How to successfully navigate the investor journey

In this weeks episode you'll learn:

- Raising finance is a department within your business
- The importance of having a pipeline of investors
- Taking people through the FCA process
- Why it's vital to stay in touch with investors 
- How to deliver for you and your investors
- The importance of structure when raising finance
- Casually drop hints about your interest in property

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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. Hi, everyone, welcome to this week's episodes. And this week, we're gonna be talking all about the investor pipeline. Yeah, better better Bing. So what is it, why it's important, and how it can help you raise a loads of money. So we all know about deal pipelines, obviously, we're always working on them. But just as important is working on your funding pipeline. Because without funding, you ain't doing shit.

Al: 1:04

You ain't doing any deals without funding,

Sam: 1:06

why? Unless you got a million quid in the bank for yourself,

Al: 1:09

unless you get mega desperate and lucky snap, rugby tackling people on the streets. Bitcoin, but no, it is key, like having that pipeline sort of pumping is massive, when it comes to sort of just being organized, being structured, you know, knowing what's going to be happening in terms of, okay, I know, I've got X amount of people in the pipeline, and should something come my way, I know, I've taken them. And this is the whole idea with the investor journey, I know I'm in the this area of the investor journey with them. So therefore, I can actually, you know, call upon those people let them know something's coming in. And likelihood is because they're that far down my pipeline, or my investor journey. I'm kind of I know, one of them's gonna bite the bullet with me,

Sam: 2:00

yes, it's so key to have like, a bird's eye view on everything you're doing with different investors, because everyone's gonna be at different stages. You might be early stages, talking to someone you might have, you know, a couple of meetings to be booked in with people follow up calls, quite a few things going on, when you're going to, you know, target multiple investors, which we believe is just a really, really vital thing to do. So you've got multiple people on board with different preferences, and different kinds of setups, they like different wants and needs, essentially,

Al: 2:35

yeah. And I think it's, you know, the idea of going into someone in the early stages of the pipeline, early stages of your invested journey with them, and sort of trying to then push them through to a deal because you've just had something come through. And all you know, you've only got a couple of people you're talking to, or most of the people you've been speaking to a right at the beginning of the journey with you. That's when things start to really go wrong, you start to burn relationships, you start to get desperate, you start to ask for money, start to do all the things that we really, really focus on not doing. And you don't get to share your journey, you don't get to share what you're doing. You don't get to build that connection and relationship with them. And you know, that that's really why understanding and being, you know, really deliberate when it comes to the investor journey, and seeing it from a bird's eye view is absolutely vital. And really, really key to, you know, you being able to raise money when you need it.

Sam: 3:36

Yeah. And also being clear on your outcomes at each stage. When you have that kind of overview, like the, like you said, like the bird's eye view, you can be clear where someone's at in the investor journey and what the outcomes are for that stage. Yeah. So we're going to talk about that in a bit more depth. But I think it's worth mentioning, it's really vital to just know what the outcomes are for each stage. Yeah, and I think it'd be important to get stuck into that in a minute. We'll have a look at that in further detail.

Al: 4:05

Yeah, definitely. Because it's a huge Eye Opener when you get to see that bird's eye view of an investment journey. So the other thing that's really key about it as well, before we dive into it, is you're taking people through the proper process, in line with regulations, FCA, all that good stuff, because you're not going to people and enticing them with a percentage because you've already got them through that relationship. You've already taken them through that journey, you would know enough about them. You have a load of detail on them. You've done the necessary steps to know that that person is a qualified person to be investing with you. Yeah, and I think that is really key and that's why we set up what we've set up is to try and stay in line with that as much as we can because you know, offering a percentage out of Facebook it is it is not The way to go is enticing people into an investment, because they just don't even know what they're getting into effectively. And again, we've done the episode around the Ponzi stuff. And this is how people get accidentally into situations they do not even know they're in. And it can destroy not only deals and projects, but relationships, and lives as well. So really, really key to sort of emphasize, that's part of why we're so big on understanding the investor journey. And each stage, what you're doing and why it's really, really important is, yeah,

Sam: 5:32

we've got one of my friends. He's just left the job now, but he was really high up in the FCA. And obviously, we've done a lot of work with him, and made sure that when we work with people, we are taking them through our process, which means they'll always be in line with what the FCA say you should be doing when you're talking to potential investors.

Al: 5:57

Yeah, you know, it's massive. And look, you know, you get to know us, I'm sure, through the podcasts, and, you know, social media and stuff like that, you know, we're not typically, you know, suited and booted and FCA. Sort of, yes, let's go. But like, it is important, and it is absolutely vital, because you're playing with people, you know, their livelihood, because that's what they're investing with, in some cases. Yeah. So yeah, let's, let's take a look at the journey, then, shall we let's have a little look at, like how this journey looks, obviously, you guys can't see it, but we're going to talk you through it and talk you through the stages of it, you know, there's, the overview of it is, you know, you're starting around, you know, gaining the awareness, getting the attention around what you do. And then you're sort of you're gaining interest based on very sort of informal chat around what you do. And people will start to put their hands up if you if you can communicate it correctly. You once you gain that interest, you're moving down the line, and you're starting to move towards agreement. Now this is where you need to start knowing and understanding them on a deep level. And you know that that's really, really key. And from there, you move into delivering the project, and then obviously, retaining them and repeating the process as we go. So I mean, let's dive into the beginning bit where we're at awareness. We're out of tension, sort of what what are we doing in this phase mate?

Sam: 7:32

For me, that's all about going out and speaking to as many people as possible about what you do? Yeah, dropping it into conversations with people, whether you're having catch ups, whether it's someone you just meet for the first time, just dropping little hints in about what you do. You know, what you're up to today, and why you're doing it and a little bit more about what you do in property. Really. Yeah. So just creating that awareness and bringing attention, bringing it to people's attention that you you are in property. And that's what you do.

Al: 8:03

Yeah. And more often than not those that are curious, those that might be in a position to potentially pursue some sort of investing, or just have an interest in property generally, and know you and like you and trust you. Generally, those types of people will then start to sort of ask that question of, you know, that they'll identify themselves as someone that is interested in what you're talking about. And now want to know more.

Sam: 8:31

So once you got someone's interest, then it's really about having meetups with them. Whether that's a couple of texts, could be voice notes, and then maybe it's a phone call to discuss further. And then if it's something that you've gone into a little bit more detail about a few more kind of specifics about potential projects, and money required, that kind of thing. Maybe you've had a couple of meetings after that face to face, and you're heading towards agreement, then if if both of you aligned and you're looking to achieve similar things. And obviously, once that's all signed off, if you get to the point where you get the agreements or signed, that it's time to go shopping out for your projects and deliver that project. And then obviously, once you've completed a project, then if you've, you've been working with that investor, so you obviously want to retain them. And then obviously, what's happened with me is then you can get referrals as well. So one of my investors has got several other friends that are in a similar financial position to him. And they're all seven figure investors and they're coming on to the project. They've had a look. And they're all Sam. Yeah, just stay in touch, stay in touch. You know. We know. We know you've done this one together. But yeah, we'd be interested in doing something with you as well. And my investor for that project is also happy to be involved in projects with his friend as well. So yeah, spreading the word once you want you to do a good job with some

Al: 10:04

Yeah, but that I mean, that is a vital part of it, you know, if you think about the effort taken to go out and find investors or just getting into conversations with them, we do have a great way of doing this. You know, and it's a great time to just mention, you know, we have a free PDF that goes through all of this stuff around the beginning part that we talked about, which is just attracting investors how to do it, we've even got some text message templates that you can use for yourself that, you know, they're not asking for money, they're not sort of getting you into that sticky situation. They're just positioning what you're doing, letting people know, and trying to gain interest effectively, so that you can have those conversations with people.

Sam: 10:50

Yeah. And they're the same templates for text that I used to send text to my investors that raised me 10 million. Yeah,

Al: 10:58

no. So they are 10 million tax, which is pretty cool. But no, I wanted to go back to the middle bit may actually, because you talked about well, yeah, kind of that journey between, like getting interest and getting towards the agreement side of things. This is there's a point isn't there in that part of the process in that part of the journey, where the table's turned a little bit, it goes from you sort of positioning what you're doing as a developer, so that you're gaining that interest. And then it turns a little bit to you kind of wanting and needing to understand more about them. So that, you know, you're a complying with the rules of FCA. But but be, you're able to just understand what they want like to see if you're aligned to see if you can provide to them what they need to understand all these things that a lot of people do struggle to get into conversations with, when it comes to having those chats with investors, like asking powerful questions around, you know, what does a good investment look like to you? What kind of investments have you done in the past? What is a bad investment to you? What kind of timeframes are you looking to invest on? All of these things are vital questions for you to understand, as a developer, whether that person is a qualified to even be investing in any projects you're doing, and be whether you can deliver for them? And ask a lot of stuff that people don't ask.

Sam: 12:23

And if you want to deliver for them? Yeah, exactly. When you start to get into those kinds of conversations, then you will really find out a little bit more about them. And then, you know, maybe I think, Oh, actually, maybe I don't want to be involved with this person in a project because they've displayed a couple of things there that I don't quite like, I actually had that with somebody who, who did offer to invest quite a large amount of money into the seven figures. And we met up in a restaurant. And as they came in, they were we'd already discussed things on text and a phone call. But as they came in, they're a bit late. And I think there was, yeah, there was a problem with one of the waiters that while this, this person had a problem with one of the waiters and something they did. And they got a bit shirty with them for no particular reason. And I just thought that I don't like that doesn't fly with me doesn't fly me whatsoever.

Al: 13:20

But then it goes down to your family. But that's the thing, isn't it? Like you could the asshole alert comes off? And you just think well, if they're treating a waiter like that, what are they going to treat me like when technically they're investing? And this goes back to the previous episode where we were chatting, I think it was a previous one. We were chatting about your values. Are you aligned with someone? Yeah. And then also, that feeling of the investor being on a pedestal, you know, to pee people do business with people and in that scenario that that's highlighting to you that maybe that guy or or Lady feels like they're on a pedestal? And that's how they're going to treat you. And that's a trigger, isn't it? And it's a great way to learn and understand, okay, I really don't want to deliver for this person.

Sam: 14:06

Yeah, exactly. When you are going out and talking to multiple people, and you are creating a pipeline, not just looking for one person to invest and then that's it. If you are speaking to multiple different people, then you've got a lot more chances to raise finance from different people. And you can it's a lot easier to say no to people as well, rather than they've got a million quid, really want to do some work for them because they're the first person and only person that I'm talking to and so on. I need to do it. I've got the money, let's go find the deal. Well, that's just a recipe for disaster if they've displayed maybe a few red flags, personality traits that you don't like, and then you go and work for them just because they've got the money. That's gonna leave you in a potentially pretty dangerous position when it comes to actually executing on the project. So if you are create, doing well Walk around creating a pipeline of multiple investors, then you aren't going to be in that position and is very as it was, for me very easy to say no,

Al: 15:09

yeah. And I remember that. And I remember, you know, the, the position that you you become in is different, isn't it like you the desperation and the need and the, the way in which you communicate when you're in that state is so different to the way in which you communicate, when you know, you've got a pipeline full of investors, or you, you know, there's a few people you're talking to the front end, you know, there's a few people now that are interested in, you've got meetings lined up, you know, that you've got a couple who have agreed, look, I know you, you know, me, we're qualified, we can work together, I can deliver for you. And they're in the agreement phase. Like, it's a totally different ballgame. It's a totally different ballgame. And I think that's really, really key. But it does ruin the rest of it, doesn't it, if someone's not the right person, the delivery comes becomes difficult. And also, you're not going to attain that that investor. So you spent a whole load of time on a project that might go bad because of the situation between the two of you. So you won't retain them, they're not going to give you any referrals. And at the end of the day, you're not going to repeat the process. So you then have to go back out and find another person. So it's really, really vital. So in terms of what this all does for people, is it it allows you to track doesn't it? It allows you to have a bit more structure around raising finance, because you are able to track things. I mean, we do it on a Trello board where you know, you've just you can easily see where where you are in a relationship with everyone. And it's, it's really easy to see. Because you just know what what it looks like from a bird's eye view, because it is such a massive part of your business, this raising finance when it comes to property.

Sam: 16:55

Yeah, it's a really specific structure and strategy around how to do things. And it just lays it all out. So you can, as you say, like, track it really easily. Yeah. And when you have got different things going on, and you're speaking to different people, as well as maybe you're looking at deals and all the rest of it, maybe you've got, you know, just general life as well, you can have a lot of things going on, it's easy to lose track of these things. So if you know about each stage that you're on with different people, then it's a lot easier to track and manage properly and efficiently.

Al: 17:26

Yeah, definitely. And that, you know, can just stop some of those sleepless nights sometimes because you're, you know, you wake up in the night, and like, I got this meeting with someone, I don't really know where I'm at and can't prepare very well, and what's happening, and you just stop all of that happening. It's just structure, organization. It's strategic, and it's planned. So it's really, really vital.

Sam: 17:46

And that's what happens when you when you're treating it more like a business, rather than just something that needs to be done on the side as well as me finding a deal, then you can get more organized. plan everything out structure. And that's gonna get your pipeline rocking and rolling. Yeah, on your way to investment.

Al: 18:06

No, definitely. And it's just something we urge people to start thinking about. You know, this is why it isn't the only part of your business. It is a department within your property business effectively. Yeah. So if you think about raising finance, like a department in your business, how do you want it to run? How do you want it to look? And really start to think about that

Sam: 18:26

in your what's your outcomes? What are your goals, and then work backwards from there? Yeah, definitely.

Al: 18:31

Yeah. So I think that's it for this episode. Hope you enjoyed it. Please, like subscribe. We're not on Instagram. So I don't know why I just said that. But you can subscribe to the channel. And like I said, if there's any questions you've got, hit us up on Instagram, Facebook, we are happy to either turn them into podcasts or answer the questions over social media and help you up. Thanks, guys. We'll see you next time.

Sam: 18:57

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