Latest / The Academy Presents podcast / Consultative Capital Raising and Investor Mindset with Edmund Chien

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Consultative Capital Raising and Investor Mindset with Edmund Chien · The Academy Presents podcast

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  Did you know that 90 % of the world's millionaires
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  invest in real estate? Well, I'm Angel with the
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  Academy Presents Real Estate Investing Rocks,
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  and I'm here to help you if you want to go for
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  your piece of that pie. Are you new? Are you
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  new to this and you just don't know where to
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  start? It's okay. Are you someone that has invested
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  but you feel stuck, you feel like you've lost
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  momentum, you don't know where to really head
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  from here? Are you a seasoned real estate investor
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  who is doing great, but maybe you just want to
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  hone a few skills here and there? This is the
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  place for you. The Academy Presents Real Estate
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  Investing Rocks podcast will connect you with
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  industry experts so that you can save time, avoid
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  costly mistakes, and begin living the life you've
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  dreamed of all through real estate investing.
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  You're already taking the first step. just by
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  joining us here today. Hey guys thank you so
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  much for being here today and spending time with
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  us and you know we've had a lot of amazing speakers
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  and we've got another amazing speaker coming
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  up you know Ed has been he's helped me um and
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  when I say he helped me like Jason and I raised
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  a pretty incredible amount of um money from investors
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  on our first raise. and I used a lot of the tricks
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  and maybe not even tricks but like I used a lot
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  of the methods he talked about because it's really
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  more just it's you know like systematizing and
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  getting in the right head space and then just
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  going at it like methodically and so long as
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  you can really hammer that down like if you follow
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  what he coaches it can really make it a lot more
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  manageable so and I'm going to let you kind of
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  take over and maybe intro yourself a little bit
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  because your background is wild and amazing.
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  So yeah it's a pleasure to be here and for those
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  that don't know me I've got about 20 years experience
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  in real estate investing. I started out in a
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  private equity firm that did a lot of proprietary
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  real estate in the Dallas Fort Worth area and
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  I ended up becoming a senior partner of that
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  firm. I was managing about a 70 million dollar
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  book of business. And our our firm, I would say
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  it was about a half a billion of assets under
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  admin. The top third of that that firm was a
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  family office, a multifamily family office. So
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  a lot of wealthy families that we manage money
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  for. After that, I was also a licensed stockbroker
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  at the time. And I had a life license, so I did
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  a lot of estate planning for clients, a lot of
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  intergenerational wealth. I recently left the
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  industry, so I don't have any licenses anymore.
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  And all I do is I manage our family well. and
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  I teach people or I coach people a lot of the
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  stuff that I've learned over that time period.
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  So I was really headed towards branch management,
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  which I ended up not doing. I didn't want to
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  do. And the big part of what I liked about branch
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  management was mentoring and training new advisors,
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  which I had been mentoring people for many years,
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  or junior advisors. And that's what I do now.
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  So I just help people that are getting into the
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  industry. If you don't know how to raise capital
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  or how to go and find investors, That's kind
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  of what I provide for people, the best practices
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  of what you would see in Wall Street and Bay
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  Street here in Canada. Wow. You know, one of
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  my biggest concerns has been how, how has the
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  ask changed given the current economic environment?
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  I really, I would like to blame the difficulties
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  I faced when raising on the COVID era, but I
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  don't think that was it. Like looking back on
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  it now, Once we got traction, it got easier and
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  easier. And we've talked about it before, it
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  was in my head. It was barriers that I had in
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  my own head. Because I know who I talk to when
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  I'm on Zoom meetings. I know who I'm talking
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  to at conferences and events. But when I go to
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  call somebody, I see the people in my local environment.
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  How I should be looking at them. Does that make
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  sense? Yeah, and I think the biggest the first
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  thing that to maybe start off with is that it's
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  a shift in mindset and that's one of the first
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  things that I need to do where I usually do when
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  I'm working with my coaching clients and with
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  the advisors or the people that are the juniors
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  that I used to mentor The the concept is is that
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  get away from selling Get away from the idea
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  or the mindset that you're selling something,
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  that you're going hat in hand, trying to jam
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  you, like all the old cliches of trying to jam
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  your foot in the door and trying to sell a vacuum
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  that they don't want, right? That's not what
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  you're doing. And really good, really good financial
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  representation or capital raising turns or pivots
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  from sales and goes into consulting. Consult
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  in the first part of it is discovery. What do
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  you actually need? Is this helpful? Where do
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  you want to go in life? Where is the biggest
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  problems that you have in life? And I would like
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  to think nine times out of 10, whatever problems
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  people have, having cash flow and having increased
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  wealth usually makes it better, usually starts
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  to help things out. It can help a family unit.
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  It usually improves things. So that's what I
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  provide. So I was like, well, that's my expertise.
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  So if you come in and say, well, what is your
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  biggest challenges right now? It's like, oh,
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  you know, we Our biggest challenge is that we
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  need to have a second car. We can't afford a
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  second car. It's like, OK, well, why can't you
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  afford a second car? We don't have enough cash
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  flow. We don't have enough investments. Whatever.
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  It's like, well, if I provided you some, do the
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  two of you work? Because your husband and wife
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  work. It's like, yeah, we're a dual -income family.
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  It's like, OK, how would you feel if you became
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  a three -income family and there's a third person
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  that sends cash flow that doesn't. doesn't take
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  away from the family, doesn't eat at the table,
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  all this. Can you imagine having a third person
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  that was sending another set of income? I was
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  like, yeah, that would be amazing. He's like,
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  great. That's exactly what passive investing
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  is. That's what passive cash flow does. It starts
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  sending you cash flow, an additional cash flow
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  at different amounts. It's like, would another
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  $100 or another $1 ,000 a month help your situation
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  or make your situation worse? I'm willing to
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  bet it's going to make it better. So that's kind
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  of what I dedicated my life to. and then you
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  can start to explain. So that's more consulting
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  by saying that, what is your problems? And then
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  how can I personalize my offering to fit that
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  problem and then make a recommendation? Well,
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  if this is going to help you, if having an extra
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  thousand dollars a month in your financial situation
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  is going to improve things, this is what I would
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  recommend. So that's just a very quick snapshot
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  of what consult, consultive sales looks like.
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  It's not really sales. It's about It's sitting
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  down with you, sliding myself around the table
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  and coming around you and realizing, okay, what
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  are your problems? What are your challenges?
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  And what are some solutions that we can work
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  to that I know are available out there that can
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  help you achieve or help you get? Wow. One of
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  the things that I found really interesting too
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  was that you have to really craft what you're
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  saying. with the person that you're saying it
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  to in mind. And that was a really like when I
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  say, like, I think about the people in my local
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  environment, I think about the lady that answers
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  the phone when I call to schedule an appointment
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  with my doctor. I think about, you know, my friends
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  that own little businesses around town. I don't
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  think of. someone with an extra, you know, quarter
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  of a million dollars in their checking account
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  or their savings account that they need to place
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  because it's losing value each and every day.
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  Yeah, for me, I think the first part of it is
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  really understanding who your avatar is and being
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  able to recognize who those people are. So for
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  if you're actively prospecting for real estate
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  syndication, it's got to be a 506. So you're
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  looking at accredited investors, but not all
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  the credit. that investors are made the same.
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  There's many different levels. There's like the
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  million dollar accredited investor all the way
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  up to unlimited, like the five million, the 10
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  million, the 20 and so on and so forth. Each
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  bracket has a different range or has a different
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  skills. It requires a different skill set. So
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  that's the first part. And then not, if you just
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  take a look at somebody who has a million or
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  just a million, they're all different. They're
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  all different across America. If they're a millionaire
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  in Texas versus a millionaire in California versus
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  a millionaire in New York, those are three completely
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  different cultures and different mindsets. Then
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  you can get into generational, which is, did
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  you inherit the money or did you make the money
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  yourself? Is this third generation wealth or
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  is this first generation? Did you build your
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  company up from your bootstraps? Those are all
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  different ways that I would approach it as well.
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  So it gets into knowing who your accredited investors
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  are, knowing where you have a lot of effectiveness
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  and then being able to qualify and being able
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  to explain to people. So if it's like a receptionist,
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  as an example, don't, you know, don't assume
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  that they're not accredited, but you can still
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  say it and say, well, if they come in as I go,
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  what do you do? It's like, well, I run a millionaire's
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  club and I run a millionaire's club and I, and
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  I curate real estate investments for that, for
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  those people. and then watch the response. If
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  she's curious, and she's like, oh, that's interesting.
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  Can you tell me a little bit more? But if she
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  scoffs at it, it's like, whoa, Millionaires Club,
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  wow. And then their response will typically tell
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  you, it'll give you indications whether they're
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  accredited or not. Yeah. And I think maybe I've
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  had an experience sort of like that. And that
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  may have been another reason what kind of like,
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  uh -oh, I said the wrong thing. Because I was
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  at my doctor's office. And the lady there, one
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  of the nurses and I, it's not like we became
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  friends, but we talked a lot because I was going
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  often. And she told me, she was like, so do you
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  like the real estate investing thing? I'm like,
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  well, I mean, it's done very well for us. She's
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  like, really? Like, I mean, it's how we became
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  millionaires. She was like, oh my God, I know
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  a millionaire. I was like, you're surrounded
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  by doctors. You probably know more than just
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  one. But it was that reaction, you know? And
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  so maybe I should have understood that better.
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  But I don't know. Now I think maybe that kind
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  of is another reason why I'm kind of a little
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  bit skittish about treating people a certain
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  way. Or like assuming. Maybe not treating. Yeah,
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  I think a big part of it is it's just reading
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  people and saying certain statements to see how
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  they respond So if that receptionist was not
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  responded in that way, then I would run the assumption
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  that was like, you know What it's probably that's
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  a high probability that that she didn't even
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  think about their wealth or it's just probably
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  not accredited, right? Which you know, it's fine.
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  You just got to move on but it's good way that
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  to say is like Well, you know what you work with
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  a lot of doctors So there's probably a lot more
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  millionaires around you than you than you realize
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  And that's a great way to respond to that and
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  then just move on. Yeah. Well, I mean, I haven't
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  seen her since, so I don't know what happened,
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  but I know she had a big house to sell and I
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  was like, she's like, yeah, I'm going to sell
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  my house and get something else. I was like,
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  well, why don't you just keep it as a rental?
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  And so like we were talking about that and then
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  it kind of just fell off the handle. Cause I
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  can, that's one thing I've got going for me is
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  I can speak for a long time with a lot of knowledge
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  about residential real estate investing. because
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  we've been in residential for two decades. So
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  that's one of the traps to be careful about.
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  So if I was your branch manager, for an example,
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  and this is the reason why I like not being a
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  branch manager. For all the entire staff, I have
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  to make sure that everybody and all the people
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  that I'm mentoring have to make sure that we're
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  incredibly efficient. So sure, once people find
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  out that you know a lot of stuff, there's tons
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  of non -accredited, non -qualified people that
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  would love to get your time. And the thing is
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  that we can't do that because that's going to
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  steal away from you talking to the next accredited
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  investor. So you've got to qualify. You've got
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  to be ruthless at it. And then as soon as you
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  realize that somebody is not qualified, you've
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  got to tell them, listen, by order of the SEC,
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  I cannot talk to you about these things. It's
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  illegal for me to talk to you about these things.
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  And if they don't believe you, just go look it
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  up with the SEC. It says that you must be an
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  accredited investor. And if you're not, it starts
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  getting me across the line. I'm starting to put
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  a foot across the line. and then just move on
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  because you don't want to spend a week or hours
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  talking to somebody how to create their own real
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  estate. If you do, sure, you put a lot of goodwill
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  out into society, but is that really is that
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  going to give you the highest return on your
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  your time in order to raise capital? You got
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  to be you got to look for accredited investors.
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  So the first is, are you the first subtext questions
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  I'm looking for are, are you accredited? And
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  the second, if the answer comes back as no, the
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  next is, do you can you refer accredited people
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  to me? And if both of those are no, then unfortunately,
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  by order of the SEC, I'm really not allowed to
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  talk to you about it anymore, right? So you don't
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  want to be a jerk about it. And you're just like,
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  you know what? You're not wealthy enough for
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  me to really care about you. That's not what
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  I'm saying. So that's how you learn these types
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  of statements to say that, hey, if you're not
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  accredited or your family's not accredited or
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  you don't know accredited people, unfortunately,
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  it's not my fault. I would love to keep talking
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  about this, but the SEC's got my hands tied.
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  And the SEC tells me I cannot continue this conversation
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  or else I'm going to be offside. Yeah, no. And
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  that's instead of me continuing to hold that
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  residential conversation, that gives me an out.
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  Yeah. And then what you might say is like, hey,
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  my grand uncle is a millionaire. Would you be
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  able to talk to him? Absolutely. If he's accredited,
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  for sure. Or if he's got a million dollars in
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  investable assets, I'd be able to. You know,
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  the SECs, I can talk to him. I'd be happy to
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  talk to him. If you make a connection, yeah,
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  great. Yeah, you've been doing this for a really
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  long time. You know, all these like, you can
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  snap to the conversation, like, how do I do this?
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  But I mean, I know that over time I'll get there.
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  And honestly, it's a spiral. Like, you get a
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  no, you get a no, you get a no, and then you're
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  not smiling on the phone anymore. You get six
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  more nos. But you keep calling because that's
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  what you're supposed to do. That is a very good,
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  that's a very good point. Okay. Mindset is really
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  important when you're raising capital. So one
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  of the things that I do with my crew, if you're,
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  if you get negative and down on yourself, right?
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  So I tell people, a lot of client facing or a
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  lot of prospectors were like bipolar, borderline
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  bipolar. So there's highs and there's lows. So
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  you close a quarter million dollars and you're
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  like the king of the world and nobody else can
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  come close and you're just amazing. And then
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  the next day you get six no's in a row and then
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  you just hate life and you're the worst person
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  ever and you're in a nasty mood. If you're in
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  a nasty mood, it's gonna make capital raising
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  much harder. So you gotta break out of that.
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  There's a couple of tools that I have to break
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  out of that. One of them is a gratitude journal,
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  really important. So when you're on your highs,
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  write it down in your gratitude journal, right?
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  So talk about how great you are. It was essentially
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  what you're doing is, is you're writing a, like
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  a love letter to yourself saying, so when you're
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  down and you say, you know what, this sucks,
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  everybody sucks in the world. They all, they
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  don't understand how, you know, and you get very,
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  very negative. Go back to that gratitude journal.
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  That's one. The second thing you can do is if
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  you're in a really nasty mood and people were
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  swearing and cursing at you saying that, why
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  are you calling me? You know, you're another
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  scammer and just being really ruthless to you.
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  is go out and throw something positive into the
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  world. So go out and do something nice for somebody,
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  for a stranger, that they cannot pay you back.
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  So go out and, you know, go to like when you're
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  at the grocery store and you see like a single
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  mother, for an example, she's checking out and
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  it's like, hey, I wonder if you could do me a
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  favor if I could, you know, buy these groceries
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  for you and just, you know, and I don't want
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  anything in return. And then when they cannot
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  pay you back in terms of finance and money, they
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  will pay you back in gratitude and thanks. And
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  when they do that, it fills your cup back again.
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  And you start feeling like a great person again.
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  And then you go out and it makes capital raising
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  so much better. Yeah. And that makes sense. Yeah.
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  Well, it doesn't even have to be monetary. It
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  can even be validating people. Like it can be,
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  you can start life. So if you are, if you're
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  tied up, on cash, I'm not saying that you have
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  to go and start spreading money everywhere. It
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  can be little things like, same example, it's
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  the same situation. You're checking out at the
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  grocery store and you see that the person that's
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  checking out your groceries, it's at the end
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  of a long day, somebody just yelled at her, somebody
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  just told her they're dumb because she checked
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  out something wrong or whatever. And then all
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  you do is take... a pause and then just say,
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  Hey, I know that you've been working. You're
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  probably working at the end of a very long shift.
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  And I just want to let you know that I really
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  appreciate the fact that you're doing this because
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  you know, you're really helping me out. And I
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  think you're doing an incredible job. Little
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  things like that. Just it's verbal is verbal
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  affirmation. It's encouragement, just randomly
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  to different people. And it can make a huge impact.
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  And when you do that, the amount of gratitude
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  that you get back starts filling your cup again.
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  Yeah, I've you know, I've heard more than one
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  person talk about a gratitude journal and just
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  what it can do for you and to be able to get
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  you out of the the blocks when you get into those
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  blocks is that's a big deal. Yeah, so try it
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  out next time when you get like six no's in a
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  row and you're you you feel that life sucks and
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  it was 14 and you're just mad yeah and you're
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  just mad at the world and you think the world
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  is mad at you and everything's just terrible
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  take a pause and then go out somewhere and just
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  affirm somebody just validate somebody like maybe
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  just go outside and there's like a little kid
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  that's going out and he's selling lemonade right
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  and you just go as like hey let me buy some lemonades
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  for me as like hey i think you're doing a great
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  job and then the parents come out it's like hey
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  i just want to let you know that there's so many
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  kids that are just playing video games all this
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  and your kid is out here slaving away and he's
• 18:26
  hustling and i think that you guys are doing
• 18:28
  something right you guys are great parents and
• 18:30
  i see you guys out here all the time i think
• 18:31
  that you guys you know are really doing a great
• 18:33
  job Some people are so starved for validation.
• 18:37
  I've done stuff like that. I've had people burst
• 18:39
  into tears in front of me. It's like, thank you
• 18:41
  so much. You're such a wonderful person. All
• 18:42
  this kind of stuff. Cause they don't pay you.
• 18:43
  They can't pay you back in money. They just pay
• 18:45
  you back in gratitude and that fills your cup.
• 18:47
  And that's all I'm looking for. And then go back
• 18:48
  on the phones. I for sure can tell the difference
• 18:53
  in the way I feel when I'm on the phone and I'm
• 18:55
  smiling. And I would imagine that there's probably
• 18:59
  a big difference between when I feel fulfilled.
• 19:03
  and when I need to go and get that, get a refill
• 19:06
  on my cup. So that'd be like a double whammy.