This is the first episode in our special Q & A Series. We tackle the best strategies and tactics for building a database of investors ready to buy your deals.
- Tell people what you do
- Importance of networking
- The role of social media
Mark: Right. So let’s crack on. So yeah, the first question of the night is Andy James. So what is the best way of building an investor contact database to sell packaged deals to as a newbie sourcer?
Now I would assume Andy’s asked this question because as a newbie, you’re not going to have sort of a massive list of investors. You’re not going to have the experience where everyone is jumping at asking you to source them deals. So this is where most of you will be potentially stuck when starting your sourcing journey.
So there’s just a few key points that you need to take forward. So one of the biggest things that I cannot emphasize enough is to tell everyone what you do. And I mean everyone. So work colleagues, family, friends, people at the gym, golf course, when you’re out on a night out, if you smoke, tell people in the smoking sheds or parts or wherever they do and when you’re smoking outside. Because it would surprise you at who has money to invest in property. People that you assume don’t have a pot of savings who are looking for a better way to use it than having in a savings account. And I don’t know if anyone saw today that NatWest are reducing their savings and that interest rates are [?]not quite 0.1 which means I think a pound, for every 10,000 pound you’re saving which is absolutely shocking. So you can use that and explain to your family and friends and work colleagues and whoever that if they’ve got money to invest, you can invest it wisely for them in terms of finding property deals that are going to generate them an income. So I like to say don’t ever hold back. Just tell absolutely everyone what you do.
Now the other thing is networking meetings. So when I say networking meetings, you will all probably or most of all have attended at least one if not several local property networking meetings and things such as PIN, PPN, PEN, all the different ones – there’s quite a few now that are cropping up all over the place. If you are going to get to networking meetings, one of the biggest pieces of advice I can give you is to not focus too much on long lengthy conversations at the networking meetings and have probably at most two to three minutes with each person that you meet and find out how you can help them. The biggest thing is how can I help you – that’s probably one of the best questions you can ask. And then find the people that are going to be sort of most crucial to the early stages of your development. So needless to say as a sourcer, you’re going to want investors and I can tell you now there are several investors that attend property networking meetings especially investors that understand they’re going to have and they’re going to pay for a sourcing fee to find deals and just make sure that you’re making a note of these people, get their business cards, get their telephone numbers and arrange to meet them outside of your networking meeting, because you really want to get around that room and speak to many people as you can. And then like I say, focus a lot more attention on the meetings and then you can sort of properly qualify. And then obviously, add them to the investor database as you go along.
And the other thing, probably the third main one is social media. So things such as property groups on Facebook, local business groups, Facebook, LinkedIn, even Twitter to a certain degree. But mainly Facebook and LinkedIn for building investor databases. Make sure your profile, tells people what you do. Telling everyone what you do certainly applies verbally but it also applies on all your social media accounts. So things such as what your Facebook profile says is your company name, what you do, your actual bio. You can fill in a bio on there on Facebook. Same with LinkedIn, make sure that your LinkedIn profile explains what you do and how you can help people. And then you got the groups. So again, within Facebook and within LinkedIn, you’ve got property groups. So make sure you’re going in there seeing if anyone needs your help. But also posting in these groups, you’re posting in these groups, telling everyone what you do, any deals that you’ve got. So as soon as you’ve got a deal, post the basic information up which I know is one of the questions later. But look for posts of people you could view and also post what you do. And you’ll very quickly start to build up an investor database.
Now, one of the things I also want to sort of make clear and hopefully it will help people feel a little bit more at ease about investor databases is there are only so many email addresses and names that will be active serious buyers on any investor lists. So anyone that tells you they’ve got an investor list of 10,000 people, 20,000 people, 6,000 people, the chances are very high that the vast majority of that list will not be active buyers. They’ll be time wasters, they’ll be tire kickers and you know, we’ve got a list of 10,000 buyers I can tell you now. I would never tell you to come to us because we’ve got 10,000 buyers because I would guarantee that the majority of those are not serious or active. And so you are better having a much smaller focused list of active investors than you are to have a list of 10,000 people where you’ll probably find that it’s just the same number of people that are active anyway. So never feel pressure that you need to have this huge investor database to sell your deals to because I can tell you now, all you need’s a good deal and you will find an investor very quickly.