084. Capital Mastery Series—Building Relationships to Attract Capital

Connect with the host:

LinkedIn: https://www.linkedin.com/in/brandon-e-jenkins/

Website: https://www.birchprosper.com/

Schedule a call with me. 

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If you're an active investor, and you're chasing capital...you're doing it wrong.

If you believe in finding the deal, before the equity.........you're doing it wrong.

The "If you build it, they will come" model does not work in the world of raising capital.

The solution? Start ATTRACTING capital and stop chasing it.

This is the key to scaling up and closing deals with confidence and consistency.

In this episode, I share a proven workflow for building genuine relationships with your investors, so you can serve as a guide on their wealth journey!

Transcript

SPEAKER_00 0:06

Hello, what's up, man? Welcome back to the Capital Stack. I'm your host, Brandon Jenkins, and um today is kind of the first episode of a series of episodes that I'm doing where um I'm gonna help you learn how to attract capital. This is especially useful if you are an active investor. It really doesn't matter which asset class. Um, at its core, this is a skill set that can even be used to build um a business if you're an entrepreneur, but um learning how to attract capital is important. You know, it just says I always tell people that if you are in business, then you are in the people business. Okay, and so it starts with that. So I'm gonna go through the process today. Again, this will be a kind of a series of short episodes that are um geared toward having uh getting a quick win for you. Okay, so I'm gonna share some things that um will kind of help break down the various processes and and and sort of some of the approaches that I use uh in my business in hopes that it can help you, but I'll end kind of with a very specific action that you can take. So here we go. Okay, so um, first of all, why attract capital? You know, if um if when you're going into a deal and you're looking to bring in some equity to close the deal, then there are two schools of thought. One is you can find the deal first, and then you can um sort of uh gather up the equity or find or chase the capital afterward. And I believe that is backwards. Okay, I've I've no I don't know many people, many investors who are really good, smart people, but they had to uh leave uh a deal uh you know kind of behind or they couldn't close on a deal because it couldn't raise the equity. So what I say is attract the capital that you need to close on your deal long before you have a deal ready to go. Okay, um, so attracting capital is a much more effective way to have a long-term success in this business, it's just the truth, okay? So the process, you're gonna start it off with the initial interaction that first contact. Very, very important. Some people believe that you can do it just uh by kind of uh speaking naturally and not really being intentional. I think that's incorrect. I think you need to be intentional in every single engagement and interaction that you have with um with anyone in a professional setting, but certainly if you are someone who is in the business of allocating capital, placing capital, sourcing capital, you know, or if you're a deal maker and you are stepping into a space where there are other people who are interested in um whatever it is that you kind of have to offer potentially. So I think you need to be intentional about it. Okay, and so um the four areas where you have where you can potentially have this initial engagement, you've got network networking events, right? Things like seminars, local meetups. You have social media, which I think everyone should absolutely be taking full advantage of. Um, LinkedIn, Facebook, Instagram, I don't care. You need to be using something to get your uh to increase your exposure. It's it's a must. Referrals, which I think is the ultimate um way to make a connection with someone, because typically referral people aren't going to refer you unless they have had a positive experience with you, and nothing um carries as much weight as referrals, in my opinion. Um, but you typically don't get that until you have experience. So if you do not have much of much experience, at least in terms of exits or full uh going full cycle on deals or even giving distributions to investors, then you might have to be referred for something else, okay? Cold outreach is the most challenging one, but it's it's still a necessary uh uh aspect of this business. Okay, so those are the four networking events, social media, referrals, code outreach. Okay, so that gets us through kind of the initial engagement. Um, once you have the initial uh interaction, again, you have to be uh intentional, and so that means having a clear sort of uh elevator pitch, if you wouldn't call it that, but just something that where you clearly communicate your value, who you are, what value you could bring to a potential relationship. Um, then you have to go into building an authentic connection. Okay, very authentic, very genuine in the relationship. And what that means is, you know, it's just not a transaction, so you're not meeting the person so that they can give you something per se. But what you are looking to do is to surround yourself with as many people who are interested in um whether it's investing in self-storage, multifamily, whatever it is, so that if you have an opportunity, you can partner with them. It's a partnership. So build that authentic connection, be genuine, don't force anything on anyone, don't force, you know, you just kind of have to be natural in that way, okay? Uh then the other one is to listen. You know, I I I know plenty of investors that when they have uh an opportunity or when they have someone in front of them they don't listen, they just keep talking. And so, and that's wrong. You know, people people they they really don't care how much you know until they know how much you care. So you want to listen to what they uh what's important to them, understand what they're looking for, okay, and then you seek to have value based on what they've said to you. So you know you don't you don't just kind of let it go in one ear and out the other, you listen and you actually actively listen so that you can see how you can have value. Okay, so once you have identified that this is you know that there is some alignment there. So if it's clear that hey, they they are looking for um something that you can help them with, then you can kind of start to begin to highlight your experience, showcase your experience. Now I'm gonna say something about this point though. Um I be uh if we go back to I mentioned social media, right? There are other ways to get your information out there sort of in this space, I guess you can call it, of you know, the technology, um, so that if someone is, you know, if they could make that connection with you, if they build that relationship with you, then they should be able to learn some things about you, whether uh it's it you you're in front of them or not. Okay, and so that's one of the beautiful things about social media technology. You can have certain pieces of content working for you, whether you're not in front of someone or not. Okay, that's what you call educating people at scale, working at scale. Okay, it's a one-to-many approach, it's very effective. So um, you know, I share that with my clients all the time. You absolutely have to have a one-to-many platform, it makes it that much easier when the one-to-one does take place. Okay, so but it but again, once you've built that trust and once you've listened to them, what's important to your pro to potential investor or to someone in your network, only then can you kind of say, hey, well, here's some things that I can do to potentially add value to you. Okay, and one of the best ways to do that is to show some real life examples. So, again, I'm gonna go through the process one more time, right? Initial interaction, first contact. That's when you kind of have some one of the four uh means of engaging with the person initially that I went through. Then you go through to the authentic connection where you're building a genuine relationship with that with that person of those persons. Um then you listen, okay. What do they care about? What are they looking for? What's important to them? You start to build that trust. Then you highlight expertise, okay, where you showcase some of your experience. Should it align with the things that they um are looking for? After that, you can share some real life examples, okay, if you have them. If you do not have them, don't worry about it. And if you don't have them, don't make it up. It's nothing wrong with saying, here are the types of deals that I'm looking for, here are the types of structures, here's a deal structure that uh you know that I intend to set up. But be honest, okay? Because if if you're not honest and forthright, that's the fastest way to be ousted in this uh in this business, you know. So you want to be honest, okay? Real life examples. Only then, though, once you've done these things, then you can begin to position yourself as a guide for your potential investor on their journey. Uh you know, I believe that it's important to sort of remove yourself a bit, right? It's hard, it's sometimes it's challenging to do. So if you're someone who's a deal maker or, you know, and you and you have um uh and and you are someone who's an active investor, it it it can be tempting to sort of put your experience, your track record kind of out in front, but you really have to avoid that because it you know investing is a means to an end. That's that's what it is, right? And so you really want someone to see that you can get them to the other side using the vehicle that you have available, but what's on the other side is really the thing that the thing that they care about. Okay, so you're really just there to kind of help guide them on their wealth journey. It's not about you ever. It's always about what you can do for someone, what's in it for them, and how you can help them get there. So you serve as a guide, you offer your solution, okay, once you've built that trust and rapport with them. Okay, and then the final step is really when you maintain engagement. So should you have an opportunity, then you can present the opportunity. Um, but you kind of build, you know, you've built up that rapport, and so you you're maintaining that engagement, you're nurturing the relationship for the long term. Okay, so that's kind of just the process. Again, this is going to be a very short episode, really kind of short and to the point. So the initial interaction, authentic uh connection, you listen and build trust, you highlight your experience and showcase some experience, you provide some real life examples or um or kind of a teaser if you don't have any actual case studies to share. You start to offer your solution where you kind of serve as a guide, and then you can begin to maintain the engagement, present opportunities, onboard them as an investor, and so on. Okay. Um, so that's it for this uh kind of short, really quick to the point episode. I'm looking forward to doing more of these. I really don't have a script or anything like that. So hopefully these will get kind of better and better as time goes on. But um really want to add some direct value to you in these short bites so that you can take action. Okay, so um that's all I have for this one, and uh looking forward to seeing you in the next episode. All right, as always, thank you so much for tuning in to the show today, brought to you by Bridge Prosper. If you enjoyed today's episode and you'd like to learn more about commercial real estate investing, please like, subscribe, and share. And we'll see you again next week. I'm Brandon Jenkins, and this is the Capitals Nag, where we help you learn, apply, and