Jul 21, 2022
Dave Dubeau is a Real Estate Entrepreneur, Best-Selling Author, Speaker and Investor Attraction Expert based in Beautiful British Columbia, Canada. He began his real estate investing career in 2003 doing 18 deals in 18 months. He later switched his focus to client-first rent to own deals, and nowadays he invests in multi-family (apartment building) properties.
For the last several years Dave has been a leading authority on helping mom and pop real estate investors to find money partners and raise capital. Using his proprietary 5 Step Money Partner Formula™, Dave helps his real estate entrepreneur clients to grow their portfolios significantly and in record time by attracting investors (instead of chasing after them).
In this episode we talked about:
Useful links:
How to raise capital 101 show
https://www.raisecapital101show.com/
https://www.linkedin.com/in/davedubeau/?originalSubdomain=ca
Transcriptions:
Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. Ladies and gentlemen, my name's Jessica gala, and you're listening to working capital the real estate podcast. I'm happy to introduce a returning guest to the show. Dave, Dubo a fellow Canadian and Dave was on the, a working capital podcast episode 1 0 3.
If you want to see the older episode we did about raising capital. Dave is a podcast host and creator of the money partner formula. He and his team work with mom and pop real estate investors providing done for you marketing services to help them raise capital. He's a best-selling author and speaker based in British Columbia, Canada. He began his real estate investing career in 2003, doing 18 deals in 18 months. We talked about that last time and he invest passively in multifamily properties. Dave, welcome back,
Dave (1m 6s): Jesse. Great to be here. Thanks for having me, bud.
Jesse (1m 8s): Yeah, it was a pleasure to have you back, you know, nothing's changed in the last two years, so we won't have much to talk about, but yeah, I mean, I, I thought it would be, it'd be good to, you know, we're doing another, I guess, multi or a podcast swap here and always, always great to speak with you. So I guess first how's everything going out in Western Canada? How have you been, have you been fairing over the last a year, year and a half?
Dave (1m 38s): Well, you tell, I tell you what, if people are watching this video, they can see it's been hair back for me a way back too far back. No, it's good. Good life is good. Can't complain Jesse. It's it's always good in beautiful British Columbia.
Jesse (1m 52s): Absolutely. Well, I mean, it's, it's also nice to speak to a fellow Canadian. We can talk about, you know, Canadian real estate, but it does, you know, pretty much pairs up with most north American real estate. A lot of the similarities, even when raising capital and even some of the legal nuances, but we're not giving accounting or legal advice, but I felt
Dave (2m 12s): No.
Jesse (2m 14s): So maybe a good place to start would be for listeners that haven't listened to the prior episode, which I believe I mentioned one episode 1 0 3, for those interested, you could give listeners a little bit of a background and you know, how you got started in real estate and where you're at today.
Dave (2m 32s): Sure. Well, thanks Jesse. So actually kind of grew up around real estate. My family home was one unit in a sixplex that my grandfather and father built a then when my parents split up, I was living with my mom. She was a real estate investor as well. She was a full-time school administrator and she still managed to build up a portfolio of about 50 rental units while doing that and taking care of her snot-nosed kid. Here's truly, and, but you know, like a typical teenager, I didn't pay much attention to it.
I didn't really get involved. And then I went to school, went to university, started traveling around and lived overseas for 13, almost 14 years. And actually my first little dabble into real estate investing was in San Jose, Costa Rica of all places. And what I did there, I guess we would call kind of like a couple of little pre-foreclosure deals. I was kind of a passive partner there. Just kind of put the money up for those deals that worked out pretty well. And then I, I moved my Costa Rican family to Canada, back to Canada, to BC and had to start all over again from scratch.
Hadn't been able to sell my business or I didn't have much money had been gone for so long. I had zero credit had been self-employed for so long. I was pretty much unemployable. So there I was in a brand new city wondering what the heck am I going to do? And you're too young to remember these things, Jesse, but there used to be these things called late night infomercials. And it'd be like this, you'd be up with insomnia late at night. Wondering how the hell are you going to make a living? And then you'd see this guy, come on TV and go. You too can get rich in real estate with little or no money down.
I said, perfect. That's what I got little or no money. So I said away from the course, it was some American guru and a, I got a whole bunch of at that time, binders and CDs, maybe a VHS cassette or two, I don't know, but a bunch of stuff and put this all all to work. And that's when I started doing creative real estate investing deals around 2003 in the smallest city of Kamloops. Did those 18 deals in 18 months? Sounds impressive. But they aren't where they were. They weren't all impressive deals, Jesse, by any stretch. Some of them were crappy, little mobile homes and mobile home parks and stuff like that, but they were all creative type deals.
So that's, that's how I got started.
Jesse (4m 50s): I can just see the infomercial. Aren't you tired of not making money and your job
Dave (4m 55s): There. Might've been bikini's and Lambo. I
Jesse (4m 57s): Was going to say
Dave (4m 58s): A red
Jesse (4m 58s): Furrion and five blondes on the arms. You can be rich like me.
Dave (5m 2s): Yeah. Something like that. Yeah. But it did. It did the stuff did work.
Jesse (5m 6s): Yeah. So we talked a little bit about this last time kind of starting, starting out the 18 deals that you did and you know, you'd be in the you're in this industry long enough, you know, that 18 deals can be amazing. 18 deals can be an absolute nightmare. It could be a reason to stay in or to leave the industry. Yeah.
Dave (5m 23s): Well, I left for a while. So that might tell you this.
Jesse (5m 27s): Yeah, maybe, maybe it was those 18, but I, I guess the, the background and we touched a little bit on this last time, the background was, was somewhat related to real estate. You had individuals, you know, obviously close to you that were, that showed that it's a, it's a viable place to, to build a career. And today, you know, a lot of the focus that you do have is raising capital for real estate. And yeah, I think what would be great for our listeners is to talk a little bit about how business has evolved or your investing has evolved from way back then to kind of having a niche.
I love talking to a Canadian, I can say niche instead of niche. I taught, you know, how it evolved and how you've kind of carved out a niche where your focus now has been on the multi-family side and raising capital. What did that evolution look like?
Dave (6m 18s): Yeah, good question. So I did those creative deals took a few years off, jumped back in around oh nine, 10 give or take. And I'm focused on single family homes at that point. And I was doing a different strategy. So I actually bought them. So I had to come up with down payments and all that kind of stuff after doing a couple hundred, my own steam ran out of cash, run out of credit. That's when I started trying to figure out this whole OPM other people's money idea failed miserably at the beginning.
Absolutely. Was it painful? Just even think back on that, but that's how I got started with the whole thing and, you know, talk about making almost every mistake in the book. I, I definitely did that. So yeah, I've learned, I learned a lot of things that you shouldn't be doing when you're, when you're starting to raise capital. And then that kind of transition did that for a couple of years. And then I realized it kind of came to the realization Jesse, that I don't really enjoy dealing with tenants or toilets. I'm about as handy as a foot. You know, I don't like hearing people whine about the problem.
So I decided maybe it'd be better for me to be more of a passive partner and invest passively in other people's multi-family deals. I had a good friend that was involved in multi-family. So that's how I got started there.
Jesse (7m 35s): And on the multifamily side, we're the first properties that you started to invest? Was it a more formalized thing where it was kind of roles and responsibilities were clear? Was it, or was it something that was, you know, shooting from the hip?
Dave (7m 50s): No, it was quite a formalized situation. So there, how many of us were there seven of us involved in that deal? Myself and my business partner and five investor partners in, in that particular deal. And that was a 54 unit building actually in Ontario.
Jesse (8m 9s): So on the raising capital side. And, and again, we'll, we'll speak fairly broadly here because the, the actual intricacies of, of the legal aspect of raising money are very similar, you know, whether it's the, the OSC, Ontario securities and exchange, whether you're out in BC or whether you're in the states. So, you know, you don't just go into real estate and then kind of figure out how to create these structures. So when you first moved to that, was there somebody in this group of seven that introduced you to this idea of, of raising in a structure that what we see today in Canada, a lot of times it's limited partnerships with an LP, with a number of LPs and a general partner or sponsor very similar in the states with the exception of them having LLCs limited liability companies, which we don't have up here.
Yeah. Can you talk a little bit about, you know, where, where you got that knowledge and, and how that, you know, transitioned?
Dave (9m 7s): Yeah, for sure. So the, fortunately for me, the gentlemen that I was working with, my partner on that deal had a lot of experience in multifamily. Also had a lot of experience working with other investors and he had a very good legal team. So we had everything structured properly, right from the get-go. I didn't really have to figure much of that stuff out. So I got to focus on my strengths, which were the, you know, the marketing side of things and the investor relations side of things.
Jesse (9m 35s): So we talked a little bit before the show, you've got three of the biggest mistakes that you see real estate investors re make when they're raising capital. Maybe you could speak to, to a few of those, a few of those mistakes for our listeners benefit.
Dave (9m 52s): All right, Jesse, well, these are all big mistakes that I made. This is why I'm generalizing, I think a lot. And I see a lot of people making these mistakes. The biggest one is this, this guru talk that I hear all the time, even today, which is, Hey, just find a good deal. If you find a good deal, the money will find you don't worry about. Right. So I bought into that hogwash early on, and that's how I lost a really good deal, but, you know, laziness as well for, and my philosophy has completely changed.
So now my philosophy is if you do anything, get your investor ducks in a row first and then go looking for deals, or at least do both at the same time. Right? You don't want to have one or the other. So in a perfect world for me, I would have my investors lined up and then I'd go make offers on properties. Cause then you've got so much of our confidence. You've got your mojo, you're ready to rock and roll, right? And, and you can go in, you can negotiate harder. You can have better positioning.
You can close faster because you've got the money to back you up. So chicken and the egg, which comes first, the money or the deal, I'd say the money comes first.
Jesse (11m 5s): So you're, you're cooking with oil at that point when you got the investors. So I, I can hear listeners saying, you know, lined up, what is lined up mean to you? And maybe just as a, just a caveat there, oftentimes we hear of getting a partial commitments, full commitments. Are you having people sign things? W w w what does that look like to you?
Dave (11m 27s): For me that looks like getting people to sign off, at least on an expression of interest indicating how much they're willing to invest and within what timeframe. Right? So it's not a legally binding agreement. However, anytime you get somebody to sign off on something, but they're John Hancock on a document it's so much more powerful than just a verbal commitment, right? Like, like the joke says verbal agreements worth the papers written on kind of thing. So if you get them to mark it down, that goes a long way.
And then the other thing I had to learn the hard way, I don't know if you've ever found this, Jessie not everybody's ready to pull the trigger when the rubber hits the road. So lineup more capital, more investors than you think you need. And I'd say at least a 50% margin there at least a hundred percent would be the better, because that way, when the smoke clears, then you're, you're going to be safe.
Jesse (12m 22s): If you're in a situation where you are, you're pushing money away from the deal. I think you're in a good spot. So
Dave (12m 28s): Beautiful spot. Yeah.
Jesse (12m 30s): And, and we were, you know, on our last raise, we, we did have a situation where we, we needed to make room and, and it's because we followed a bad ideology that it it's listen at the end of the day. Things happen, even if it's completely in good faith. And, you know, somebody, something happens in there with their family. Something happens with their career. You know, when I said, I was going to give you $150,000, four months ago, what that looks like today, a hundred
Dave (12m 57s): Percent. That was before I lost my job. Right?
Jesse (12m 60s): Yeah. Well, you know, it's like, you know, if it happened two years ago, a year later, you know, that was before there was a global pandemic, right? Like you can't, you can't control those things, but it's a good rule of thumb. So one of the challenges I find with people that are raised in capitals, there's this question, especially if they start once, you know, you've raised for your first dealer, second deal is this idea that you're raising for asset specific raises. So for instance, you have a property, you identify the property route there, then kind of a rolling fund.
So the challenge I find with that is you kind of, you really have to make sure everything's set up and then once a deal is there and you kind of, we're all running to get everything put together. So on that end, I think that's probably why you have this commitment that even though it's non-binding for you, is it something that it at least psychologically gets them connected to the deal?
Dave (13m 53s): Oh, a hundred percent. Get some connected, not necessarily to the ideal, but to ideal with me. Right? So there, at the end of the day, Jesse, when your investors are investing with you, a huge part of what they're investing in is, is Jessie. It's not just the deal, it's the team that's putting the deal together, right? So it's, it's that trust that's coming to the table. So that's my goal for, for our clients is to get them a number of investors waiting in the wings, so to speak kind of their investor ducks in a row, people, people that have signed off, not on necessarily on any specific deal, but on the idea of what the kind of deals are that they're doing.
Right. Because, you know, in your case, you're focusing on multi-family properties, are our clients have different, different focuses. Some of them do, multi-family some of the new burrs, single family flips, whatever it is, but their investors are signing on to that kind of deal.
Jesse (14m 51s): Yeah. I think it was had Brian Burke on the show a bout a year ago. And he called it the partnership structure. It's a trust vehicle, right. You're Dave Jibo or Jesse for golly, you know, there's, there's no investors that come in, if there's a lack of trust for the sponsor of the dealer or the team.
Dave (15m 7s): No. Like, and trust man got out of those three and in place for sure.
Jesse (15m 11s): No, like, and trust. Okay. So Dave, what was that? That was number one or the,
Dave (15m 15s): Yeah, we're having so fun. It's hard to keep track of what's going on here. So yeah, that's one of the big mistakes. The other one, again, that I made, it kind of goes in tied hand in hand with that, you know, you got to deal now, you got to raise the money for it. And that is just rushing in cold, hitting people up for cash. And, and this just brings back a nightmare for me, that that's exactly where I was at. I had this deal, it was a single family home, but you know, I need to raise whatever 85 grand, something like that for the deal.
But I only had like 14 days to remove the subject. So I had to get my you-know-what and gear pretty quickly. And that just brings a whole new sense of urgency, but also desperation. Right. And I don't come from a strong sales background. Most people don't, it's very, very few people that come from a sales background and can do the old Wolf of wall street thing and pick up the phone and start dialing for dollars. Not very many regular human beings can do that. Well. Okay. DiCaprio made it look like a lot of fun on the movie, but in real life, it's these by experiences, nowhere, nothing like that.
Yeah. So I tried that, I made picking up the phone dialing for dollars, doing those creepy networky type things, like turning every conversation into a real estate conversation, 32nd elevator pitches or commercials or whatever you want to call them. Right. All of that kind of stuff. In my opinion, just kind of smacks of desperation. Right. And it, and it's back to that whole thing. So I've tried all of this stuff and I had a deal on the go, but the challenge is you're coming from a position of weakness, right?
You need the money quickly and no matter how good that deal is, unless you're amazingly gifted actor, that desperation is going to ooze out of you. It's going to, it's just going to, they're going to smell it on you. I think in sales, they call that commission breadth, right? You just, you desperately need that sale. And no matter how good the deal is, the other person is going to be turned off by it. So that's, that's a big challenge. I see, you know, people are trying to raise money for a deal.
They're calling up folks they haven't seen or heard of for years. And the first thing, you know, they're pitching them on a deal. It almost, I don't know if ever had anybody hit you up for a network marketing type thing or an MLM type thing, Jesse, he never had that experience.
Jesse (17m 42s): Absolutely.
Dave (17m 42s): Doesn't it isn't just like it's cringy, right. It just a hundred
Jesse (17m 46s): Percent. But
Dave (17m 46s): Yeah. So we don't want to be in that, in that boat. So don't just, you know, I highly recommend you warm people up first before you start pitching your deal. So when we're working with clients, we have a whole process for this. We call it the warm-up campaign. Once we target our specific group of potential investors, we don't go in with, Hey, I got deals. If we got dough, no, the first step is, Hey, it stayed. Chances are, it's been a while since we've seen each other or connected, just wanted to reach out, say, hi, see how you're doing.
Let you know a little bit about what I've been up to. And then do a quick little recap of what's been going on in the last 3, 4, 5 years. You yourself, more the personal side, right? Not talking about real estate, not talking about markets, not talking, not trying to NLP anybody into investigating, just having a legitimate reconnection. So the way we do this with our clients, we'll do a three step email campaign, drip, drip, drip, like over a period of a week or 10 days. And the whole goal is just to get some movement, get some, some interaction, get people kind of going back and forth with you a little bit there because there is definitely capital in those connections.
Plus now it sets the stage for all of the marketing. That's going to come down the pipeline.
Jesse (19m 2s): So last time we were speaking you, you talked about kind of doing an audit on your phone. I believe, you know, looking for, you know, different or your contacts on your phone. I found that when I first started raising capital, it was, you know, your, your student network, you know, people that you knew through work there. Like when you really start to think about it, you do have tentacles that go into a lot of different areas. And it's just about organizing those. Has that changed at all for you? Or is it
Dave (19m 31s): No, we still do that process. So basically we, we want to create a list, a focus group of somewhere between one and 200 people, a hundred to 200 people that we want to laser focus in on to get started with Jesse. So what we do with our clients is we'll do a data dump. We'll take all of their phone contacts, their email contacts, their social media contacts, get them all into one place, sift sort, merge, purge, deduplicate duplicate, get it all cleaned up. And then you're probably going to start with a list of, I don't know, a thousand or 1500 people typically, or maybe even more.
And then the job is you go through that list and quickly whittle it down to a couple of hundred people that you actually do have a preexisting relationship with. Right? So these are people that have you bumped into them in the street. They'd know, you you'd know them. You could have a conversation, you know, at least that's, that's what we're looking for. Genuine connections. So that's, that's what we do with our
Jesse (20m 26s): Client. They do a stop and chat.
Dave (20m 28s): Exactly. Yeah. You could have a nice little conversation in the lineup for Starbucks.
Jesse (20m 32s): So the F the first thing you said there, it's like, to me, it's, it's a lot like dating this aspect of when you're absolutely completely needy. You have a deal, you can smell it. You can just, you get that vibe right away. And if
Dave (20m 46s): It, did you see me in my dating days? Is that what the transit sounds like? It sounds like you're spying on me,
Jesse (20m 52s): But it, it really, it really is funny. It's it does feel like it's almost like you're in high school again. And there's this aspect of when you feel, when it comes off, that you don't need that commitment. All of a sudden that you get that opposite reaction to somebody that's interested.
Dave (21m 7s): It that's exactly what it's like beautifully said.
Jesse (21m 10s): So this, so I guess just to cap off that second one, there, the point that you start to make this touch point does not have to be right when you get a deal. If anything, it doesn't hurt for people that are looking to raise capital to start reconnecting, you know, now prior, And I think one of the, one of the challenges, like you said, you know, I'm in brokerage and even, you know, even in a sales environment, I can only imagine if, you know, if somebody is not comfortable with talking or reaching out or it's outside their comfort level.
But one thing that I was told very early on was just like, you know, just bite the bullet and let people know what you're doing. And, and if real estate is what you're doing, there's, there's people that will invest with you that don't didn't know that you, you were actually investing. And I find that if you put yourself out there, you make these connections. Then when you do have a deal, it's, it's like you said, it's not a, you know, at the 11th hour, you're asking somebody to fund something.
Dave (22m 6s): Yeah, definitely. Well, and here's the thing. You come from a strong sales background. I come from a strong marketing background. And when you combine the two of them, then you're really on fire. So the beautiful thing I love about marketing is it can do a lot of that heavy lifting for you. So when you, you get the right marketing out there, what I call edutaining communication. So a little bit educational, hopefully a little bit entertaining, always with a clear call to action, never specifically selling a deal that selling people on the idea of booking a call with you.
That's, what's super powerful because then here's the, here's the difference, Jesse, instead of us reaching out, trying to convince somebody to listen to us about our deal, we use marketing to create curiosity, get them to put up their hand and ask us about the deal. That is a complete 180 and as a complete 180, when it comes to positioning as well. Right? So they want to know more from us versus us pushing our thing on them. So that's, that's my whole goal when it comes to this whole marketing thing is to try to attract investors instead of chasing after investors.
Jesse (23m 16s): Yeah. I like that. Edutaining good. Good. A little portmanteau there, Dave.
Dave (23m 21s): I, I, I wish I came up with that. Somebody smarter than me did. I can't remember who fortunately, but that, yeah, that's, that's the way to do it, edutain them.
Jesse (23m 29s): Okay. So we are on the TWA with
Dave (23m 34s): A few Eastern Canadians with your French. Look at me. I got the French last name, barely put three words together and fresh.
Jesse (23m 41s): You know what? I got
Dave (23m 42s): This Italian guy talking to me.
Jesse (23m 45s): I appreciate just being next to Quebec. They're the only ones that get my last name, right? When they're on a national bank or something. He still, yeah. Okay. So, all right. That's number one. And number two, third biggest mistake you see,
Dave (24m 0s): Oh man, I'm sure you see this all the time, Jessie and that is people kind of spraying and praying, right? So they think anybody with a pulse and a checkbook could make a good investor. So they start posting on Facebook. They're posting stuff all over the place. They're soliciting people in these public forums. And again, caveat here. I'm not a lawyer. I'm not giving legal advice. I'm a real estate guy and a marketer. That's, that's why they, but my understanding, and I'm pretty sure it's yours too, is that's that's illegal.
We're we're crossing, crossing the line with the good old Ontario securities commission, BC securities commissions, securities, and exchange commission in the states, if you're proactively soliciting investors in public forums, right. Especially strangers people that you don't know. So that's a big mistake back in the day, when newspapers were a thing, I'd see people putting in ads in the classified section and the Western investor and all these different places. And, you know, they might get away with it for awhile, but once the law comes down on you, that can be a very, very stressful, painful, and expensive experience.
So again, that's why we're working with clients, just helping them get started with raising capital. That's why we laser focus on leveraging their existing network first.
Jesse (25m 19s): Yeah, I think for Canadians, I think we have the national instruments. If anybody's curious to know what our equivalent is on the security side, but you know, in the states, I'm sure some listeners would be like, well, I saw, you know, I saw different people, advertise and grant Cardone, these different, you know, they're, they're looking at very specific exceptions within the law. And I, I, I think I'm going by memory reg, reg, D, and the states where if you're investing to certain individuals, if it's all accredited investors, if there's are, there is advertising, you can do.
But the average person, when they're just throwing everything out there, you really gotta be careful about that because, you know, I venture to guess the OSC and BC secure, I think it's BC securities commission. Is that right? Or is it, yep. I think that they might be a tad friendlier than the sec, but I, you don't want to get in the cross hairs of, of either,
Dave (26m 12s): Oh man. I, I know of a company in Alberta that had a full-time league. Like they had a legal department in-house they had, they, all their sales guys had to get the securities, whatever Canadian securities course thing and all that kind of stuff. They got shut down by the Alberta securities commission for six months. And their whole business was raising capital that's. That's how they made a living. That's all they paid the bills, they got shut down for six months for an investigation at the end of the six months.
They said, oh, it looks like you're doing everything right. You can go back. Continue. Yeah. Well, yeah, no, they're dead in the water after six months. Right. So
Jesse (26m 55s): Sham down a, a restaurant for a year. Same exact you're good now.
Dave (26m 60s): Yeah, exactly. So, I mean, and that was a full-time legal team and a multi multimillion dollar company. So think about for you and I are a little mom and pop real estate investor. I mean, yeah, just Laura getting a lawyer and trying to do anything with that bang you're down 10, 20, 30 grand in no time.
Jesse (27m 20s): Yeah, for sure. And that was one of the things for, for us, you know, we started with, you know, although you pay for it, we started with the solid legal team and you know, one nice thing about being in the industry is we knew a lot of people on that side, real estate or, or syndication or securities lawyers where, you know, you make sure you're doing everything correct. Okay. So those are the three. And, you know, once, once you have investors or you kind of are, I guess, people that you're educating on this kind of stuff, once they kind of have a handle on those aspects of investing or passive, are there any other ones that during the process, once you have acquired, I'm thinking from an investor relations standpoint?
Cause I feel like a lot of times there's conversations about raising capital and you finally do, it's great. You, you acquire the place, but then there's this whole other business where sometimes your personality type is great for raising capital, not so much for asset management,
Dave (28m 19s): Right? Yeah, definitely. Yeah. That's, that's a big hiccup for a lot of people, they get off to a good start and then the communication just kind of dries up. So I think, you know, and, and we work with a lot of what I call mom and pop investors, just getting, going, doing joint ventures and that sort of thing. Right. So what I always recommend to people is treat your investor. Even if it's your brother treat it as if it's a complete stranger and better yet I'm an accredited investor.
So ask yourself, you know, would an accredited investor want the proper legal paperwork? Yes. So make sure you've got the proper legal paperwork, but an accredited investor get independent legal advice. Yes. Make sure your brother gets his own independent legal advice. Would an accredited investor want regular reporting? Yes. How often quarterly semi-annually, whatever it is, then do the same thing. Right? So excuse me, Jesse. I came down with a little something here, so sorry for hacking on your shelf, but that's, that's the whole thing, right?
You gotta, you gotta have that communication, but you need to decide upfront in conjunction with your investor. How often did he want to hear from me? Because what I found in, in real estate investing as well as a lot of people are on the analytical side, so they can overdo it with almost too much communication, too much data, too much information when the investor really doesn't want that much. So you got to find that happy balance with your investor partners, and maybe you start off with a quarterly meetings for the first year back it off to every six months, the second year, and then keep it going like that, depending on what you agree with your investment partners.
Jesse (30m 1s): Yeah. I think it's good. I mean, in any relationship, any business relationship or, I mean, just in general setting expectations at the outset is, is a helpful because whether the there the right expert expectations or the wrong it's people get anchored to them. So you want to make sure that you're not, you know, setting expectations that you know, that you can't deliver on, or you find out that you can't deliver on. So being, you know, being careful, careful, and prudent about that. I think that makes a lot of sense.
Dave (30m 27s): Yeah. Good point.
Jesse (30m 29s): All right, Dave, we did a little bit more of a power round today. So I think we're going to have to chat about private money and next time I see it, because I think I was saying before the show with interest rates where they're at, I feel like that is going to be, it's going to start to be an area where we're going to see a lot more activity. We're already seeing it on the brokerage side, whether it's in the form of hard money loans or vendor take-back mortgages. So definitely should, should schedule a time to talk about that maybe in, in the fall.
We'll see where we're at.
Dave (31m 1s): That sounds great. My friend,
Jesse (31m 3s): So Dave, for our listeners, aside from Googling yourself or looking in the show notes here, where can listeners get in contact with you? See what you're up to?
Dave (31m 12s): Oh, thanks Jesse. So I'm really excited because I'm launching a brand new podcast. It's called the how to raise capital 1 0 1 show. You can find that wherever you like to listen to your podcasts and the first nine episodes of the show are a mini course on how to raise your first six figures in a matter of weeks, your first seven figures in a matter of months, even if you're just starting from scratch. So again, that's my new, not my new show that I'm pretty excited about the how to raise capital 1 0 1 show.
Jesse (31m 45s): My guest today has been Dave Dee, both Dave, thanks for being part of working capital. Again,
Dave (31m 50s): My pleasure, my friend. Thank you.
Jesse (31m 59s): Thank you so much for listening to working capital the real estate podcast. I'm your host, Jesse for galley. If you liked the episode, head on to iTunes and leave us a five star review and share on social media, it really helps us out. If you have any questions, feel free to reach out to me on Instagram, Jesse for galley, F R a G a L E, have a good one. Take care.