Ep #302 – Corey Peterson – Why Real Estate is better than Wall Street
Here is some of what you will learn:
Motivating Moments
The quality of questions you ask ourselves
Why Real Estate is better than Wall Street
Understanding cost of capital
Safe money vs Risk money
Defining your investor avatar
What types of investors to choose
Difference between Sophisticated and Accredited investors
Developing 506(b) relationships
The importance of the Citizens VC Document
Hang out where money hangs out
How to build rapport
Discover the golden networking question
The importance of using a CRM
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Full Transcript Below:
Corey Peterson – Why Real Estate is better than Wall Street (Ep302)
Rod: Welcome to another edition of “How to Build Lifetime Cash Flow through Real Estate Investing”. I’m Rod Khleif and I’m thrilled you’re here. You guys are really gonna enjoy the gentlemen were interviewing today. I actually interviewed him previously and when I was interviewing him and my friend Jack Bosch, his name’s Corey Peterson and Corey’s the owner of Kahuna investments and he’s got over twelve hundred and seventy five doors a ninety five million dollar portfolio but he’s just a dynamic guy. So we’re gonna have a lot of fun today. Corey ,welcome my friend
Corey: Thanks Rod. Thanks for having me brother
Rod: Absolutely. So are you the Big Kahuna?
Corey: Man I think I am.
Rod: I’m sure that’s the only time you’ve ever heard that joke. So talk about how you got started in this business and you know just how you got to where you know the success that you enjoy today
Corey: Thanks Rod. You know I got in this business like most people. I had a dream I wanted to get rich in real estate. I didn’t have, start successful. I start off with the poor country farm boy and not voted most likely to succeed, didn’t even go to college, no college degree. I sold used cars. But something happened magically about 17 years ago, I was like 32 before I got the download from the mothership. My mom was married to this man named Bruce. Now I call him Bruce Wayne but he was loaded and he had a house right in Hawaii and mom invited me and my girlfriend now my wife for 17 years to go a visit. So we get there and this guy’s got fine art nice cars I mean he’s got a home right on the beach. Well I remember watching by going out watching the sunrise and the waves are rolling and crashing and the spray and it was like a light show magical paradise. And I’m sitting over and I’m looking across the cove to his house I’m like what does this guy do and guess what he said? He said he does real estate and he owned this apartment complex. Now I wish the story got better but Bruce is a prick
Rod: But you got motivated?
Corey: But I left the island saying he was the Big Kahuna
Rod: Loved it
Corey: Okay and so in 2005 I started, I read Rich Dad Poor Dad by Robert Kiyosaki and that book changed my life and I and all I could do is think about that’s exactly what Bruce does. And so I started my company I named it Kahuna investments because I wanted to be the big Coon hahaha
Rod: Love it
Corey: you know in that journey I just I start off as a wholesaler first. I start at wholesaling um
Rod: Single-family I take?
Corey: Single family homes right. I said no money no credit that’s where I started. And then I learned how to raise private money. Now my actual background I got away from selling cars and I become a financial advisor. So I was 37 and series 66 license. I got trained by one of the best people in the company in the business called Edward Jones on how to raise capital how to find money right and but then the market crashes well trying to be a financial advisor. And then I went full-time into real estate 2009
Rod: Perfect timing.
Corey: Also then I learned this thing up called OPM (other people’s money) private capital. And once I learned and used the same skills that I was taught to me as a financial adviser and then I got to use it for myself I went hog-wild. I said you’d lots and lots of fix and flips until I had my next problem which was I was I became a workaholic. So bad to the fact that I was I was not happy I was not living what I call because Bruce gave me a perfect vision of what life looked like because this phone was ringing he was making money living Hawaii living a great life. Here I was everyday going – I was like a lowest parks runner right chasing my tail. I’m the job after job and got so bad that one time my son’s like on a Friday night, Dad are you gonna be at my game on Saturday 2 o’clock? Yes you can count on me and you know but inside I was like I got to look at three properties and so I wake up early that morning to look at these three properties to make sure I was gonna be at my son’s game at three and long story short is I made it to the end of the game and indeed my son came off the field me was crying and he said dad you promised you promised and you want to talk about getting crushed. That pinnacle of you would look at me and say Corey was super successful right making money but it was at a cost of the hustle and grind of that business model was tearing me apart and just and hurting the people that I care about most which was my family. And I remember I mean dude I mean I grabbed his head in my chest and he’s you know just just I felt this is my boy
Rod: Right yeah now that’s that’s miserable man. I tell people my biggest regret in life was you know I’ve come home to this thing you know there’s eight million dollar house on the beach that I built and I’d play with my kids but I was distracted. And it was my greatest regret in life and to this day you know the kids tell me I was a great dad but I didn’t live up to my own expectations you know yeah
Corey: So this is what was happening and in that broken state is something happen up. I’m actually driving my son home you know kids are resilient. They still forgive you like when you stuck him but he still wanted to get my truck and ride home with me as he’s sobbing right there and I’m just I’m like praying to God on my cat forgiving me right and I drop him off and I’m like I can’t just sit at home I got a drag I’ve really messed up here. My wife gives me those eyes like you know you better fix it. And so as I’m alone in my car and just asking for forgiveness I finally find some peace and in that broken down state, I drive by this apartment complex and I’ve driven it by it it’s on my way home I driven by it a million times and I used to always I used to say I wish I can own an apartment complex. But that in that moment in that broken state I asked myself a question, I said how can I own? And once I did that ride every I mean of my brain started working and I started formally like what do you know about real estate commercial? not a whole lot where would you find information? I went to Barnes & Nobles I would buy books and started get and from there and so in 2011 I bought my first apartment complex about it for 3.2 million. I raised 1.4 million dollars of private money. I was already good at raising private money. I transitioned that capital, by the way so at 3.2 yeah about 3.2 million. I sold that property last summer five years later, I sold it for 8.8 million bucks.
Rod: Holy cow home run well you bought at the right time. I mean that that’s you know I want to circle back to a couple things you said and I want you to continue your story you know your background is just frickin perfect for this business because not only did you sell cars which is you know probably you know the epitome of sales you know and but you also had a finance background. So it’s just absolutely perfect for this business and that story with your son. Guys those of you listening, you know self-disgust is a pretty powerful freakin motivator okay and and and I actually did a driving force clip on this I call them “On your power now” but utilizing emotions for change and disgust as a powerful one when you’re like you know I could have been a better father in your case and you reach it’s really like an epiphany it’s like a moment where everything changes, everything shifts. And you know so awesome story and the other thing I want to circle back on and just draw some attention to is the questions that you asked yourself because you used to say you know I wish I could do this or I should do that or I’d sure like to do that or God that you know I wish and you know we should all over ourselves and you just you just asked a better question. The quality of your life is based on the quality of the questions that you ask. So some awesome nuggets you gave us there brother. So you close that apartment complex and the rest is history you know. So you taught yourself which is very impressive as well and so you know let’s dig in to money raising because we chatted about it before we turn the recorder on and I think we can add some real value you know in most syndications you’ll offer a preferred return like we’re raising money on two awesome deals right now one in Texas and one in Louisiana and you know we’re offering a preferred return and then a split and you know I can mention this because it’s to accredited investors only and just so you know if you’re interested certainly love to talk to you about it just text “partner” to 41411 and we’ll chat with you about it but what I want to get into is this strategy that you chatted about. And I heard you know what’s interesting is I actually heard a version of this at my boardroom, one of my boardroom meetings but without stealing your thunder, the typical deal is you know you’ll pay a preferred returner, and then you’ll do a split like you know anywhere from eighty, twenty, even ninety, ten sometimes I’m here in but you know to fifty fifty is typically you know that’s the range anywhere in between we typically are in the 70/30 range where the investors get seventy percent of the deal and we get thirty percent as the general partners. Now so you’ll typically you know pay that preferred return every year and then you’ll split any disposition fees you know be it a refinance, a sale, whatever that when you have a liquidity event and you’ll split it based on those percentages yeah so you know and I won’t steal your thunder because I heard a version of this before
Corey: So here’s and that’s absolutely true and accurate what you just said is absolutely true and accurate and that’s just one way to do it right. Now what I always, so I go back to how it was as a financial adviser right and I was like well if I look at the avatar for people that you putting money in stocks, bonds, and mutual funds right? I go what’s the return that they’re expecting right and this is kind of how I developed my little process
Rod: And you went backed into it love it
Corey: Here I already knew this right because I was a financial advisor and when you first start when you’re a new financial advisor you say 10 right oh I’m telling my investors they need to make 10 percent. When you become a seasoned financial advisor you know you never say the word 10 in your life right you say 6 to 8 or you probably say 6 to 7 right. So if somebody was saying hey quick what kind of return can I expect and what’s a solid return if I could get year over year what would be a that? right and I would say listen if you can get 6 to 7 or 6 to 8% that is money that is a solid return. And that’s what these financial advisors are telling their clients okay and that’s a fact. And because the reason I say the new guys they want to sell the pipe to but the season guys they know that if you promise too much and you don’t deliver, money leaves the door
Rod: Always under promise and over deliver guys and this applies to everything that you do in life because then everybody leaves happy so got it
Corey: so the other thing that I looked at so when I look at what was my biggest trades as a financial advisor like when I place money in different investment vehicles right where I get the most? and it was always fixed income right. So our bond funds and there was this guy as it was Brian Bertucci and he was a rep for Franklin Templeton bond funds. And I loved this guy, big New York guy bigger than life attitude but he’s like, Corey! Corey! the reason I wiped the bond fund is because it’s always big sticky money and I don’t know why that’s stuck with me but the way he said it and we pitched it but it’s the truth. My biggest trades what I was putting in and investing these people’s money the 70% of their investments of the total was going into the bond fund in like four, four and a half, five percent returns maybe sometimes three right and they just wanted it to make income stream especially if they’re retired right because the Wallstreet can help you to raise money but it’s not really good at providing an income stream right and using the income and most advisors will tell you hey if you can live off of 3% of your money and interest that’s what you would want to do. So that’s a 3% of a million bucks it’s 30 grand well that’s not a whole lot of money
Rod: no
Corey: So now I switch that to the apartment what I, how I create my syndications. I give a 6% press right that’s on the front of space on cash flow right
Rod: So that’s a yearly return, comes off the top before anybody gets anything, as far as the investor pool, they get their 6%
Corey: Yep that’s usually a restructuring rights okay very simple understood now and how I how I pitch it or a sell it is, listen guys you know to the people I’m saying listen you know if you were getting 3% from like let’s talk about your investment let’s just talk about the stock market first right. I always base everything on the stock market because that’s the avatar that I’m I can beat all day and every day right. And so and I say because I want their IRA money I want their safe money right right and so as I go into that discussion like we talked about that you know what’s out there investment if we’re safe money and they say we talk about CDs, Treasury bonds, right and we find they get to corporate bonds a bit the most we ever get to you is like 3% return. I let them tell me the return that they think they can make on those investments right if they’re somewhat smart and I say well after that what’s your alternative? and they say well blue chips I go what now you’re back in the stock market. We already know that’s a rollercoaster and they don’t want to get on the roller coaster with their safe money right. So I said you know guys what we do as what like we’re really good at in my company is providing consistency in return and we pay that 6% prep. In fact I can almost double your income right now and we pay quarterly so show me investment out there in Wall Street that can pay you a 6% payer that gives you quarterly checks. There is not one well I know of right. So I’m like if that’s all we did that would be amazing would you agree I just doubled your paycheck. A nd they start I get them to start shaking right yeah and it’s kind of like my car salesman I can’t help it, but wait there’s more
Rod: There’s more
Corey: Now one of the things about these apartments cuz apartments are like factories right. We put in rent checks come in rent checks and they spit out profits in the back end right that’s what’s coming out the backdoor his profits. And so you know one thing with our renters is our renters expect rents to go up each and every year and guess what I never disappoint them right.
Rod: I love your altruistic heart my friend
Corey: I never disappoint them right and so but when we raise the rents that increases the value of our properties right as long as you keep our expenses tight that’s the job as as a goal as an operator that’s what we do right, we go in there, we fix problems, we make things better, we increase the rents, and keep expenses either lower or tighter or we manage that stuff and we grow or NOI or net operating income and when we do that, we pay an additional. So then we have us admission we’re gonna sell the property when we sell the property I pay an additional 6% return. Now that’s not guaranteed by the way I just say and the way it reads in my ppm is a 6% ret on cash flow and then at point sell it’s a 50/50 split until the investor gets a total return of 12%. So my investors will never make any more than 12% on my deal and so guess where all the other upside goes, to Cory Peterson
Rod: I gotta tell you I’m smelling a little used car here I just gotta say. Let me ask you this I’m answer that’s a phenomenal model and let me tell you why it’s successful is you know when you’re trying to explain some of these complicated syndications to investors with waterfalls you know if we hit this mark you know it’ll switch over to this and they just want to know what they can expect what they can take home to the bank and yeah and that’s why your model although it limits their return is very comfortable for a lot of people because again this is like you say this is their safe money. And so you know would you agree with that
Corey: So here’s what I learned right. So there’s different types of thought processes on this right. I’m a business for Corey Peterson and my goal is to make sure that I protect my investors and give them a solid return. If I can be consistent and solid and do it time and time again and prove that through track record right, I do not have to give up the moon right. Listen we all know there’s China money out there right right and you know what is some you know money from different countries if you could give them a mandes about hedge funds that they get money at like 1% from China you know and so whoever has the lowest cost of capital in my opinion wins
Rod: Wins no question which is you know you know you see these insurance companies and these big REITs that really have no cost of funds and then they can they can buy it a two or a three cap
Corey: So I say why can’t we do that Rod? Why can’t us as the individual syndicate are the real deal makers by the way is it’s not Wall Street, there are horrible deal makers right. We both know how to find a track and work and fix these products way better than I think Wall Street does
Rod: So your model just so I understand it so they get their six pref and you are at 50/50 through the life of the deal and so anything over and above the six prep is fifty-fifty through the life of the deal or do they get more than 6% pre-sale?
Corey: Nope they only get typically an additional six percent annualised right. So it’s a total return of 12
Rod: okay so it’s 50-50 every year up to 12% for the investor
Corey: Yeah now so we define a few things. So ownership wise, they get a 50% ownership in my LLC. So got A shares and B share’s and they get a 50/50 split in ownership. Now the reason that’s important because they get 50 percent of the depreciation right when it comes to pay out we need to find the paid out to be our six percent but we just say it’s six and six right it’s six percent pref and six percent annualized on the back end and then as long as we meet our sell goal you should get a total return of 12 right. Now if we don’t it could be less right they understand that and that when we fully disclose what that process looks like and but I mean I just raised 3.6 million on a deal then I just closed on a 4.6 million dollar rates. We did another 1.8 and I’m raising this capital
Rod: Do you get a lot of pushback like from the more seasoned investors that have been in deals where you know there’s no cap on the back end? is this work better with people that haven’t you know invested previously?
Corey: So yes and no you know I get both right. So it’s a mixed bag. So I just go back to my avatar and I say when they say that when they like hey well I’m getting this and this and this and I’ll go back to explain my modeling, listen that’s not who we are right. We’re really good at providing consistency and I would say this is like I call that like you’re a speculation button right if you want to put your speculation money, go deal with what you want and try to get those 25-30 percent returns straight but if you want a consistent return, this is the bucket that we do right and this is how we do it right. And so typically you know for us we don’t buy vacant buildings. We buy stabilized assets 80-85 percent
Rod: Same here yeah
Corey: And okay but I guess now here’s what I’ve learned in this business. Now none of this would have happened unless I decided in my mind but that’s how it’s gonna attract right and as soon as I open up my words and I love my mind and believe that it’s possible because I used to do unlike the traditional model which you just
Rod: Sure sure
Corey: And now and I and I kept so I used to be at 8 so you had Jack and I on a deal right almost two and a half years ago I want to say right maybe I was 3 on your podcast right. We did the deal the other that was 8-8
Rod: 8 and 8 no kiddin wow
Corey: Well I’m at 6 and 6 now brother right
Rod: You head in the right direction your head in the right direction
Corey: And my next deal I’m trying I might go to 5 and 5. I’m now challenging my cost of capital because I know if I get a lower cost of capital Rod, I can, it allows more deals to qualify.
Rod: Sure sure sure does you bet it does
Corey: In my cash flow we still have our internal metrics like we don’t want to just do schedules we don’t want to do fat deals but of course what I’m saying is it just gives you opportunities to take something may not cash flow as much in that first year and turn that into a job
Rod: Yeah I love it love it. So what is your avatar? Now guys if you don’t know that term that’s that that’s the target person that you’re going after for investors in this case as an example. I mean it could be other things you know I’ve got avatars as it relates to my thought leadership business and my students you know because we’ve you see patterns, you see you know it looks like most of my people you know or between this age group, they’re this gender, they’re on and on they have this income you know this is their income demographic and that’s how you create what’s called an avatar. So what’s your avatar Corey for investors?
Corey: So doctors, dentists, chiropractors, busy working professionals, investments for busy people right
Rod: Do you just do accredited by the way or do you also do 506 B?
Corey: 506 B is only
Rod: oh you do 506 B so you develop a relationship first?
Corey: My whole cause is about relationships
Rod: Okay I want to talk about that for a minute but but back to your avatar so you got busy professionals right and then anybody that’s been an IRA which is almost everybody
Rod: Okay anyway with an IRA okay all right. Now so you do, so guys those of you aren’t familiar with there’s there’s really two well there’s three now there’s also reggae but there’s 506 B which is which was what I grew up on and as a syndication which allows you to bring in sophisticated investors, they’re sophisticated there’s accredited and there’s the ones that you don’t want to deal with which haven’t got a clue about money. And sophisticated they own a business or they you know they’ve got some they’ve got some business acumen now with the 506 B which is allows you to bring in sophisticated you have to have a previous existing relationship and it used to be they used to define it as the three touch rule. I had to talk to you know three times before you could present a deal. Now so that’s what Cory’s talking about here that he utilizes. We use the 506 C which which requires us to only bring in accredited investors and you know they have to have million-dollar net worth without their personal resonance or make $200,000 a month in income a year. So that’s the 506 C now there’s another one out there now called reg a which allows you to actually bring in sophisticated and accredited but it requires an SEC approval but so you do 506 B so let’s talk about how you develop those relationships and I know you’ve got your podcast. Talk about the framework that you take people through you know I know you use the podcast to bring in investors yeah talk about the framework that you utilize
Corey: There’s a guideline called citizens VC that was kind of a lay and I share with you
Rod: I mean could you repeat what you just said because I didn’t quite catch it
Corey: Citizens VC venture capital I believe it’s the name of the company. They sent out a letter to the SEC and said here’s our process, if we do this this and this is it correct right in a way that they weren’t they were educating right um but they they weren’t advertising right like so a podcast is isn’t it, we’re educating on our podcast right. So of course you can drive people to your website hey if you want to learn more and in that document and I’m going to give it to all for you after the show. Use it . It’s a letter to the SEC explaining the step-by-step process and it comes back with a response saying if you do it this way then yes that is the correct way
Rod: You’re in compliance okay okay. No look I’ll see that
Corey: And what’s that break, here’s the kind of the high level break
Rod: Yeah it’s a high level on it yeah
Corey: You come in to my website Kahuna investments, it’s a membership site right or well it’s you’re gonna ask if you’re gonna opt in anything you’re not opting to become part of our membership site right. So first one is gonna it’s a membership site that you’re gonna opt into so only members can be a dim and the next thing is it’s the accredited investor we have to know whether you’re a sophisticated or credited. It doesn’t matter which one you are but you still have to fill out have to know
Rod: So you ask some questions you have math fill out a questionnaire or you know they go one direction or another based on their answers
Corey: Yep and then after that we have a real physical process where we have people from my company we will now call them right we are going to go over their financial questions. We are going to dig deep because it’s not just enough to have a relationship you have to have a financial relationship in other words we gotta ask financial questions. So if they are sophisticated, we hadn´t need to understand their sophistication right. And so and we do that with a pre-recorded line so we we log in that phone call that conversation, I mean we’re really trying to dug
Rod: Are you recording that? that that that that what’s the word I’m looking for actually building a process
Corey: Yeah we’ve got our email right. We’ve got a membership now. In the beginning of our membership process they do not have access to any offerings right right you have to we have to go through a whole series of events where we talk to you and we’re building that relationship and we’re tracking that using we use Infusionsoft
Rod: Yes so do we yeah okay
Corey: We’re tracking that process that relationship building process to where eventually we get to say okay we but we believe you’re the right fit we have a relationship right we’ve talked more than once we have discussed financial matters, we understand who you are, you understand who we are we will now grant you access to look at future deals right. And now we have a vetted documented process
Rod: Yeah I love it I love it. Guys that’s that’s really important is if you’re gonna do 506 B that you document the process.
Corey: They have to
Rod: Yeah you never want the SEC knocking on your door and saying hey no no no not us – okay all right well that’s very insightful and very helpful because you know it’s really not a topic that that’s even come up on this show before as to you know sequencing that process and so what other mechanisms do you use at the top of your funnel? you direct them to your website, you use your podcast, you doing anything else or is the podcast
Corey: Yeah, no no no – never – never enough in my life like so I just do it old fashioned right okay this is crazy but like um go find a charity, go get involved in charity group. So as a financial advisor one of the things that Edward Jones had taught me was – how do you hang out where money hangs out
Rod: Sure
Corey: Right one of the easiest ways is through philanthropy and you don’t just go join flats because you want to go find money, go find some that you really enjoy that you really like for me I’m a Rotarian. I love going to rotary. I love Chamber of Commerce. I love there’s a friends of mercy for my local hospital. There’s a West beyond I actually help raise capital for that for that friends of Mercy I know I’m under board and it’s not just enough to go, you need to get on their board right you got to get you really need to be involved. Now when you do that business and relationships are going to happen it’s just that’s exactly what happens. And then in that there is that process for us so internally someone you know we built out these big networks and we have investors all over the country just like I’m sure you do as well
Rod: Sure sure
Corey: One of my favorite things also so that’s so just just doing that get you out get you out and without people, we actually are hiring employees to do this now for us as an employee of my Commodus indicates my employees you can go represent my company right and go talk to capital. So we’re building that out more so now because we like those relationships when we really want to get focused in Phoenix truly. We want to be able to have a full big army of investors in Phoenix then we can have galas and events and treat our capital and do neat things for them have tickets and games and
Rod: Sure sure sure though all the big operators do that. I mean they’ll have smart, yeah it’s relationship building, you have parties, you do all sorts of things. Love it
Corey: And then one of my biggest my favorite things to do that we pay quarterly checks right and we do not ever miss this
Rod: Right of course
Corey: Either me or someone that’s really never need anymore. It’s my one of my team members. We will call so every time we deliver check to them within that week we’re getting a call, we’re calling our investors and one of my favorite lines that I make all my team when we train them to ask is who do you know that I should know
Rod: Hmm love it
Corey: And I love that line who do you know that I should know? John now you’ve really you’ve enjoyed you know house and we also start off with and we should always have an open. So one of the things that we train our staff to do is what do you do for fun? When we’re talking to our investors we don’t want to just talk about stocks and apartments
Rod: Right
Corey: And the easiest way to get off a different subject and find out what they really care about is what do you like to do for fun? Rod what do you like to do for fun? and Rod’s gonna tell me
Rod: Right
Corey: I’m gonna write the note and now I’m hoping that I’m gonna turn it fine, excuse me, sometimes we have a commonality
Rod: Right you look for commonality this is basic sales. You build rapport through commonality and asking them what they do for fun is a fantastic conversation starter when you recall them
Corey: And then that’s the open yeah right yeah as always we’re talking about did we get their investments and then we finish you know Rod listen we’re trying we got which we’re trying to grow here who do you know that we shoul know?
Rod: I love it. No, love it guys this really nuggets here
Corey: To put a little bit better twist on it who do you know that I should know it’s too big by the way okay. If you say that you don’t put yourself in a spot. If I say Rod who do you know at the gym that I should know? who do you know that you go to masterminds with that I should know? If I put you in a specific place then you can start seeing the people, who do you know that I should know it’s too vast that you can’t see anything, gotta put you in who do you know that you go and play racquetball with? who do you know who do you know that you know
Rod: You use that you could use that activity you know like who do you know in boating or whatever you know whatever they told you
Corey: Yes
Rod: Yeah got it okay so you know and that allows them to actually think about it
Corey: Well maybe John I think John. And then once they say the person’s name right what do you think is the best way for it for you to make a quality introduction for me? hmm we like the word quality introduction
Rod: Yeah no that’s that’s that’s awesome pre framing awesome pre framing yeah and guys and and this is why those are you listening that you know if you’re serious about this business you really need to utilize the CRM. Both Corey and I use Infusionsoft I’ve used Salesforce in the past but it’s very expensive so Infusionsoft actually. But there are free CRMs out there are practically free that you can use Zoho really simple systems, Insightly, you know pick one and start using it so that when you talk to somebody you find out they like boating or golfing or whatever and the wife’s name is Helen you’re capturing all this stuff so you can instantly build rapport when you call back and then ask them those awesome questions you know who do you know that that loves golf that I should know? you know and love it love it love it good stuff. Now so you’re training people to go out there and make these relationships and what are you doing to maintain these potential investor relationships? Talk about your campaign to keep the list warm, to keep the investors engaged, to keep them interested.
Corey: Now we have all, it’s a whole sequence right. So because we use Infusionsoft, that’s why I love about it we have a whole series of emails that we include like in video testimonials from our investors, we have don’t take our word for it listen to this guy right, this is high-quality video testimonial right, then we taking my journey we show them past projects right, we can talk about our past can’t talk about feature deals right, when we talk about fast deals. We don’t ever usually when they’re new in the process they’re not we’ve not said you’re you get access there’s a limited scope of what we say and what we do
Rod: Sure sure
Corey: Right and once they we’ve finalized and said yes you are now have access to see all our new offerings then we can chain we change the dynamic a little bit but really it’s just through email through text and then honestly it’s just the old-fashioned. We have a built-in funnel that allows repetitive calls. We have a quarterly call loop and that’s really important for us is that quarterly
Rod: It’ll trigger you to remember to reach out say hey what’s happening just wanted to touch base yeah see how you’re doing things are going well here blah blah blah
Corey: Yeah yeah and you just have to, you let him know what you know hey because when you got one out of contract or you’re thinking about you hey I think we’re gonna be getting close you wanna start prepping them up yeah and then once we actually get a deal then we have a whole offering process and here’s something new that we’re doing Rod. I don’t know if you’re doing this yet, there’s we just contract with this company called IMS
Rod: Oh sure sure sure it’s a portal that’s
Corey: That’s gonna get implemented hopefully by next month. We’ll have it up and going and I can’t even tell you how awesome that’s gonna be because that’s the level of sophistication that as you start growing lots of capital and you do more than one or two deals right, people are like Corey how many deals am I in? what deals am I in?
Rod: It gives them a dashboard it gives them a dashboard, lets them see exactly where they’re at. Yeah I actually just interviewed somebody for the show that has a different platform I’ve got somebody in my mastermind that’s created a platform that’s gonna go live soon that just competing with people like IMS and Juniper and some of these other software platforms that allow you to have you know real connectivity with your investors and
Corey: Think about fidelity right well now you have a clue now account right
Rod: By the way, what you just said is important you know it allows you to white label it. So it looks like it’s your platform IMS you know the software is gonna look like it’s hey this is your platform it’s it really enhances your credibility and your image and everything
Corey: Yeah and everybody wants to brag right. So like we want our investors to grab their phone and to their buddy golf say hey check this out what I’m doing let me just like show them some scrolled and like that’s how we do it
Rod: Right love it no I love it. IMS is not cheap I know that. We’re in between them right now we’re not sure which direction we’re going to go right now but they are very very good so good choice. Well listen brother’ added a ton of value today. I really appreciate you being on the show and really looking forward to staying in touch with you my friend
Corey: I again thank you so much for having me I appreciate it. Anytime you want to have me and I you know these I love this game of real estate. I mean it’s still what it gives you the two things that we all want which is time and money and the ability to do big things and really create change
Rod: Yeah baby all right Big Kahuna we’ll talk to you soon my friend
Corey: Thanks Rod!
Rod: All Right see ya
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