This year has been fantastic for Andrew Davis and his team at PassiveInvesting.com. They have raised $175 million in equity in one year, approaching $1 billion in acquisitions. How did they achieve that level of success so quickly?
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In this #TechandTacticsTuesday episode, Andrew talks about his real estate passion and journey. He is good at building relationships and securing trust, but it’s just impossible for him to reach that number, receive all the calls, and do all the work by himself. So, he trained his team and empowered them to be even better than him, which helped them scale fast, develop more referrals, and double the number of calls they receive. Andrew also shares some KPIs and metrics that help them grow continually and exceed their targets.
Key Points From This Episode:
- PassiveInvesting.com is a private equity real estate firm focused on multifamily, self-storage assets while continually looking for more opportunities in different investment classes.
- This year, Andrew’s team raised 175 million in equity approaching the 1 billion in acquisitions mark.
- Andrew provides excellent training for his team and empowers them to be as good as him or even better in doing the job to help them scale fast, develop more referrals, and double the number of calls they’re taking.
- He records his calls and notes what did and didn’t work for him so that others may learn from it.
- The biggest KPI for Andrew and his team is referrals.
- Referrals represent a whole new level of trust and credibility.
- Andrew also seeks to increase their repeat investor number. It’s one of the metrics that he keeps track of.
- Capital invested per deal is another metric that Andrew would like to grow.
- How do they track these metrics? What tools do they use to track their numbers?
- What questions do investors typically ask that syndicators should prepare to answer?
- What’s their best source for meeting new investors?
- What are some daily habits that have helped him achieve success?
“I feel 1000% confident at what we’re doing and our ability to steward their capital well, and it’s really just finding out what they need.” [0:13:14]
“Some people wanna get on the Zoom call and go through the underwriting for 30 minutes, and that’s fine. But most people don’t. They wanna get to know us. They wanna get a sense for who we are and what we’re doing.” [0:13:22]
“And what I wanna encourage my team to do is just that continuous improvement and to continue to look at those little marginal, incremental things we can do to get better and better and better. And so, yeah, right now it’s focused on creating incredible training for my future team, making sure that I’m hiring the absolute best people, empowering them, right? Giving them big challenges, big goals, and then stepping back and letting them figure out how to do it. And then I get to step back and really, from a high level, look at the process, look at how you can further foster these relationships of generating more referrals if we’re at a 62% repeat investor. How do we get to 70? How do we get to 75? How do we increase our average invested capital per deal? All those sorts of things.” [0:17:59]
“The mindset that I really have cultivated in myself, and then the mindset that I will be cultivating in my team is we’re providing a tremendous amount of value.” [0:12:16]
“I think you get bored when you stagnate, even if you’re stagnating at a high level, but to continue to improve and to continue to refine and tweak, that’s what’s fun.” [0:20:48]
Links Mentioned in Today’s Episode:
About Andrew Davis
Andrew Davis is the Director of Investor Relations for PassiveInvesting.com, a commercial real estate private equity group approaching $1B in AUM, primarily in multifamily and self-storage assets, and with a long-term goal to be invested in multiple recession-resistant asset classes. In 2021 alone, they raised $175MM in capital from private retail investors. He is focused on capital formation, building long-term relationships with investor partners, driving awareness of the PassiveInvesting.com brand & mission, and creating a best-in-class investor experience. He began his career in sales, working for F500 consumer packaged goods companies, receiving multiple promotions, and developing leadership, sales, marketing, and operational experience. Passionate about real estate investing since his early college years, he began the “side hustle” of investing in single-family RE in his 20’s and raised capital from friends, family, and in some cases complete strangers to acquire his first few deals.
Andrew is originally from Portland, OR. He and his wife Isabel now live in Asheville, NC with their golden-doodle Piper. They are active in their church, love to be outdoors, and travel whenever they get a chance. Andrew is fluent in Spanish, an avid pickleball player, a voracious reader, and is currently training for a marathon.
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