Why Your “Pitch Deck” Won’t Work (and What to Do Instead) (Part 2) - Transcripts

September 20, 2022

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The way you pitch anything is how you pitch everything. So how are you showing your professionalism in meetings, negotiations, or presentations? Are you rolling in nervously with a pitch deck that looks like it was made by two middle-schoolers, sporting an unfitting suit and some cheap-looking picture of Hawaii as your background? Is that what multimillionaires want to see on a deal presentation? Will investors even take you seriously? There are a few keys to a perfect pitch, regardless of what you’re even pitching. Oren Klaff, author of Pitch Anything, has become a master at deal negotiations and capital raising. He’s seen what makes a prospective investor walk out of the room or end a video call early, and he’s here to make sure you’re not the person on the other end of that presentation. So what do you need to do to successfully sell or pitch anything? In part two of this second episode with Oren, we walk through the different types of brain stages a presentation attendee is in, how to bypass the brain, and the wrong way to design a pitch. Oren has seen it enough to know that the how you’re presenting information probably isn’t the right way. He gives some rapid-fire tips on immediately boosting your credibility, upping the stakes, and how to get investors, attendees, or anyone else on your side from the first sentence. In This Episode We Cover: Pitching to “dead air” and how to successfully sell anyone on a deal in the video conference-first world Bypassing the brain so investors and attendees hear what you have to say The wrong way to structure a pitch and why most people fail at building rapport Ending the pitch, escalating the tension, and raising the stakes for your attendees The million-dollar move that helped Rob raise seven figures in only a few days And So Much More! Links from the Show BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast Get Your Ticket for BPCon 2022 Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram Rob's BiggerPockets Profile Rob's Youtube Rob's Instagram Rob's TikTok Rob's Twitter Check Out Part One with Oren How to Take Control of Everyday Negotiations With One Simple Technique How to Pitch to Investors So They Bite The 4-Second Pitch to Unlock Unlimited Funds Book Mentioned in the Show: Pitch Anything by Oren Klaff Connect with Oren: Oren's website Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-664 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Transcript

this

is the bigger pockets podcast show six sixty four the most important person in any company is a person who can predict what's going to happen next quarter customers in competitive

offerings at market prices the person who knows that you can predict what change are gonna happen and what can happen in next quarter it's gonna be the most important person because if you want to raise your apple credentials

focus on that nomination asset the amazing acid have fills this change story

incomplete it doesn't set it up

with what everyone this is David green your host of the bigger pockets they'll say podcasts you today with my co host rob a solo and we have probably one of the densest richest and most value packed podcast that we have ever done we are interviewing the author of one of my favorite books pitch anything Mr or in class and this guy brought so much value we could barely contain ourselves I mean he's like a tornado that just ripped through and gave information that you would typically have to pay hundreds of thousands of dollars to get by taking one of his courses we gave it away for free I'm gonna take a minute after I throw it to rob to kind of explain why we brought or in in and how he can help your business but before I do rub over some of your favorite parts of today show everything I feel like I am locked myself like you know you just saw like the I felt like you know that's out Galifianakis gift for all the numbers are like popping out and everything is math thing that was basically this entire episode for me especially when we get into the actual pitch process of raising money in basically looking under the hood of how to actually sell people by not selling them and how to raise money effectively I mean it's it's not like I was doing it wrong but it kind of made me feel like I did I think I am rethinking this strategy and I am ready I'm so excited to to launch Mike my capital raising arms now after this episode so I feel like Warren really breathe new life into your good old friend rob out from from yeah it was amazing listening to that I've read the book pitch anything four times I hate when I teach people at different events that I'm doing I repeatedly referred to this book as how you can understand human psychology and how to get your point across how to get people to see things from your point of view how to increase your own confidence all the things that make communication more effective and help you get the things you want after like Warren said the it sometimes were asking the wrong questions were asking questions don't have answers that question of a word I just find the best property here what's the best place to go to find the best deal is not always the best question by asking how do I become a better version of myself how do I become more effective what I want and that's what this episode is all about now a little background into what Orrin teaches as we cannot just jump into the show and start firing away Warren is a person who is hired by other companies to pitch their products he helped raise money for big projects from very successful bull headed alpha male type personality so he has had to learn how to hold people's attention how to get them to see things from his point of view how to stay respected when they don't know anything about him or the company that he's pitching and he's dived deep into human psychology and what helps you be successful everything that I just mentioned so he talks about frame control which is the ability to get people to see things from your point of view you hear that come up a lot on the podcast we talk about the crack bringing the mid brain and the neo cortex which is that method that the human brain has a processing information and looking to see could this hurt me is this normal and finally how would I logically look into this and make a decision about it we also talk about how to hold people's attention where we get into that that sort of because of the sandwich one one and you have novelty at the show something different and on the other end you have tension where they have to feel like you could pull this away if you pay attention to this episode which you should probably listen to a couple times it won't just help you with real estate investing it will help you in your relationships that will help you in communicating with staff at places that you attend it will help you with building your wealth in general it can improve the quality of your life all around as I had mine so I'm super thrilled to bring this episode to the bigger pockets audience rob any last words before we bring in orange there's a section in there that I just want to reinforce you'll hear me say it after it happens where I want you to rewind ten minutes in listen to it over and over again if you're serious about raising money you know overall building capital in scaling your business because this to me was a a seven figure master class at Warren gave us yeah this is gonna be a slightly different format than a typical podcast we got a ton of value at Oregon he went for about ninety straight minutes

of value

so what we did was this into two podcasts and between splitting up this interview you're gonna hear rob and I interjecting specifically for the purpose of taking the concepts that organised teaching and making them relevant in the world of real estate investing no we haven't done this before so I want to ask you leave me a comment I do too but let me know did you like the interjections that we had kind of the reaction style or did you feel is disruptive to the interview and you like the traditional method more all right before we move on let's hear from today show sponsors everyone is wondering where the real estate market is headed how about a better question how do I make money in any market cycle as times change the fundamentals of real estate investing don't the secret to success for rental property investors is simple keep buying cash flowing rentals and rent to retirement can help read to retirement offers fully turnkey properties that are newly built or renovated leased and managed allowing you invest with confidence in the markets it offered the best returns they have single family multi family new build and syndication opportunities across multiple markets they even have bird deals with immediate equity the help you build a business plan with the best investment and tax strategies you can achieve financial freedom faster there's no excuse not to get started in real estate investing when you have the right team and systems in place to learn more visit rent to retirement dot com that's rent T. O. retirement dot com or call eight hundred three one one six seven eight one that's eight hundred three one one six seven eight one to learn more about how you can get started investing in some of the best cash flow markets today so we left off talking about how you don't ever want to come across as needy when trying to raise money for your deal that you want the other party to actually be worried that you might take someone else's money and not there's no rob you have a deal coming up that you are raising money for tell me more about that yeah I am yeah so I mean or and this is so timely for me because I've been trying to really figure out in my life as a real estate investor how to scale right in so it's it's led me to this road where I'm launching rob built capital it's going to be my fundraising arm basically of my business and I'm starting to raise money and started to aggressively raise money for deals and I've got a deal that I'm raising for twenty three unit the cabin resort in Big Bear lake and I held one pitch meeting for this last week with a set of of investors but now I've opened it up to my entire audience of over two hundred thousand people on you to my email list and everything like that is I would actually talk through you know what what are the tangible steps here of holding a a presentation especially when it's via via zoom because I'm doing what the weapon are style where everyone's mikes in cameras are shut off they get to ask questions and then we answer the questions I'm I'm walking into this and I am I in my mind it's like all right we got this deck we're gonna present the deck but you know with there's already no one talking in my already establishing the control as the the talker of the the presentation

this is amazing I love this topic let's go through this step by step

cool

all right so zoom call takes you back to my early pre internet not pre internet but you know pretty soon days as an analyst and so there are we were doing real estate pagers repayment on equity they put me on the phone with AT you know underwriters and analysts from various broker dealers in our age and this is a really first class asset you know we had a deck above the deck I had to pitch I practiced the page I had good jokes you know I practice it with my girlfriend and is now my wife I purchased with my partners you know I know I know the numbers I know the deal right I got all my might like quips and anecdotes and funny little pieces down and I'm ready they put me on the phone you know I get on with that the producer of the call and then they go Hey now I'm gonna meet everybody right and you can tell us about the deal into the muted and it was it was garbage complete hell show like everything I prepare one way because it did not have that human interaction on the other side that we need it was just dead air right so I took my first joke whatever like a you know this is and why they're not building anymore Hawaii in our

crickets

are like you know it's not like you're in Texas you know Hey how do you build this asset in Texas you know what you are you go down the DMV and you go ahead with my driver's license you know can have a permit to build forty five thousand you know square foot retail

mixed use

and without that human interaction it was just like but you know I know it's fairly new to this so that is problematic I mean that's it so this is a skill set being there won't to pitching to get air in the same way as I think about it is if you watch movies and TV shows there are these like be actors that are the general they always have the same role right I'm they they play a general they play a Russian you know commando what they played the you know uses like a police officer a general the ones you would recognize the you know the friend of the criminal so there's one role they play right I'll play all the time but if you Google those guys net worth many times they're much wealthier than that you know the actors we all know because they are in every single move because they are reliable they know **** so that's what this what these guys deliver they show up on time they're not drunk right they don't need a big trailer they learn their lines to get their like professionals they come prepared they they work the full ten hours they don't need their almonds you know grown in high mountain shade from Bolivia that you know and they're professionals are shown to do their work right and and that's why they get hired over and over and over the same position because you can rely on them you have to deal with Brad Pitt and Jennifer Aniston and you know Queen Latifah you know war or whoever with with all the drama but but those guys are actually very difficult to deal with so if you're being shown in some way you have to become a professional at delivering it to dead air

yeah I can I can second your point here I recently did a Ted talk and there is an audience there but in a Ted talk you're mostly speaking to a camera and I was about six seconds into it and I was like oh this is so different than anything I've done I'm not getting feedback from the audience I have to hold your attention without that and it was under being feeling I did not like I realize I'm kind of cheating in a lot of times when I talk because I get the I get a connection with the audience and when you don't have that it is so much harder to hold attention

yes so this is the way to accomplish this hi it's really interesting because I lived so long in Hollywood I at one point in like how to actors learn their lines like looking good will hunting you know that is just one of my favorite movies you know that the great line from that is like so Matt Damon is confronting you know the grad student and there you're arguing over this girl and he's trying to refrain the grad students like knowledge as very just you know textbook writing he goes Hey you know pretty soon you'll be two years out of college and find out you spend a hundred sixty eight thousand dollars on education you coulda gone for six dollars and eighty cents from the Boston public library right and and that's one line out of out of thousands you know that the discussion about how to actors learn their lines and Google everywhere you know there's got to be like some secret method acting let let right that's how they learn the light just gonna blow you away date study the manuscript update start very early on with the manuscript to go to a coffee shop in the read the line sure friendly stand from the mayor they take a break but they prepare the line turned over again they film themselves like you know there's no it's wraps so if you wanna get good soon it's wraps

interrupt

the Celine into dead space even if people are live right it's even worse two people are talking the same time you know somebody coughs and goes to their you know to them and they're eating a sandwich eat that drives me bananas when people are eating on my pitch right I will tell people to bring a picture okay you having lunch when you finish lunch you know we get away for you when you finish we get down to business look not everybody's me you know one has has but all of this stuff you're hearing from me I do from the zero control position how do I control how do I tell a guy the head of the billion dollar phone go finishes lunch come back in when he's ready to go because if they go Hey I like that attitude go great I don't like your attitude we would never be partners we could if we could come up with the most awesome deal right big win for you big win for me we signed up not gonna last fifteen minutes of partners right could you gonna call munching you know not take our cultures and come prepared you're gonna come unprepared and have lunch and will never survive each other so let's just get rid of this relationship now and that's when getting alignment I don't need this headache in my life and you don't need my UP California nine Minnesota egalitarian fussy I don't want you eating the same Bologna sandwich during my meeting attitude I'm not saying matters right I'm just in were out of alignment and for keeping alignment let's not work with you

while you're getting into that values thing right you're setting the baseline of what values are appropriate and then eating lunch put them in a position they're out of alignment with your values was pretty sure that I will never

ever work together as a team in the deal even if it's an asset transfer things still have to happen I'm getting text right now with twenty million dollars that's been trying to get out since Thursday everybody signed off monies in escrow why are submitted bank of America calling us twice today Hey can we send this wire up and one guy who is completely out of sync with everybody who has finger on the button one attorney and one law firm right yeah and I just got a text we fired the guy right when you're out of values with everybody else deals cannot get done and and so the value alignment is where you have control because even if you want to deal if you need the deal even if it's your last dollar you have to be willing to walk away from a deal in which you are not in sync with somebody value relationships never get better then you know on the first date people are always trying hard but our hardest on the you know in the first week of a relationship right for those of you are married for those who have you know spouses you know for those of you who bought a car from Toyota

Dave that's he got P. again right

everybody's trying hard on their first day okay so is it your zoom calls to first of all wrapped you have to be able to wrap into day there is one

okay that listen this is this is something I've learned that the hard way for a long time because well first of all I'm a youtuber so literally everything that I do is it too dead space right I don't get to perform to a crowd of people I perform to the camera that you see right now and he goes out there so from a rep's perspective this is something that I've I've learned because then I also will have like multiple like a coaching call for example two hundred people on the call I make jokes all the time in in my mind I'm like oh my goodness I just bomb that I know that's a good joke but there's no one here allow for it yeah but then you read the the chat and like people are usually like kinda laughing so this this some that definitely takes some some finesse and perfection I agree

show behind me and you guys saw is a million dollar screen wall hi LED walk into when I work with P. groups and as I've done this a hundred times I freeze frame so my son my son coming here watch Star Wars break this happen once by accident but now I do it all the time I show my freeze frame this is us star wars unlike you know some scene where the millennium falcons coming in and there's laser and freeze it and it's like so again on the call to a private equity guy now have this massive forty foot LED wall framed in the background with this Star Wars reaching a no go wow that's a cool mural in the background like where did you get that right I don't walk around a little bit so they know it's not a you know zoom background I you know it's all walk up from it and it's just clear that because the real world that's awesome mirror where did you get that I I've heard this a hundred times I go over this and then hit play right forty foot LED wall circling Star Wars and they're like what and then I zoom out because we have these cameras this is going to work right at an end they're just like what what am I looking at right now I don't understand what I'm I I go Hey this our production studio where we do you know pitch idea pitches from you know we have CEOs commit and there are so investor assets in some technology if you're gonna catch from June look at look at how the set up looks that I'm on those are seen on right so people get on this call and a pitching them they're like my god you are handsome I mean I've heard that a hundred times a day I don't look in there and go on hands that they're like

I mean I was scared to say it out loud

yeah so so I don't I don't I don't get a look at this in Sam Hanson in anyway but just that the set like that that this would make the Billy goats gruff look good my set up and this is I'm talking right now on a five thousand dollar set up invest in some technology that most people don't have and I know you guys would say to me yeah so what you have to copy audio today but I've

no that's not what I would say I was actually going to ask you if you've ever been a body double for Steve Carell because you seem like a more hands on urgent

sorry I'm thank you broke up a little bit what have I been a body double for Tom Cruise you know I get asked to do it at me you know from time to time I am busy I am busy all right

I can see that we just know so much about the Hollywood movie industry I'm like there's something going on here that he's that maybe you've got like an alter ego that's also in movies and you see that for fun

when you have a alter ego that wishes I was more popular than I am but okay so the second invest in some technology right and and so you've got is eight ten many pros should that lets me when I'm in full page production I like the wall forty foot wall up I put the spreadsheet on that wall and walking around and saying Hey see these numbers will look over here here's the assumptions here tell follows through I can just you know I can switch right of their power point that I can come back on screen so why don't people listen differentiated technology day and that subordinates them to like wow like our page is on as soon power point yeah and people get to look up my nose

yeah they've got the background of like some beach or something that's the fakes do background and you've got a million dollar screen behind them it's it's that's that tone right off the bat of who's in the superior position therefore who should be holding the attention

and there are some people that would say Hey looks don't matter it's the merits of the deal right if

you

and your whole WHYY zoom back my my job for twenty years has been to take alternative assets in Hawaii in Texas in Orange County that looking nothing like Starbucks jamba juice anchored target you know center and make them feel institutional even though the asset itself is okay you know alternative to the cash flows are good but it doesn't look like Starbucks target Jumba juice anchored in fill up west of the freeway beach adjacent you know California but what I did is apply the ivory frame those assets as institutional in nature and you cannot do that bye bye you know having so you cannot be new to the business pitching a new first time fund I'm with us unproven assumptions limited track record and also be showing a power point on zoom that looks like two guys in a dog meat in your mom's basement like you what you were doing so what is functionally happening for the investor is you're stacking up risk factors right so I have it in first time fund which we never do I'm we have a alternative asset with some freaky assumptions in the going out cap rate we have eight yeah you know a manager with a good track record but not specifically in this asset class did did you know that that is not completely locked up yet and also it looks like this would put together at the kitchen table by you know a couple of guys I am what do I have here to go on not much as investor and then you would you would you pull the lens out you see what are all the other options at that investor has compared to what you're offering and is quite limited you've got to have the I so so you've got to have the values you've got to have the production you've got to have the the knowledge of your deal and you've got to have the pitch mechanics of a professional because you know it's a pigeon that guy but we had an intern here now works at Blackstone twenty four years old right here's his pitch yeah hi I'm from Blackstone yeah we've got an insurance wrapped asset our product here at six point seven five percent would you be interested in it right and yeah here's a brochure here's a track record of Blackstone you know here is the B. M. you know and that's it you're competing against professional eyes credentialed up proven yield streams you know and that's from like Blackstone alternative asset fund twenty seven which has deployed you know three trillion dollars into this asset class you go and returned eighteen percent since ten sixty six the battle of Hastings that's who you're competing against how do you compete against that with the power point template you know that you threw together end of June call looking up your nose on your laptop no I'm sick of gonna have some of the you've got to bring some of the elements that put you in the game against the seven most professionals deals in the market hopefully that makes sense

I can really second this notion of high professionalism in investing in technology I mean everything in life you do it you're performing for people and that doesn't mean not being authentic but it just means being the best version of yourself when you're presenting right like I am a you tuber at heart I'm a content creator in honestly I'm on zoom all the time so for me I'm always like if you've ever taken a zoom call just ask anyone I know I'm always on my professional camera I always make sure that my lighting is on I always white balance if you've ever seen me David hold like a random gray card to the camera and then click a button that's to make sure that my images not too cool or too warm and that's like very new on some people are like why do you do that it's just as soon call on like I don't know I just I take everything very seriously because I just always want to be the best at what I do you know our our our previous fearless leader Brandon Turner once at the way you do anything is how you do everything right and I do take that to heart and it's very seldom David very very very seldom that when I'm taking a call with an investor they are unimpressed with with just the image quality in the technology behind what I do they're never like there was like whoa okay is it this looks like the you tube video like I now they take this seriously I'm gonna take this meeting seriously and I think it always just sets a really solid foundation for every meeting in every presentation that I go into what about you do you do anything to increase your frame with any of your businesses yeah you have to add it's because you want to be in the position where people trust you so almost every business I have a position I'm in it requires trust of the customer to get us going forward if I'm gonna sell your house you have to trust me that paying the fare full commission that I'm going to charge will be in your best interest that you'll make more money if you're going to do a loan with us you have to trust that we have better loan products and better serve service and can solve our problems and other loan officers even listening to this podcast you have to trust that bigger pockets is bringing the most value of every podcast out there otherwise you find another one so this is a situation like Warren said there's always enough and obeyed it you got to be aware of it now I want to say this listeners I would love it if you would go and YouTube and leave me comments on how you perceive me specifically because I don't know if it works I don't know how I've looked at by other people all the time but I will share some of the stuff I do I'm just curious for audience will tell me the perception they have of me when it comes to having a stronger frame being the expert in this industry one thing that I learned is if I would go to a listing presentation I would always wear suit and that's because if I showed up in flip flops and a teacher at like some realtors do where they're like I don't want to look like I'm too needy so I'm gonna come like this it makes my job harder I have to sort of overcome the internal objections you have like is David take me seriously or is he so wealthy he does anybody by listing I never wanted people think of that so the suit is something I would wear to show as a sign of respect for them and their time I take your house very seriously doesn't matter how many houses of my own I have I'm treating this like this is the only thing that I have going on in some of the books I read actually there's another example I write books writing a book and especially if it's a best seller because everybody can write a book you can just throw something up on Amazon and you can say you're published author but a book sort of allows you to have a some credibility it creates a stronger frame you wrote the book on the topic like that's how I found ordering his his book pitch anything is V. like industry standard for how to understand these concepts in one of the books that I wrote for agents I talk about if you have a strong personality you should drive a more modest car if you have a more deep personality you should drive a stronger Kerr and that's one of the ways that you want it like if you have a nice car it can give you some credibility make people look good I didn't want to drive a nice car because I was afraid if I should up your house in a Ferrari you're thinking I gotta pay a seven percent commissioner six percent commission to buy that car they're not gonna like that so that was one of the areas where actually like in order to have a stronger frame of I care about you I needed to live a more modest lifestyle so it didn't appear like I was taking advantage of people to sort of like fill my own pockets and then there stuff like articles I would write for Forbes so I didn't love working with words they're actually very difficult but to be able to say that you've been featured in Forbes if someone hasn't heard a bigger pockets there's some credibility well maybe I should listen to this person and on and on and on so eight it's part of winning when you're giving your pitch is that work you did before you got to the picture it's the or it's the frame that you're holding it's the time that you put in before you got there I was like at that moment is like you know you're going into the finals or it's the Olympics it's time to perform it there's nothing you can do in that moment to perform better it's the work you did in the four years leading up to it that's going to be expose and it's the same thing when you're in the pitch room you're in the situation we're explaining something if you haven't been putting in the work in building a strong frame up to that point to be very difficult to get the result you want in that moment all right before the next section of our show let's hear from today's show sponsors you talk about at the very end of the the conversation because he hears all most endings go right okay FAQ the any questions bubble bobble lie into the question okay so Hey please be sure to go to the investment portal fill out your information and what you get your paperwork and we're gonna reach out this and that you talk about escalating

yeah

in raising the stakes how how does that look tangibly

correct what will happen is because you're nervous because just as soon call into dead air your a couple people who have a billion dollars in Europe zero billion dollars writer you have negative you have negative one point seven billion dollars you know and then have actual two billion dollars right so there's a four billion dollars spread between between you and them right into your nervous or not for now thank

you

you know it's it's a little bit of dead air and so what do you do how do you compensate for this right you would show them the best things about your deal first thing because you want to impress them right and that is your revealing in the first three minutes what you should be ending with so the formula is set up intrigue reveal take all your best material and put it at the end at the beginning you start with the world of real estate is changing dynamically until somebody believes that real estate in the area that you would function in in the area that they're looking at is changing dynamically I'm in a way that is difficult to understand but because you function in a very narrow band at the at the leading edge of this change you have visibility into what's gonna work in the next cycle until they believe that that is true they're not in your deal okay here's the good news over it climate change rising oceans changer ministration right versus left chained rising interest rates inflation our cost of real estate single black supplying single family residences costume construction supplies instability in the supply chain like oh Hey how do I talk about change like

I

did that's not possible do you work in real estate or you know in asset management at all and you're not being subordinated to some very difficult to manage change so by saying Hey look are your lease in our area of of southern California you can very easily by a two million dollar house for five million dollars there's no inventory right up so

he's

you know someday should cost would be one point seven million dollars realistically it was bought for one point seven or two point one year ago it's just been relisted with no improvement you know for two point nine or three point three there's no supply ship until you say listen I'm in in you know but so for example your Big Bear asset in resort retail infield California within range of a major metropolitan area multi family or multi you know Airbnb VR BO multi family assets I had the inventory has changed so dramatically even people been doing that for twenty five years are scratching their head going up route give an example of this here's the changes that happen the the New World looks like this these are the economics these are the hubris sticks these are the macros these are the qualitative impact these are the quantitative impact right most of the people have you have seen win in this market in the last five or ten years are going to become back markers and what's interesting is we're seeing people who who would show specialized you know they really were were lower middle market you know we're not even heard of becoming the key players in this market everything switching around why and until somebody believes that there's change happening and that you are one of the few people world wonder stand that change there's no set up we're talking about Hollywood right if we're talking about Hollywood the first third of the movie is set up the the the first second third is the you know is the intrigue and is the emotional build and the last piece is the reveal of the device the finalization of the story it's the exact same thing set up in the set up is a change intrigue you don't show people the asset we don't show the asset until we're two thirds of the way to the presentation until they believe the world is changing and we control that change until they believe we have an asset in which we've got some incredible some shins we've originated it correctly we have a track record were able to execute and we manage money before there's no even purpose in introducing the asset and then finally we introduce yes at

all

and there's a halo around it and then we go and this is now is your question if it's done correctly then we go so you can see why there's a lot of demand for this particular asset and we're super busy as much as you need to understand the underwriting understand our track record appreciate you know how we manage assets you know towards an exit we also are not let you know if you brought me a two million dollar check for the fun today I give it back to you and say I don't know enough about you we also under right are investors that you know about investor it's just that you know can affect the deal much more than a poorly underwritten asset so we underwrite our investors some of our better some of the most well known people in southern California right and so I have to ask a question could I take you and put you in a long side of my long term closest friends even family as an investor and there's quite a lot of understanding who you are why you invest what you're capable of which capital overhang is what your timelines are what else invested in what your exit expectations are and how you behave as an investor before we would we would be able to say let's work together so let's invest some time understand underwriting I love from here from you what you're good at and what you're vestment goals are let's see if our circles overlap to the point where next week will come together and really trying to get some you know find a position for you in the deal I've located really with my existing have investors and existing investor base you know I would say seventy percent of this is gone on day one so allocated twenty to thirty percent a deal to meet new people are you one of those new people I don't know that's what I'm here to find out

what what you're describing is that cocktail that you talk about in the book between novelty and tension right I made you want it it's different there's not a lot out there but I don't know that I need you and and that's a such an important thing to understand with when you're holding someone's attention that there's a formula for how to do it such as some people are good and some people are you really do a great job of reverse engineering how that works and I also noticed in your description of the build up which I just think so many people forget they just go with the big you know the grand valley is the first thing you see in that how do you hold attention after that it has to do with it our head were thinking all they care about is the return they're going to get what are the numbers and we were communicating to them from our perspective in in your book you talk a lot about the biggest mistakes people make is they fail to respect the process that people process stimulus the crockery in the midbrain the neo cortex can you add there's kind of a parallel with this do you mind giving us sort of like the run down on how people process information how you need to respect that when you're communicating really fast before we deal I just want everyone at home to go back ten minutes in listen to that entire segment again this is a podcast first for me I actually took notes on what Warren was saying because this is absolute gold truly this to me we are gonna rate we're gonna I mean we're already pretty close to the filling it are the people at home the people are gonna do I don't know yet and that's what I'm here to find out I'm just getting but yeah to say this is really great when everybody go back listen to the segment one more time

so what I want you guys to realize like if you do it exactly as I said inst and somebody has an adverse reaction they have no money I think you'll be shocked at the investors that you talked to that have no money it's a call find they don't why do people run around saying I'm an investor when they have no money well three reasons because it makes him feel good to come they have a position in which they'd like to report pipe they get rewarded for pipeline right and so it sort of moving rubber tanks around and but three they have a they have to you know call capital right so the final deal turn lock it up and then they want to go raise capital for it and and so I would say most of the people you're talking to is a novice in terms of investing don't really have money and that's where the skill set and raising capitals understand in you know what eight are you know someone who actually has capital over heating captive capital that they can write a check against versus have to go raise the capital after locking you up to me that's one of the keep secrets and raise money but so so I can tell you if somebody has an adverse reaction to that kind of picture that just K. it's because they don't have money right and they are covering up for the fact that you have revealed the truth of the situation in that you're going to do due diligence on them in that due diligence with them you're going to discover that their capital base is not a captive capital base and they're fun to read hasn't been raised and they're either a you know in the process of calling to find or trying to capture find that isn't it's not well regulated today and that the capital base doesn't actually exist and so you're going to discover that and so they are unable to process this position because no one else is putting in that and then you start freaking out if you see a freak out when you tell someone that there's two sides to this it's because they don't have money legitimate guys will say this I was waiting for this day no one ever asks me what I like to invest in they just want my money they don't ask what works for me what are my goals with the capital where does my capital come from one of my investors need what's a perfect situation for me thank you so much for asking can I have the next ten to fifteen minutes to tell you about what we're trying to do that's what a real investor will say is yes let's split share values thank you for trying to understand what we're trying to accomplish right and by the way if used if you say Hey I start every meeting by asking people Hey what your what your goals were you trying to accomplish thank I don't know like why should I tell my god I don't know you from block about why should I tell you my deepest darkest you know most keen notebook fountain pen little secrets to myself goals to somebody I met I'd like twenty one seconds ago I don't want to be in this call what you're hearing from me and if you're by the way some people like the language if you think you're going to run a two billion dollar fund you know eventually you know as you point out you know some day and not hear some salty language you have lost your mind a little ladies come up to me all the time because the language but I love you really can help me succeed so all right where we were was the the brain I think this is a great place to try and trying to you know wrap ourselves up and maybe we can we can come back and do something another time when you get on a zoom call or you get into a meeting with someone and you are saying inflation rising interest rates we were able to secure an asset that we had on rate lock you know in a prior you know you know before the fed increased rates so we've got an advantageous two point nine percent financing for eight million dollars were looking for two and a half million dollars of equity to complete securing the asset which has eighty three and a half million dollar you know income stream comparative to it she hopes eight million dollars of revenue operating expenses are being held constant we feel like if we do increase some local marketing and regional market of the asset we can prove operating returns by thirteen and a half percent over the next twelve months did you say that it seems like you know and your expectation is that someone's going to receive that information and go wow this is amazing but at the beginning of a social interaction which really these are the first part of their brain the your information hits is the crock brings the ancient part of the processing center and you're saying thirteen percent twelve percent asset well located airport adjacent multi family know TI is necessary through the two thousand and twenty seven right and you're saying all these things and their their mind is literally going huh I hear some noise and I see something moving is this something I should eat is this something I should is this something I should kill huh that's the first what's going through their brain well you are trying to communicate some amazing things about your deal it made with the killer so this part of the brain you have got to somehow be able to move through and get into a part of the brain is called the neo cortex which actually processes data language information situations and handles complexity the neo cortex has an instruction set to the rest of the mind do not send me anything that I have seen before any problems that I have already solved anything that is dangerous anything that is up up you know involves life and death I only want to solve very difficult high stakes survival level problems so think about it if you go I have to study for compliance exam right your neo cortex the once quiet you wanna have a appeal camomile tea and a shot of whiskey wanna be at your favorite desk you want your certain kind of light you want the pen your favorite pen even you have all that you sit down to say for compliance and then you go oh Hey I forgot to change a light bulb in the shed let me do that right the new cortex does not want to work hard it has to be incentivized to do that the way you incentivize the other person's mind to work hard on your stuff if you get past the crocodile bring the ancient brain that says this is not confusing it's not dangerous and it's not a yeah an act of survival to to try and deal with this right this is a safe problem to work on and so by the way we do that we would not faulty right and steaks so unless what you're what you're providing you have some novelty it's visual and their stakes it will not pass the first filter of the other human mind well they say oh yeah that sounds interesting you know shore because we're social animals but it will not really actually be activating the centers of the brain so then you go okay it's novel what I have is novel what I have is visual you can see what's happening or I can describe it to you visually you can visualize it and the stakes are high it's worth paying attention to then make sure it gets into the brain but before it goes to the upper levels of brain they can actually do math and language and process and and one you know to invest it has to get past the mid brain in the midbrain solves social equations are you a beta are you lower in the social stack than I am if you are and I can order you around right there's no there's no stakes here you cannot control social outcomes are you a policeman are you a military officer are you a political figure are you have a lot are you a celebrity or do you have lots of power in terms of money wealth or political power unless your friend up as any of those things the what you're trying to project doesn't get up to the mid brain and you don't get access to the thinking part of the human mind the thinking part of your mind understands numbers understand real estate situations understand risk ratios understands debt service coverage into your access to the other person's thinking part of the brain through those you cannot fully paid to deal this is a yeah yeah yeah yeah yeah yeah yeah send me the document also down my committee when you hear that what's the reason you're hearing that is because you have not gotten access to the real processing power of the other person's human right because they believe they've seen this before they believe they've solved this problem before and they're thinking about other things what are they thinking about I don't know getting laid them drinking and going on vacation join you know Bob singing in the church choir getting a new car you know dealing with their child not getting on team are getting on to that like everything else there isn't yeah sounds good yeah I love this wow that's great should you know and then they're having all these other thoughts because you haven't gotten into the part of the brain the judge to processing is not novel there's not high stakes you don't appear to be a socially important war appear you are aren't a high valued member of of their social circle you can't impact if they'd have back if they behave behave badly in front of you there's no effect on them whatsoever and they also feel like they've seen this real estate project Tatian a thousand times I understand what you're presenting they can use most of the brain to think about something else that they care more about and they just gave me a pitch deck love to look at this end up the committee also so that's how the brain works

yeah one of the biggest mistakes that you'll see people make is is we all have a level of narcissism inside of us and so we think about well I'm in my neo cortex I'm gonna talk to you as to your neo cortex but that a person's cracked green in midbrain have not been satisfied that you are worth their attention that they're not gonna lose money so for instance rob goes to his pitch and he started off saying okay guys here's the return here's the property he starts with everything in the beginning and they're listening like well how do I know there isn't a lot of these other deals are like right what are you thinking as you hear about this no this is this is so it's so funny because it it like it really lips the switch on my advertising brain about crafting a good story and the way you do it is like you craft the store you get the the human insight good to the demographics now you're like why and then you give them the the final like here's a commercial but I love the idea of getting straight to the commercial given the fun part of the meeting first and then say here's why this is gonna work and then get him to basically you know the the the up front that's typically a lot more boring because I think you're right I mean when we go into a lot of these investor deals we are we're like Hey the I. R. R. as this

book

box checked the cash and cash is this box checked we're returning capital within this time frame box checked in that's what we think that the investors want to hear but a lot of the times like the investors are faced with these kind of deals all the time they want the cool deal the you know the new sexy deal in the short term rental space that is still gonna check all those boxes that we can verify after we've shown in the really cool deal so it's a really fun and interesting way and they are our pitch deck is sixty slides and I'm already like alright which side can we just chop slice out and then which which side from the back ten can we move to the very front

let if you want frame control there has to be a set up then there has to be intrigue and you save the reveal for the act if you want a good tool saying Hey how do I do that right start in the set up to start with things that are obvious in the world to get it what can and clean them is obvious right so that she should sit through good point today everything's changing the business as you already know if you can read the front page of the Wall Street journal even USA today single family residences are too expensive for most of the population get into nobody wants to sell their single family residence because there's nothing else they can buy Mr moon California Minnesota massive change in the way what operating three years ago layer on top of that inflation and now you know a lot a mortgage that used to cost again to two point four percent is now five point six percent you know further disincentive for transactions to happen lack of supply black at the tip in the market hi artificially high pricing and on top of that obviously you know what to buy for you should cost a dollar eighty five and now it's three eighty four at home depot combine all these obvious things together and then provide up something that's interesting thank you Sir to access to bring what's interesting about this is you start to see you know whatever you know market forces happening but if you sit where we sit at the leading edge of a multi family a large single family transactions having a deploying you know thirty to forty million dollars a year specifically to this problem there's one point of insight that we've gained and then offer something insightful about the change now you are a long way to having a setup in which you are raising your alpha credentials by understanding what's going to happen next I'll leave you guys with this the most important person in any company is a person who can predict what's gonna happen next quarter in customers in comp competitive offerings in up at market pricing the the person who knows that and can predict those things that what changes gonna happen and what's gonna happen next quarter it's gonna be the most important person company right to the board will get rid of CEO CFO CTO COO CIO CMO well before they get rid of that guy even if it's a janitor bye the most important person in anybody's financial life is a person who understands the changing forces and what's gonna happen next if you want to raise your alpha credentials focus on that non the amazing asset that you have the amazing NASA you have fills this the change story incomplete to it doesn't set it up

so rob you changed a few things about the way that you deliver presentations after hearing this I'm interested how your call went after applying this information yeah man for sure we yeah so basically I went to home depot like right after this and I bought a gas can and then I went to the near chevron and I filled it up with gas is actually kind of expensive because like five dollars a gallon for the premium in that matter but basically I went and I put the presentation in a trash can in a put the gas on it and then I lit it on fire now that we're we're burning this to the ground will never use this presentation again it's kind of what I wanted to say but I didn't have that much time to change the entire presentation what I actually did is I completely change the intro to this presentation and really because that that to me is where the story arc of this all came in after talking to Orin and saying you know look a lot of people try to come in and give all the numbers in the stats and the I. R. R. you know shoot the finger guns check the box check the box and I think what I learned after talking to Warren is that that's not really that's not really what people want right they want to know the story they want to understand not just the upside but like the story behind the upside right so I think one of the things that we went in talking about is like a little bit of the honesty aspect of it and talking about the economy and in the interest rates right now interest rates are really high but then I teed it up by saying I'm really excited though because interest rates are high but just wait until you hear the interest rate that we locked up with the seller finance deal which spoiler alert it's five percent five percent on a seven point five million dollar deal that's significant and I don't know if you remember this but on our Scott still deal on a three point two five million dollar house our interest rate was six point three seven five so we got a better interest rate than that and I think people were really just they were jazzed about it because the seller finance terms are really great the down payment we're great so we got a lead with a little bit more of like Hey there is a problem right now out in the world and we have the solution with this deal and I even worked in the bit we talked about how land is that you know at a premium in California that you can't just go out and buy a hotel in Big Bear lake it's a very sought out area this is all true by the way which is my favorite part and it led with that I guess like I'm always like I think about all this is true it really is like I just didn't realize that that was the most important part of the pitch first is just kind of casually mentioning that at the end and I think so far in the in the weeks since we've recorded this we have gotten I think about half a million through the door in the fundraising got about another half a million coming through the door right now so I think in in about a week's time we will have raised one million dollars for this specific deal which will put us like over half half we subscribed on it and I attribute a lot of that to just a lot of the nuances and a lot of the things I hit on during this presentation so yes very thankful to have gotten the the insight from or in the whiz kids off

so I'll leave you guys would probably with that and you don't have to pick this conversation up you know again I think there's quite a lot to digest here for somebody who's new to pitch anything

can confirm either cantors and infirm oh my gosh I mean I guess that I took notes here so this is that lie in that takes down the buffalo that's way too big actually eat in one sitting and going to have to go back a couple times the line who the buffalo

we we we want to deal a couple years ago so the company had a hundred seventy five million dollars in eBay dot right and we won the deal on there like Hey you're going to be a banker and you know managing deal for us we were the dog you know they're chasing a pickup truck up a dirt road and we caught it grand on the bumper we're like now what like we've been chasing this truck you know for ten years up this dirt road we finally figured out how to catch it and then we're just like hanging on your truck bumper yes I understand

yeah we'd love to have you back and get into this more now the people have sort of been exposed to these concepts I think we can ask you different questions that relate specifically to real estate investors those trying to build wealth through real estate because this stuff works for everything this is why I'm always teaching other people come in they say David what's the short cut to how I can just find the best deals and get the best properties and the answer is is always that's not the right approach you need to work on yourself if you're in the beta position all the time people are going to let you borrow money if you're coming to me with these in securities I can only imagine what you're doing when you're going to someone who you want their hundred thousand dollars it starts with personal growth and this is such a powerful powerful way to approach it's why I've read the book so many times because sort of once you see it you can't unsee it this is happening all around you all the time when you're talking to the gate attendant when you miss your flight when you're dealing with that the person your server who isn't paying attention to it all throughout life these interactions are happening and you can just improve the quality of your life so much by understanding what these dynamics are and how to works or and I would love if we could have you back again we really appreciate your time I know that you've gone longer than you normally do and I think that that's because you love us here at bit bigger pockets especially because it's not always the case any last words for we let you go

well I think I think you guys are authentic and I respond to the authenticity and it's not why did you write the book tell us about chapter four you know what tell us how to get rich you know how do you buy real estate like these that the unanswerable these you know as kid rock would say these are the questions that don't have any answers so but I think you guys approach it very authentically and so that I appreciate

thank you for that we're blessed with the knowledge that you have spent a lifetime accumulating and I would go to say you're probably the like for for an expert on this topic and anybody in the world so everyone go look up or in class online I've seen his you tube videos they're very good he breaks a step down in smaller bite size chunks not the whole buffalo like this maybe a little little rabbit or something you can

the

the the rump and then maybe like the shoulder then I can understand it's Rhoda board before we let you get out here I got one last question would you mind pitching us on where we can find out more about you and your philosophy

yeah sure I mean if you go to Google and you just type in like half that it which is auto fill and half the internet is about me what date it or in class dot com or pitch anything dot com and so there's not just up to sign up there for but we would certainly have a way to work with me directly and the point of entry if you're raising money there's just so many things that we can help guide you through to step around the bouncing Bettys the classic mistake that would just blow up in your face and it gets made every single time you can get well ahead of it and we have you know if you've heard here like the scraps the template in the patterns just get around the classic sticks I would like to help people through a portal that I have called deal maker elite if you get in the deal maker lead and you perform you interact you do the stuff that we guide you through and you're in a real deal then we invite you to come here to this facility we didn't really pull the camera back or if you're listening to just twelve thousand square feet in southern California that very few people get to come to our end so that when we see you perform an eight inside of deal maker elite on your own deal you make for progress on your deal using the instructions we give you then we extend an invitation to come here and do some one on one work with me and my team so that's the way we work with people and the reason I do that is you know eventually people graduate to having real deals that I can invest in and so for my investors I say I have proprietary deals right and they go where you get your proprietary deals from so I don't work with this guy for five years help them do is for forty also and now he's latched on to a fifty million dollar asset he's already lined up you know thirty million dollars in debt it's got ten million dollars of equity at the table we're just going to be the final ten million dollars to close a deal unless going along side him I've known this guy for five years and he executes he started when he was thirty three he's now thirty eight and I'm in along side of him because I know his values and so that all starts we you know with with the basics to jump over to or in the class dot com and then let's see if we can help you close your deal and then you can start to bring us deals we can put capital into from a trusting position

thank you are in this is David green for Robert raising money in Big Bear of a solo signing off

Hey listeners before you go I will let you in on a newly released resource from your friends here at bigger pockets it's a quick and easy read by bigger pockets author J. Scott titled a quick start guide to economic shifts this downloadable guide will leave you with a solid understanding of the current economic climate and help you answer questions like why is twenty twenty two different in two thousand and eight what is stagflation and what will interest rates stop rising it's now more important than ever that you're educated on the changes occurring in the economy stay ahead of the shifts and download the economic shift guide at bigger pockets dot com slash inflation that's bigger pockets dot com slash inflation

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