How to gain interest from more investors than you'll ever need

In this episode we discuss:

- What results you might get by focusing on money instead of the relationship 
- Why raising finance is like a business
- Why the investor comes before the deal
- The gap mentality vs. the I need mentality
- Raising finance from someone who doesn’t know you
- What a state of desperation will attract in your potential investors
- How to bridge the gap between opportunity and experience
- You don’t need loads of experience to raise money

For all of our FREE resources join our Facebook Community:
bit.ly/rfclub

If you have any questions or would like us to cover any subject to do with raising finance then please let us know. You can DM us on:
https://www.instagram.com/raisingfinanceclub/
https://www.facebook.com/raisingfinanceclub

Transcript

Al: 0:02

Hey guys, you're listening to arrays in finance talks with Sam UNAL. We are on an absolute mission to help developers raise their first billion from investors. So they can go on and do deals with six figure profits.

Sam: 0:14

So if you're not moving forward with your property business, or a lack of cash, then this podcast is for you. We're going to seek dive into all aspects of raising private finance. So thanks for listening. And let's dive in. Welcome, everyone, to episode number seven. So last week, we spoke about how to communicate and start conversations confidently. This week, we're going to get stuck into how to gain attention that leads to interest.

Al: 0:46

Yes, so attention, it is definitely the currency we're trading here. But it's all about how you get that attention. But it leads to interest, because interest is the thing that leads to the money. So we're trying to get that attention and build that up, that moves over to interest. And then obviously, eventually, hopefully, if it's the right person moves to money. So the main issue we have is because people are doing that backwards. So a lot of people are going out there, they are looking for money. So they're trying to get money. So what happens is, people are focused on the money, which creates this really transactional feel. And that shows up in your body language in your, you know, spoken language. And it's a different focus, you know, it's you're really focused on money instead of getting the attention and building that relationship, once you've earned the right to have that attention from someone. And I think that's really, really key.

Sam: 1:53

Absolutely. When you get into those kind of conversations, where perhaps you're going down like this, the standard kind of route, a lot of people think they have to do or maybe they've been told is the right thing to do, which is find the deal. And the money will find you. If you're trying to have if you've got a deal. Maybe you've been online, you've been on writing, you've been stuck on Rightmove, for the last six months, you've been building relationships with agents. And then finally a deal pops up and you can grab it. So if that deal comes along, and then obviously, you've built up that relationship with the agent, you said you can perform, you're a developer, and you can get things done, they offer you that deal. And then you haven't got all the money you need for it, then just think about the kind of conversations or the way you're going to be interacting with people, when the agents hassling you, the buyers hassling you, solicitors are hassling you, and then you know, you might only have like, a few weeks or a few days to, to come up with the money. So think about the way you would be feeling and how that might translate into the way you communicate with investors. panic mode. Exactly, yeah. So it's just, it's just not the is not the place to be, as you know, yes, we do things completely the other way around, which is go out, have conversations with people build relationships, get their interest, and then see if they're someone that you would you'd like to work with, and sort of, obviously get their agreement on investment. And you can do that with multiple people and build up like a bank of investors almost, that you can then go out shopping for deals with. Yeah, you know, it's about

Al: 3:46

planning, though, isn't it? Like, it's about knowing what you're trying to do? What you're trying to achieve? All these different things? I mean, obviously, we like go so detailed with this stuff, when we work with people. But it is about that and trying to get into that space where you are treating raising finance a bit more like a business, isn't it? It's like it's not a byproduct of having a deal that stacks Yeah, it's the starting point of you create an a business is being able to raise enough money or raise the money you might need in the future. So that what you're doing is you're you know, what your investors want, you know, what they're looking for, you have a great you've already built that relationship with them. And you've already sort of put yourself in a position where when something comes along, you have a, like you said, a group of investors that you can go to and just say hey, there's something that's come, this is what it looks like, who might be interested, etc, etc. And it makes the whole game different, right?

Sam: 4:45

Yeah. Cash is the foundation for any property business. You know, you can't I know there's people that do lease options and things like that be, you know, you still need money to do them. Even if you do an option agreements and you're just spending a few 1000 wasn't on legals and then on planning, you still need money for that. So you need the cash to start. Yeah, so finding that deal first and then cash is just, it's a recipe for a disaster. And if you can't raise that, if you can't raise the finance in a few days or weeks, you've got, after that agent offers you that deal, then you just spent six months building a relationship to get to the point where they will actually trust you and offer you something, and then you've just fucked it all up, by not having the money to go

Al: 5:31

absolutely. And the mentality you get into when you're in this state is totally different as well. You know, you become very much I need this, and I want to get there. So you have a gap mentality, and an I need mentality. So you're really sort of moving into, like a negative space when you're communicating with people because it doesn't become about them. And I don't want to digress too much, but it has to be about them to build a relationship, because if it's about you, and what you need, and what you want, from the very, very beginning, it is so hard to build that relationship with someone that, you know, you've just, you know, you're just telling them what you want, all the time, and it just, it's not gonna work like that. So you know that that whole idea of talking about you versus talking about them, it's a really, really vital part. And if you haven't got sort of any money, and your your way of raising finance is desperate and panicky, then you're not going to get into many conversations where you're able to spend the time that it takes and the time it deserves as well, by the way to build a relationship with the investors.

Sam: 6:45

Yeah, and also worth touching on as well, if you were to raise finance from someone in a in a short time period, and you haven't really got to know them, and they don't know much about you and how you operate, then there's a, there's a good chance, you might end up with someone who, given the chance, and given the time to develop a relationship with them beforehand, if you had done, you wouldn't do any work with them, you wouldn't like them to actually invest in your projects. Yeah. So it might be the kind of person that can just be there, they have got the money to invest and they have invested, but they can become a complete pain in the ass when the project starts or, you know, maybe they're on your back all the time. They don't leave you alone to actually get on with the project. Because that's how they operate. Maybe they're texting you what's happening all the time. Maybe they've had issues with something they've invested in before. And now you don't know about that. But when it comes to maybe a small issue in the project, or just something going on in their lives that's come up. And they start, you know, becoming really aggressive or just yeah, like say annoying. All of that stuff. You won't have had any conversations with them with? Yeah, conversations with them with

Al: 8:03

him or with that. I'm sure everyone else knows what you mean. Yeah, so I think it's vital.

Sam: 8:09

If you haven't had those conversations with them before to find out about more about them and their past that and their personality, then you're a lot more likely to end up with someone who just could cause you a real headache during and after the project.

Al: 8:23

Yeah, mate. It's. So what you've said, and this is this is massive, in my mind anyway, for everyone at home is at home. So weird to say that anyway, is that when what state you're in, you're likely to attract somebody else in a similar state. So if you think about how you're pushing out an investment, and the desperation is there, and the panics there and it's all about get get get I need I need I need, you are likely to attract an investor that has a very similar mindset to things because people that you know, I don't know about you, but people I've spoken to and I know you have some long standing investors, people that, you know, they bought into you, they haven't just bought into a project. So when you're building them from the foundations from that starting point of like I said, the desperation and panic, they might be building it from the same point to and that, like you said, in terms of things is a total recipe for absolute disaster, because that is a relationship wrecker. And that it has the potential to cause absolute havoc in not only in your business and the project you're doing, but also your life. So really, really important thing to like throw out there. Yeah, another important point to put across Yeah,

Sam: 9:49

properties filled with things that can be a headache, you know, so it's it's tough to be in you know, the There's very few really easy parts to it when you when you do have a deal. You know, there's there's potential pitfalls on every part of the process. Yeah. Whether that's purchase, whether that's build planning, and then selling, you know, even after issues with the build or something afterwards, then you know, there's potential pitfalls everywhere. So they make it harder on yourself by just going with someone who's got the money. And that's it,

Al: 10:29

and doesn't care about you. Yeah, pretty much. So. Yeah, I mean, this is that was really big, tiny bit of a sort of shift in what we're talking about. But I think, again, like, really, really important point to get across. So in terms of, you know, getting the attention, how can, I think a great way of how people can start to change their mindset of what they're trying to achieve, because I think that's what might change the game a little bit for people is, okay, so I'm not going for money first. So that's not my intention here. Okay, I'm not even going for interest right now. Because that's like another step down the line as well, I'm actually looking for attention. So if I'm looking for 10 Attention, my intention has to be to bridge the gap from where they are now to having that attention. So, you know, an example I gave in the last episode about my story about a guy that I met on a street, where, you know, I just, you know, bridge the gap with time, opportunity and experience, because that's what we're talking about here, you know, we have or you have at home, or go again, at home, but you have time, you have opportunity, and you have experience in property right. Now, not all investors, but there are a large proportion of investors that don't have time, that don't have opportunities and don't have experience. But the one thing you don't have is the money. And the one thing they do have is the money. So what you're trying to do is bridge that gap between the two, by having that really good conversation starter that we talked about in the last episode by sort of understanding that that's your intention. That's what we've got to sort of really focus on here is that money is like a distant object in the future that shouldn't really even be in your mind at this moment in the relationship building process. Yeah, totally. You know, and I think if people can understand that, they just shift that mindset a little bit to Okay, so if money is a distant thing, that, obviously it's a byproduct of building a relationship, if things are right, and things work out, right, then maybe sort of having that intention changed in their minds of what they're trying to achieve with these conversations. Could be a bit of a game changer as well,

Sam: 12:45

I think, a 100%

Al: 12:48

drop?

Sam: 12:51

It cannot be you know, yeah, you know, if and I will help take take the pressure off for you as well. Yeah, if you're starting to have those conversations are trying to get or just building the relationships, if you don't make it about money at all, when the in the first you know, few touch points or texts, meetings, or restaurants, whatever you're doing, when you're when you're communicating with investors. It just takes the pressure off just thinking about building a relationship, and finding out who they are, what they want to achieve. And, you know, a lot of the other things that we talked about another episode, I won't go into a big list here. But yeah, it's just about building the relationship. So don't don't think about raising money. Just have a have a chat.

Al: 13:36

And that's why the focus is on the investor before the deals, right. Yeah, that's, that's the whole thesis here is like, Okay, we, I mean, there is another step in this process. I am not going to go into it. But let's just say it starts with you, and doing some real, real work on you and your stuff. But, you know, the investor comes before the deal. And that's really, really key. And I think that's so important. So anything else to add, like leave with on this episode?

Sam: 14:05

There was just one bit I wanted to touch on when you were talking about time, opportunity and experience. Yeah, if you're sitting at home, I've got it. Now. I've got the home thing

Al: 14:16

is catching on. We're technically at home as well, to be honest.

Sam: 14:19

So if you haven't done any projects before, then if you got to this stage and you're listening to us, then you've probably been to some networking events. You've probably read some books. You have no doubt been searching around on Rightmove, talking to agents doing that kind of thing. And you probably know the kind of deals you're looking to do, whether that be HMOs, whether it be small developments, conversions, you know, you probably have a good idea of that already. So you do have plenty of experience already. And you know what you want to do next so you have got some experience

Al: 15:01

And if that is a bit of a sticking point, for anyone listening, we did an episode on this. And I think it was how you don't need loads of experience to be to raise money. Right. So and that will really tie in with what you just said there. I think it was actually one of our first ones one or two.

Sam: 15:20

This is episode six, but I can't remember what episode that was. We've done so many. It's

Al: 15:24

so deep into the process here. We're like we like veterans of podcasting. Can you tell? Yeah, so that would be worth checking out. Definitely check it out. It's, it's really all about just, you know, how you can think differently about that that particular part of the time opportunity experience thing and really build your confidence around things you might have done in the past. So that are transferable to property. So really worth looking at. Anything else, mate? Are we I think we're done here, aren't we? Yeah, that's good. I think, you know, let's just leave it on, you know, understanding that very last point, that thing that we talked about understanding what you're trying to achieve, what your actual attention, intention is, is to get attention, not to get money. And I think if you can really make that shift alone, it will really, really help you to sort of move forward in the raising finance journey and understand a little bit better. What you're trying to do there. Yeah, yes. So next week, we are going to be putting a episode out that is all about how to boost confidence in your offering to investors. So that means how you can become more confident about what you're offering to investors, what your strategy is, what your maybe your your, your offering, your your deal, all of those things packaged up together, how to grow confidence in that. Keep an eye out for that.

Sam: 16:54

If you want to attract investors without asking for money, check out raising finance club.com for our free resources. And you can also follow us on Instagram and Facebook at raising finance club