elevator speech

[TodorYordanov]

QUOTE (tonypeters @ Sep 22 2009, 11:07 PM) Thanks for the invite Ed.
As always, I like to put things into perspective, so here goes...there is an old saying that goes something like this; "You have to kiss a lot of Toads before you get to kiss the Prince".

Does this put the situation into perspective for you now?

The "MASSES" are the "MASSES" for a reason. They are typically NOT the ones that are doing the kind of CRAZY stuff that entrepreneurs like us are, so they will ALWAYS look at us like we have "three eyes, four ears and something sticking out of our foreheads". So you may as well get used to the idea.

The key here is to weed out the "SUSPECTS" from the "PROSPECTS", and do it at "LIGHTENING" speed! If you do not, you will be wasting an awful lot of your time. Hope my views will be of help to you and anybody else that are having difficulty with this particular subject?


Tony, thanks for the wisdom. So true.

 

[CamMcCarroll]

"We buy investment properties with private partners, they put up the money, we do the work, manage it and in the end sell it, we split it 50/50"

 

[GarthChapman]

QUOTE (Cam @ Sep 23 2009, 02:30 PM) "We buy investment properties with private partners, they put up the money, we do the work, manage it and in the end sell it, we split it 50/50"Brilliant! Covers all the bases, except maybe how what you do can be done with the listener, so my version of this would be (my changes in bold) - "We buy rental properties with every-day people; they put up the initial money, we do the work and manage it, and in the end we sell it and split the cash 50/50"

 

[EdRenkema]

QUOTE (GarthChapman @ Sep 23 2009, 02:46 PM) Brilliant! Covers all the bases, except maybe how what you do can be done with the listener, so my version of this would be (my changes in bold) - "We buy rental properties with every-day people; they put up the initial money, we do the work and manage it, and in the end we sell it and split the cash 50/50"


Nice Garth, I used this yesterday but not nearly as concisely, anyway this aquaintance took my card and expressed an iterest to talk more about it later.

I might change it a little: We buy rental properties with everyday people, they put up the funds with cash or line of credit, we do the work, manage it and after approximately 5 years they get their intial funds back and we split the proceeds 50/50.

I like to follow up with saying I bought 3 positive cash flow properties with a LOC (no money out of my pocket) and now those properties put money in my pocket. If they question that I explain how this took a lot of work and education to get to that point.

 

[GarthChapman]

QUOTE (EdRenkema @ Sep 23 2009, 03:30 PM) Nice Garth, I used this yesterday but not nearly as concisely, anyway this aquaintance took my card and expressed an iterest to talk more about it later.I might change it a little: We buy rental properties with everyday people, they put up the funds with cash or line of credit, we do the work, manage it and after approximately 5 years they get their intial funds back and we split the proceeds 50/50.

I like to follow up with saying I bought 3 positive cash flow properties with a LOC (no money out of my pocket) and now those properties put money in my pocket. If they question that I explain how this took a lot of work and education to get to that point.

I like your improvement Ed. Add after "and after approximately 5 years" the words "we sell and"

 

[BenSanderson]

QUOTE (EdRenkema @ Sep 23 2009, 06:30 PM) Nice Garth, I used this yesterday but not nearly as concisely, anyway this aquaintance took my card and expressed an iterest to talk more about it later.I might change it a little: We buy rental properties with everyday people, they put up the funds with cash or line of credit, we do the work, manage it and after approximately 5 years they get their intial funds back and we split the proceeds 50/50.

I like to follow up with saying I bought 3 positive cash flow properties with a LOC (no money out of my pocket) and now those properties put money in my pocket. If they question that I explain how this took a lot of work and education to get to that point.

I like that fact that Ed mentions the LOC. I think many people might be intrigued by the main idea, but write it off early because they don`t have cash on hand to invest - they don`t realize the unused potential they may have in their own home equity. You may want to add a line to the main elevator speech saying that, in many cases, you can help people find underutilized assets in the form of home equity, and then show them how economical it is to invest with that money.

The other thing I would add is some anecdotal reference to a typical range for ROI. Something that puts a dollar figure in their mind. Thomas originally mentioned doubling people`s money in five to seven years. That paints a nicer picture in my mind than, say splitting the profits 50/50. They might think the profits are only 5%.

So, mine might go like this:

We partner with everyday people to buy real estate that generates positive cash flow. We do all the work, from start to finish and our partners simply fund the venture. In many cases we can help them use the built up equity in their existing home, which means they don`t even need real cash to get involved. After a few years, they get their intial funds back and we split the profits 50/50. In our experience, the return on investment ranges between XX% and YY% annually.

Hopefully, this would scale things down enough for almost anyone to start imagining themselves doing this and getting some good money out of it. It leaves the door open for them to ask further questions about real estate, home equity, the length of terms and the ROI. And if they don`t ask, you can always elaborate on these points and others.

Just my 2 cents...

 

[Thomas Beyer]

QUOTE (jaccker @ Sep 23 2009, 07:15 AM) thomasbeyer2000, I am interested in your limited partnership investment, is it RRSP elegible?
yes .. details here: How could I protect my investment?

What do you mean ? Is it "guaranteed" ?

You will lose all you money as a worst case. The OM has 4 pages of risk. Do you have the OM ? Read the risk pages. Tell me what is most likely ? High interest rates ? Riots ? vacancies ? dictatorship ? Tsunami ? NDP government ? US invading Alberta ? Global cooling ? Fire ? Earthquakes ? All those things could happen and have happened in the history of man. We didn’t even mention meteors that could land on our buildings.


There is NO GUARANTEE NOR IS THERE INVESTMENT INSURANCE!! The guarantee is

a) good management and

b) the fact that we sign personal guarantees on mortgages and

c) the fact that we share in the equity, and

d) that we have 80+ years combined business experience and

e) that we have a 10 year track record.

f) We know what we are doing. We have learned from our mistakes. We operate better today than 5 or 8 years ago.

g) We have low overhead. Most people who work here have low or no base salaries and incentives to perform.



A mortgage on a superb building with a low loan to value might yield you 4 or 5% if you can find such an investment as banks “own” that space.. but no guarantee either ! Or a GIC @ 1-2% !! Tell me ANY investment with a higher return and lower risk and I am listening !!

We also do not uplift building values like many syndicators !!

 

[richardkp]

[quote name=`BenSanderson` date=`Sep 23 2009, 11:59 PM` post=`66261`]We partner with everyday people to buy real estate that generates positive cash flow. We do all the work, from start to finish and our partners simply fund the venture. In many cases we can help them use the built up equity in their existing home, which means they don`t even need real cash to get involved. After a few years, they get their intial funds back and we split the profits 50/50. In our experience, the return on investment ranges between XX% and YY% annually.

Hi Ben,
This is great and certainly something that we will use going forward.
Thanks to Todor as well as yours also I think is really good.
This topic is really helping me currently as we are trying to "attract" wealth by having real estate conversations with everyone we meet!
Hopefully this will create my first of many JV`s
Thanks all
Rich

 

[betrina]

I'm thinking of something like: We help people stop losing their shirts in the stinking mutual fund and stock markets by investing in hard assets that don't just loose their value overnight. ... and then on to the kinds of things previous people have said..

Or on to asking them questions such as: Do you have mutual funds/ RRSP's? How's that been going for you? ...