Bonus Episode: Raising Capital 101
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Description
In this bonus episode, dive into the tricky world of capital raising for real estate investments! Brian Adams shares another conversation on the Commercial Real Estate Investor podcast where he, Tyler Cauble, and Logan Freeman discuss their experiences and strategies in this complex process. They discuss the importance of solid relationships with investors, creating a simple yet attractive deal narrative, and understanding economic conditions. They provide practical advice such as understanding the ideal customer profile, networking with potential investors, giving insight and content, building an investor acquisition system, using AI-based campaigns and emails, and reading industry news.  Tune in for an insightful discussion on capital raising for real estate investments! [00:00 - 15:50] How to Pitch Your Deal and Find Investors for Real Estate Investments Having relationships with potential investors is vital before attempting to raise capitalCapital raises can be stressful, and there will always be objections and excuses from potential investorsIt is essential to understand the Federal Reserve and macroeconomic concepts such as supply [15:50 - 28:01] Analyzing Yourself and Positioning Your Deal Starting with friends and family may not be the best strategy for a capital raiseStart with the "why" behind the deal before discussing the "what" and "how"Vying for attention is vital to get capital and explain the dealMultiple communication mediums can be used to grab attentionDirect outreach is necessary and effective, such as calling and leaving voicemails [28:02 - 43:33] Investor Acquisition System: The Key to Raising Capital for Future Projects It is essential to identify who your ideal customer profile is and what problems they faceUse social media and build an email distribution list to reach potential investorsUse the Investor Acquisition System to start with reputation, visibility, and leadershipBuild investor journey through educational content, lead generation, and call to action [43:34 - 58:18] Simplifying the Complexity of Deal Structures Don Miller's quote, "If you confuse, you lose," is applicable to dealing with structuresMarketing materials should be accessible to a fifth-graderFour return metrics to understand: IRR, cash on cash, equity multiple, and preferred returnFramework to use when communicating returns: why, how, what Quotes: "Unless you are going to market consistently, you'll never get better and learn. And we've always improved our process and systems when it's been like the most grueling capital races. Because that's really when you figure out what works and doesn't work." - Brian Adams "We're all vying for attention and live in the attention world now. And unfortunately and fortunately, we can send text messages. We have emails. We have phone calls. We can send video messages. We have all of these different modes." - Logan Freeman Listen to the Commercial Real Estate Investor podcast with Tyler Cauble! Connect with me on LinkedIn! LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in, and Stay Tuned for the Next Episode COMING SOON!   Hosted on Acast. See acast.com/privacy for more information.
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