Working Capital The Real Estate Podcast
Building a Real Estate Platform with Michael Blank|EP39
Feb 3, 2021
In This Episode
For the second time, we have Michael Blank on the show. Michael is a full-time entrepreneur, investor and coach and he is passionate about helping others become financially free. Through his company Nighthawk Equity, he controls over $75 million in performing multifamily assets all over the United States. In addition to investing nationwide, he teaches others how to do their first apartment building deal through tons of free content on TheMichaelBlank.com as well as additional training programs. He helped students acquire over 750 units valued in excess of $27M and they’re on track to do 1,000 units in the next 12 months through their unique coaching and “Deal Desk” program. He is the host of the popular podcast “Apartment Building Investing with Michael Blank” and he writes regularly for the Bigger Pockets and Flipnerd’s REI Classroom.
In this episode, we talked about:
- Asset class
- Raising capital
- Educating people in investment
- Building a real estate platform
- Apartment syndication deals
- How to reach the right people and how to get their information
- Gathering the right investor info
- Strategies in attracting investors and building relationships
- And MUCH MORE!
Resources and Links:
Hey everybody. This is Jesse Fragale. Before we started this episode, I just want to say thank you so much for everybody that keeps on listening, it really is amazing to me and I can’t. Thank you enough. What would really help us out is if you enjoy the show to go over to iTunes and leave us a five star review. Also, if you have a favorite episode, what would be great is if you could share it on social media, whether that’s Facebook, Instagram, or LinkedIn, anyways, enjoy
Welcome to the working capital real estate podcast. My name is Jesse Fragale. 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.
All right, you’re listening to working capital the real estate podcast. I have a returning guest on the show. Michael blog. Michael is an entrepreneur through and through and passionate about helping people become financially free. He’s the author author of the amazing bestseller financial freedom with real estate investing and host of the popular apartment. Building investing podcast. He’s helped investors purchase over 7,500 multi-family units. And I’ve just heard now he is now controlling over 80 million in performing multifamily assets. Michael, how you doing? Hey, Jesse, it’s great to be here. Good to see you. Good to talk to you again. I was going to say at the outset, the way you start your podcast, let’s do this, let’s do this. So how, how have things been?
0 (1m 28s):
It’s been, I can’t believe now. Probably probably over six months since the last time we spoke.
2 (1m 33s):
Yeah. It’s been kind of quiet last time and were like, Oh my gosh, we haven’t done a deal. And then we ended up closing two and the last four months of 2020, which has been, which has been great. It certainly wasn’t a year that we had anticipated as quite a bit different. We struggled quite a bit like everyone finding deals and you had to change things around with how you underwrote things, how you get them on a contract. But we are very happy with the two deals we have. There are Northern Atlanta, which is a great market. These are nicer assets. And as a result of some of the relationships we’ve built in that area, and there were largely off market where a lot of activities happening right now. So they’re very happy with ad we’d, you know, we’d like to continue doing that three or four deals this year, but we’ll see what the good Lord brings
0 (2m 13s):
For sure. So those deals there, he said a little bit nicer product. Would you know, where do they fall in the, in the asset class range? Are we in the B territory or higher? Yeah,
2 (2m 21s):
I still in the, in the, in the B, but you know, these are built in the early two thousands, so there know B slash B plus, and you know, one of them renovations are actually have granted and stainless steel inside. I mean, that’s, I haven’t seen that since my house flipping days, you know? And so that was, that was kinda neat to be able to put that kind of product in place.
0 (2m 39s):
I gotta move in one to your, one of your buildings. I’d like some granite in my kitchen. Well, it’s, it’s great to have you on just, just for listeners, you know, a little bit of the reason we’re having this conversation again. So soon as we, we kind of delved into the syndication process. The last time you were on, we talked a little bit about raising capital and you know, the was great. And I thought today we’d love to talk a little bit more granularly, but the, the capital raise process and a little bit more of kind of what you’ve been working on over the past few months and a little bit into the insight of quotations platforms and why we need them and why we should use them.
2 (3m 16s):
Yeah. I mean, we talked about raising capital last time, and it’s really more about not so much raising capital, but intentional relation, intentional conversations with people where, you know, you tell them about your apartment building investing, and in the process, you educate them about this good, this amazing class of investing class, which is better the stock market. And a lot of people never heard this before. So it’s really a lot of one-on-one conversations over time, being more intentional with those relationships and then, you know, setting up a meeting with them, sharing with them, a sample deal package, perhaps continue to educate and make them more comfortable answering their questions. So by the time you have a real deal in place, you can raise the money in days because you’ve already answered the big questions. And, and, and so the problem with, and that’s, you can raise $250,000, $500,000, even a million dollars in this exact same way.
2 (4m 3s):
It’s just a matter of conversations and networking and following up and referrals and that kind of stuff. But at one point you start, you, you, you face kind of a ceiling where if you’re trying to 10 X, your capital raising capacity, you’ve raised, let’s say $500,000. And you’ve met with a hundred investors, a lot of work you’re, you know, a very rewarding, but a lot of work like, well, how do I want to, how do I now raise $5 million? And I just, I just met with a hundred people to raise $5 million, how a $500,000, how am I going to meet now with a thousand people to raise $5 million? And that’s where it breaks down because no one, no human can meet with that many people. And so that’s the problem. That’s, that’s what problem, when someone has done a deal or two or three, that’s the problem that some of these more intermediate syndicators have.
2 (4m 48s):
And that’s the answer to that question is, well, how do you do it? Is you got to take the conversation online. You’ve got to start thinking about building an online thought leadership platform.
0 (4m 56s):
Yeah, that’s great. And it kind of ties into, I don’t know if it was our last episode or the one before, but we were talking about how zero to one is the hardest part. And I think we’ve talked about this a little bit too in like that first apartment syndication deals, usually the, you know, the one you’re like, ah, I don’t know how to do it. I don’t know who to call. I don’t know how to raise capital, but once you finish that one, you’re like, okay, I feel like I can do this, but it, you know, this is like part two in that it’s like, okay, zero to one, but then there’s one to a hundred. Yeah.
2 (5m 20s):
It’s like, it’s like, it’s exactly right. It’s like zero to one really hard, you know? And then going to 10, okay. I just repeat the same process. But then if I want to get the hundred, you’re like, Oh my gosh, my existing process, my systems, the way I’ve been doing things no longer work. And so now going from 10 to a hundred is a whole new, a whole new ball game.
0 (5m 40s):
So if you were to start us off in this process, you have somebody that maybe they, like you said, has raised a little bit of capital, has maybe JV done some deals, you know, take us, take us from the start, you know, for that individual, where did they, where did they go next? What’s the, what’s the plan. Yeah. So we, we, this idea
2 (5m 58s):
Specifically for intermediate to advanced syndicators who have this need for raising more capital, it’s quite a bit, a different person than I normally attract yet. Somehow these people lurk on my list. So when we talk about platform building, they’re like really, really interested. So we developed this idea of, of the three pillars of platform building. And so it’s kind of a process and a methodology for, for how do you attract new investors that you don’t even know? How do you cultivate a relationship with them? How do you build a pre-existing substantive relationship with them? How do you then share them a deal? So they invest. In other words, how do you turn them from cold lead? You’ve never seen before in a, someone invests 50 to a hundred plus thousand dollars with you.
2 (6m 39s):
And for that, we have the three pillars of platform for platform building. It really starts, there are three phases. The first phase is attract. You have to attract that investor, right? Because it’s, it’s not like you’re going to a real estate investing meeting. And you just randomly talk to people. What we’re talking about here in the online world is putting something out there and you become a magnet, okay? You will become a magnet where people can find you and they’re attracted to you and they want to have a conversation with you. So in order to build that magnet, you have to attract people, right? In order to attract people, you have to do two things. You have to be clear about who your ideal investor is. We call them in marketing terms, who is your ideal avatar? Cool. Who are you talking to? Number one. And then you’ve got to capture their information in some way.
2 (7m 21s):
Otherwise, I can’t have a conversation. If I have just blind visitors coming to my website, I don’t know who you are. Right? So the first part of the attract cycle is who is your ideal avatar? And this is why having raised money before is kind of important because you’ve had conversations with multiple people. Now you’re not choosing, I’m going to talk to you. I’m not going to talk. You’re talking about, you’re talking to anybody who wants to talk to you, but over time you figure out who your kind of ideal investors are, who are kind of paying the button, who aren’t, who are more likely to want to talk to you, right? So let’s say you’re a doctor, right? You’re a medical doctor and you get into the syndication business. Well, you’re probably going to attract other medical doctors is because it’s your story right now? Are you going to attract, you know, an attorney here and there an accountant here, they’re a business executive.
2 (8m 1s):
Yes. But your ideal avatar most likely is going to be other medical doctors because you share a story with them. And so the first step is to get clear on your avatar.
0 (8m 11s):
Got it. Okay. So that is a, is number one in the pillar. And it’s kind of just a lot going through my head right now in terms of, you know, how you cultivate that list. And I think we’re probably gonna get it in into it. Now, would you like to go over the three kind of on a large overview and then delve into each one or?
2 (8m 25s):
Yeah. That’s, that’s, that’s great. So that’s the attract. When you had to attract, you have to track those investors, then you have to develop a relationship with, with them and then you scale the business or the process. So, so in the attract one, you gotta be, you have to figure out who your ideal avatar is. Who are you talking to imagine? You’re you have you you’re across the table having coffee with your ideal avatar, what are they saying to you? What do they want? What are they afraid of? What are some other, maybe false beliefs? Oh, the stock market is to wait until retirement. Yeah. Okay. That’s a bunch of horsemen. Or let me tell you, right. So what are they saying? Right. What words are they using? Right. And if you knew that if you know who your avatar is, if it’s a medical doctor, you know, you know what you kind of know because your own background, what your thoughts are around that.
2 (9m 11s):
Right? And medical doctors for example, are there that are burning out and their jobs are used to get into the medical practice. And they’re working 80 hours, 80% of it, which is filling out paperwork and chasing insurance companies to get paid. Who wants that? Right. So these guys are burning out. They’ve lost their love for the, for the work. So a medical doctor having that same experience who got out of it through multi-family syndications can now speak to the medical doctor, you know? And so that leads us to step number two, which is the capture step. Once you attract, you, build out who our avatar is, and you kind of figure out your brand story a little bit and you put it out there, I’ll put out a blog. Here’s my story. Right? And you maybe build a what’s called a lead magnet or some kind of free download that speaks to your avatar.
2 (9m 52s):
Right? For example, let’s say you’re speaking to retirees. The retirees biggest fear in life is running out of money in retirement. Okay. And I’m doing this because my parents went through this process. I try to help them. It couldn’t solve the problem. Finally, I discovered multifamily syndications. I helped, I invested with them. And five years later, they’re covering your living expenses and they don’t have this problem anymore. Wow. That’s a great story. Right. So if I’m talking to retirees, I can now create a lead magnet, the secrets to never running out of money in retirement. What your financial advisor won’t tell you. Okay. And you’re like, Ooh, that’s pretty cool. So when someone actually comes to your website now, and there’s maybe a pop up or some window that says, Hey, here’s this cool little free download.
2 (10m 35s):
And if, if, if the right ideal avatar comes through a website, they see that like, I want that. And they’ll give you my lead, my email address. And therefore, now I can start having a conversation. Now I’m building my list. And that is really the attract part. That’s the first pillar is tracking the right people and then capturing your information a little bit.
0 (10m 51s):
So for those, I mean, that’s great in terms of you have somebody, you have some sort of free download, whether it’s a checklist, a financial model, just, you know, something that they can download where you, the quid pro quo is, they give you the, the email you give them value in terms of that transaction. Are you, do you also recommend, like, some people don’t have a website, but in today’s day and age, you can do landing pages. You can go to convert kit. W what is kind of your recommendation on, on that level?
2 (11m 17s):
Yeah. I mean, you need a website now you need a website. Some people aren’t able to websites. Some people don’t, but it’s not a complicated website. It’s really a one-page website. You know, that introduces the idea of multifamily asset, asset class. Why maybe it’s good. What are some of the benefits? Then you introduced a team, who’s a team. And then you kind of outline the process and then there’s a, Hey, a next step. We’d like to have a conversation with you. It’s not a really complicated site. And there’s actually some, some that provide us, you know, for us, for real estate investors. And they give you some boilerplate copy, and we do it for our students as well. So it’s not very complicated process to put up a website and erroneously. Some people syndicators think that having a website is a platform like, Oh, I already have a website. I don’t need a platform.
2 (11m 58s):
You know, although they go, Oh, I’m, I’m already on Facebook. So I’m all set. No, you’re not doing anything that I’m just talking about here. You haven’t figured out how to attract investors. You’re certainly aren’t capturing their they’re in for information. Right. Cause you’re on Facebook or on YouTube or Instagram. You don’t own that platform. I mean, they’ll change the algorithm anytime they want. And in the old days, right. Jesse remembers I would put a Facebook post out, sort of all my friends could see it. And then after a while, you couldn’t see it until, unless you paid for it. I’m like, what is this kind of nonsense? I want to communicate with my friends, but I can only, I can only see it if I boost my posts, what is that? Right. And this happens constantly happens with Google as well. So I don’t really own my contacts.
2 (12m 39s):
I think I do buy, I really don’t email on the other. It’s totally, totally separate because it’s email, I own, if my email subscriber some summaries and goes out of business, I can download my emails and go to another one. I have that conversation and contrary to popular belief, email is still the most popular way to communicate with people.
0 (12m 56s):
Yeah. I think a lot of people miss that just because how ubiquitous all the social media platforms have become. We just think that, Oh no, no. That, that’s where I go to see Michael that’s where I go to see this content. But from an ownership perspective, I mean, you don’t really have to look very farther than, than all of the social media heads being called the Congress. And just like the idea of not knowing if you’re going to be able to have content there and the control over it. So I think it’s a hundred percent. I agree. Even as from the brokerage perspective, the emails that nothing beats that it’s the control that we need, especially as brokerage brokers and especially as investors. No. Okay. So we go from there, we have the attract we have developed, so that that’s part of your lead magnet.
0 (13m 38s):
And then from there we move into scale.
2 (13m 41s):
Well, we haven’t talked about the develop yet because right now I just, I just have people on the list. So I have attracted them and I, and they’ve come to me. So now I have their email. I just really all I have what I don’t have with them as a relationship. So I need to develop that relationship next. And the way you do that really is by serving that audience, you serve that audience, usually with some kind of high value content, free content that educates them and provide some kind of value in this case, in real estate syndication, we’re educating them about this marvelous class of in syndications. What is it? How do you do it? What are some of the gotchas? What are the benefits, things of that nature. So you’re educating them in. So doing, you’re serving them because you’re educating them about this asset class.
2 (14m 23s):
And, and so what happens in when you serve them, you start earning their trust. And it’s not just serving. I used to, I used to think when I put content out, I would just put content now. And I figured, well, if I put enough content, I’ll, don’t do what I, what I want because they can read my mind. Don’t invest with me or they’ll buy her some course or something. No, every piece of content has some kind of purpose to it. And when you earn trust with someone, here’s the thing. If I can’t convince you to take some kind of action, I can’t actually help you. So you consuming my blog posts or watch my videos all day long. Isn’t really going to change your life. However, if I can, if I can tell you or induce you to maybe invest in yourself or do something only now, can I help you?
2 (15m 3s):
Therefore I have to lead my audience down a path of transformation, but I can only do that once I’ve earned our trust. And the way you are in that trust is by, by serving them. So really the, the first step in developing a relationship is to serve and lead them down a path of transformation. And in our case, we’re obviously serving them, educating about real estate syndications and releasing them down a path to start taking money out of the stock market and into syndication.
0 (15m 32s):
Okay. Right on. So that is, I’m assuming, kind of moving towards this idea of free content, potentially a podcast, potentially an e-book those types of things is that we’re kind of, we’re the path we’re taking
2 (15m 43s):
This and that’s the next step under the develop, which is promote, okay, you can promote yourself. So you’re still developing relationships. And once you have these things in place, once you have this core of what I call core platform in place, you have, you have your brand, you have a lead magnet where you’re capturing leads and you have started producing content to serve the people that get on your list. Okay. That’s kind of like your core, your core platform at that point. You’re you have to get your message out to more people. And that’s where we’re in the promote step of the developing part, just because we’re still developing relationships at this point, we’re just getting, trying to get the message out to more and more people. But you know what kills me, Jesse is people start a podcast before any of this stuff is built.
2 (16m 25s):
So they get on a podcast, or let’s say, they’re invited on a podcast, like even maybe yours. And you say, Hey, how can people find it? Find out more with you and you’ll, and they’re like, well, you can go to, you can properly multifamily investments, syndication, capital, xyz.com, which no one can remember. And even if they could, why would I go there? Cause you just told me your story. There’s no reason for me to go to a website. However, if you say, Hey, I’m at so-and-so dot com and I have a special report on Y on comparing stocks versus multifamily syndications. And I’m speaking to investors, they’re going to go, Oh, well, that’s very interesting. Now I’m going to go to their website. Okay. But you’re wasting, the people are wasting a chance to promote themselves without actually having a platform built whatsoever.
2 (17m 6s):
So someone who’s dumb enough to go to a website, there’s no lead magnet. There’s no way to capture them. You just wasted a chance to be on your podcast, right? Because you typically don’t invite people back every single week. Maybe, you know, every once, once a year or two or so. And the same thing for starting a podcast. If people start, I’m starting on eras, everybody’s starting a podcast. I’m gonna start a podcast. Well, that’s great. But you know, iTunes, doesn’t tell you who the listeners are. Okay? So you have a bunch of people downloading your podcast and you don’t have no idea who they are. Right. So, so why start a podcast? We don’t, we don’t, you don’t have a platform built. Right? So what I do my podcast is I shout out, let’s say my free ebook every single time. Hey, if you want to learn about raising money, go to Michael blank.com/ebook and download my book called the secret to raising money because that’s my avatar, right?
2 (17m 50s):
People go, Oh, that’s pretty cool. I just listened to a podcast. And now they download my ebook. Now I have their email address and I can continue the conversation. They’re still going to be listening to my podcasts, but they’re also going to get my email list, right? I can now email, upload the email into Facebook and create a custom audience. And now I can chase them on Facebook as well. Right? If you need an email address and that’s just drives me batty, that people start promoting themselves long before these other steps are done. But those are essentially the first two steps is attract and develop. And so developing really is a one star on your list. You want to serve and lead them down a path of transformation. When that’s done, you start putting the message out more and that’s the promote step.
0 (18m 27s):
Yeah. And I’m right in the face here because that was me, you know, a few months ago. And it’s true because I mean, now what’s, what’s nice is it’s a little bit more headache, but you can kind of back go back to once you’ve uploaded, put, you know, you have to kind of redo it and then put a little blurb in because the one thing would podcast for, I think most people know this, but for those that don’t a lot of the listeners, our listeners that are listening to old episodes, right. If you first run into a podcast, you’re there already at, you know, 300 or 400 whatever episodes in. But yeah, you’re right. It’s, it’s unfortunate building this, you know, this podcast audience, especially if you’re doing really well, because now you’re the idea of that you losing or head loss, all those people, you could have directed them summer.
0 (19m 10s):
Okay. So we’re in developing, we’re in promotion. Are we still, are we still in the development section here?
2 (19m 16s):
Yeah, no, we we’ve. We’ve now we completed the two pillars we have attract and the develop a portion. Now the last one is the scale part of the leg because you know, syndication is really a multimillion dollar business and the people who treat it as a hobby are going to have to have a tough time. Also, when you’re getting into platform building, you have to treat it as a business because things are going to start costing money. Every, every business successful business owner knows they have to reinvest in marketing and sales. It makes a lot of sense, right? You can’t just do a one-time thing and put one single ad out there. And, and that’s the end of it. No, you have to continue reinvesting. And so the idea of the scale step really has two steps.
2 (19m 56s):
It has, it has the offer step, the revenue generating step, and then the re-invest step, those two. So offer slash revenue and reinvest because it doesn’t serve you just to have revenue. It, you have to then reinvest that revenue in back into the, into the machine. The way this looks like in this indication world is your offer is your investments. And you make money specifically off acquisition fees. For example, now you also make money off of distributions and a profit down the down the road. But in the beginning, distributions are really small and the profit and the profit is five years down the road. So I can’t really fund my business, which means that the act and there’s the asset management fee is also, so you have those two fees that will, that is your revenue.
2 (20m 37s):
That’s the revenue side of things. And so syndicators note this and they, they say, Hey, my gosh, I know that if I do a deal, I’m going to pay myself a hundred thousand dollar acquisition fee, 140,000, but whatever. It’s a pretty big number. In many cases, when you’re doing, you know, four or five, $6 million deals, these acquisitions she’s are, are pretty good, but you know, rather than buying a new house with it or going on vacation, the smart business owner goes, Hmm, I think I should probably invest in marketing and sales somehow. Okay. And the way you invest in marketing sales, typically in the platform building business is you have to invest in your content creation. If you stop producing content, Jesse, if you stopped doing your podcast, what happens to your leads?
2 (21m 16s):
They dry up, they dry up, right? So you have to invest in your, in your content production. And you know, when I first started my podcast, I had a YouTube and I did my podcast and I started to hire someone to edit these. I actually edited my, my own podcast in the, in the early days, I started a YouTube channel, edit my own videos. And that’s great, but it’s not really the wisest use of your time as a syndicator. Probably not because your time is best spent finding deals and finding money, not editing a video or making a blog post look pretty. So in other words, the reinvestment really comes in outsourcing the production and distribution of your content, not the creation of your content, because you’re the creator Jesse people want to hear from Jesse.
2 (21m 58s):
They don’t want to hear from some Lackey you hired, I don’t care where you hire them from. They want to hear you. So the raw content has to be produced by you it’s. It could be either a, a raw blog post or written thing. It could be an audio snippet like a podcast, or it could be a video. The raw content has to come from you, but the production of it, the editing, the formatting that can be outsourced the distribution on social media and email that can be outsourced as well. So the investment step really is to make it as easy as possible for you to continue producing content, which requires money. I mean, I mean, I probably spent $20,000 a month on marketing and it’s, you know, and making it as easy possible for me to produce content, but it might cost two or $3,000 per month to pay someone, to make your content, look, to edit it and put it on all the different media channels.
2 (22m 48s):
Right? You create a single piece of content and you make it available on your blog. On the, you create a video out of it. You put a, put it out on audio, you put it on social media, right? So the single piece of content goes all over the place that you can outsource and you should, and that’s when the re-investment step comes in. Without that scale step, your, your, your three-legged stool breaks down because I can, I can build your platform for you. And I can get you to maybe create a single, a single lead magnet. And, and I can maybe get you to do a blog post, but if you don’t continue producing content and invest in your platform that way it will slowly die.
0 (23m 22s):
Yeah. I think you, you touched on something that I don’t hear often enough and this idea that you are still the content creator. And I think sometimes, like you were saying about editing on your own in the beginning sometimes. I mean, it’s like anything, it’s a good step to be, to kind of find your voice, kind of figure out what you like, what you don’t like. But when people talk to me about, you know, content, it’s, you know, 80% commitment, you know, you need the other things in there, but the commitment is a big piece to continue to do it. And I think that once you do have everything set up in a way that all you need to do is hit record, your motivation will go way up. Any people that say, I don’t know if I can have the commitment or I, I used to put out a video a week and I can, you know, I don’t feel it anymore.
0 (24m 4s):
It’s I likely would, would see that it’s somebody that’s having to do all of, like you said, the production, the editing, and yeah, nobody you’re going to lose a, you’re going to lose steam very quickly if you don’t outsource all that.
2 (24m 15s):
But it’s interesting when we put people in our platform, builder workshop, these are all successful syndicators. And, but they are not used to producing content, right. So they understand it up under head that they have to produce content, but, but they’re not really content producers. By the time they’re done in that 90 day workshop, they are in, they are become content producing machines. And it’s as simple as, you know, overcoming your sense of perfectionism. Oh, I don’t like the way I sound on podcasts. I don’t like the way I look on video. Oh, no, I’m not a good writer. And like one of our participants, he, you know, we’ll call them Spencer, cause that was his name. And he put out this video and he goes, just this video sucks. And he’s like, put this damn video out and he put the video out and he goes, ah, and then someone reacted to the video, like on social media.
2 (24m 59s):
And it was like, man, this is exactly what I needed today. And he was so encouraged by this, right? I mean, when someone reacts to your podcast or leaves a review, you’re like, this is great. You know, this is, you know, someone’s huge. If someone trolls you, of course, you’re like, Oh, I’m going to, I’m going to give up. You know? But the point is when, when you see your content, making a difference in someone’s life yeah. That really encourage you. And this happens when you put content out, it starts happening. It’s this perpetuating thing. And you start what, what people don’t understand. We tell them in the beginning and they don’t understand it until, until the end really is that they’re, they’re, they’re they, their goal of raising more money, you know, as that is their initial goal, what they become the realize is that they actually develop an mission.
2 (25m 42s):
It turns into a mission because they’re helping people become financially free by investing in real estate syndications. And they start to shift from, I want to make a bunch of money to, how can I serve people? How can I turn into a mission? And, and when that becomes clear to someone, it’s it propels them forward. And when you, and again, this comes from when you notice that your content, whatever you’re saying, doing, or whatever makes a difference. Someone’s life. You’re like, Holy crap. I’m helping people. How can I do more of that? How can I help more people? And it shifts from a financial goal perhaps to actually a mission where you’re trying to help people. And that’s where, you know, I call platform builders. You know, they come in one way thinking I want to make a bunch of money, but really they come out as a difference maker. And that’s really what platform builders are.
2 (26m 23s):
They start making a difference in people’s lives.
0 (26m 25s):
Yeah. It’s a, it’s a great point. It’s really fascinating too, because you’re absolutely right. The, I mean, trolls aside, the, you know, the idea of having somebody say on Instagram or whatever, and I can encourage you if you, if you enjoy the podcast to do so, because you will never get tired of reading those to, Hey, you know, saw this episode really helped me out with this. And it’s a really big thing. Like we’ve all worked in our lives. There’s something about when you get a compliment on the content creation, as opposed to say you do something at work, it’s different because Michael block has created all of this with obviously help from others. You know, it’s something that you’ve put together and it’s really the highest praise for, for one of your listeners or viewers to come out and say, it really benefited me.
0 (27m 5s):
So a hundred percent on that. So we are now in this last pillar here and why, I think you kind of put a bow on it for one, two, three. So now for the person that’s, that’s out there, what is, what is the kind of the roadmap for something like this in terms of how you kind of get all this done and then what are the resources for them? You, you kind of alluded to it the 90 day bootcamp you have.
2 (27m 31s):
Yeah. I mean, it’s, it’s a, it’s definitely, it’s definitely a process. So we’ve actually done this a few times. We’ve, we’ve kind of turned a system that I talked about three pillars into an actual, you know, 12 month program where in the first 90 days you really develop your avatar. And, and, and this is the only thing we do that’s done for you because I don’t really like doing stuff for people because it just makes them dependent and, and they really need to do stuff for them. However, in this, in this, in the case of technology, not everybody needs to go knee deep into technology, right? So we actually developed the entire, the entire automations and the core platform technology. We actually do everything for the participant. What we do though, is we turn it, we, we, we give them the shiny, shiny new Ferrari, which is the, the core platform.
2 (28m 15s):
And then we hand them the keys and then we show them how to drive the Ferrari around. So we actually showed them how to use it so that they know how to, how to use it, but they, if they hire someone, it all orients them on how to use their platform as well. So the first 90 days is really about developing their brand, their avatar, the, and developing that lead magnet, getting them to, to write that first piece of content. And a lot of people early on are resistant to getting to write. And we kind of now ease into this where we have them, I guess, ease him into the writing process. So they do the lead magnet, and then we hand them the automation. And now they have their core platform done. The only task now is to get them to come is to con is to produce content.
2 (28m 57s):
And so we do that through a 12 month, almost a mastermind where we put them in small groups and training programs to get them, to encourage them, to produce content. And then we point them in the right direction on how they might be able to outsource the production and in the, in the distribution of that, to keep them consistent as well. And then from that point on, we just show them and help them, how to promote themselves. And people take different paths. Some people decide that they just want to get booked on podcasts. Okay. Well, how do we do that? Some people want to go YouTube. How do you do that? So people want to start a podcasts. Some person maybe wants to write a book, right? So there’s different ways you can promote yourself. And so we provide different resources and point them in the right direction. Right? So if you’re going to go down a YouTube channel, we’ll provide some basic training, but you know, we’re not YouTube training experts we’re to point you in the right direction for that.
2 (29m 44s):
So that’s kind of the, that’s kind of the process.
0 (29m 46s):
So just, if we could delve into that a little bit, you know, if somebody does go the route that you know, for myself, you’re, you know, I’m an on the brokerage side or so I’m doing it in a sense, still have a day job. So writing content would be probably the most time consuming. That’s why I love video and podcasts because you can get on an hour, five minutes. So I’m curious if you have somebody that goes down that road. So say somebody listening, I want to go down the road of video creation, whether it’s YouTube or, you know, wherever else, how do we get back to the loop of the, of that a lead magnet so that the people listening to your content actually can circle back to the lead magnet, which means that you can generate that email list again.
2 (30m 26s):
Yeah. So the entire cyclical was like this, and there’s people tend to produce content in different formats. You have the written format, you have the video format and possibly the audio format. So for example, if I make you write a blog post, you could really struggle writing your broad post because you’re not really a natural writer, but if I say, Hey, Jesse described to me the process of investing with your IRA. You’re like, Oh yeah, it’s easy, blah, blah, blah, blah, blah, blah. Okay. So, so it’s easy for you. Well then just do it via video. It doesn’t really matter. The point is how you create your raw format. Doesn’t really matter because I mean, at this point, I mean, I can, I can speak faster and I can write as much as I love the right. I think I’m a pretty good writer now, but it does take a little time.
2 (31m 7s):
So instead I can think of a topic, you know, how do you invest with your IRA? And then I make a few notes around what I want to say, three points for the five easy steps to blah, blah, blah. And I just jot them down. And then I just record a video. Okay. It takes five, six minutes. I explained the process five bullet points. I don’t really think too much about it. Boom. It’s in the camp. Okay. Now I give that to my, and at the end, I, cause, Hey, if you enjoy this video, watch this next video. Or if you enjoy this video, download my free tool to help you calculate the return on Layla on the Michael blank.com, whatever. So I’m always suggesting something else at the end. So on YouTube, I might suggest the next video. Maybe there’s a series in place, or I might suggest a free download.
2 (31m 48s):
Again. It depends on what you’re trying to do. Every piece of content has to have a call to action, a single call to action. So you’re producing a raw piece of content, but this is where your team comes in. And this is where you either have to do it yourself, which cost time or money. Those are the two levers you can place, right? So if you have, let’s say an agency where you can hand this raw piece of content, took you three minutes to jot it down five minutes to record, you know, let’s say 15 for round numbers, boom, there’s your, you know, then you get it out to your team in that day. Now produce that content. And what they do is they turn into a blog post. So there’s a writer that then takes a transcript of your thing and actually makes your thoughts a little more coherent possibly. And then there’s a designer that makes the blog posts, maybe a little pretty uses some headlines and bullets, maybe a picture here and there.
2 (32m 32s):
So there’s a blog, a thing. The same process is used for email because you’re going to send it out on an email list. Then there’s a video editor, different person. Then someone’s going to put the thumbnail on top of the thing. That might be another person. Right? And so now this goes onto YouTube. Well then you might have a teaser that you might put on social media, right? And you said, Hey, there’s a 32nd thing, a clip here. I put this video out, just check it out. Right? And so there’s a little teaser from that, with a link to back to your blog post, because you want everything coming back to your, your home base where your lead magnet this, right. It doesn’t, it doesn’t serve you to keep everything on social media. I can put the entire video on social media, then no one would ever come to my website. Okay. A lot of people do that. And there’s a strategy for that. But really I want people to come back to my website and consume the content there.
2 (33m 15s):
So there some anyway, so what I’m saying is you, you produced, it took you 15 minutes to produce the raw content and then your team will then put it into different media and produce that content, make it look pretty. And then they will distribute it on email, social media, LinkedIn, wherever the case may be. And that is a system that really helps you become consistent in your, in your content production. So
0 (33m 40s):
I wanted to talk a little bit about that consistency in terms of, you know, the campaigns you run, you know, call it a drip campaign, call it, you know, the little pieces of information you’re giving out. What type of, you know, touch points, what time, you know, is it once a month? Is it once a week? And then maybe as a follow-up question, where do you find in that process is the most challenging piece for maybe new creators, you know, to get that content, right?
2 (34m 4s):
Yeah. First of all, the frequency is weekly. Okay. That’s it. And in the beginning, the biggest challenge that people have creators have with, with that, it’s like, Holy crap. I gotta give, I gotta think of 52 things to say in a year. Like that’s insane to me. And it’s, it, it is insane in the beginning. However, I can tell you, once you become clear on your avatar. Yeah. It clarifies what you say to them because you know what they’re thinking, you know what they’re asking if you’re, for example, you’re on, on social or an email or you get questions on anything, any, anything you do, you get a question, well, how do you do this? What about that? And you haven’t written a blog post or create a video on that topic, dark, there’s your popping.
2 (34m 46s):
And I used to do that, you know, for two and a half years, until I basically started building up a library. And instead of writing a new blog post, I would just point them to something I did in the past. And so you don’t have to create 52 new ideas. Okay. In fact, I think if you create an archive of six months, it’s very easy to then recycle that content either by simply republishing it as it was, no one remembers what you did six months, even if they watch it, I forgot you did that. Right. Maybe put a new something along their new subject, or you can redo it. You can take your, your script that you created with the three bullets and go, Oh, that was dumb. I’m going to redo this and just reshoot the whole thing. But the, the topic of how to invest in an IRA was a good one.
2 (35m 27s):
I just want to do it differently. So it’s not like you have to be so original that you need 52 topics. You listened to your avatar, you recycle something. And then you rip stuff off of me off you, whoever on internet. Yeah. That has to deal with multi-family investing. And so what’s, so-and-so writing about was a pretty cool topic. So you don’t need to be original who cares about that. Right. But it has to be in your voice. So your avatar and that’s something that you cannot or should not outsource. Yeah. Yeah.
0 (35m 52s):
It’s a really good point. And if there’s any, if there’s any time you’re thinking about what type of content, I mean, it sounds like, you know, w we talked about in the beginning, you’re talking about intermediate to advance syndicators or people in real estate, even at the beginner level, you’ve probably done one or two deals, any deal you have, there has been multiple questions. You’ve asked how much, you know, what’s the origination fee for alone. What do you do in the case where you’re trying to find property managers? What if you know all these things where those are all videos in themselves in themselves, and you learn about it once you know about it. Exactly. Like you’re saying, okay, here, there’s a good five minutes. What does it force you to do at least from, from my experience and probably yours. Okay. I thought I knew it pretty well research even further now I really know it.
0 (36m 33s):
And then you’re, that’s the perfect video. And you figure that out. I think the, the biggest challenge without, in lieu of having like a, a 12 month program with a 90 period in lieu of having a program like yours, I think the biggest challenge for people is, is that consistency, right? It’s it’s consistently doing something once a week.
2 (36m 52s):
Yeah. That’s that’s right. But it even starts before then, right? Because you do need a lead magnet and you can only have a lead magnet if you’re clear on, well, who the heck are you writing this lead magnet for? And then there’s a little bit of technology involved who actually captured a lead with a form. And then if you’re not engaging that person in our case, you want to get them to schedule a call. Well, how do you do that? Well, you’re going to have to chase them. Let’s schedule a call, right? Because if that lead does not schedule a call with you, can’t show them a deal. So it’s kind of a useless thing to have. So it’s, it’s, you know, there is some technology around that and a lot of people just aren’t technologists. So the only option you really have is to hire someone say, Hey, here’s what I want. Right. But what I can deliver to people as a framework, I can, the checklist, you got to do these things, and then you can obviously attend our workshop or you can do it, do it yourself.
2 (37m 36s):
But the point is, you’ve got to check those boxes. And in the sequence, I just, I just talked about. So
0 (37m 41s):
I’m curious just because we do it for work. I, and a lot of people, it’s the buzzwords for all online content, the SEO piece, you know, I’ve heard, I’ve heard both sides of the equation. I’ve heard some syndicators say, listen, if you have a good enough lead generation platform, whether it’s through social media, whether it’s through a podcast, I mean, it’s, it’s important, but it’s not something that you should just focus on. What’s your kind of stance on that and your experience with it.
2 (38m 5s):
Yeah. I agree. I mean, SEO is one of those advanced strategies, right? And it only comes after you’re done with developing and launching your, your core platform. And then you’ve got to decide, well, how am I going to promote myself? Right. So within then develop and how do we expand to promote itself? And SEO is a component, but there’s so many other things in a bucket, starting a podcast, getting on podcasts, YouTube channel, writing a book, SEO, but there’s also paid Facebook traffic, right? I mean, where the heck do you start? And the question is, you’ve got to start somewhere. They all have pros and cons. You know, maybe if I love the right, I maybe go a book or I’m a, I just love to interview people. I’ll do a podcast. You know, I probably the most efficient thing you can do is paid Facebook traffic.
2 (38m 46s):
It is unbelievable, but it costs money. And the more money you throw at it, the more leads you get. It is an amazing thing. Facebook is just an amazing tool. And when you have a great lead magnet and, and people, because Facebook tracks, when someone clicks on a thing and you can actually set up these pixels, pixels, pixels, that Facebook knows when someone actually downloads and not just go to your webpage, but downloads it, Oh, this person clicked through didn’t download. This person clicked through and downloaded. And then what they do is they create look alike. What’s called lookalike audiences where, well, these five people all did it. So I know another, 150 million people just like that. And I’m going to show him your ad. Yeah. And it’s amazing now, but again, it’s expensive because you have to hire an expert.
2 (39m 27s):
And I ran Facebook traffic, myself and I, at my best, I probably got to a break even, which is pretty cool for every dollar you’re spending at a dollar back. All right. It’s pretty cool. But really for every dollar you spend, you kind of want to back, right. So you’re most likely going to hire an expert to run traffic and then you actually have to pay for the traffic. So these are all advanced strategies that people can think of. And like I said, people take different paths based on where they are in their business. Some people say, yeah, man, I got money. I just want leads. Turn it on. They have no interest in doing a podcast. I was like, this podcast is great. Yeah. It really depends on who you are and what you want to do.
0 (40m 4s):
Feels like the grant Cardone Avenue of just pay, paying for paying for ads. I’m curious though, like the, the piece of just with the Facebook was that you paying for the lead Mac magnet directly in like a, here’s the link to a free ebook and then promoting that through Facebook. That’s right.
2 (40m 21s):
Okay. Yeah, because if we’re doing five or six B, we’re not promoting a deal unless we’re doing a five or six C so yeah. You’re always promoting something. So Facebook loves promoting content. So promoting a blog post and in that blog post having a pop-up for a lead magnet, for example, those click-throughs are super cheap. Right? You’re going to spend more for an actual downloads. There’s different, different ways to do it again. An expert is going to be able to guide you in the right way. The only downside of that strategy is this cost money.
0 (40m 50s):
Yeah. But I think the bottom line is to your point, you know, you got to set everything else up first. There’s no sense putting all this out there, you know, without having everything in place to capture everybody that you want.
2 (41m 1s):
Absolutely. It’s a thing where you do one thing in sequential order, or we talked about 10 different things. You can do that. People like, Oh my gosh, there’s so many, I’m so overwhelmed. You know that I didn’t do them all at once. I did them one at a time, like I would have a focus for a quarter and I would launch my YouTube channel. Okay. So I’d learn YouTube, get a few things and get that. I call this plate spinning. So you get this plate spinning, you know, you got to spinning and to keep the plates spinning, doesn’t really require a lot of effort. You just have to spin it. Every agitator would run while getting a new plate up though. That’s kind of hard. So you get this new plates and like, okay, I’ve got my YouTube channel. That’s pretty cool. I got a little team editing my thing. Okay, cool. Cool. Now what do I do? Oh, I know why don’t I spend a little time on SEO because if I search myself, I can’t find myself.
2 (41m 42s):
So you’ll hire an SEO person and you focus on SEO and you revamp your entire blogs to SEO principles and you get that going. And the team now has, okay, there’s SEO. Right? And that’s what you do one. And so what happens is though, while you’re doing one at a time, eventually you’re going to have five plates spinning. You have five things that are all generating leads. And what I love about the online world is if you keep the plates spinning with fairly little effort, they will keep spinning out leads and leads and leads. And therefore you can layer one lead generator over another, over another, over another, and you can really scale the business, however you want. And as a result of that, I mean, you have a capital raise, you do a live webinar, you can literally have million dollars in a bank in like 24 hours like we did.
2 (42m 29s):
And it is staggering. What that can do. Yeah. Sorry, go ahead. Go ahead.
0 (42m 36s):
That was it. Oh yeah. I was just going to say that a hundred percent. That it, it sounds amazing. And it’s, it’s very, it’s very interesting how you kind of put that together in those, those three main pillars. Now I’m just being mindful of your time here, but I did want to talk a little bit about something that I don’t hear often talked about on podcasts was is that when you get to that stage where you have a few investors, you’re, you’re scaling, like you said, maybe the intermediate investor, these investor relation platforms or software, you know, whether it’s Juniper or these other types of software where you’re actually basically the platform to keep maybe somebody in an active deal, having that relationship with people that are in invested with you, is this going to be after section three?
0 (43m 16s):
And this is a whole different thing, or is this just a natural extension of these?
2 (43m 20s):
Yeah, it’s a whole separate thing because it doesn’t really have anything to do with marketing per se. It has something to do with a back office operations also in the realm of automation and workflows. Absolutely. But it doesn’t have anything to do with the actual lead generation nurturing generator. It has to do with the back end. Essentially, when someone becomes an investor, you kind of go over to the investor relations. Part of the things also very important though, because how do you manage 10 investors is quite a bit different when you have 200 investors, right? You need something automations technology, something to make that easier for you and, and improve the experience for your investors as well. And that’s when those platforms come in.
0 (43m 58s):
Okay, cool. Yeah, no, I was just trying to think for the, you know, you do everything right now. You have that your problem, isn’t one, it’s 200 and then you’re like, well, I need to, I need to structure that properly after that. Okay, Michael. I mean, that was a great summary. It’s every time I talk to you, I feel like we could do another hour in terms of kind of the next steps. If somebody wanted to look into this, talk about the program that you’re offering and just a little bit more information on you, what would be will be the best road?
2 (44m 26s):
Hey, you can find out more about the platform builders program in the methodology. I just talked about platform builders.com. So you can access some, some, some information, some live training where I kind of go deep on this thing, maybe with some graphics and some screenshots to kind of show you what I’m talking about. That’s at platform builders.com and then three times a year, we actually opened up the workshop live cause it is a live workshop. So depending on when you come to that website, you may have to get on a waiting list if you want, or you can just, you know, consume the training and think about it. Platform builders.com is the place.
1 (44m 58s):
Okay. Well, you have answered all the normal questions that we asked. So I mean, if people are out there, check it out, we’ll put all the links up to that. And yeah, if there’s, if there’s anything else Mike, in terms of the program, just, just shout it out now or, or, you know, we can just make sure we have all the links and access and that’s all
2 (45m 15s):
Good. Jessie, you know, I really appreciate you having us back in the show and I always enjoyed chatting with you. So thank you so much.
1 (45m 22s):
My guest today has been Michael block Mike, thanks for joining working capital favor. Listening to the working capital podcast. My goal is to help individuals break into real estate investing as well as educate experienced investors. If you enjoyed the show, please share with a friend subscribe and give us a rating on iTunes. It really helps us. If you have any questions, want to learn more or likely to cover a specific topic on the show, please reach out to me via email@example.com. My name is Jesper galley, and I’ll see you back here for the next episode or the working capital real estate podcast.