Latest / The Academy Presents podcast / Raising Capital with Confidence: Building Trust, Authenticity, and Investor Relationships That Last

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Raising Capital with Confidence: Building Trust, Authenticity, and Investor Relationships That Last · 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
3:00
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. So I think that modern,
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this is very different from when I was cold calling
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like 20 years ago. That's how I started. In the
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modern world, you don't even have to go anywhere.
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So if I'm getting the phone slammed down on me
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today, over and over again, you just have to
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go up on social media and just write things to
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people. Just like hey, I think you're doing an
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amazing job. I think those is a great support
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people write different things You know you great
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input I think like anything and start to validate
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people online I've done tons of that type of
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stuff and it makes I don't even have to leave
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the house So now I'm gonna be watching for that
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for when people do that to me and be like, oh
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goodness. Are you okay? Wow, but that's that's
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a really good point though because you can do
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it without without leaving where you are or really
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expending a whole ton of effort and still getting
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sleep. And that's a big thing for me. If you
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take a look, you see now the internet is a nasty
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place. It's like a dumping ground where everybody's
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showing their worst and there's a lot of patrols
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and there's a lot of people that are just bringing
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up the things. And if you went into that space
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and you started to share positivity and encouragement,
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and bright ideas and change that sort of polarity
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and get people to think differently in a dark,
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dark space. And then people start sharing that
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gratitude back to you, then boom, you start hitting
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the phones again. Yeah, I wish that the day that
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I had that long string of nose, I mean, it made
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for a horrible afternoon. I should have just
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stopped. Did OK, so there's a question. So you're
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getting a string of nose. Is there is there a
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point where you stop? Like I think that that
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it's it's individual and it's unique to each
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person because you have an emotional like Stephen
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Covey calls it the emotional bank account and
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when somebody takes a Says a no to you. It's
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it's a withdrawal and You it's up to you to decide
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how much of your cup Like what is your cup empty
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for some people that it could be some people
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that if they see one know they're that they're
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so starved for gratitude that it empties them
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completely out and they're just like completely
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lost. But then there's some people that might've
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been in sales for 20 years. I could talk, I could
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get nose all day long and I'm completely fine,
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right? It's all dependent. I don't think there's
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a set formula. It's an individual thing where
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if I can sense myself, you know what, I'm just
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really emotionally drained. And this has taken
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a lot of, it's a cut by a thousand paper cuts
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and I'm completely, it's death by a thousand
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paper cuts and I'm completely empty. Then it's
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time to fill that cut back up again and go out
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and try to find what can you do out there to
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throw some positivity back into the world that
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it comes back to you in gratitude and reset your
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mind. Maybe I, I don't know. I don't know why
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I kept going. I should have stopped because I
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wasn't, I wasn't making any headway. So maybe
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I need to set a different number for myself,
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like three. Yeah, just try it. Try different
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ones, right? And when you, when you hit gratitude,
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it doesn't have to be the rest. You don't have
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to take the rest of the day off. It's just go
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out and throw some grass and then see how you
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feel, right? See how much gratitude you're like
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read a bit in your gratitude journal, right?
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A couple of encouraging notes to other people.
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One of the things that I learned is, is that
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if you're This is what one of my mentors taught
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me, which is, if you're going to give some constructive
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criticism, it's probably best done in person
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because it can be misinterpreted. But if you're
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giving praise and you're giving encouragement,
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validation, or anything positive, write it down
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because it gives that person an opportunity to
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reread it over and over and over again. Oh, wow.
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So then that would be. putting it out there on
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facebook or putting it out there on linkedin
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in a message more important Yeah, anything right
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whether it's going to be on social media whether
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it's a personalized letter whether it's an email
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whatever right and the best uh gratitudes or
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the best kind of validation are ones that are
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deeply rooted in what's important to the other
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person so it shows that you know what is important
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to them right so if if you come in and like what's
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the difference between great gratitude validation
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all these types of things versus flattery like
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it's like oh you know angel you're the prettiest
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you know the prettiest lady i know in texas and
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blah blah all this kind it's like you're buttering
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me up right but if I knew a lot about you and
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said like you know angel I know that you you're
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you're hustling and you're trying really hard
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and you care a lot about family you care a lot
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about your clients you care a lot about other
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people you care about there's so many pressures
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that are put on you but I know that the real
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you is like you want to make sure that you're
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lifting all that up and I think that it is very
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incredibly commendable that you have so many
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buckets that you're trying to fill and trying
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to help so many people that I want to spend a
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little bit of time saying that, you know, I see
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what you're doing and I think it's incredibly
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noble what you do, right? That's all based in
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me knowing who you are and knowing what your
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background, knowing what your values are, what's
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important to you, what your value system is,
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right? That's the difference between gratitude
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versus what I said before is like, you're the
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prettiest lady in Texas, right? That's flattery.
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Yeah. Wow. The second one seems so much more
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sincere. Exactly. That's what you're going for.
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And this is also a really good exercise to practice
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to be able to start having impeccable investor
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relations with your clients. So one of the things
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that we did that I realized that bringing in
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new money is the most expensive and timely and
9:17
resource heavy way of bringing in funds. investor
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relations is a lot simpler, but investor relations
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means that you have to have impeccable relationships
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with your clients and it, you build it over time.
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After 10 years, we were getting to second, third
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generation wealth and I knew my clients very
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well so that I knew what's important to validate
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them to say that, Hey, I think you're doing an
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incredible. And then when, when you validate
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somebody that is very sincere, it makes them
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feel like, you know what, you understand me.
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You understand what my challenges are. You understand
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what is important to me. And that's how you build
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that very, very deep level of trust. So that
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when I make a recommendation, it gets back into
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what we started with. This is like sales 201.
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They realize that my recommendation is based
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deeply in my understanding of what your needs
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are, not selling you. What's selling you is what
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are my needs? So the cliche salesperson that
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people are afraid to be or align themselves with
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is because I am a salesperson and my loyalties
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are to myself and to whatever the company I'm
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working for to try to shovel down your throat
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as much as I can to make a highest commission
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for me and make as much sales as I can for my
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company. That's the cliche sales. That's completely
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foreign or opposite to what I'm trying to explain
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to people, which is it's all client centric,
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which is getting back into that being sincere
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and saying that so when I show you that I'm sincere
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and I know your challenges and I know your wants
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and I know your values and I know what's important
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to you and I can subtly imply that then it goes
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into when I make a recommendation they feel more
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like you know what this recommendation is in
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my best interest so one of the things that I
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use all right one of the things that I do teach
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someone like my coaching clients is if you went
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in say you're going to see your doctor and then
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the doctor comes in and you're sitting there
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in the waiting room. The doctor kicks the door
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open. He's like, Angel, I got the best drug.
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I just talked to this new drug guy that was coming.
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I got the best drug for you. And he starts writing
11:15
something down. And he can ask you what your
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ailments are. And say, here, this is a great
11:19
prescription. This is one of the best drugs that
11:21
just came out. My mind is blown. Here you go.
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And here's the prescription. See you later. Come
11:26
back in a month. Let me know how it goes. You
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look at that person like, what the heck are you
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doing? He's like, you didn't even talk to me.
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He's like, how do you know I want this? But unfortunately,
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when people first raise capital, that's exactly
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what they're doing. Hey, I just found this shiny
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new object. It's real estate investing. It's
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multifamily. Here you go. This is how it does.
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This is how it goes. That's why people don't
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resonate with that. It's because you're pushing
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something without trying to be figuring out,
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do people actually need that? A doctor doesn't
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do that. If a doctor did that, he'd get fired.
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You'd sue that doctor. It would be a malpractice,
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right? But that's a lot of what people are doing
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now when they try to raise capital. When it comes
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to consultative sales, the first question is,
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tell me where it hurts. It's like, hey, I got
12:12
a lot of solutions. But before I can recommend
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a solution, you got to tell me where it hurts.
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What are you trying to achieve? Do you have any
12:19
pain points? And so if you don't have any pain
12:21
points, let's get proactive. Where do you want
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to go in terms of your health? Where do you want
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to go in terms of your financial health? Well,
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great. Based on what you just said, these are
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some of the recommendations I think that I would
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make. That's consultative sales. And you have
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to show them that I truly appreciate and understand
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what it's like being you. That's empathy. And
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I can be sincere. And I can validate you in a
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sincere way. And I can also understand. It's
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like, you know what? I know what your problems
12:45
are. I know what your challenges are. These are
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some recommendations that come deeply from my
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heart that I think that's going to improve your
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situation. Wow. the really drilling it down and
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really making sure that it fits the person you're
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talking to, that lends itself to a level of authenticity
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and sincerity that you're not gonna get when
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you're scattershotting. Right, so how do you
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go and present all this? Because here's something
13:20
that I commonly get, and I get the sense that
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you're doing a lot of cold calling, right? Or
13:25
calling. people is like how do you get people's
13:27
attention fast then and how do you build that
13:29
rapport so quickly it's like unfortunately you've
13:32
got a couple of seconds to grab somebody's attention
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so but at the same time you want to turn it your
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your target or your goal is to become empathetic
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but the first part of it is is like so the the
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best way that you can cold call is like hey this
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is what i have on offer does this interest you
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Right? So it'd be the equivalent of those doctors
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say, Hey, I don't know the first thing about
13:51
you. You don't even want to be in my offer in
13:54
my, uh, you know, in my waiting room, but I have,
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I can do this, right? Or I solve these major
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problems. So for instance, you can start off
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with is, Hey, um, I, I, I help people invest
14:06
in real estate to generate cashflow in a passive
14:08
way, kind of like what the large pension plans
14:10
are doing. So did you, do you ever wonder what
14:13
high net worth of millionaires are investing
14:15
it? That's kind of what I deliver to the general
14:17
public. Does that interest you? Something like
14:20
that, to cast their attention real fast. And
14:22
then once they do, it's like, yeah, that's kind
14:24
of interesting. Then you can sort of explain
14:25
a little bit more of how that works. But I'm
14:28
trying to look for an entry point to pivot. It's
14:30
like, if that does interest you, why does it
14:32
interest you? So I'm trying to get a meeting.
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So once I get a meeting, I would go to a meeting.
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It's like, OK, so I've talked a lot about this
14:40
is what we can provide. But I'm trying to back
14:44
up a bit here for a second and say, well, what
14:46
would be your financial goals? If I can get you,
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if I can read that body language and see that
14:51
person's ready to open up and say, what is your
14:53
overall objective? What would you hope to achieve?
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If I was going to send you cash flow, what would
14:57
you spend it on? What is important to you? All
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these types of things. And if that wall starts
15:01
to come down, it means that you're starting to
15:03
make progress because they want you to, before
15:05
I write you a check, I want to make sure that
15:07
you're going to invest it in a way that is in
15:09
line with my values. And they'll start opening
15:11
up and start telling you what those values are.
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I just keep saying, wow, wow. This is like, it's
15:23
just really insightful. Like you, you think,
15:25
you know what you're going to say and how you're
15:27
going to react and what you're going to do. But
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I mean, I don't even know how many times I got
15:31
on a call and I would get a weird question or
15:34
a question that I hadn't thought would be coming
15:35
my way. And it was like being blindsided. All
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right, well, we can go into that. That's a great
15:44
one. So can you think of an example of a question
15:47
that somebody asked that blindsided you? And
15:49
I can show you how you can handle that. OK, yes.
15:53
So well, I've kind of got this one under control.
15:55
So people would ask me the numbers, and I don't
16:00
actually do the numbers. So I would kind of try
16:05
and talk about it, because I was told I needed
16:07
to know the numbers. I need to know how to do
16:08
this. And it was very difficult for me. And finally,
16:13
I just got to where I'm like, I was like, look,
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you don't want to hear the numbers from me. Give
16:18
me something specific. When you say numbers,
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what kind of numbers were they asking about?
16:23
When people were asking about like, well, what's
16:25
the IRR? What's the returns? What's the cash
16:27
on cash? And I was just like, I would fumble
16:30
and try. But when I got honest, and I was like,
16:34
look, you don't want to hear numbers from me.
16:37
You want to hear numbers from our underwriter
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and that's my husband and he's right here And
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once I got comfortable saying that Then people
16:46
people aren't even being mean that they're like,
16:48
hey is Jason around? Because they want to hear
16:52
what he's doing with the with whatever properties
16:55
we're looking at and it doesn't hurt my feelings
16:57
or anything It's way more comfortable for me,
16:59
but I've gotten other things like well You know,
17:03
what if can I do? Let's see, what did I have?
17:07
I had one time a guy was like, well, you know,
17:09
I've got this cell coming up. Can I invest this
17:12
amount today and then maybe come back and invest
17:14
this other amount in a couple of weeks? And I
17:17
was like, uh, I was like, let me ask my team.
17:22
Um, but I, I, I think that that was what lost
17:26
him was because I was like, uh, I need to talk
17:28
to my team and make sure that's okay. Instead
17:32
of. Being able to say yes, that'll be fine or
17:35
hey, how about we just wait until your cell is
17:38
complete and let's get back together You know,
17:40
I'm sure that there's a better way to handle
17:42
it than uh, can I talk to my team? Because I
17:45
think I lost my authority when I did that Yeah,
17:49
okay. So some of those questions like if it's
17:52
things that keep coming up like I are in cash
17:54
on cash I think it's important to have those
17:57
answers, right? So the first time you get caught
17:59
off guard, that's fine But I are in cash on cash
18:03
are pretty common questions I was thinking about
18:06
things like get into more detail like hey, can
18:08
you tell me the the current rent rolls? Can you
18:10
tell me the current occupancy? Can you tell me?
18:13
What the value like how much you're gonna spend
18:15
on capital improvements things like that, okay
18:18
And okay those I don't get anymore because people
18:24
understand that bowtie has the answers Angel
18:28
does not. So here, here's part of the things
18:32
like if, so here's, here's an interesting thing
18:35
when it comes to capital raising, if somebody
18:37
starts getting very, very technical, it's a rabbit
18:40
hole that I don't necessarily want to get down
18:42
into. Because when it comes to capital raising,
18:45
there's this underlying sort of theme to remember
18:49
the statement, which is logic will get people
18:51
to think and emotion will get people to act.
18:55
So logic will get people to think. Emotion will
18:57
get people to act. And when you're raising capital,
19:00
you need people to act. So if they start diving
19:02
deep into the numbers, you're going to go down
19:04
this rabbit hole where it's just going to be
19:06
all logic, logic, logic, and it's just going
19:08
to start becoming a time waster. So for me, it's
19:11
just like, what is the... and a respectable or
19:18
an average amount of knowledge or details that
19:21
you need to know in order to make a decision.
19:23
But then if we start pulling out the general
19:25
ledgers and we start pulling out the rent rolls
19:27
and you need to know what every unit is producing,
19:31
that's getting way too deep into the weeds, okay?
19:33
It's like, that's too much. But if you want to
19:35
know what the average occupancy has been on this
19:38
property that we're acquiring for the last five
19:41
years, sure, maybe I'll humor that question,
19:43
or I'll send you over to the analyst to show
19:46
you, or the underwriter to answer that question,
19:48
right? Because you can easily come back as like,
19:50
well, Mr. Jones, I got to tell you, that's not
19:53
a common question that I get, but I'd be happy
19:55
to get that for you. It's going to take me a
19:57
day, it's going to take me two weeks, but I'll
19:59
be happy to get that for you. But if they have
20:01
a laundry list of 100 detailed underwriting questions,
20:03
then I stop, right? It's like, you know, like
20:05
I'm not going to go in, like if you have one
20:07
or two questions, sure. And the way that I would
20:10
pivot off of those types of things is if they
20:12
started asking me a ton of these logic -based
20:14
questions, I would just stop and I would ask,
20:18
why is that important to you? All right, so if
20:21
somebody says, hey, can I... can I put an investment
20:26
in $5 ,000 increments every week? Then instead
20:30
of saying, well, let me check to see if I can
20:33
do that or not, let me check with my team, come
20:34
back and say, why is that important to you? Because
20:38
I'll say this, that's not a common request. So
20:41
it's not a request that I've come across before,
20:43
but before I go and inquire, why is that important
20:46
to you? right? Or if somebody says, and I think
20:51
this, this other case that you got when somebody
20:53
said, Hey, can I do 25 ,000 now? And then 25
20:55
,000 next month, they kind of already explain
20:58
why they want to do that. Then I would come back
21:00
as like, you know what, angel, that's not a common
21:02
request that I get. It sounds to me that I can
21:04
do this. How I would do it. Sounds to me that
21:06
we can do that. I don't see a problem with it
21:08
because I am raising capital from this person.
21:10
It's going to be open raised the whole time anyway.
21:13
So it would work like as if you were two different
21:15
investors, but you're the same one. So it, In
21:18
my mind, I want to say yes, but I'll take the
21:22
first 25. That's no problem. We can do that.
21:24
It comes down to the second 25. I'm pretty sure
21:27
I can take it. Let me just double check and I'll
21:29
get back to you. But before we go on to that
21:31
second 25, let's start the paperwork on the first
21:33
25 and let's get that done. Okay. Right. We can
21:38
say it's not a common request that I get. I don't
21:41
see a problem with it. I may have to just double
21:44
check with that quickly, but right now, I'm pretty
21:47
sure that it's going to be a yes. So you just
21:49
know that you leave the door open a little crack,
21:51
like a little bit, that you can come back and
21:53
say, hey, you know what? I was wrong. Essentially,
21:57
we can't. It's got to be all done in a 50 or
22:00
whatever. But chances are, it sounds to me that
22:01
that's probably doable, right? Yeah, that makes
22:05
a lot of sense. And I was trying to think of
22:09
some other ones that have just been like, phew.
22:13
But the default would be this. okay you can start
22:17
off by saying oh either this is not a question
22:21
that I commonly get and I would and then so they
22:25
know that it's like if I were to hazard a guess
22:28
then I would say this unless it's got to be something
22:30
like uh what's the cash on cash on this it's
22:33
like well that should be a question you're commonly
22:35
getting right as like that is the offering right
22:38
so it's kind of like if you're selling a car
22:39
what color is the car is like well I don't know
22:41
what color the car is it's like like you can
22:44
sort of get away with saying is like, is the
22:46
color of the car important to you? I was like,
22:48
yeah, that's like one of, does the car have an
22:49
engine or is it electric? I was like, I don't
22:51
know. I was like, is that important to you? And
22:53
then it's like, yeah, that's kind of important
22:55
to me. I was like, all right, well, I don't really
22:56
normally get that request. Most people are just
22:58
looking for a car that goes to A to B, but let
23:00
me go back and check for you. But then you'll
23:04
notice that you'll start getting the same questions.
23:07
So if you keep getting the same, initial questions,
23:10
know those answers. It's like, Hey, I got a great
23:12
car for you. It's a electric car and it does
23:14
this and it's this color because those are the
23:16
common questions you get. So the more at bats
23:18
you have, the more you're going to know those
23:20
answers to the common questions. And then you'll
23:22
be able to come up. Like if you've been doing
23:24
this for 10 years and somebody asked me this
23:26
question, I've never heard that question in 10
23:28
years. I have a lot more confidence to say, you
23:30
know what, that's not a common question. If somebody
23:32
says, uh, you know, how many, um, uh, if somebody
23:35
asked me how many windows does every unit have?
23:38
You know what, Mr. John, in my 10 years, I've
23:41
never had somebody ask me how many windows every
23:43
unit has. Is it important to you? Is it going
23:45
to be a deal breaker for you if it doesn't have
23:48
a certain amount of windows? I was like, no,
23:50
I was just kind of curious. I was like, well,
23:52
if you're curious, it doesn't really change the
23:54
fact it's going to send you 7 % cash flow. It's
23:57
like, where are the deal break? Tell me some
23:58
deal breaker questions.