Stealth Strategies for Finding Investors and Raising Capital

10 Replies

I have been speaking to physician groups across the country for several years and I typically am in front of groups of private practice physicians. I usually speak on Strategic Patient Marketing or Relentless Implementation as it relates to business. 

One day it hit me....that I should start discussing my multifamily real estate syndication business during my talks. I didn't want it to come across too direct so I just started randomly showing pictures of apartment complexes throughout my talk (usually 2 pics during a 1 hour talk). It would remind me to mention what I am doing with the real estate syndication for apartments and I briefly cover the tax advantages for high net worth individuals such as physicians. Now after every talk I typically have 3-4 physicians come up to me to discuss how they can invest with me. Recently I had 8 physicians come up to me after the talk. Pretty awesome!

You should start thinking of topics that you can talk on to get in front of other high networth people. If you have something that is valuable to them, you should start trying to get on their stages at various trade show and annual conventions.

I am on my way to Beverly Hills, CA today to speak with 250+ physicians at another conference. I'm actually sitting in the Delta SkyClub right now in Atlanta waiting for my 8:30AM flight to LAX. I have my 6 yo daughter in tow since I always like traveling with family. I have 4 children now so each gets a turn to travel with daddy. It's the first time my daughter is riding in first class cross-country. Hopefully it doesn't spoil her...wink...wink...maybe it will and it will turn her into a real estate queen so she can afford to fly in first class. :-)

Anyway...I shared a unique way that I reach high net worth people. 

What other ideas/strategies do you have to reach more investors to raise more capital?

Find a way to get on local TV to start building a brand name for yourself.

I was at a real estate meeting where local TV personality Rob Black was the invited speaker (Google "Rob Black San Francisco"). He mentioned he would make sizable (with strategic intent) donations to various worthy causes because he knew high net-worth individuals would be in attendance at them also.

Even Warren Buffett would appear on local TV in his early days (1960s):

https://www.youtube.com/watch?v=REhg_bv7srM

Before lawyers were allowed to advertise back in the 1970s, they would join fraternal organizations and volunteer for a leadership position no one else wanted. The monthly newsletter would mention their name, occupation, and position. The idea is that when members needed legal help, they would think of their fellow member first.

Of course, there can always be too much of a good thing. The SEC, for example, warns investors of affinity fraud:

https://www.sec.gov/investor/pubs/affinity.htm

@Dan Handford Great Job!!  

Would you mind sharing how you transition from talking about pt marketing material to MF Syndication?  

It seems like you lightly touch on your investing experience and interested MDs approach you after the presentation but what does the transition look like?  

What do you say when a pic of  an Apt pops up on a slide deck?

Thanks!

Dino

Originally posted by @Dan Handford :

I have been speaking to physician groups across the country for several years and I typically am in front of groups of private practice physicians. I usually speak on Strategic Patient Marketing or Relentless Implementation as it relates to business. 

One day it hit me....that I should start discussing my multifamily real estate syndication business during my talks. I didn't want it to come across too direct so I just started randomly showing pictures of apartment complexes throughout my talk (usually 2 pics during a 1 hour talk). It would remind me to mention what I am doing with the real estate syndication for apartments and I briefly cover the tax advantages for high net worth individuals such as physicians. Now after every talk I typically have 3-4 physicians come up to me to discuss how they can invest with me. Recently I had 8 physicians come up to me after the talk. Pretty awesome!

You should start thinking of topics that you can talk on to get in front of other high networth people. If you have something that is valuable to them, you should start trying to get on their stages at various trade show and annual conventions.

I am on my way to Beverly Hills, CA today to speak with 250+ physicians at another conference. I'm actually sitting in the Delta SkyClub right now in Atlanta waiting for my 8:30AM flight to LAX. I have my 6 yo daughter in tow since I always like traveling with family. I have 4 children now so each gets a turn to travel with daddy. It's the first time my daughter is riding in first class cross-country. Hopefully it doesn't spoil her...wink...wink...maybe it will and it will turn her into a real estate queen so she can afford to fly in first class. :-)

Anyway...I shared a unique way that I reach high net worth people. 

What other ideas/strategies do you have to reach more investors to raise more capital?

 Dan, this is a great practical example of what I always advise people to do - figure out how to get into the rooms where you are the only person there who knows anything about real estate.

It's totally pointless to be in a room full of other real estate investors who are also looking for money for deals.

You want to be in a room full of people with money and no competition from other real estate guys.

So, skip the REI and BP meetings and join the country club or the local Chamber of Commerce or a BNI group. Figure out where the local business people hang out and hang out with them.

Don't pitch your deals to them.  Just talk to them about what you are doing.  Talk about it with passion and excitement.  

What so many people here don't realize is that rich people have a unique problem:  what to do with all that money.  Good investment opportunities are few and far between.  Good investment opportunities run by trustworthy people with integrity are even fewer.  And good investment opportunities run by people with integrity with whom those wealthy people have personal relationships are even fewer still.

That's where you want to be:  the trustworthy real estate investor with integrity, who is the only real estate guy in a room full of rich people he knows personally, with no competition from any other real estate guys.

Go find those rooms.  They exist.

REI meet ups are great for learning from other investors. But if you want to find money for deals, you need to go elsewhere.

@Dan Handford , @Jonathan Twombly , You both make valid points and good recommendations. I would also add that to make such statements/appearances, one has to get a credibility first and get well acquainted with the crowd. In other words, gain the crowd's trust first. That takes time. I in no way want to discourage anyone from doing it. On the contrary, I completely agree it is a great way to find investors, but I wouldn't start an intro to the crowd with the talk about investments. The crowd must get fully comfortable with you first! 

Best!

Originally posted by @Alina Trigub :

@Dan Handford , @Jonathan Twombly, You both make valid points and good recommendations. I would also add that to make such statements/appearances, one has to get a credibility first and get well acquainted with the crowd. In other words, gain the crowd's trust first. That takes time. I in no way want to discourage anyone from doing it. On the contrary, I completely agree it is a great way to find investors, but I wouldn't start an intro to the crowd with the talk about investments. The crowd must get fully comfortable with you first! 

Best!

 I wasn't talking about public speaking on this.  I was talking about getting into the right room and getting to know people.  They will ask you what you do.  You tell them about real estate investing.  You have a conversation.  You're not pitching or selling anything.  You are just beginning the process of getting to know them.  That's it.

That is great advice Jonathan Twombly, thank you.

Unfortunately I've learned this the hard way first hand as I’ve come to realize I had too many people in my network and list from REI meetings that are looking to do their own deal...which doesn’t help me when raising funds.

@Jonathan Twombly Your feedback comes down to the same conclusion I made before: it takes time to get to know the people and for them to learn about your business. Public speaking or one on one interaction doesn't change it.

Originally posted by @Jonathan Twombly :
Originally posted by @Dan Handford:

I have been speaking to physician groups across the country for several years and I typically am in front of groups of private practice physicians. I usually speak on Strategic Patient Marketing or Relentless Implementation as it relates to business. 

One day it hit me....that I should start discussing my multifamily real estate syndication business during my talks. I didn't want it to come across too direct so I just started randomly showing pictures of apartment complexes throughout my talk (usually 2 pics during a 1 hour talk). It would remind me to mention what I am doing with the real estate syndication for apartments and I briefly cover the tax advantages for high net worth individuals such as physicians. Now after every talk I typically have 3-4 physicians come up to me to discuss how they can invest with me. Recently I had 8 physicians come up to me after the talk. Pretty awesome!

You should start thinking of topics that you can talk on to get in front of other high networth people. If you have something that is valuable to them, you should start trying to get on their stages at various trade show and annual conventions.

I am on my way to Beverly Hills, CA today to speak with 250+ physicians at another conference. I'm actually sitting in the Delta SkyClub right now in Atlanta waiting for my 8:30AM flight to LAX. I have my 6 yo daughter in tow since I always like traveling with family. I have 4 children now so each gets a turn to travel with daddy. It's the first time my daughter is riding in first class cross-country. Hopefully it doesn't spoil her...wink...wink...maybe it will and it will turn her into a real estate queen so she can afford to fly in first class. :-)

Anyway...I shared a unique way that I reach high net worth people. 

What other ideas/strategies do you have to reach more investors to raise more capital?

 Dan, this is a great practical example of what I always advise people to do - figure out how to get into the rooms where you are the only person there who knows anything about real estate.

It's totally pointless to be in a room full of other real estate investors who are also looking for money for deals.

You want to be in a room full of people with money and no competition from other real estate guys.

So, skip the REI and BP meetings and join the country club or the local Chamber of Commerce or a BNI group. Figure out where the local business people hang out and hang out with them.

Don't pitch your deals to them.  Just talk to them about what you are doing.  Talk about it with passion and excitement.  

What so many people here don't realize is that rich people have a unique problem:  what to do with all that money.  Good investment opportunities are few and far between.  Good investment opportunities run by trustworthy people with integrity are even fewer.  And good investment opportunities run by people with integrity with whom those wealthy people have personal relationships are even fewer still.

That's where you want to be:  the trustworthy real estate investor with integrity, who is the only real estate guy in a room full of rich people he knows personally, with no competition from any other real estate guys.

Go find those rooms.  They exist.

REI meet ups are great for learning from other investors. But if you want to find money for deals, you need to go elsewhere.

 Terse, pithy and spot on. "Dan, this is a great practical example of what I always advise people to do - figure out how to get into the rooms where you are the only person there who knows anything about real estate."

@Dan Handford Great posts and great advice @Jonathan Twombly !  "Get into rooms where you are the only person there who knows anything about real estate." I'm currently networking at meetups with other investors who have similar goals as me in investing in commercial multi-family. Since I'm just starting, my goals are to partner up with like minded investors to get deals to build a track record. Then I can comfortably talk about deals with individuals with money who know nothing about real estate. Because usually the one thing they'll ask is...so what's your experience?