I have a strategy that I want to run by you in this lesson, and it has to do with how we find a group of active investors in our business.
Hey Moguls, Chris Urso back with you once again, and as most of you know, my niche is in apartment investing.
There’s a term that we use in our business to characterize a handful of our private clients — we call them pactive investors…
They’re more than passive investors – they’re involved in more than just writing a check. The clients who are in this group are primarily successful business owners. They may be semi-retired, middle to upper class, high-net-worth investors.
These are individuals who maybe always wanted to get involved in real estate investing, and now they have more time and resources to do so. They want to take an approach that’s more active – however, they don’t want to get into the minutiae of having to call brokers, raise capital and actually build an investment business.
How might you be able to work with these people in your investing business?
Well, once you see how we set this up in my business, you could create your own group of exclusive pactive investors just by following the path I’m about to lay out for you.
See, the goal of this type of investor might be to solidify their personal portfolio, add to their retirement or build a family legacy... so we sit down with them and use a multi-prong approach in order to create a specific result for that particular client.
We call this our “insider’s club,” or “private buying group.”
Here’s how we do it… and how you can to.
It Begins with Education
So, these clients typically want to be more educated investors. They don’t want to just take our word for it (or some other investor’s word), when we might say, ‘This is a good deal.’
These clients want to know, on their own, exactly what they’re investing in. They want to know what needs to get done, what makes a deal good and what they need to be aware of when making their investing decisions.
Because of this, we give them a great deal of training and education as it pertains to multifamily properties.
Next, we work with them to establish their goals and to create a personal path to success and wealth for each individual. This may be to create wealth or it may be to preserve the wealth they’ve already created.
In order to do this, we look at everything in their world with regard to resources, assets, strengths and weaknesses. We help them articulate why they want to invest in real estate, and ultimately what their specific goals might be.
Finally, with this in mind, we move on to discuss what type of multifamily properties can best help that investor get to where they want to go.
Private Events
For this group of clients, we like to provide exclusive private events over the course of a year.
For instance, we were in Charleston at one point with a great group of our pactive investors and gave them a tour of our properties…
During the tour, we walked them around the property so they could understand exactly why we chose to invest in these particular properties. We explained what we liked about the locations, the benefits, the returns and how this purchase affected other partners who invested with us in those deals.
Doing this prepared them for the time when we presented them with investment opportunities.
Our pactive members are typically looking at $500,000 to $5M investment chunks. We will either cater a deal to them or bring together an intimate private group of clients for a project that we spearhead, and then run the deal for them on their behalf.
All of our pactive members get access to our upcoming deals. We source deals specifically for our private clients first.
It’s Your Turn
See, all of this is a function of education, 1-on-1 support, personalized goal-setting, private events and exclusive access to deals to create a customized result for each investor.
Now it’s your turn...
Go out and find people who might be qualified pactive investors and follow these steps I've just explained. Then, get them on board as your pactive clients.
Your Thoughts
Does this lesson present new strategies and ideas to you? Let us know your thoughts in the comment section below.
Review your present list of private money investors — would any qualify to become your pactive investor?
Brainstorm ideas to seek out investors who fit the criteria of a pactive investor.
Plan ways to bring pactive investors into an exclusive inner circle.
Set up events to introduce potential pactive investors to your existing investment properties.
Christopher Urso
is the founder of URS Capital Partners and National REIS. Chris has been investing in real estate since 2001. Over the years he has been involved in all aspects of real estate, from single-family fix and flips, buy and hold cash flow houses, and finally to apartment buildings. His real estate investment career only took off when he purchased his first apartment building 3.5 years ago. He now controls over $15,000,000 of apartments and has raised over $8,000,000 of private money in just over 3 years. He now structures investment partnerships to acquire large apartment complexes and also private coaches investors helping them purchase their own apartment buildings.