7 Steps to Raising Equity Online
By Dr. Adam Gower
I learned exactly how to sell real estate assets online during the last recession when I sold over $1 billion of distressed deals across hundreds of transactions for banks and private equity funds, and I did it entirely using automated email systems that at the time were primitive but very effective.
The digital marketing world has come a long way since then.
Today systems and campaigns are incredibly sophisticated but have never been of much use to real estate professionals because it was prohibited to use them to solicit investors.
As you know, recent changes in the law have caused a transformational shift in real estate capital formation.
Now the savvy real estate developer can use the same systems to raise equity for their deals.
Here is a 7 step process that I developed based on those I used for some of the biggest banks and private equity funds in the world and that leverage best-of-class practices used by the digital marketing industry today.
You can use it to access the capital you need now and have enough to harvest all the distressed deals you can handle during the next downturn. The first thing you do is
1. Get your prospect’s name and email address
It’s crazy how much information is out there about all of us.
When someone hits ‘I agree’ on any website they are permitting the website to access everything they write and do.
By identifying what they like, what they do, what sites they visit, how they invest, and even which of your competitors they have expressed interest in you can locate them and
mine that data by conducting sophisticated online searches to locate your ideal investors.
It is an incredible untapped resource you can use to find investors.
There are 11 million accredited investors each worth $1 million or more. That’s nearly $11 trillion of wealth here in America alone, and yet
there are only 300,000 accredited investors who have invested as an accredited investor according to the SEC.
And a lot of them are looking for deals to invest in.
They’ve never had access before, and you can give them that access.
Investors are actively looking for deals to invest in.
They want to know how much money you are going to make for them, and they want to know who you are and why they should trust you with their money.
To start this process, give them something of value the first time you ‘meet’ them and they’ll give you their name and email address in return.
It’s a digital handshake.
You do it by installing a ‘call to action’ button on your website or in an online ad you run. Behind that button is your lead magnet that provides immediate value to the investor.
For example you might do this
With a free guide to investing.
Key is that whatever you provide has to be compelling and of value to your prospects.
It should intrigue them enough to want to know more and positions you as an expert in your area of real estate development.
The next step is to
2. Introduce yourself and start the dialogue
Most investors are hesitant and distrustful.
Your current investors know, like and trust you. Or they wouldn’t invest.
There is every reason to believe that once new investors come to know, like and trust you, they will invest too.
The difference is that whereas your usual way of meeting and greeting investors and building those relationships took hours of meetings and phone calls, now you can
Completely automate the process.
It’s done by setting up a sequence of emails that are delivered at pre-set intervals.
This sequence of emails is triggered the moment an investor enters their email address.
The first thing they get is the handshake document you created.
Then you provide more information about yourself that explains to your prospect who you are and why they should invest in you.
And the most effective way to do this is to
Keep your investor’s motives in mind at all times.
They want to trust you with their money and because they are hesitant you showcase your expertise in a way that is informative and valuable, not preachy self-aggrandizing.
For example positioning with messages like these work well,
- Why it’s Important to Find Off Market deals
- The 5 Keys to Successful Due Diligence
- How to Tell a Good Deal from a Dud
This isn’t as difficult as you may thing, because the way you create this high value sequence of emails is to
3. Digitize the process you already use
You’ve already done most of the work (and repeated it a thousand times to every new investor you’ve met). So just
Repurpose your existing materials.
Think about the sequence of communication that you have with any new investor you meet and reconstruct that process.
Take the same presentation materials you have that explain you, your company background, your investment philosophy and your deals, and repurpose it as
- pages on your website
- audio versions
- ad copy
And by using technology it is a LOT easier to do than you might imagine.
For example, to create my new book Leaders of the Crowd, I recorded conversations with the pioneers of the new real estate capital formation industry and transcribed those calls. These were reformatted to create a syndicated podcast series, and transcribed and edited to form chapters in the book.
The beauty of digitizing what you already do is that you only have to do it once.
And through these different media you provide access to prospects to consume at their convenience without having to walk them through it each time.
Once you have set this up, it is time to
4. Build the relationship
Now that your investors are coming to know, like and trust you, you are ready to expand the relationship and prepare them for your next deal.
You do this by creating a linear communication campaign that keeps them warm.
Using active response analytics, you can tell if an
- investor has opened an email you sent them, or
- if they downloaded a document, and
- you can even tell how much of a video they have watched.
By using these advanced feedback tools, you can precisely tailor your automated messaging to fit with exactly how your investors are interacting with your messaging.
This keeps prospects engaged without making you seem overenthusiastic or pushy.
It is no different from the way you instinctively read facial expressions during a one-on-one meeting, only this time you let technology read those signals, and automatically respond for you.
Now you are ready to
5. Pitch your deal
The most powerful way to motivate someone to buy anything whether online or not, is to present the product, and then set a deadline for them to take action.
While at the same time creating scarcity. By doing this you
Motivate the investor.
It’s the same for you as a buyer when you look at a deal.
If a property has been sitting on the market for months with no interested buyers, you are going to be less inclined to pay as much as the seller wants. And you are going to take your time making a decision.
But if a hot deal comes on the market, and you are first in line behind a dozen other interested buyers, you are going to step up your game to close the deal before losing it.
Use these same psychological triggers to offer your deal to investors by getting pre-commitments before launching, open with a limited amount left to fill, and set a deadline for closing.
Once this campaign has been initiated and is running, it is time to
6. Close the deal
You do this by making it as easy as possible for your investors to act upon their decision to invest.
This means having an ‘Invest Now’ button front and center.
Behind this button you will seamlessly
- Deliver deal contracts
- Grant access to deal presentation materials
- Allow for online digitally signatures
- Provides an easy way to send you money
AND you are going to do this while remaining fully compliant with all the relevant laws.
Once you have all these systems up and ready to go, the next step is to start inviting investors to check out what you have on offer.
And you do this by
7. Claiming all your digital real estate
You are a real estate professional. You understand the value of hard assets. Well,
Here’s a simple fact.
Some of the most valuable real estate on the planet is the real estate that exists ONLINE.
Facebook, LinkedIn, Google and others are all worth tens if not hundreds of billions of dollars. They have spent gazillions building the digital infrastructure to create the most powerful marketing and traffic generation machines in history.
You are going to leverage those tools by staking your claim to your own pages on all the major platforms.
If you don’t already have a Facebook business page, set one up – they have 2.23 billion monthly users.
If your LinkedIn profile reads like a resume, turn it into a
FREE billboard promoting you and your deals
to their 500 million users.
Sync your messaging across all of them, strategically add CTAs, and funnel visitors to landing pages for more information. Then using precise data analytics, identify your ideal investor and put your message right in front of them.
It’s insane how sophisticated this methodology is, and it is standard practice for selling just about anything.
Whenever a prospect visits your website, they will pick up a small amount of tracking code that you install.
In your campaign, you instruct Google or FB to show the investor your ad whenever they perform an action you define. It’s like you can
Read your investors’ minds.
You follow your prospects around online and serve them valuable information right when they are most inclined to be responsive to your message.
In a completely natural way that syncs perfectly with their online behavior.
Now you might be thinking that you’ve
Got equity sources already
And that you don’t need to go online.
I hear you.
Right now there are too few deals and too much equity in the system.
I get it.
But what about during the next downturn when
Cash is king
Remember the last downturn when there was a flood of distressed deals but not enough money to buy them?
Those deals were all underpriced because there was too much supply and too little cash in the system.
But there were thousands of non-real estate people out there who HAD CASH.
And they really wanted to invest in distressed real estate deals, but didn’t have the time, skills or access to do anything about it.
Then there were the developers like you who had access to deal flow.
BUT the usual equity sources were depleted.
And it was illegal to go to Joe Public and solicit investment.
But NOW YOU CAN
The ancient 1933 Securities Act prohibited you from soliciting from people you did not know.
You could only invite people to invest in your deals if you had a pre-existing relationship.
When the law changed it eliminated the general solicitation rules, allowing you to
Openly advertise to raise equity for your deals online.
Instead of being restricted to a small group of people you already know, or through haphazard introductions meeting others, you can freely contact everyone.
Now the law allows you to create automated digital capital raising machines that drive prospects into funnels, nurtures the relationship, and prepares the ground for investment.
These are digital marketing methodologies that every other industry has been using for years.
And now the real estate industry can use them too.
You can free up your time and put your fund-raising efforts almost entirely on auto pilot so you can concentrate on finding and executing on your deals.
It is perfect not just for now, but especially for when the market turns and deal flow outpaces your current equity sources.
But there is a problem with this.
Well of course there is.
Building these systems takes a lot of time and effort.
Effectively attracting investors and nurturing them to invest, requires finesse and timing, and a commitment to building out sophisticated online real estate and executing on digital marketing campaigns.
The investors are out there though, in their millions with their $millions.
And any effort you put in today will be long forgotten once the equity checks start flooding in.
If that resonates with you then,
Here’s Some Good News
I really want you to benefit from it and not let such an opportunity pass you by.
For this reason, I’ve allocated some time to personally walk through your existing online presence and capital raising process, and
I will design a fully customized marketing plan for you… FREE.
I really mean it. I will do this for you absolutely
with no obligation of any kind.
Actually, it’s more than just the blueprint I will design. I will also describe in detail exactly what you need to do to be able to implement the blueprint immediately.
So if this is of interest to you
Here’s what to do next
I have put together a short summary of what’s involved. You can read that by clicking here.
And I’ve also included a description of everything you can expect when we walk through your blueprint.
As well as candidly explaining exactly why I’m willing to do this for you.
Here’s the ‘catch’ you’re expecting
Actually there are two.
The first is that it is impossible for us to offer this to everyone.
The campaigns and processes that we are going to outline in your blueprint are very powerful and effective tools for raising capital.
But they won’t work for everyone to the same degree.
We want to be as sure as we can be that they will work for you so there some standards you’ll need to meet – the most important of which is that you are a seasoned sponsor with a track record of success.
This isn’t for a first timer looking to get into real estate, or for someone looking to online marketing as a last resort financing option.
The second is that this is very time sensitive.
We allocate a strictly limited amount of time each month to do these free blueprints.
That’s so we can focus the rest of the time on ensuring we provide the highest value to you.
So, if you think that raising capital online is going to fit your goals for the future, and you’d like to see the kinds of strategies I’m talking about, click here.
I’ve summarized in more detail the campaigns and systems you can use, using the principles laid out in this article, and will design a blueprint for you…
And will do it for you completely free.
If that sounds of interest to you, let me know quickly so we can schedule a call before we book up for the month.