Creating Repeat Investors
So more of an advanced question is how do you take an initial investor and turn them into a repeat investor? I think it’s really two maybe three things. The first thing is when you assess a deal and you’re going to show them the projections of what their, their profit or their return should be. Make sure it’s something realistic. Make sure it’s something you really can’t hit. Don’t overinflate the number cause you need your, you’re worried about not being able to raise the money. Don’t tell them it’s a 20% return when you know, really it’s probably more like a 10 just tell them it’s a 10 so be honest on the front end. That’s the biggest part of it. Be genuine, be honest. And the second part of that, how do I make them repeat investors again, be a good person, right? Get out in front of problems, be transparent.
Something Will Happen! (00:42)
If something comes up on the property, something’s going to happen. I’ve had people die on property. I’ve had arson on a property, friends of mine, I’ve had buildings lost to hurricanes and tornadoes and fires. Things are going to happen. It’s okay. We’re all big boys and girls that are investing in businesses they should understand. So just tell them what’s going on. Be Frank, be transparent, be approachable, but don’t hide from things. Cause if you hide from things, they’re going to figure it out at some point anyway. Get out in front of it. You control the narrative. If you’re out in front of it, if they come to you first, your credibility is shot and that’s going to really hurt you. So again, be nice and be transparent. So I think it’s nice, be transparent and set expectations that you know you can hit. That’s it. So you need to perform. Hopefully, that helps turn one guy into a multiple-time investor. It’s very easy to do if you go about it professionally.