Your palms are sweaty, knees weak, arms heavy, what are you
doing? You are about to make a pitch to an investor. And you're
a little bit nervous. Well, these are some tips that should
help you make that process of selling your Regulation D
security a little bit easier
I've been right there with you. I've been in your shoes about 10
years ago, I did my first deal. And I sat across from my first
prospect to invest in my deal. Now what happened to that? He
didn't invest. That's not the point. I got back up on my feet
pitched another person, and they invested a lot. So there you go.
So these tips are here to help you hopefully, get over not only
that anxiety, but kind of put it in context. How are you selling,
because at the end of the day, we want to do a, we want to be a
syndicator, or we want to be a fund manager. But a lot of the
job also does involve selling no matter what you think about
selling and seller salespeople. You're still selling people.
Yeah, there's a fear of rejection, there's this thing
that happens in our guts. I don't know why. But somehow we
get nervous by it. So let's go through some tips to make it the
process a little bit easier. And my last tip is probably going to
be for me, it's the most useful, it's like, wow, that's a big aha
moment. And I hope it will be for you, too. But let's get
started with with all these tips. So that first tip is know,
your offering. Gotta know your offering, because that's what's
making you nervous, you're making you're nervous, you're
gonna say something really ridiculous, like, No, you're
never gonna get your money back. Or no, it says that you've got
all this and that's you find out you didn't and then suddenly you
look like a like a complete idiot. You got to know your
offering. So what does that mean? Read all the marketing
material you've got because you don't want to be caught off
guard, read the BBM read the operating agreement, you don't
have to know every little legal nuance in there. But you got to
know what it's doing. You got to know about the underwriting. I
had a partner long ago, who every single time they would
pitch somebody, my phone would ring. And it was a question that
was so obvious, if they had just spent a single time like looking
at something they would have known the answer to, I didn't
work with that person again. So don't do that. You got to know
the offering. You gotta be or you just look like a complete
idiot in front of everybody. So just know it. Little mistakes,
fine. Just know it. And if you do make a mistake, or if you
don't know something, just say it, just say, Oh, I made a
mistake there or oh, you know, I don't know that. Let me find
out. And I'll check with you. And I'll get right back to, you
know, something like that. Nobody, that's totally
legitimate thing to do. So you'll feel a lot better. If you
just know, you can make a little mistakes, you can make things
just don't like, think you have to know everything, but try to
know everything. And if you don't admit it. Number two,
highlight your fat founder investment theory is the most
critical thing, it's the most critical sales tool that you
have. This is your reason for talking to this person. You want
them to buy into the story of your founder investment theory
for them to invest. If they buy into the story, and they trust
you, they will invest. If they don't invest, there's a mismatch
between what they're looking for and your founder investment
theory. That's just not it's just, it's just not the right
fit to use the same word, right? So it's not the same thing. And
it's okay, if that happens, but highlight your fit. That is your
crutch that is your best tool for selling. Plus, it's easier
to remember, right? So it's easy to remember what your founders
investment theory is your reason for doing it. The story behind
it, it's harder to remember like new numbers. Number three,
understand your investor. You got to know what they're looking
for. Are they driven by cash flow? Are they driven by
appreciation? Do they want some crazy exciting thing? Or do they
want something very safe and simple? Understand what they
are? Find out what they've done before find out what they're
investing in. Right? Find out what those things are. If
there's somebody well known, then there's probably media
about what they like and what they're you know, do Get to know
that person before you get to know that person as much as you
can visit their LinkedIn page at the very least, why not? All
right, next one is similar to what we're talking about. Be
transparent. Be honest, tell people what the truth is, you
know, little lies, they show up real quick, big lies, they show
up even worse. So just be transparent. If you don't know
something, say you don't know it. And then that you'll find
out and get right back to them. If there's a problem in your in
your offering, if there's some big hairy problem with it, let
people know what friend this is what it is, and fine and explain
why it's still a good investment. Explain why it fits
into your founder investment theory. Be transparent. Prepare
materials. Materials are a great crutch. So if you got a slide
deck, great, that's a great crutch is a great thing to weigh
to remember where you're at. It's, it's one of the ways to
really be prepared and show up like a professional. I've talked
about that a lot on these videos, is showing up like a
professional shows the them that you are to be trusted. It shows
your your prospect hey, look, I know what I'm doing here, I'm a
pro, you're in safe hands. This is why it's good for you want to
come along for the ride. You're welcome to practice. Practice
pitching, gets it get your spouse, your, your dog, your
anybody and just practice pitching it to them. The more
you repeat it, the more the words that are a little bit
complicated, not the words that that you have a problem
pronouncing and like kind of thing, but how they all fit
together in the story, it comes together in a more natural way.
So practice it is just practice it five, six times, practice it
in the car, hey, what am I what bla bla bla bla bla bla, right.
So practice. Next, discuss the framework
you need to know a little bit about securities rules, you need
to know if it's a 506 b offering or a 506 C offering if it's
under Regulation D if you can have only accredited investors
and if they're accredited that they need to be verified or not.
Whatever those things are, you need to know what those are. You
don't need to know the nuances of it. You don't need to know
the intricacies and what went wrong in 1935. And how we don't
need to know those things. But you need to know the basic
framework that allows you to do this. So that way, if it comes
up great, or if there's any, any reason for you not to be
confident in talking to them, you need to know what those are,
so you can feel comfortable. Next, this is a biggie. Showcase
your team. Highlight all the people that are working for you.
They're the people that you're also leaning on. You're leaning
on your experience on your fit, but also your team. So why your
team is the best people to earn the trust of your investors
money. It's absolutely critical. external parties are common to
us too. So property managers, a lot of people include me when
they hire me in their materials as well. It's fine with me. You
know, as long as they don't say Tilden Moschetti said, this is
an amazing deal. And you have to invest it, which I don't say. So
showcase your team. Follow up promptly. And often. So let
people know that you'll be following up and then do follow
up. It shows that you're a professional. But it also makes
sure you stay top of mind and are right there. Be prepared for
rejection
my first pitch rejection, there's other videos about that.
It's actually the development of the federal investment theory
was came a lot from that first rejection. So good things happen
out of out of rejection. And you know what, it wasn't really a
rejection. It was very nice. You didn't say you're a jerk get out
of here. It just says that's just not for me. Which is what
99.999% Of the people that you're talking to are and the
ones that are the ones that are real jerks to you. You don't
want them in your investment anyway, so who cares about that?
All right, and now the big important one that I want to
talk about. So we're gonna switch back to full screen mode
here. Here's the big lesson too. So as listening to a podcast
with Dr. Ian Robertson. So Dr. Ian Robertson is a neuro
neuroscientist. He is a clinical psychologist. And what he does
is he studies the brain. And really his memory of interest is
where that brain that structural piece meets with the emotional
part, or the mind part, right where that that crosses the
line. And he was talking about a very interesting study by Alison
Brooks out of Pittsburgh University, and Alison Brooks
had an idea. So it's been known for quite a while that the
emotions of fear, anger, anxiety, and excitement and
happiness, extreme happiness, all have exactly the same
physiological mechanisms. So you can look at like an EKG, you can
look at brainwave patterns, and they'll look exactly identical,
whether they're angry, or they're happy, whether they're
excited, or they're anxious, right, there's two those
different things. So what Allison Brooks did is she did a
study where she created and this sounds like a torture study to
me. But in this study, she puts people up on stage. And she
gives them a very, very hard math problem that they have to
solve in their heads in the audience, is very critical group
of people. So they're actually the researchers, but they're
trained to be very, very kind of mean and critical. Like, you
know, making mistakes is not allowed, all those sorts of
things. Now, that certainly makes people will make somebody
anxious, because you don't want to look like an idiot in front
of all these people. You know, they wanted to put it make it
even worse, put the girlfriend in the audience too. And so now
they really have to do it, oh, my God, they're gonna be so
nervous. Now, to make it worse, right behind them displayed is
their EKG. So their heart rate is being displayed to the whole
audience to make it just like the stato fear thing, right. So
what they did is they had the people come up, they would give
them the math problem. And then they would the, the participant
would say, either, I'm very anxious about this, and then
start working on solving the problem. Or they'd say, I'm very
excited about this. Turns out the people who say that they're
very excited, solved it much, much, much faster, and had a
much more pleasurable time than the people that said, I'm very
anxious about it. Now, nothing else was different. The math
problems were the same, the level of scary stuff out there
was exactly the same. The only difference was how they labeled
it vocally to themselves. So when you are about to do your
presentation, be excited. It's an exciting time. I mean, when
you have a prospect now in front of you, who you're either going
to learn from, you're either going to learn about how to
pitch from right, that's just like my first mistake, my first
pitch, I learned a lot from it, I developed a whole theory of
investing out of it. That's what comes out of failure. Not
something really bad. So be excited, because you're either
gonna walk away with money, or you're gonna walk away with a
great lesson. Now, my name is Tilden, Moschetti. I am a
syndication attorney with the Moschetti syndication Law Group.
What we do is we help syndicators, investment funds,
things like that, to raise money by helping them with their legal
documents. So we do the PPM the operating agreements,
subscription agreement questionnaire, but beyond that,
I'm also there as a consultant, I need my clients to be
successful, I really, really want them to be successful, not
only because they keep hiring me, but I think that's how I can
add good and value to this world. So it's very important me
that they're successful. And if I can do that, by contributing
to their success, that's fantastic. I love when my
clients call me and say, we just closed, we just finalized this
deal. We raised these investors, you know, are they we've closed
our deal out, it's been fun, we return their money, and we made
them more than than we thought we would. I love those stories.
It's great. It fills me up. So that's why we make sure that we
give the advice. If you take it fantastic. If you don't take it,
that's great too. It's up to you. But what we do is make sure
that you have that information. So again Tilden Moschetti
Moschetti syndication Law Group, visit our webpage if we think
there's a chance we can help you just give us a call setting up
an appointment, and we'll go through what you're working on.