How to Attract INVESTORS To Your Fund Like a MAGNET? – Investment Banking – Capital Raising

So when you create a real estate fund to buy real estate, and then you’re working on raising more money so that you can make larger down payments to buy larger properties without using, just some lenders or friends and family, do the investors come to you? Or do you go to them? And I’m going to walk through how you can actually do both and how you combine two strategies in one because When you create a private equity fund, say you want to buy a business or you want to buy a that apartment probably in the background, probably obscured by the window, you have to look at who really makes the rules because sometimes you can create, you have inbound investor marketing and you have outbound investor marketing.

Or inbound investor sales in general, let me just talk about the sales and marketing is really just leveraged sales and sales is really a one on one version of marketing. So similar to how a product is like a systematized service, marketing is systematized sales. That’s all it is.

And so when I have a, let’s say that, I’m using I buy something at the store. I buy a ladder. A ladder to help me climb to the roof to paint the roof. That’s a product, but let’s say in the olden days, you have to pay a human being to lift you up and put you on the roof.

That’s a service. So basically, a product is a leveraged service. So similarly to marketing is really just leverage sales. So marketing is one to many, meaning that you get, get their message in front of many people at the same time. Whereas the sales, you’re talking to the investor one on one. I guess the problem with the marketing to investors is that every investor is different.

So the way that you. slightly different. That’s why there’s always a combination of marketing and sales needed. So some people would even go as so far as to argue and obviously this don’t take this literally. Some people would say, including Neval Ravikant, I believe he’s a sentimillionaire who mentored a lot of people, including Tim Ferriss.

He once said that same thing. Product is leveraged service. He said with perfect marketing, you don’t need to sell. And with Perfect product you don’t need to market and obviously real world isn’t like that Like you look at a company like Apple that has a perfect. It has a trillion dollar market capitalization and it has amazing marketing It has amazing sales and it has amazing products.

So obviously it’s not like that in a perfect world But the point I believe he’s making is that you need to have all three done really well to have a great company. Look at that great, like the company is doing pretty well. So when it comes to raising money from investors to buy more real estate, basically have to master the marketing to the investors.

And the way to do that is to focus is to split it up and inbound and outbound different ways of getting it. So inbound means that whenever somebody looks at you, they look at your website, they look at your offering, they have all the instructions to be able to get all the information they need. to take the next step to invest with me.

And then the outbound is when you have salespeople or ads, I guess ads and salespeople is almost the same thing, to reach out to people, to get them to take an action. So it’s more push versus pull. So if you have amazing inbound marketing, here’s how I think it would look like for your private equity deal.

How to Attract INVESTORS To Your Fund Like a MAGNET? – Investment Banking – Capital Raising

Basically you have an amazing website that gives something in exchange for somebody putting their name, email and phone number on your website. And then after they do that, they learn more about your deal. They learn the terms, they see if they’re qualified, like they’re a credit investor. And then they’re willing to invest potentially.

And then you give them all the information they need to understand the structure of your fund and your deal and to wire it to funds. And after, so ideally, in a perfect world, after they go to your website, they put in the name, email, phone number to get all the information. They just wire it to funds and then they get the distributions, that’s it.

But in reality, that barely ever happened, because number one, investors that are usually don’t see you as a subject matter expert unless they’re small. So sometimes few investors who have less to invest underneath 250, 000 to invest may see you as a subject matter expert quicker than investors that invest more than 250, 000 because usually those investors are just so sophisticated that why bother teaching them anything because they just want to make a control.

They just want to control your company. You like in many cases, right? So the point I’m making is you want to make sure that your marketing is so good that somebody sees your website and you on the internet. And then they have all the information for if they choose to, they’re able to get all the information about the deal and then to invest.

So the reality is that it’s so hard to get to that point. It’s almost impossible that you have to talk to a lot of investors on the phone because talking to investors is the quickest way to know what investors want. So by talking to the investors on the phone, you’ll be able to learn all the things that the investors want and then put that on in the front of your fund package and your marketing information.

So that the investors would then see that information and they would also already learn all the things that you’re saying so that they’ll be More likely to invest with you. So that’s pretty much it. It’s basically being ready to take in investment. That’s inbound And when people come to you and choose to book a call with you, you have a script that basically qualifies them and confirms that they’re accredited investors, that they’re looking for them to invest and then that they are interested in investing, and then that’s pretty much it.

Then you take them through the subscription agreement, which is the agreement that they signed to invest, and you answer any questions and objections. Because the only reason why somebody doesn’t take an action is because… They have an objection with investing with you. So you go through all that process, all the process, and then they make the decision to invest with you, then you give them the returns that you promised them.

So then that’s really the investment on the investment side for inbound. Outbound is a bit different. That’s when you reach out to the investors. So it’s more of a push tactic. And so it works really well. Clearly, look at New York. You look at Boiler Room and all this, it works really well, but it’s a bit different.

So basically you’re reaching out to people and then you’re asking them if they need the thing that you’re offering and you’re asking them to take the next step. So it’s a bit more aggressive. And so because it’s a bit more aggressive, a few principles I learned is that when it comes to the outbound marketing, you have to be a bit softer in the script.

Like all the scripts that you use to get the investors to take action are usually softer and less aggressive because just by you taking that step to reach out to the investor suggests that you’re getting them to do something. So then to neutralize that, you have to be a bit less pushy. Whereas if they come to you, I noticed that you can be more aggressive because they’re the ones who are coming to you.

So you can match that by being aggressive. to confirm why they’re coming to you. I just noticed that it’s in general, it seems to work well. But then when you’re reaching out to people and then you start asking them to invest in you and send asking you to wire money to your fund, that’s a bit crazy.

So just take it slow when you go out to them. And usually I notice that there are more steps and there’s more time sometimes needed when you go to other people because there can sometimes be more resistance and more objections when somebody who doesn’t know you gets reached out to. Unless there’s a warm introduction in place.

But basically, it’s the same thing. The only difference is that you reach out to them and then the scripts are a bit softer. And then when they come to you, the scripts are a bit more aggressive. And basically, outbound investor marketing is all about you reaching out to investors, either by running ads to people on platforms that have interruption based ads, like Facebook and maybe Facebook.

YouTube is a bit in the middle because YouTube is a hybrid of search and interruption based ads. And Google is more about search based ads, meaning it’s more inbound focused. So it’s just based on, basically the point I’m making is almost the same thing. Just focus on getting the message in front of people.

Ask them if what they’re doing is the same as what you’d like them to do. And then get them, ask them to take action if you can benefit them with your investment. You’re just solving problems.

How to Attract INVESTORS To Your Fund Like a MAGNET? – Investment Banking – Capital Raising

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