Throwback Thursday: Closed on a 200+ Unit Multifamily Syndication: 1 Simple Lesson
Four months ago, I closed on a 200+ unit in Richardson, TX, which is a submarket of Dallas. Upon closing, it put my company at over 1,200 units under management.
I’ve documented the lessons I’ve learned from each of my previous four deals, so you can catch up here:
As for this deal, the lesson I learned is simple. But before I mention it, let me tell you a quick story…
I had lunch with someone who asked me to meet with him. He was interested in raising money for their fix and flips and was wondering how to go about raising money. He asked me a bunch of questions about where to find investors, what type of paperwork is needed, how to structure the investor conversations, etc., and I gave him answers to all the questions he asked.
He told me at the beginning of our meeting that he also wanted to see what I needed. And, true to his word, at the end of the conversation he asked me, “What can I do to help you out?”
I tend to get that question a fair amount of times so I have three things I tell most people.
- I told him that he could buy my book (all profits are donated to Junior Achievement),
- Listen to my podcast and write a review on iTunes
- And/or be on the lookout for off-market deals that are 150+ units
I appreciated him asking and was curious which one he’d pick and/or what he would say/do.
He said he loves listening to books and he would get the audio version of my book after he finishes up with two or three other books he’s currently listening to.
I then had to leave so we parted ways.
Question: How good did he do at adding value to my life?
Answer: To Be Determined.
I sincerely applaud his effort and intention but there was no execution that I could see.
Is there a different approach that really impresses the person who you’re attempting to add value to?
It’s slightly different but has dramatically different results.
Even though he’s in the middle of listening to two to three audio books, instead of saying “I’ll get to it after I’m done with the other books,” I would say, “I’m going to buy your book and will have it purchased by the time you get in your car in the parking lot!” BOOM.
Or, even better, “Joe, hold on one second. I’m ordering your book right now. That way I can write a review by the end of the month.”
Holy cow. What a difference that would’ve made from a perception standpoint. Is he spending the same amount of money and time regardless of which approach he takes?
Is there a big ole difference between the perceived value that each of the approaches provides?
THAT leads me to the lesson I learned that was reinforced on this 217-unit deal.
When you have an opportunity to connect with someone, it’s important you IMMEDIATELY add value to his or her life. It takes the SAME amount of time but generates DRAMATICALLY different results compared to if you wait.
The 217-unit deal was a syndicated deal. However, it was only with one investor. I met that investor because he reached out to me after hearing me on someone else’s podcast. I was able to get on that other person’s podcast because when we met, I immediately referred him to people who I thought could help him get more business.
It’s simple. But lessons don’t need to be complicated in order to be effective.
Please note: I am NOT calling out the person I met with. I applaud him for asking what he can do to add value and saying he’ll do it. I’m simply saying there is ANOTHER LEVEL to go in order to be outstanding. And that level is to IMMEDIATELY add the value in order to stand out.
Tim Ferriss said on his podcast, “Be unique before trying to be incrementally better.” That’s exactly the lesson here. People simply don’t follow through with what they say most of the time. Therefore, instead of saying you’ll do something later, just do it then. You’ll be unique and the results can lead to BIG things.
Want to learn more multifamily syndication tips, as well as learn more about a wide-range of other real estate niches? Attend the 1st Annual Best Ever Conference February 24-25 in Denver, CO. It’s the only real estate investing conference whose content and speakers are curated based on the expressed needs of the audience. Visit www.besteverconference.com to learn more!