with the first 50 you send out. Now, what happens when you send that postcard out? Give it a couple days, and then your first step. This is step number one. The rest has all been work leading up to this first number one step, and we call it phone call number one. All right, seven days after you send out the letter, the postcard, whatever. Like seven days. And you want to be exact with this. If you send it out on a. A Sunday, you drop in the letter Sunday night before you go to work. It's probably gonna get it shipped out Tuesday and probably ship Wednesday or Thursday. So guess what? Follow up that Sunday or Monday or Tuesday, about seven days after you drop the letter. Now, we all know mail used to be faster. Two, three days. Sometimes it's a little bit different. You might put a captcha code or something on there. So if you can start seeing people clicking on or clicking on a link or something, you can see where people are starting to get that postcard in your marketing. And that's a whole different aspect of things, but we'll get that later on. But seven days from your letter postcard. That first phone call, I wouldn't make it on a Monday. Don't make a phone call on a Monday. But you just pick up the phone and say, hey, I was just reaching out to other local investors to connect and see if you're still investing. I sent you a postcard or letter last week, and I was just following up with a phone call. Are you still investing? I saw that you used your IRA to buy this property at 123 Main Street. I'm not here to scare you. I just like connecting with other investors. We're buying in your neck of the woods and just Seeing if you're looking for more deals. And the answer almost as always, would be yes, I'm looking for more deals. Okay. No, you don't have any deals. That's fine. Just want to touch base. I can follow up with you on a regular basis. But just touching base, you're not trying to pitch them at all. The whole goal of this call is just to build rapport with these people. Just that first shot across the bow high. I see you're an investor. I'm an investor as well. You got a minute or two to talk and visit? What are you buying? What are you investing in? What's your focus? You know, it's the whole form method, you know, inform method. When you're not networking, it's F is for where you from. Oh, what do you do for a living? R, what do you do for fun? M is your message. So it's kind of that same thing. Hey, I see, you know, I see you live in Ohio. How long have you lived there? You know, so you bought this property. Do you buy it for an investment? Can you tell me about the deal? That's awesome. Do you, are you invest full time or do you work? You know your occupational. You do this full time? Okay, great. You're. You're a dentist or a doctor, whatever. That's awesome. What do you do for fun on the weekends or anything like that? Oh, good. Well, great. Well, like I said, I'm an investor. I'm focused on investing in distressed debt, distressed assets and like I sent you a postcard letter if you didn't get it, no worry about it. I'd be glad to send it out to you and I could even email it to you to make sure it's easier. Okay, but you're not pitching them on a deal. You just bracely bringing up the idea. If you think of the the Wolf of Wall street and Leonardo DiCaprio or Jordan Belfair on that phone call, talk with investors, hey, I appreciate it if I could share with you an idea or come up with an idea. Can I give you a phone call? That's the whole goal. It's just literally, hey, I just call on the touch base, see if you're still serious, still you're investing. If you are, can I send you some information? Can I tell you all about what we're doing and can I send you some information to see if you're interested? And this is where that the previous episode of the 20 Questions comes in. You know, if you look at that 20 questions and I'm not going to go through on this. You can go watch that YouTube video or listen that podcast episode or read about it to understand what we're talking about there. But you're not going to ask all 20 questions. You're going to, you know, rearrange the questions or ask the questions in your cadence, your information, what makes you comfortable. Don't bombard with a ton of, a ton of questions, but just ask them. You don't want to read off the list. Just have some, you know, role play once or twice before you do it. But start asking questions and listen to the results. Because sometimes people ask, when you ask them a question, they'll answer the next question. You're about to add them or ask them. So you don't want to sound like you're reading off a list. Just getting in a habit of making it, you know, what's, you know, what's your focus? You know, are you worried about risk? You know, what's your big thing about, you know, yada, yada, yada. There's a whole bunch of questions go through. Start asking some of those 20 questions. Okay, I said great. I appreciate, really joined the phone call. What's the best email for you, for me to send this to you directly? Not going to put you on it. I'm not going to put you on a. So I'm not going to spam you. I'm not going to sell you information. What's the best case I get send you some sample case studies or executive summary or, you know, kind of a little bit of just a short video about what we do as a note investor. That's it. All right. And great. Once you get that information, say, hey, it's been a pleasure talking with the gym staff, whatever. I'll send you that stuff over to you and I'll pop in a few days. Totally fine, great. Hang up the phone. You send them, you give it, you follow up with them. You may, you want to put it in your calendar. You may not want to send them a notice in your county, but you could that, hey, I'll follow up with them in seven days.

Okay?

And that's what you do. That takes us to phone call number two, and that's seven days after phone call number one. Approximately seven to 10 days. And all you're doing is just follow up. Hey, I was just reaching out to see if you had received the information that I emailed you last week and had time to review it. Do you have any questions, yes or no? Great. The whole goal of this call is just to ask more questions. How's your week? You've been busy. You know, you. Last week you mentioned this, this and this. I wanted to bring that up. You know, you want them to know that you are paying attention. So that's why it's always important to write down, take some notes when you're talking to somebody about some hot buttons.

Okay.

Like I talked to you a few folks yesterday as call some folks. And like I may know this, one person is trying to move to Mexico and lived six months in Mexico and six months here. Another one's trying to move. They're trying to sell a house, move to Argentina. Another one is they're trying to use the profits from one house to buy another house. So these are all. And he. Because he, because he's got chickens, he wants to move from a third of an acre to 3 acres or 11 acres because he wants to raise his chickens. You know what I mean? It's just you never know what somebody would say. So make a notice. You find out somebody's a Cowboys fan. Hey, did you check out that Cowboys game this last weekend? You know, build rapport. But it's also is to call up and then also ask more questions. You're going to spend a little bit more. Do you mind, you know, like, hey, Jim, do you mind if I go through a few more questions just so that I make sure that we're on the right path? You know, how much are you usually looking to invest into a deal? When you do, you know, you're not pitching them, but you do want to create scarcity and say, listen, most of the deals that we get, we offer up to our existing investors. But what I can do, and this is important, what I can do for if something comes across that hits a, B and C of what you discussed, what you share with me today, I can ask, I can give you a phone call and follow people. If we've got something that becomes available or something interesting, would that be okay if I add you that hot list? And what are they going to say yes? Are they gonna say no? Maybe. But most of the time they're probably gonna say, yeah, sure. If you got something that falls in line with this one I'm looking for, of course, give me a phone call. I mean, I did this whole exercise just as a recap of stuff. Like you could actually do this via Facebook messenger if you've got a group and you're too busy to call during the day. I did this to 50 IRA, 50 investors in our note. But hey, are you still Investing. What are you looking for? And all of them, like, yes, please add me to your group. Please, Here. Email me if you got anything that's interesting.

Okay.

And that's it? You're just saying, great, I'll give you a phone call if I have something that comes across available or I find interesting that I think you might enjoy. That's it. You hang up, boom, go into your calendar, and you schedule a third phone call right then and there. So it's done. You book it seven to ten days after phone call number two. Okay, I know. Oh, my God, Scott, you mean have to call more than once to close? Yes. It's a slow play. And while you don't need to have that three touch approach to raise capital based on the Jobs act and the SEC and stuff like that, this is still good to do, because if you're making notes, I called them and we discussed a postcard or send them a postcard. I followed up with a phone call. We discussed a B and C phone call. A week later, we discussed a B and C about this. And then a week phone call number three. I called them with a deal. And remember, you told me that's what you say. You told me to contact you. Something popped up. Well, something has. Would you have a few minutes to go over the deal or can we schedule a call or a Zoom call where I can go over the deal with you and we can meet in person? Okay. And the whole goal of this call is to get them committed. Okay. Yes. You've had two phone calls beforehand. Just building rapport. The third one here is, hey, are you ready to get rock and roll? And I've got a deal for you. Oh, I don't have any funds. That's fine. Can I call you again? When do you think you'll have some funds in the future so I can keep an eye out, I can mark my calendar, follow up with you. Then, you know, this is the kind of things. Okay, you. I would think it'd be smart for you to move the call to a Zoom call to share slides or, you know, your little pitch deck for one or two, stuff like that. Start building face to face, especially if they're out of state or out of where you can't meet with them in person. Do it via Zoom. Everybody's pretty familiar with Zoom. Jump on a phone call. Could you go to a FaceTime call? Yeah, you could do that, but I think Zoom would work best so that you can, you know, share the deal, answer some questions, and. And go that route.

Okay.

Like I said, going through your pitch deck, you're going to want to have a deal. Case study or the deal that you're working through. Kind of pulled up in a slide or two on that. What's the. What's it look like? What do your numbers say? Why is this a good deal? What could go wrong? What are the issues? Where the opportunities, are they going to start performing? What happens if they don't perform? What if they won't do a deed live? Those kind of things. You need to have the big questions ready to be answered and even don't be afraid to address those big questions that people are going to ask you ahead of time. Well, if the bar doesn't play ball, guess what? We have the right to foreclose. We can either do offer cash or keys, or we'll go to a deep, you know, or we'll go to a foreclosure process.

Okay.

Set engine. And on this whole call, it's to start getting them to ready to rock and roll and say, listen, does this make sense? Does this sound like something you want to look at? Does this sound like I did a good job in finding something that you would find interesting or something you'd want to fund with your IRA or other funds?

Okay.

And if you. If it does sound good, I know you need some time. Not asking for you to commit today on this, but I'm gonna need to know in the next week or two because we're moving to close. If you're not ready to jump on this, totally fine. I just need to know so I can go to my next investor, my backup guy or gal.

Okay?

And this is where you say, listen, I'm gonna send this stuff over to you. I'm sending this bit, the deal breakdown. If you have any questions, feel free to ask. I'll send over a copy of our funding agreement so you can kind of look through it, evaluate a little bit. But let's. What's the best time to call with you? And this is where you literally want to set up. You want to schedule call number four, I think, on call number three, I think it's smart to pull up your calendly and just literally fill up a kindly on the phone with them or on zoom with them. At the same time, schedule a call for call number four.

Okay.

Now also, here's the thing you want to ask him. Hey, are you using your IRA to fund this deal or you're thinking about using your ira? Great. Who is that with? If they say it's with a Schwab or A.G. edwards. It's not with a self directed custodian or trustee like equity trust, something like that. Then you're going to need to suggest, hey, for you to do this, you're going to need to roll some that money out of your trading account or your IRA with a bank and move that into a self directed IRA with quest or trust. And let's get that, you know, whoever your relationship, be really good for you to build a relationship with one, two or three of them. Say, hey, do you have one? Well, let's get that rolled over. If you don't, hey, let's contact my guy or gal over there and we can get you rock and rolling for minimal fees to get that started. But you're going to need that.

Okay.

And make the introduction, do an email blast, get on the phone to that IRA investor, say, I've got a new client, they're looking to fund a deal in the next two weeks. Can we get this ball? Rock and roll.

Okay.

And then also who else needs to review this deal with you? Because you've done some great work on three. But the last thing you want to do is go into a funding question where the spouse needs to be available, the husband or the wife, and they're not there. So that's always going to trip up your funding or their ability to pull the trigger. Who else needs to hear? So your CPAs, your attorney who needs to review this stuff, I'm glad to copy them on the email. When will you be talking with them? Will be. Can you talk to them prior to our call next week to get the ball rolling?

Okay.

Remember, we need to fund and need a fund in two to three weeks. So we need the next seven days for you to do something.

Okay.

That's phone call number three and of course phone call four. You've scheduled with them. This is the day that you're asking for the money and now we talked about the money and call number three. But today is the day like, listen, I need to know if you're in and out, basically. Okay, do you have a chance to review what we talked about last week? Are you ready to get the ball rolling? Okay, how will you be funding the deal? Is it going to be through your IRA or checking or savings? And this is where you move into the actual documents.

Okay.

If they, if you haven't sent a sample funding agreement, this is where you're going to send them the funding agreement with their entity, their name, the wired instructions, hopefully at the same time you're working through the deal cases. So you've got a deal that's ready to rock and roll and fund form. You're not going to take any money in until you've got a deal rocking out. If you've got a fund, this will be okay for you to go and collect the money and have it wired into your attorney's account. Or if you in the process of closing stuff, this is where you can maybe have it wired into escrow and hold for a while.

Right.

I would ask for them to send a proof of funds statement, pledge letter, just so that you know where the money's coming from. It's with an IRA account, checking account. You want to see that that money is liquid. You might ask for it depending on the conversation goes on call number three, but honestly in call number four, you definitely want to get it as part of your due diligence. Your cya. Cover your ass, all right? And like I said before, a pledge letter, if they've got a half a million dollars, you only need 50 grand. All they need to send is a copy statement say, hey, you know, we're going to put 50k towards a deal with you for 12 or 24 months.

Okay.

Like I said, the funds are coming from the self directed ira. You're probably going to want to pull up that IRA company's forms. You probably would have wanted to do this beforehand. After call number three, if they tell you where the money would be coming from and start to familiarize yourself with their direction of investment forms. Nothing complicated. Usually it's three to four pages. Usually need a copy of the funding agreement or the partnership agreement for something like that. You know, usually a copy of the note. Pretty simple aspect of stuff.

Okay.

Make sure your LLC is in good standing with the state. That kind of stuff. That's not anything difficult to do. You'll need to go in and fill out the percentage or the amount. You can actually fill out the paperwork. And then, then the only thing you really need to do is then get the IRA number, their account number, put that in and then send it to them for them to sign and then submit it in and go from there.

Okay.

I'm a big fan of welcome them to the family. We're excited to be working with you.

All right.

You may want to send out a hello letter. You might want to, I mean a thank you email or a handwritten card. I know some syndicate syndicators have some swag. You know our buddy Salvador Buscemi, anytime he's finding an apartment complex like that, he actually gets a acrylic you know, square which shows the picture of the property. The idea of maybe getting some Monopoly pieces 3D printed a little bit bigger, the little greenhouses and sending that out to people as a way thing. But just we're excited to be working with you, excited to get the ball rolling and let's, let's, let's close this deal and let's get the ball rolling. Okay, hopefully that makes sense. Now you don't want to wait to get started. As we talked about, these four phone calls can take up to a month. So it's going to be a month long process usually at the minimum.

Okay.

If you start making offers, start marketing for money, don't wait. You can start talking phone call 1, 2 and 3. Really that's three weeks. About what your focus is. Some previous case studies you can get. You need to get your executive summary pitch deck, case studies done ahead of time. Don't wait till the very end. Okay, but I'm not going to tell you to reach out, make thousands of phone calls. You should over time. But do yourself a favor and challenge yourself to making 50 phone calls. Okay, 50 phone calls per week. That's only if you call Tuesday, Wednesday, Thursday. That's you know, if you've made 10 to 12 phone calls during those days, that's really about an hour to two hour period. That's 36 phone calls. And they knock down another dozen on Saturday, Sunday, that's you know, or 10 or more. You can knock out 50 pretty easily and then that 50, if you get no's, people not interested, then you remove Those, you know, five or 10 no's and add another five or 10 people start to process and just kind of move these people along. Where are they at? Well, they're call one, call two, call three, call four, that kind of stuff. Once you get to, you know, beyond call two, then you're adding these people into your war market email database and, and they're getting your newsletters, they're connecting with you on LinkedIn Senior LinkedIn Newsletter, senior videos you're sharing out there. You know, some people say if you're going to dial for dollars, don't leave messages. I don't, I think that's good. I think you need to leave a message because too many times you don't leave a message, people aren't gonna know. Now it can work either way. It's like, oh, this is the same guy's calling me about funding his deal. But most people, most IRA investors reason I like targeting IRA self directed IR investors. They're Looking for deals, they're knowledgeable, they're interested in talking with you. A lot of times, okay, if you make 50 phone calls, you're probably going to talk to a dozen to 14 people the first batch out. So that's a pretty good aspect of getting a hold of 15 people. I leave messages because I want people known. Plus the whole voice to text thing. I'll give you an example. I made a phone call this, this weekend to a lady, she's out of Virginia on a house in Colleen. If I hadn't left a message, she, you know, wouldn't responded. But she left a message. And then I also followed up with a text message to her in regards to the message. So it's like two touches. She immediately responded back. We're engaging back and forth that she's get some information for me. Okay, I said connect with investors via email, social media and then focus to get them on a phone call or zoom. Get in that habit of talking with people, visiting with people. The more people you talk during the week, the better you're going to get at this, more comfortable you get at. And these four phone calls are going to be very easy if you follow this process. Sometimes calling at night where people are at home, you know, between 5 and 7 is a good time. Sunday nights are sometimes a good times, before 6, 7 o', clock, before it gets late because people are interested in what's going on. They're starting to check their emails, they're starting to do some things and wonder if you get a phone call and talk to us, if you may be able to catch them with a clear mind versus it being Monday and crazy or I wouldn't call them necessarily Sunday because a lot of people sleep in or they're going to church or other things. So Sunday night, Saturday after 10 o' clock is usually pretty good. But Tuesday, Wednesday, Thursday, usually later in the day, I wouldn't call them first thing in the morning. You maybe catch them on a lunch break and just document your stuff. The easiest thing that we use was a spreadsheet and we just add another tab. I called 15 people and got through phone calls with those 15 people. I moved them to tab number two and put a date on it and you're going to have, you know, you might have a tab that's got 30 different tabs or you know, four tabs at the bottom as you move them along. Week one, week two, week three, week four and just stick with it. 80% of sales comes after the fifth contact. So you got to realize that this is the idea to get to that fifth contact, that fifth phone call, all right, without being pressured. No high pitch, no blow smoke up their ass. You know, really the first contact, which is, we're not even counting, is that postcard letter, phone call one, phone call two, phone call three, phone call four. And then you're touching base with them on socials and going from there. Okay, it all adds up. If you think about this. You made, if you talk to 50 investors and your focus was I'm pick 50 investors and each month that's what I'm doing, I'm going to target, I'm connected with 50 investors. Well, 50 investors for 10 months, you can do 12. But we know time's going to happen. Christmas is probably not good and sometimes during the summer can be difficult. But let's just say you average 50 investors for 10 months, that's 500 investors. You talk to 67% of the people that have an IRA account have 150k or more. So you're potentially looking at, if you did 67% of 500, that's, that's over $15 million in private money. That's not even counting, you know, literally the what amounts the other 33% have. Okay, that's just what they have in their IRA. That's so you're talking, this is 50 to $100 million in private capital you're looking to tap into. You don't need a lot. One percent of that is half a million. Okay, you can do a lot with a half million in private capital. 2% is 1 million, 4% is 2 million. That's a lot of money to rinse and Pete, rinse and repeat with performing non performing notes, fix and flips, whatever you might be doing. If you only closed one investor per month at the 150 mark, guess what, that's still 1.5 million. That's not bad. That puts, honestly if you did that, that's still more than what most people are doing. That's puts you in the top 1 to 2% of people out there closing things. Because 99 of people aren't doing okay. They're scared to pick up the phone, they're scared to send an email. They're not send a postcard. They're not networking. They're believing in that four letter word called hope. They're hoping that somebody just knows what the hell they're doing. They hope somebody thinks about them and calls them. We all know it doesn't work that way. You control your destiny. And like I said, if you're not raising capital, it's because you're not marketed enough. And while email and social media is great, this direct four step approach will help you close more deals, close more money, close more investors, and ultimately make more money and be good to you. And add a positive impact on your investors because you're be able to give them above average returns by having them invest in performing or non performing or distressed assets at big deals below what they're getting in the retail market these days. Okay, any questions about that? Think about that. There's so much what you can do with that if you post and this will work. This whole process works no matter what type of investment you're working on. I have just, you know, tailored this to the investor side of contacting self directed IRA investors and focus on the note side a little bit. But it's all kind of plug and play no matter what type of investment you're looking at. So there are any questions about that, feel free to type in the chat role. We'll try to answer those questions we see available. I do encourage you to go check out the previous episode 20 Questions for Investors. You can listen to this on our podcasting platform. You can also check it out at weclosenotes TV and catch the replay to that from about two weeks ago. All right, there's other questions. Thank you for joining us on this and I hope this was valuable. Feel free to reach out to me at scott@weclose notes.com or book a call on my calendar at Talk with Scott Carson.com have a great day everybody and we'll see at the top. Bye.