RG 037 – Use These Conversation Techniques to Increase YOUR Investor Database with Judson Smith
- Judson is a former professional baseball played with the Cincinnati Reds.
- He has completed over 60 residential deals.
- He now Syndicates on large multifamily deals.
Unrelated to Real Estate:
- Judson got into RE through a pest business when he was doing termite inspections on empty houses.
Nuts & Bolts
Judson moved into real estate after four years as a professional baseball player and several years working in the pest control business. When inspecting a house for termites the owner mentioned that he was renovating and ‘flipping’ the property, which gave Judson the idea. After his first deal, and working with the bank, Judson realized that he could move faster using other people’s money, OPM baby!
While he was moving into the world of real estate the biggest change came when he realized he needed to shift his mindset from “asking for money” to “offering an opportunity”. If you ask for money you sound like you’re coming from a place of desperation. This is the first step when finding investment for your deal. The second step is to sell yourself the deal, this means learning every detail so that you are confident in talking about it to anyone. This confidence will be evident in person or down the phone and make you more attractive to potential investors.
Step three is to start bringing the deal to investors. As you start to talk to them you will make mistakes and mess up, but you will only learn the right script by making errors at first. Investors don’t actually care about the deal, but they want to feel confident in you, so relax and don’t rush.
Step four is to ask the investor leading questions to encourage them to talk. These questions don’t need to be about the deal in hand, you can make small talk or ask about something you remember from last time you met. They should be doing the majority of the talking and a window will come up naturally for you to introduce your deal. It is like going on a first date, let them do all the talking! 🙂
In order to find investors you should be doing several things;
Firstly you should be attending networking events every week. Also, up your social game and hang-out in the places where rich investors might be, for example yacht clubs or cigar shops and initiate conversation. Judson also uses marketing to find investors and recommends using findprivatemoneynow.com to buy lists of contact details of people who have recently paid cash for real estate.
Once you have bought these details extract the people who have invested over $250,000 and upload their numbers for textblasting or voicemail blasting. Make sure your message or text is personal and to the point. Judson usually receives a 3-4% return from a voicemail blast. Judson then applies a motivation filter for all callers and lets their return calls go to voicemail; this way he will know who is actually interested in talking versus time wasters.
If you’re just starting out and your budget is tight Judson says that consistency is key with marketing rather than huge numbers. So use a little money on text blasts every month rather than using everything straight away. If you manage to hook an investor but don’t have a deal lined up then you must not lie but you can frame the conversation as you’re “working on a deal” and send information about your company. The main aim is to keep the conversation alive so that you can reach out when you’re deal is more concrete.
Top Investing Tips
- Most successful habit – Kickstarting his morning with exercise a cold shower and a bullet coffee.
- Most influential tool in your RE business – Mobile phone
- Most exciting project right now – The Colony Apartments in South Carolina; 86 units bought at $3.8 million and moved from C to B class.
- Who is your most influential person – His parents and parents in law.
- Best US deal to date – A double wide property he bought for $100,000
Facebook Judson Smith
Until Next Week, Happy Investing!