When I was masterminding with Rich Schefren, he told me something that really makes a lot of sense. And I thought about how we can use it when it comes to our joint venture attraction process.
Of course you already know how important it is to “know your customer”. I’ll keep hammerin’ that home because it’s the key to unlock everything.
You know that people buy benefits, NOT features.
If you joined me inside my JV webinar, you are now practicing the three pillars of JV success (Rapport, Authority, Trust)
(Don’t worry, either way I’ll be diving deeper into it at the JV Live Seminar.)
The question is, ARE YOU SURE you know what benefits they’ll buy?? (read: does your JV “presentation” solve their problem?)
It’s a continuous challenge to test your recognition of THEIR problem.
But it’s worth it because most real estate investors these days are just copy & pasting a PowerPoint presentation made in the 80’s. (ok, maybe the 90’s but still – it’s over if you ask me)
If you take this challenge on, your job is to constantly TEST your assumptions until you can explain the problem BETTER than they can.
Read that last line again.
Here’s what Rich said:
“Customers don’t innovate, they validate”
Brilliant.
We all think we have the best ideas. We believe we know what our customer wants.
In this case our “customer” is a joint venture prospect.
We create a presentation based on our theory, excitement, knowledge and “ask” the JV customer to accept this NEW information.
How’s that workin’ for ya?
My guess is if you’re struggling to get people to say “yes”…not too well.
Every real estate investor I teach comes in with the intention of “putting a great presentation together”. They want the ‘PERFECT’ statistical data, charts and so on to convince someone to hand ’em a cheque.
WRONG.
They (you’re JV prospective customers) DON’T innovate YOUR “new” product & solution.
They validate a “relief” you’ve created that BENEFITS them. PERIOD.
Read THAT again too!
“Ah, thank you Joe, yes, that’s the EXACT problem we’re having, thanks for showing us how your real estate investment can fix it”
Imagine that. And all I did was ask my prospects what bothers them.
Go FIND OUT what their problems are & then CREATE your real estate as the solution.
DON’T try to show them how smart you are by copying some data and putting a pretty picture on a PowerPoint slide.
What’s working for you? Do you agree? Disagree? Let me know below!
Talk soon!!!
– Joey “outside the box” Ragona
Hi Joe !!!!
Thanks so much for all of the emails that you send regarding Investing
with JV’s. Great info !!! Quick question for you. Do you ever invest with
family members ? I know that REIN always refers to focus on your level 1
leads like family and friends. The reason I ask is that my sister has
come forward wanting to invest with me. I got her into REIN a couple
of years ago and since then her and her husband have bought 2 properties. I still have none, except my personal residence. I have decided to turn my
home into a rental property this summer. I am not too sure if I should invest with her right now as that would tie up my downpayment for another residence. But on the other hand it would look good to have done one joint venture with someone which would give me a track record for others. I am looking to you for your expertise and guidance
Thanks Joe
Debbie
Calgary REIN Member
Hiya Debbie! First, thank you for the kind words and you’re welcome! I’m honored to help serve your JV education any way I can. I DO invest with family members. My mother was one of my first investors. I believe many people start out with family because “they know like and trust you” already. Let me understand , your sister wants YOU to be the money partner on a property? If you are JUST the money partner then it would not give you the credibility you’re looking for…it will give you some ‘experience’, but you probably want to flip the roles & ‘be the expert’ which means you go find and buy the property. It really doesn’t matter whether both parties are putting money in at this point, all you want is the track record like you say.
The question whether you should or should not partner with your sister because you want your DP free is your call – nobody can make it for you.
If I put my coaching hat on for a moment, I would ask you “how does this fit into your plan? What is your desired outcome?”
Hope that helps a bit – if I got it all messed up, let me know
Did I perceive your question correctly?
Hi Joe.
Yes I received your response, thank you so much for taking the time to answer my question. My sister would like to go 50/50 on a rental property, she would like to find a minor fixer upper. My only issue is that if I do the deal with her, then I probably wouldn’t have enough money to put down on a new residence for awhile as well I couldn’t rent out my current residence as originally planned. My plan was to get my place renovated and fixed up for rental, which is now 95% done. I’ve since tested the market and it will cashflow. Then go and put 5% down on another residence. I was starting to look at properties when my sister had this idea. So I really don’t know what to do first.
Thanks so much
Debbie
It sounds to me like you’ve answered your own question Debbie. You’ve set up for a rental and with only 5% remaining , how would you feel if you went the other way with your sister?
Is there a reason your sister wants to invest with you? What does she benefit from the transaction? I’m just looking at this from the outside in. Has she run out of capital? Is she just trying to help you get started?
In my opinion, once you’ve planned and have stepped forward to execute, don’t stop. Especially if it’s THIS close to the end. You need to let it play out so you can gain the experience & celebrate your ‘win’.
I would also sit down with your sister and discuss a plan of working together in the future; by explaining what you have here, how far you’ve come I think she should respect you for going to completion. If not, that should tell you a lot and save you from challenges in the future.
Again, I’m not suggesting this is a ‘bad’ deal to invest with her, but at the stage your at, it would be better to finish what you started.
But that’s just one guys opinion. Go with your gut. And I think I know what that gut is telling you.