Dave Dubeau 0:00
Say, I lost that deal, I was not able to raise the money for it because I bought into that find a good deal, the money will find you. Since then, I’ve completely changed my philosophy. And I think, hey, here’s the goal. Get your investor ducks in a row first. And then go looking for the deals or at the very minimum, do both at the same time. But don’t wait until you got a hot deal on the go. And then desperately start looking for the capital. Try and get that set up ahead of time get those investor ducks in a row. So the whole goal and nowadays we work with clients and we help them do all of this stuff, is we want to get you a bunch of investors waiting in the wings anxiously you know, biting their fingernails waiting to jump in on your next opportunities.
Welcome to CRE PN Radio for influential commercial real estate professionals who work with investors buyers and sellers of commercial real estate coast to coast whether you are an investor, broker, lender, property manager, attorney or accountant we are here to learn from the experts.
J Darrin Gross 1:06
Welcome to Commercial Real Estate Pro Networks, CRE PN Radio. Thanks for joining us. My name is J Darrin Gross. This is the podcast focused on commercial real estate investment and risk management strategies. Weekly, we have conversations with commercial real estate investors and professionals to provide their experience and insight to help you grow your real estate portfolio.
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Today, my guest is Dave Dubeau. Dave Dubeau is a real estate entrepreneur, best selling author, speaker and investor, attraction expert. And in just a minute, we’re gonna speak with Dave about raising capital. But first a quick reminder, if you like our show, CRE PN Radio, there are a couple things you can do to help us out. You can like, share and subscribe. And as always, we encourage you to leave a comment we’d love to hear from our listeners. Also, if you want to see how handsome Our guests are, please go to our YouTube channel. You can find us on YouTube at Commercial Real Estate Pro Network. And while you’re there, please subscribe. With that own welcome my guest, Dave Dubeau, welcome back to CRE PN Radio.
Dave Dubeau 2:38
Darrin, thanks so much for having me.
J Darrin Gross 2:41
Well, I’m looking forward to our conversation today. But before we get started, if you could take just a minute and share with listeners a little bit about your background.
Dave Dubeau 2:50
Sure. Well, thanks very much. I am originally from northern British Columbia, Canada. Born and raised living there now however, I took a little hiatus and I lived overseas for almost 14 years. Traveling around Mexico and Latin America, settled down and lived in San Jose, Costa Rica for a decade, from about 93 to 2003. Ran a language training company down there, got married, had kids, all kinds of good stuff. And then in 2003 I uprooted my Costa Rican family and moved us all back to the frozen hinterlands of British Columbia, Canada. And a lot of people, especially Canadians, go what are you crazy? Maybe Maybe Costa Rica is wonderful is beautiful. However, being the pasty faced white guy that I am. Whether you have money or not people assume that you do in Latin America. And there’s a distinct risk of being kidnapped, held for ransom, that sort of thing. So in the small town we live in, in British Columbia, Canada, that hardly ever happens. So that was a matter of our kids were getting towards school age, we decided, hey, you know what, Costa Rica is great, but I think it would be better for the kids to grow up in North America. So that’s why we moved back.
So at that point, Darrin was like, Okay, now what do I do? I mean, I’d been out of the country for so long. I didn’t have a bad credit rating. I had zero credit rating, just nothing. I had been self employed for quite a while. So I was pretty much unemployable hadn’t been able to sell my business in Costa Rica so didn’t have a lot of money to get started with. And it was a question What am I going to do? So I don’t know if you remember those you remember those late night infomercials? Darren, you too can get rich in real estate with little or no money down. I need you to do it. You’ve got the radio voice, but you know what I’m talking about, right? Oh, yeah. But I saw one of those. I saw one of those commercials I said perfect. That’s what he got little or no money. So I send away for this program. A guy named Ron Legrand all about creative real estate real estate type deals. had to kind of Canadian eyes it it’s basically all the same stuff, Darren, I mean, we have slightly different language for things up here. But real estate works. The same as it doesn’t doesn’t state. So first of all kicking the can was I did 18 deals in 18 months, these creative low money, no money down type deals, which may or may not sound impressive. It sounds kind of impressive. However, you got to see some of those deals, some of those were pretty, pretty sketchy at best, talking about rundown mobile homes and mobile home parks and things like that. So, but I got very good at doing creative deals and attracting motivated sellers. So that’s, that’s how I got started in the real estate space.
J Darrin Gross 5:40
Well, 18 deals in 18 months. I mean, you’re getting reps, and you’re having success, regardless of you know, how pretty they were, how big they were. I would think that just, you know, it’s like anything, you know, whether you’re doing math or trying to learn how to hit a golf ball or whatever the revenue,
Dave Dubeau 6:00
Neither which, neither one of those things, I’m particularly good at Darrin. So
J Darrin Gross 6:06
The point is that repetition is really the that’s the key, exactly are the those that are have some natural talent. But even that if they there’s room for improvement, and, you know, repetition, how you get there. So that’s great. So you you started, I know, down here, it seems like the guy was Carlton Sheets, but it was all the same kind of thing. It was a late night. You knew us it was time to go to bed when when the ads started coming on, because everything sounded too good.
Dave Dubeau 6:37
Yeah, but I think I was I was stressed out, I had insomnia. So I was late, up late, thinking, what the heck am I going to do to put the put the food on the table? That kind of thing.
J Darrin Gross 6:46
So yeah, no, I know, I’ve got several insurance clients that I think, you know, that’s kind of how they get started, because I remember some of the deals that they were, they were bringing me when I first started, right, you know, insurance were like, and, you know, just, they just, they were nothing like anything I had ever seen before, you know, trees growing through the chimney are kind of thing and, but they were making money and making it happen. And, you know, again, it was kind of more of a, an assumption and finding those that were there was some opportunity, and kind of learning the ins and outs and becoming more proficient. And, you know, to this day, they’re there they’ve done very well and, and have multiple properties very secure, you know, base of, of equity and and, you know, options for for exits and and all that fun stuff. So
Dave Dubeau 7:41
I wish I had been smart enough to hold on to a bunch of those properties. But those were all kind of quick turn transactional type deals. So so it made it made a quick POP of cash with them, but that didn’t get any of the long term growth. So that was gonna jump.
J Darrin Gross 7:57
Well, but during your your experience, so you mentioned that you attracted investors and stuff.
Dave Dubeau 8:03
Well, yeah, so that’s how I got started in real estate, took a few years off, and then when I got back into it, then I started doing a little bit more traditional type stuff, starting with single family homes, buying and holding them for a while. That’s when I started bringing on joint venture partners investors, that sort of thing, then transit transitioned into multifamily buildings later on. And these days I’m personally I’m more of a kind of a passive investor myself, because, quite frankly, Darrin, I realized a while ago, I kind of suck at dealing with tenants and toilets. So I’d rather let the guys and gals that are good at that take care of that stuff.
J Darrin Gross 8:39
Ya know, that’s an important realization to have. Yeah, property management versus asset management, two entirely different roles and the big deal there. But so let me ask so you, you know, you came, came back into you got into larger properties and raising money. Did you find the property first? Or did you find the money first when you were doing these larger deals?
Dave Dubeau 9:09
Oh, yeah, that’s a good question. So at first, when I first started realizing I needed to access other people’s money to grow my portfolio. I bought into the guru talk of just find a good deal and the money will magically find you. And personally, Darren, I like to find whoever came up with that expression first and smack them right upside the head. Because I think they’ve done the vast majority of real estate investors a great disservice for that because it’s baloney. At least in my experience, so so that’s what I tried at first, I remember it vividly. I just little deal on the go, just a single family home, but I needed to raise $85,000 And I only had less than two weeks to do that. And I didn’t have anything lined up. So I was starting from scratch. So I had heard that expression, find a good deal. The money is going to find you but I knew that. You know it wasn’t just like the secret that the universe is going to do. plunk a bag full of money down on my patio. So I’d have to do something. So I’d also heard these gurus say, Well, hey, you know what if you need to raise some capital quickly pick up the phone and do what all of us love doing, which is cold calling, right Darren, I don’t know if back in the day, when you were first starting in the insurance business, you were encouraged to cold call people and try to pitch them on on your stuff. But that’s kind of a common thing for, for people in those kinds of industries to be told. So I thought, hey, well, I’ll give that a try. And I failed miserably at that.
Yeah, I didn’t really know what I was doing. Plus, quite frankly, I just think it’s really a really bad idea. Unless you’ve got an amazing sales background. You’re very good at that. But if you’re trying to raise at that time was trying to raise $885,000, if you’re trying to get somebody invest 85 grand with you, calling them calling them up cold over the phone, probably isn’t the best way to do it. So I did a bunch of those calls. That didn’t work for me. So then I thought about I got to try something else. And I’d also heard Hey, go out and network up a storm turn every conversation into real estate conversation. Nothing wrong with networking, Darrin, the challenge is when you’re on a really tight timeline. So by this time, I’m down to like seven days that I’ve got to come up with 85 grand. So when you’re in a tight timeline, and you’re networking and schmoozing to raise capital, the desperation kind of oozes out of every pore in your body. Right. Right, people can pick up on that. So it doesn’t really matter how good the deal is, if you’re coming across as desperate needy, that’s going to creep people out, it’s just going to kind of repel them. So that’s what happened there. And then I was getting really desperate a few days before I needed to close on this deal. I came up with a what I thought was a great, brilliant idea said hey, this is such a good deal. It’ll sell itself if enough people see it I’ve ever heard anybody say something like that was me. So I put together the one PD one page PDF outline of the deal, put together a list of a couple of 100 people that I knew. And I spammed I mean, I emailed them all this, this PDF, and I remember it was like a Wednesday night. I think I’d removed subjects on Friday. So it was a Wednesday night I sent this out. Thursday morning, I got up I was so excited Darrin because I had some responses in my inbox. And then I started reading the responses. And they pretty much all said something along the lines of hey, Dave, dude, haven’t heard from me in forever. One guy hadn’t heard from me in eight teen years there. And this was the first thing that showed up in his inbox from me. Hey, it’s Dave, I got the deal. Have you got the dope thing, right? They all basically said, Hey, do Bo take a long walk off a short deck, take a hike, get out of here. Bottom line, Darrin, that’s a very long winded way to say I lost that deal, I was not able to raise the money for it, because I bought into that find a good deal, the money will find you. Since then, I’ve completely changed my philosophy. And I think hey, here’s the goal. Get your investor ducks in a row first. And then go looking for the deals or at the very minimum, do both at the same time. But don’t wait until you got a hot deal on the go. And then desperately start looking for the cattle. Try and get that set up ahead of time to get those investor ducks in a row. So the whole goal and nowadays we work with clients and we help them do all of this stuff, is we want to get you a bunch of investors waiting in the wings anxiously. You know, biting their fingernails waiting to jump in on your next opportunity. So that’s, that’s the goal these days.
J Darrin Gross 13:47
So you you know, you still raise money for your own deals? Or do you primarily work with others to help them raise money?
Dave Dubeau 13:54
Primarily these days, I’m working with others, we have kind of, for lack of a better term, a a boutique marketing agency, and we work with what I call Mom and Pop real estate investors, help them get started on their path to raising capital doing it the right way. And help them get their first, you know, anywhere between 500,000 to 1.5, maybe $2 million worth of industrials and capital lined up.
J Darrin Gross 14:17
That’s, that’s impressive. So in that role, what are some of the mistakes you see that you know, in or people that are trying to raise money make?
Dave Dubeau 14:30
Yeah, well, you know, everything that I just mentioned, all those mistakes I’ve made, I see other people making those as well. So waiting until you’ve got to deal until you start trying to raise capital and then just floundering around and and, you know, running around like a mad person. That’s a big mistake. Another big mistake is you know, especially for newer capital raisers is they think that everybody and anybody with a pulse and a checkbook could be a good investor. So I’m going to cover my butt here, Darrin, I’m gonna say the caveat is I’m not a lawyer, nor a security specialist. I’m a real estate guy up here in Canada. However, you know, you guys in the states have the Securities and Exchange Commission, we’ve got our own version of that up here, they’re just as nasty. It’s all basically the same role. So, same idea. So, a lot of people, I see it, I’m sure you’ve seen this as well, they start pitching their deals on social media, like they put it up on Facebook, or LinkedIn, or whatever their flavor of social media is, and say, Hey, I’m looking for investors for this deal. I’m offering x, where she had guaranteed and all this kind of stuff, right? And they’re trying to promote, they’re trying to solicit investors in a public forum. And my understanding is that that is illegal, right? Unless you’re licensed to do so. Like, if you’re a stockbroker, if you’re a financial planner, certain cases, maybe a mortgage brokers, certain financial specialists, they, they can do that they’re there, they’re able to do that the big banks, etc. Or, if you’re set up with a specific exemption, in the case of our American friends, right, you’re, you’ve got exemptions, or you’re set up with corporate structures and, and offering memorandums and all these kinds of things, which tend to be very, very expensive and cumbersome to set up, which doesn’t really make a lot of sense if you’re doing a little single family home or a duplex or a small deal. Right. So where does that leave us? Well, I think the best place for people to start is to focus on their existing network of contacts. So instead of going out to everybody, and anybody, I mean, we got to be logical about this as well there. So I mean, think about it, if you’re trying to get somebody to invest 5075 $100,000 or more with you in a deal, chances are, they’re going to need to know you, they’re gonna need to like you, they’re gonna need to trust you with their money. If you’re going out to the great, unwashed masses, you’re going out to the general public, you’re going out to strangers, strangers, don’t know you, they don’t like you. And they certainly do not trust you with their undergrads. So that’s a long shot at best. So why not focus on where we can kind of shoot fish in a barrel. And that’s with people that you already have in your existing network, friends, family members, co workers, business associates, people who know you, and who you know, because when we focus on those folks, number one, we’ve taken care of the know like, and to a certain extent, the trust factor, they know you they like you, they may trust you to babysit the dog for the weekend, maybe not with 100 grand yet. But you know, we’re getting closer, we got two out of the three, which meatloaf saying is all about that, that ain’t that that’s it, that’s a good place to start. So that’s that’s what we recommend, is when you’re getting started with raising capital, focus on your existing network. Laser laser focus on that is going to be the fastest capital, it’s going to be the easiest capital is going to be the safest capital for you to get started with.
J Darrin Gross 18:08
That’s good. With raising money, I guess that you mentioned like when to start, you recommend kind of either before or at least at the same time when you when you find a deal?
Dave Dubeau 18:21
Well, yeah, I recommend before. So that’s a really good question, Darrin, because a lot of people are hung up about this, especially when they’re first starting with raise capital, When should I start trying to bring on joint venture partners, investors, etc. And my personal opinion is, as soon as you’ve got one successful deal under your belt, then you are ready to start using other people’s money. Because the statistic I’ve heard thrown around for years, is that 95% of the general population has never purchased an investment property before their own house does not count as an investment property. So if you’ve got even one successful deal under your belt, chances are you’re ahead of the vast majority of the non real estate people that are in your network. So And my philosophy is, you know, a good real estate deal is the absolute best way for everyday folks like your listeners, myself, our investors to get an above average return on their money backed by a solid, tangible asset, a real piece of property, because I don’t know any other investment class out there that we can exercise as much control over right. So when you think about it a piece of property, we can draw what market we want to focus on, what kind of properties we want to focus on, who’s selling them on market off market type deals, to a certain degree, how much we pay for them and there’s a little bit of negotiation available there, how we get them financed to a certain degree, right? We can control what we do with those properties. Once we Get them, how we make improvements on them, who we put in those properties as our tenants, we’re holding them long term, how we exit those properties. So we have so much more control over this asset class, then buying gold stocks, bonds, mutual funds, crypto, all these kinds of things. We really don’t have much control over. Right.
J Darrin Gross 20:22
Right. Right. So as far as the asset goes, do you typically work with people that are looking for like, multifamily value add? Or do you work with other asset classes or other strategies for for, you know, buy and hold or what’s kinda the sweet spot?
Dave Dubeau 20:40
Pretty, pretty much you know, as far as the people that we work with as our clients. Yeah. Pretty much runs the gamut there, Darrin. So again, we tend to be working with smaller Mom and Pop real estate investors. We’re not working with the big time syndicators. So we’ve got clients who are doing single family homes, burrs, self storage facilities, by fixing sell flips, small multifamily properties. We’ve got people that are doing land deals, we’ve got people that are doing carwash, we got all you know, pretty much commercial, you name it, if it’s if it’s got real estate involved with it. The process works the same way. Tax liens, tax deeds too. Yeah.
J Darrin Gross 21:23
Got it. So how do you set realistic or attainable expectations? When you’re when you’re meeting with somebody? Is that based on the size of the network that they have? Or was it their experience? Or how do you kind of, if I, if I came to you and said, Dave, I want to raise, you know, $10 million?
Dave Dubeau 21:45
Well, I would say, that’s great, Darrin, how much have you raised to date, if you see a big fat zero, right? Then we’ll say nothing wrong with wanting to raise 10 million, we can probably help you get up to your first one, maybe to 2 million, by really leveraging your existing network. Because that’s what we found over the last six years, we’ve been doing this as we can typically squeeze the juice out of your existing network, get that one to 2 million out of there. Once you’ve got that, then you’ve got to quickly work on expanding your network and probably start working with accredited investors who have larger amounts to invest there. But that’s that’s kind of why that’s our sweet spot is we help people get started in the process, get them up to that, you know, over time up to that one to 2 million.
J Darrin Gross 22:32
Got it. And even in that just heard me like, I’m assuming that there’s kind of a reality check. Sometimes based on what people you know, want to do versus what, what seems reasonable or what’s easily easily attainable. You’re saying the find that that kind of the eyes are bigger than the play kind of thing, or we’re
Dave Dubeau 22:53
Not necessarily there’s there’s a, there’s a bit of a range there, but quite often daring. Again, like I say, we’re working with the mom and pops that have been doing some deals for a while that typically they sell finance their first 234 properties, something like that, now they’ve hit the raw, they’ve run out of cash, they’ve run out of credit, they tend to be very insecure about how to go about raising capital. So if anything, a lot of them tend to be quite conservative, right? So we, we actually are able to show them that, hey, we can probably get you even better results than then you’re hoping for. But again, yeah, it’s it’s important that we have those realistic expectations. So typically, what we say is, hey, it’s fairly straightforward to raise your first six figures, in a matter of, you know, less than two months kind of thing. And then we can be working towards the seven figures, the million dollar mark over the course of a year. So it’s not a immediate type thing. So it’s, it’s like anything, I mean, Darrin, you’ve been in the insurance business for for many years now. So you understand that, you know, when you first reach out to that target group, that market, you’re gonna have some low hanging fruit, you’re gonna have some people that are ready, willing and able to do business with you right away. But then you’re gonna have a much, much larger group of people, they’re going to take a little bit of time, to warm up to the idea, they’re going to take a little bit of time to be convinced that you’re the real deal. They’re gonna it’s gonna take a little bit of time for them to be ready, willing and able, especially in our case, if we’re trying to get them to invest 50 7500 grand or or more, they’re gonna have to feel very, very comfortable. So we’re gonna have to work on their timeframe, not just our timeframe. Does that make sense Darrin?
J Darrin Gross 24:41
Yeah, totally you mentioned kind of the lack of confidence or or I don’t remember exactly how you said it, but something about the investor not really I took it to me like they really believe in, in what in the value of their experience kinda thing.
Dave Dubeau 24:59
Yeah, That’s uh, so a lot of our work is just getting people in the right headspace to show them that yeah, they are worthy because here’s the thing, right? A lot of people that are listening to smart guys like you with podcasts that are interviewing super successful real estate investors who’ve got dozens or hundreds or 1000s of deals under their belt, they’re watching guys, like CARDONE on YouTube with, you know, raising gazillions of dollars and all this kind of stuff. That’s what they think is normal. But that isn’t what’s normal, right? Normal is Mom and Pop real estate investors that that, that makes up over 80% of the population of real estate investors. And the reality is, the vast majority of the people in your network could really benefit from partnering with you on a deal. I mean, we talked about, we talked about real estate as an asset. And if you look at the kind of returns and I know you’re in the financial business, Darrin, so you see this every day, right? The kind of returns, the average person is getting on their investments, whether that’s stocks or bonds, or, or mutual funds, or whatever it is, is pitiful, it’s not even coming close to keeping up with inflation, especially these days. They’re getting whacked with fees left, right and center by their financial planners. And they really aren’t coming ahead yet getting ahead. By doing it the way we’re told to do it, right. So when we bring people the opportunity, when we educate people about what we’re up to, with real estate investing, I say educate. That’s a very purposeful expression there. I’m not saying pressure, I’m not saying manipulate, I’m not saying convince people to invest with you, when we show them what we’re doing. We show them what’s in it for them, we show them the big benefits of real estate, not only as an investment class, but also all the multiple ways that they can profit from even one real estate deal. So Darrin, I know you will work with a lot of guys and gals in the commercial space. So if we’re talking about for example, a an apartment building, I’m aware of up to eight different profit centers, from one multifamily deal. Now compare and contrast that to almost any other investment out there. Who that might have usually just have one way to make money, maybe two, but definitely not eight. So again, when we’re able to show people, Hey, here’s why real estate rocks, and why it’s so much more is so much superior to pretty much everything else out there. And we allow them, we show them the pros, we also show them the pitfalls, we show them the risks as well. And we allow them to make an educated decision.
J Darrin Gross 27:45
Got it. So when you have somebody and you said, kind of work with them on their own mental frame of mind, you know, to to kind of get them to know that they do have valuable experience and others would like to probably work with them. What are is it? Kind of from that point? Is it stories that they kind of, you know, learn to tell others about, you know, their own experience? Is it? Is there a a medium that you find works best? Is it written letters? Is it emails? Is it phone calls? Is it what what’s kind of the the method and then the frequency that you find that somebody who’s getting started and trying to raise money? And let’s say they they’ve they’ve been investing for years, but but also low? Also? Yeah, that’s yeah, it’s very common. Now there’s another looking to try and raise some capital.
Dave Dubeau 28:42
Yeah, that’s a really good question. Darrin. So what I talk about are the three C’s of capital marketing. And the three C’s are constant, consistent, edutating, communication. Sorry, I have to throw entertaining in there. I’ll explain that positive, consistent communication, communications, the marketing, it’s what we’re saying. Constant means the frequency. So our recommended frequency is like once a week. That’s that’s pretty ideal. And once a week isn’t overwhelming, I’m sure you’re on a bunch of different people’s email lists, and you get gazillions of emails from certain people way more than once a week. So once a week isn’t overwhelming, and we recommend that people mix it up a little bit. So the simplest things to do and the things that are most effective these days are electronic newsletters. So for example, once a month when we’re working with clients the first week, first week of the month, we send out an electronic newsletter on their behalf and we try to make it edutainment. What does entertain me means a little bit educational, a little bit educational, and hopefully a little bit entertaining, without necessarily being goofy, right? So here’s what we need to remember there. And this is true of any business, right? You’re in the insurance business. And what you probably learned a long time ago is that you are very enthusiastic and keen about insurance, yet very few other people. No offense,
J Darrin Gross 30:21
Very true. Very, very true.
Dave Dubeau 30:22
Same thing with us as real estate investors, we’re very, we’re nerding out on this stuff. I mean, for crying out loud, you got people listening to us jabber on about real estate investing and raising capital, you got to be a little bit different than the average person if this is something of interest to right, and that’s a good thing. But what we got to remember is, our target group of potential investors are not us, right? They don’t really give a darn, they want to know that we know our stuff. And they just kind of want to get the gist. So a big mistake I see a lot of people making is they try to over educate their prospective investors by doing a data dump of everything in their brain, and try to transpose it onto other people’s brain. Big mistake. So we want to keep it super simple. Educate them a little bit. Hopefully entertain them a little bit and keep it super simple. I call it Reader’s Digest love. You remember the good old Reader’s Digest? Yeah, yes. My grandma used to get that I used to read that when I was a kid at her place. It was great. So as a magazine written for grownups, however, was written at a 13 year old reading comprehension level. So any, we want to keep our I’m not saying our investors are dumb. We just want to keep it super simple for them. So it’s easy for them to consume and understand and have a clear call to action. So to answer your question is a long winded answer for sure. What are we recommending electronic newsletters, then we’ll follow up the next week, it might be a blog posts or short little article something about why why real estate rocks compared to everything else, or why per specific strategy you’re focusing on or the market you’re on, you know, pretty light, not too heavy. With a clear call to action. Hey, if you’d like to find out more, click here, book a call, let’s have a conversation, see how this could work for you. The next week, it might be something different, perhaps is a short video, a video log of log. And that would be like a three to five minute little video, where you’re talking about something, maybe sharing a story during a case study, doing a walk through doing and showing before and after picture, something like that. So again, keeping it fairly high level, hopefully a little bit entertaining. And then with that clear call to action. So every single week, drip, drip, drip, something to get top of mind and stay top of mind with your prospective investors. The low hanging fruit, they’re going to be keen, they’re going to be responding right away. The other folks that take a while, hey, they’ll respond when time and circumstances are right for them. Right. So it might be three months down the road, five months, six months, 12 months, 18 months down the road, really doesn’t matter. Right? Because if you’re doing this constantly and consistently, it’s going to be creating a regular flow of investor meetings for you. And that’s the whole goal.
J Darrin Gross 33:15
No, that’s, that’s really good. The kind of the frequency and the method and, and, you know, again, I think myself and I struggle with it kind of the I feel like it’s kind of horn tooting. You know, it’s always like look at me kinda thing.
Dave Dubeau 33:31
Yeah, there’s there’s your that’s a good point, right? So you sound like you’re kind of a conservative kind of guy. And most most of our people are as well, they don’t want to come across like a Grant Cardone nothing, nothing against grant, but he’s over the top.
J Darrin Gross 33:44
Nobody. I mean, it’s just, it’s a level of comfort and confidence in what you’re doing. And the people, you know, I mean, there’s the number of messages and you know, we’re all bombarded by information. And I think one of the challenges that that’s tough to keep in mind is that, yeah, we are bombarded by stuff, but there are people that let know and like you already would love to, to, you know, hear more from you about whatever you’re doing, especially if it’s if it’s something positive and it’s your, your genuine, I think the authentic piece is really critical to that I’ve I’ve had, you know, numerous instances where, you know, people have come across, way over the top, you know, way over their skis kind of thing. It’s like turns you off, right. Yeah, just it’s, it’s, it’s not genuine or if it is genuine, that’s not the gym. That’s the person I want to you know, that’s not the one I want to get to know more but
Dave Dubeau 34:41
Exactly. That’s why we call this if we go about it this way. It’s kind of it’s not exactly like shooting fish in a barrel, but it’s the closest thing we can get to it because again, you’ve already got a connection with these people. They already know you they already like you that’s why you can be genuine. And to get to your point about how to do this without Being all Hey, look at me Look at me. What we do with our clients is we really try to keep it focused around, communicate what’s in it for the other person, right? We’ve all heard the Wi FM, right? So let’s focus on when you’re telling a story, especially if you’ve worked with a joint venture partner on a deal or something like that. Then talk about it from the aspect of what, how they benefited. Here’s what our investors loved about this. Here’s, here’s, here’s how our investors ourselves benefited from this. So when you’re using that language is not about all about, hey, here’s how smart I am. Here’s how clever I am. It’s here’s how we did this together, and we benefited together?
J Darrin Gross 35:43
No, no, it’s it’s definitely a powerful message and an opportunity for anybody that, you know, especially anybody that has invested and is looking to grow to the next level. And, you know, looking for ways to raise capital, because I think it is, you know, there’s mindsets, and I know, I kind of share a little bit of that it’s like, Well, I do it myself that I don’t have to, like worry about engaging others kind of thing. But the real reality of that is, is that you, you know, when you think that way you cap your ability to grow, you know, your, your asset base and your wealth, and also to share with others. I mean, they, you know, there’s nothing like you’re saying to me, you know, when you’re excited about something it’s contagious. You know, there’s, there’s even when you share that people go like, wow, you know, that sounds pretty good. And tell me more? How do I get in kind of thing? That’s kind of a common thing? Well, how do you know, how can I get in? Yeah, and definitely, with the market being what it is, there’s people looking for, you know, ways to improve their returns, and, and definitely, they, they likely don’t know all the ins and outs, or the benefits of real estate. And, you know, here’s your chance to educate them and, and attract some of their money and, or attract them to it and, you know, grow and grow for you and for them. So I think it’s a great idea.
Dave Dubeau 37:07
It’s kind of like, in a certain way, it’s kind of like the insurance business there. And and correct me if I’m wrong, because I’m not in the insurance business. So I’m making some assumptions here. But I feel like we owe it to people, to show them what we’re up to, and allow them to make up their own minds as to whether or not they’d like to get involved. So like with insurance, I’m sure you feel this way that, that you would be doing people a disservice, if you didn’t at least allow them to be aware of what it’s all about, and what the big benefits and how it can protect them. Well, the same idea with a real estate deal. You know, when we’re, we’re not trying to push our stuff on people, we’re just trying to educate them about what we’re up to, and how how we can compare and contrast that to their other options. So same kind of idea when you’re doing insurance, right? Having insurance versus not having insurance or having a certain kind versus another kind, you understand the intricacies. Now it’s up to you to be able to explain that at a level that people can really understand it, and get what’s in it for them.
J Darrin Gross 38:13
And to that, I think that if you if you don’t share that information with others, and they hear it from somebody else, and they act with that other person, because you didn’t introduce it to them when you were doing it. I think that’s that’s the thing that’s kind of driving motivation. You know, that that’s a bit of a punch in the guts, isn’t it? Yeah, I mean, because, you know, you, you know, you know, multiple times, I think we all kind of qualify somebody without ever introducing the topic or whatever, we’re gauging kind of where they’re at. And we just assumed that he had a there, they’re probably not there. And you know, it’s a great disservice to the other party, it’s a great disservice to yourself. And the reality is if you you know, if they know that you’re in this and say they do hear about it from somebody else, but they know you chances are they they would come back to you first at least, you know, find out more and see if that’s something that fits with what they’re doing and and what they want to do.
Dave Dubeau 39:21
That’s why what you do is so important is right as well because I’m sure for your for your business, your while you’re doing the podcast, you’re doing a great job of staying top of mind and having that constant consistent, entertaining communication. You’re doing that every time you do a podcast episode. So same idea for us when we’re raising capital. We got to make people aware of what we’re up to so get top of mind and then do our best to stay there. So when time and circumstances are right for them. We’re the ones are going to think of.
J Darrin Gross 39:53
No, that’s that’s the plan. That’s the strategy. So hopefully it all stays on course.
Dave Dubeau 39:59
I’m sure well,
J Darrin Gross 40:01
Hey, Dave, if we could, I’d like to shift gears here for a second.
Dave Dubeau 40:05
J Darrin Gross 40:06
As we’ve discussed by day, I’m an insurance broker. And I work with my clients to assess the risk they have and determine what to do with it. And there’s three strategies that we typically consider, we first look to see if we can avoid the risk. When we cannot avoid it, we look to see if there’s a way we can minimize the risk. And when we cannot avoid nor minimize the risk, we look to see if there’s a way we can transfer the risk. And that’s what an insurance policy is, is a risk risk transfer vehicle. And as such, I like to ask my guests, if they can look at their own situation, could be their clients, investors, tenants, the market interest rates, political, climate, geopolitical climate. But take a look at it your situation and identify what you consider to be the biggest risk. And again, for clarification, while I am an insurance broker, I’m not necessarily looking for an insurance related answer.
Dave Dubeau 41:10
Good, cause I’m not gonna give you one,
J Darrin Gross 41:13
Good, good, good. So Dave Dubeau, what is the biggest risk?
Dave Dubeau 41:21
The biggest risk in my mind, for real estate investors is relying solely on their own financial wherewithal to create their portfolio. So this might sound self serving, because I’m in the business of helping people to raise capital. And maybe it is, but you know, that’s what I focus on. So just like you focus on insurance, so I see so many people get stuck and stay stuck with a real estate portfolio that just doesn’t really do much for them. Because they don’t know how or they’re not willing to grow using other people’s money. So they stay stuck with one or two or three properties in their portfolio, which is better than nothing, for sure. But it’s not, it’s not going to allow them to create that real estate dream they had in the first place, which is usually to create enough passive income to be able to quit the jlb. Right, or be able to retire early, or whatever it is. So that that is the biggest risk is just staying stuck. Because you’re not willing to expand by partnering up with other people.
J Darrin Gross 42:31
Now you got a stretch, gotta get out there and stretch and make. Make it work for you and others. That’s good.
Dave Dubeau 42:37
J Darrin Gross 42:38
Dave, I cannot say thanks enough for taking the time to talk today. Before we wrap up, where can listeners go if they would like to learn more connect with you?
Dave Dubeau 42:50
Oh, thanks so much, Darrin, I appreciate being on the show as well. So I’m really excited. Because we’re just launching a brand new podcast all about this stuff all about helping mom and pops get started on their path to raising capital. It’s called the How to Raise Capital 101 Show for Real Estate Investors. So you can find that wherever you enjoy listening to podcasts, the how to raise capital one on one show, or you can check it out on our website, Raise Capital 101 Show.com. And again, there and the whole goal there is to well, actually, the first nine episodes are going to be a little mini course on what I call my money partner formula. And it’s it’s all about how to raise your first six figures in a matter of weeks, and seven figures in a matter of months, even if you’re starting from scratch and you’ve never raised capital before. So again, that’s the how to raise capital one on one show.
J Darrin Gross 43:48
Awesome. Well, Dave, again, I can’t say thanks enough for taking the time to talk. I’ve enjoyed it. Learned a lot. And I look forward to doing it again soon.
Dave Dubeau 43:59
I appreciate it so much. Keep doing what you’re doing there.
J Darrin Gross 44:02
All right, Dave. Thanks for our listeners. If you liked this episode, don’t forget to like, share and subscribe. Remember, the more you know, the more you grow. That’s all we’ve got this week. Until next time, thanks for listening to Commercial Real Estate Pro Networks. CRE PN Radio.
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