As we have said time and time again, the syndication business is a relationship business and our guest today, Hunter Thompson, once more highlights the importance of building these authentic connections. Hunter is a return guest, and in his previous appearance on the show, which we encourage you to listen to, he talked about all the work that needs to be done to get investors to a point where they consider crossing that investment finish line.
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Today, he follows on from this and talks about ensuring that you close the deal. While this is often the part that most syndicators look forward to, it takes a fair amount of work to get to this point. Hunter begins by sharing with us the two types of investor calls – the introductory and due diligence calls – and what the structure and purpose of each is. It is crucial to not only establish rapport and build trust with investors but to demonstrate your expertise and intricate knowledge, and both calls allow you to do this. It is also important that there are systems in place that help you both with efficiency and establishing your credibility as a serious syndicator and Hunter shares some of the systems and tools he has in place in his own work. When the deal is closed, it then becomes all about investor relations and Hunter shines a spotlight on several other simple, but effective ways to go the extra mile to ensure investors know they are your top priority. Once again, Hunter provides incredible insights for us all to learn from. Tune in today!
Key Points From This Episode:
- Introductory or due diligence calls: the two reasons Hunter gets on the phone with investors.
- Purpose of introductory calls: establishing investor credibility and building rapport.
- Listen to the specific nuances of the answers.
- Why Hunter shares his ‘last straw moment’ and why you should do the same.
- Share your key motivating factor – the moral obligation that gets you out of bed daily.
- If there is a solid relationship built, then fees and deal structure are not the central focus.
- ‘Big picture investment thesis’: it is important to tie the conversation back to initial call motivation.
- Create a time limit for introductory calls as it helps further establish credibility.
- You cannot be desperate for capital: have faith that your investment is a good option.
- The purpose of the due diligence call: establishing expertise and hashing out the details.
- Restate the fact that you are being conservative in the executive summary.
- Why it is a good idea to remove a small piece of income from the pro forma.
- Make any well-educated, high end-investors known as it makes potential investors feel safe.
- You want investors to move forward with you because they genuinely trust your knowledge.
- Some tools you can use to systemize calls to increase efficiency.
- Good investor relations will allow you to truly create wealth for yourself.
- Establish and stick to an investor communication schedule, no matter if things go awry.
- Silence always implies that something has gone wrong on the investment.
- If possible, try to incentivize references and referrals.
[bctt tweet=”You want them to think there’s nowhere else I can go to get this type of personal connection. — Hunter Thompson” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
Raising Capital for Real Estate on Amazon
About Hunter Thompson
Hunter is a full-time real estate investor and founder of Asym Capital (pronounced AY-SIM), a private equity firm based out of Los Angeles, CA. Since starting Asym, Hunter raised more than $30mm in private capital for real estate offerings. He is the author of Raising Capital for Real Estate: How to Attract Investors, Establish Credibility, and Fund Deals. Hunter is also the host of the Cash Flow Connections Real Estate Podcast.
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