On this episode of the Investing For Freedom Podcast, Mike is joined by Dave Dubeau. Mike and Dave discuss a handful of topics but speak in detail about a new formula that Dave has created that is incredibly unique and fills a gap in the market. Dave explains his ‘five-step money/partner formula’, how it works, how he contributes and works as an asset to you and your deals, how to correctly use the formula and what you should expect to see from using it. Mike and Dave speak about how if you want change and to see and difference then you have to do something different!
0:00 – Intro
0:38 – Mike expresses his excitement for this podcast as his guest Dave is filling a need in the market that is very unique and Mike feels as though you will appreciate what Dave has to offer
1:05 – Mike mentions how Dave has created a five-step money/partner formula
2:08 – Dave explains how his mother has had the biggest impact on his life
2:53 – Dave speaks about how his willingness to step out of his comfort zone has had the greatest impact on his success
3:50 – Dave mentions how he is from British Colombia Canada
4:20 – Dave speaks about why he went to a private middle school
5:18 – Dave explains what his greatest set back in life was and tells us what he learned from it
9:07 – Dave states that you’re going to get screwed over – life happens, so he doesn’t let himself get hung up on it anymore
12:23 – Dave states that he rarely thinks about the past and keeping present in your day to day life is so fundamental
13:00 – You should listen to Dave’s podcast – The Property Profits Real Estate Podcast
13:27 – Dave mentions that the piece of advice he finds himself sharing the most is that consistency is key
16:26 – Dave states that he has recently become very cognizant of the who not how concept
16:42 – Dave mentions how online marketing changes so quickly
17:27 – Dave gives us an insight into his background and how he got to the place he’s at now within his career
22:03 – Dave jokes that you should slap anyone who says “The deal is so good that if enough people see it, it’s going to sell itself”
26:11 – Dave speaks about his five-step money/partner formula and shares some advice he has to anyone looking to use this formula
29:10 – Dave states that you want to break the ice on a personal level before you begin to talk business and explains how you can do this
32:15 – Dave mentions how if you do it right, you’re only going to get roughly three to six people opting out of the campaign
33:56 – Dave talks about how he and his co-workers do the majority of the work for the client
36:49 – Dave states that unless you’re willing to do something different then you’re just going to keep getting the same results – if you want a difference you have to do something different
39:30 – Dave explains what the next step is once you begin to receive replies to your email
42:01 – Dave speaks about the third step for this formula; you kickstart the marketing with constant consistent communication
42:42 – Dave mentions how you need to make your marketing “edutaining” and make sure your marketing has a very clear call to action
45:20 – Dave mentions that has investors from all over the world
46:09 – Dave explains that the next step is all about working on the trust factor and talks about how if you have one deal under your, you’re ready
48:23 – Dave advises you to have a sharp investor focused website, dress up when you’re talking to people about their money, speak intelligently but keep it simple, participate in your local investors club and get on stage if you can
50:38 – You can visit the website https://moneypartnerformula.com/ to get access to relevant resources and info
Are you looking for freedom? Freedom from the daily grind and hustle, or just finding a way to live the life you always wanted. Then join us on the investing for freedom podcast. Our host Mike Ayala will help you discover new ways to find freedom. With tips, insights, and interviews you’ll learn the exact systems he’s used to travel the world and live his best life. True success and happiness are all about freedom. And here’s your roadmap on how to find freedom on your own terms. Welcome to the investing for freedom podcast. Here’s your host, Mike Ayala
Mike Ayala: Thank you for joining me on the investing for freedom podcast. Today I’m super excited for this episode because I’ve met a new friend, Dave Dubeau, who is filling a need in the market that I think is very unique and interesting. And I think my audience specifically, I think you guys are really going to appreciate what he has to offer and just the program that he’s created and what he teaches. So, Dave, thank you for being on the show.
Dave Dubeau: Big Mike, It’s a pleasure. Thanks for inviting me.
Mike Ayala: Yeah, well this is going to be super fun. And obviously we have to dive into the four questions, but Dave has created a five step money partner formula that really fills a need when it comes to I guess, access and figuring out how to gain capital. You know, there’s this gap I feel in the market where, you know, a lot of the people that probably listen to the podcast or, or hear us, you know, we’re syndicates, we’re out raising millions of dollars, but I get questions every single day. Like Mike, how do I get my first deal done? How do I you know, find money? How do I get started? And I think Dave’s going to really help us kind of connect the dots on that. So did I get that close, Dave?
Dave Dubeau: You did. And no pressure on me. I tell you, you’re pumping my tires pretty good there, buddy.
Mike Ayala: Well, you know, in fairness I rarely you know, jump on calls with people that, you know, their team reaches out, but Dave’s team reached out and I did a little bit of research and I got on a call with him and we just had a great conversation and I’m just excited for what he has to offer. So Dave, before we get in into that, let’s get into the question. So who has had the greatest impact on your life?
Dave Dubeau: Bar None, My mother. My mother was the person that had the biggest impact in my life by far. Just a wonderful person passed away a few years ago. Even though she was a schoolteacher, her entire life, she was very entrepreneurial. She was involved in real estate Investing. Built up a portfolio of over 50 rental units in the seventies and eighties when she was raising this not knows kid and really just amazingly supportive. So yeah, I would say my mom.
Mike Ayala: That’s cool. And you know, I have to say the same thing to my mom was just such a gem and made me who I am today. So it’s pretty amazing. If you could narrow it down to one thing that has had the greatest impact on your success, what would that be?
Dave Dubeau: You know what, I think it’s being willing to step out of the comfort zone, Mike. Yeah, I had an interesting experience as a young guy. I went off to a private school for a couple of years. And what you guys in the states we called middle school. And that had a big impact that got me away from home, got me away from my normal friends and associates and got me in with an old new group of people and kind of create a little bit more independence in me. So I actually ended up after I graduated from university, I ended up living overseas for a number of years. I settled down in San Jose, Costa Rica started a business from scratch down there in Latin America. And never have really been too afraid of new things. So that’s probably the thing that’s had the biggest impact.
Mike Ayala: That’s pretty interesting. So where are you from? I didn’t realize, I don’t think we talked about this.
Dave Dubeau: I’m from beautiful British Columbia, Canada. So just up the road and to the left of you, couple of thousand miles. But yeah, I’m, I’m originally from Northern British Columbia and the days live in Southern British Columbia with a bit of time off in Latin America, about 12, 13 years actually.
Mike Ayala: So when you went off to a private school in middle school, and if you don’t want to get into this, we don’t have to, but what caused that, was that just better schooling or did you, was that self-inflicted?
Dave Dubeau: Well it was self-inflicted, it was funny because a friend of mine was getting shipped off to this school and he was going kicking and screaming and his dad was an amazing sales guy. So I can remember they came over to my house and his dad and my dad were buddies and his dad was busy just talking up a store him about this school, how cool it was, how great it was. My friend was rolling his eyes cause he didn’t want to go, but I was listening to this and I went, that sounds so cool. That sounds so much better than what I’m doing right now. Cause I was floundering around not doing very well in school and I just thought to myself, man, I’d love to go there. So I convinced my parents and they shipped me off and it was a phenomenal experience.
Mike Ayala: Wow! That’s amazing. I thought you were going to tell me you robbed this convenience store or something as a 12 year old, that’s probably something I would’ve done.
Dave Dubeau: No, did nothing quite that drastic.
Mike Ayala: That’s great. What was your greatest setback and what did you learn from it?
Dave Dubeau: Well, Mike you’ve been around the block a few times in business and in life. And I’ve got a few gray hairs on what’s left of my hair in my head. And you know, the one that sticks out to me was actually back in Costa Rica. I had a language training company there and within a very short period of time, the crap hit the fan three ways to Sunday. You know how it kind of happens that way. It’s not like onesie, twosie things it’s like everything happens all at once. So my business partner split, my wife got pregnant with our first child. So we were having our first baby, bought a house. A key employee, you know, threatened to try to take all my clients away. A couple of other key employees went into Kahoots and tried to swipe a whole bunch of clients away from me, and all this stuff. Oh yeah, And I had a branch office in Panama that collapsed and all of this stuff happened within about six months. So it was just like this massive, massive amount of stress. Oh yeah, Not only that, but our child was born and complications in delivery. And my wife almost died and almost got shipped off to a mental ward for, you know, massive postpartum depression, which was, you know, misdiagnosed and all this stuff. So all of this stuff just kind of seemed to happen all at the same time. I can remember the straw that broke the camel’s back was when these two employees of mine who I considered to be really close friends, went into business against me. Unbeknownst to me like they kept working for me. And at the same time who are starting their own business and grabbing all the, you know, stuff they could from me and clientless and all this kind of stuff. And when that happened, I just, I lost it, man. It was scary. I was so frustrated. I was so angry. I mean talk about thinking dark thoughts and making some pretty dark plans. And I tell you, I was in that dark space for three or four months and life was miserable. I mean, I was a miserable SOB, everybody around me, my business was suffering. My personal life was suffering. My marriage suffering. My health was suffering. Everything was going down the tubes and I don’t consider myself to be a religious person, Mike, but I had an epiphany. I call it my religious experience. I happened to be in a church at the time. I can remember vividly, I was at a buddy’s wedding. And I could remember, you know, the only thing they kind of got through my fog was, I can remember the poor guy, his knees started shaking. He almost fainted at the altar. So that was kind of, that was kind of funny. But during that whole experience, I had this sensation, a voice, whatever came over me and said, you know what, Dave, forgive them, let it go and move on. It wasn’t forgive and forget. It wasn’t quite that biblical, but it was forgive them. And that was the number one thing, let it go and move on. And it was an instantaneous transformation, instantaneous revelation, instantaneous change of mindset. And I tell you what, you know, you hear about the weight of the world being lifted off your shoulder. That happened in a fraction of a second. And I felt like I floated out of that place. My whole attitude changed. I was a happy guy again. Within a week I landed the biggest client we’d ever had, because I started focusing on my business and I wasn’t such a miserable SOB anymore. And it just, and that lesson has always, always stuck with me. You’re going to get screwed over. I mean, just life happens. Don’t just, I don’t let myself get so wrapped up in it anymore.
Mike Ayala: Yeah, It’s so true. I was having a conversation earlier and I’ll never forget when I had started my first business when I was 24, which we talked about on your podcast. But I’ll never forget my business partner. He would get so dang mad when, you know, our technicians would leave and start their own business. And I heard somebody say one time and it reminded me of him because you would always be like, you know, I just don’t think we should invest in training and all this, you know, stuff for them. And then I heard somebody say kind of the same thing that, you know, people would be like, well, what happens if I invest all this money in them and they leave, and then they flip the question and said, well, what happens if you don’t invest in them and they stay, which was kind of pivotal. But on what you just said too, like my business partner used to say all the time, he’d get so mad when people would leave and start their own business. And I’d always just come back to, Hey, remember, in 2004, when you and I were working for that other company and we left and started our own business you know…
Dave Dubeau: Which is how I started too.
Mike Ayala: Yeah. It’s, you know, and I remember literally just being like, you know, but it is, it’s so hard. And it’s such a powerful story because as you were saying that, I mean, you had an experience, but also it’s what you did with it. And as you were sharing that story I was thinking of the phrase, is, you know, the hardest thing is to decide. Yeah, all that’s difficult, but you know, when you decided whether through was a spiritual experience or you just decided you were going to get over it, I think so many people dwell on that stuff. And the reality is, like it’s only affecting us. I mean, those guys moved on and forgot about you and everything else. And the hardest thing is to decide.
Dave Dubeau: Yeah, no, I’m so blessed that I had that experience cause it has done me in good stead ever since that’s for sure.
Mike Ayala: Yeah. Have you and we don’t need to get into specifics, but have you had more experiences like that, that it helped you decide?
Dave Dubeau: Yeah. But you know what I, yeah I have, I have, but I tell you what, just because I have that philosophy now I don’t really think back on them. It doesn’t, none of them had any kind of impact like that one did. So it’s water under the bridge a lot faster.
Mike Ayala: You know, I try to dissect this cause you know, it’s such a powerful experience for you, but I’ve been pondering this thought like, you know, when we depression, like literally when we’re living in the past, I mean there’s nothing. Yeah, There’s some good memories and stuff there, but the reality is when we’re constantly looking back, somebody said something a while back that depression exists in the past and anxiety exists in the future. And if we just remain present, it’s really hard to be unhappy. If you’re just here now, like, I mean you and I having this conversation, it’s really challenging to not be happy and excited and learn. And so that’s just really anchoring for me cause when we’re dwelling on that stuff back there, it doesn’t do anything.
Dave Dubeau: You just said it brother. Yeah, that’s good advice. I find myself a little bit too much focused on the future sometimes. So yeah, I’m getting centered on. But I really don’t think about the past hardly at all. I’m like, you know, it’s gone, off we go. But yeah, keeping present is huge and that’s, you know, that was one of the big takeaways I had from our interview, When I interviewed you on my show, you seem to have that really dialed in. So keep on doing the good work there brother.
Mike Ayala: Yeah. And just, you know, even on that note, like I think when we dwell on the past, you know, I’ve got stuff that I could be upset about, but the reality is like, what’s the point, right? So we use it, learn from it, move on. So what is your podcast called by the way for the audience? So they can go find it.
Dave Dubeau: The property profits, real estate podcast, which is kind of a mouthful. So don’t try and say it three times quickly. Property profits, real estate podcasts.
Mike Ayala: Yeah. I enjoyed the intro. I noticed that you really have that anchored like cause it’s like sally sell seashells by the seashore. Yeah, it was good. So go over there and check that podcast out. Cause I think you guys are going to like it. So what is the piece of advice you find yourself sharing the most?
Dave Dubeau: You know what, it kind of ties in with what we talked about earlier when I interviewed you Mike, about one of our mutually favorite books, which is Chat home’s ultimate sales machine. He talks about pigheaded discipline or pigheaded determination. And I find it’s consistency. So I’m big into marketing. I work with people and help them set up marketing for raising capital and it’s all about constant, consistent communication. So it’s that consistency, it’s when you start something like you’ve been doing your entire life, but for example, your podcast Mike, right? You’ve got well over a hundred episodes at this point. And the average podcaster, last time I heard last for seven episodes, seven, then they fizzle out, they get the shiny object syndrome, they try something else or this didn’t work fast enough for them. And off they go. And I see so many people do this in different ways in their lives. They try something, it doesn’t work immediately or as well as they hoped it would, So they give up on it instead of applying that consistency. So I guess that would be it.
Mike Ayala: It makes so much sense too because you look at anybody who has mastered it. You know, I’ve actually struggled with this cause I’m kind of impatient. You know, and just realizing it’s hard too, when we’re outside of our realm and I want to shift gears and get into, you know, what you teach and coach, but we were talking on your podcast a little bit about social media and the thing that I’ve realized, you know, I’ve run a lot of successful businesses. I’ve been a successful real estate investor. But what I didn’t really understand was like the online marketing space. And so I had to go out and get in masterminds and be taught. And it’s really hard when I would hire business consultants and they would say do X, Y, Z. It made a lot of sense to me. But when I started getting into the online marketing space and social media and people would, oh, you got to do this every single day. You got to be consistent. I had a harder time, you know, seeing, you know, Franklin Covey talks about beginning with the end in mind. I understand that I need to make this happen, but it’s like was really hard for me to remain consistent. And so I like that just, you know, keep showing up, remain consistent, cause that’s what it really takes. And I’m not saying more so in today’s day and age, but I think it’s harder to understand.
Dave Dubeau: I think it actually might be more so in today’s day and age Mike, because, there’s just so much stuff out there. And there are so many people bouncing around from one thing to the other and the next best thing and the coolest, this and the coolest that. I think there’s a lot to be said with finding one and really kind of dialing it in and just keep going with it. I mean, there really is. And you and I are both big fans of Dan Sullivan and strategic coaching and I’ve really become cognizant and aware of the whole who not how idea lately, because you know, for myself, I am a marketer that I call myself a marketer anyhow, and that’s kind of what juices me up. But I tell you what, a lot of the online marketing, quite frankly, it changes so quickly, I don’t have the patience to try and keep up with it all. So what I’d rather do is hire somebody who loves that stuff. Who’s good at it. Get them to do all the nitpicky stuff and just kind of point me in the right direction and whatever it is, creating content or what have you, I can do that till the cows come home. But I don’t worry so much about the nitpicky detail type stuff. Does that make sense?
Mike Ayala: Yeah. Total sense. Well let’s shift gears a little bit and let’s get into I number one, I obviously want to get into what it is that you’re currently working on and doing, but why don’t you give us a little bit of background? How did you get here? I mean, I understand you went to middle school, private, but then what?
Dave Dubeau: Yeah. Well then I went to university and got a completely useless degree. This is a time where, you know, jobs were hard to come by. So nobody was throwing me a great job. So that’s when I started traveling around Mexico and central America settled down in Costa Rica, started a language training company down there, got married, had kids, all that good stuff. I actually dabbled a little bit in real estate while I was in Costa Rica, did a couple of what, I guess we would call pre foreclosure type deals. So I did two of those. They were reasonably well didn’t even know what the heck I was doing. Actually raised a little capital at that point as well without knowing what the heck I was doing. And then in 2003, my wife and I, my Costa Rican wife, and I decided to pack up the kids and the household and take off from Costa Rica and move back to Canada. And a lot of people go, why would you do that, Dave? Cause we had a good life down there. We had, you know, it’s a lot easier to have maids and gardeners and gated communities and all that kind of stuff in Latin America than it is in north America. So we packed everything up. I hadn’t been able to sell my company so I didn’t have very much money. Came back to Canada, moved to a brand new city, no contacts. I’d been gone so long. I didn’t have bad credit. I had zero credit. And I’d been self-employemed for a long time, So I wasn’t really employable. So I had to figure out what I was going to do. And I saw one of those late night infomercials, you know, basically along the lines of you two can get rich in real estate with little are no money down. I said, perfect. That’s what I got. Set away for it, got all these binders and stuff went through it. And then I just took massive action and Mike and my kind of little claim to fame as I did 18 deals in 18 months. When I first started with these creative things, which sounds kind of impressive if you saw what some of those deals looked like, a few of them were really quite impressive, but most of them were crappy little mobile homes and you know, crappy little single family home type deals and whatnot. But it got me into the game. It kept the lights on, so to speak and got me going. So it was a matter of taking massive action with that. I ended up catching the eye of a up and coming real estate guru up here in Canada, kind of Canada’s version of rich dad, poor dad at the time. And he saw what I was doing. And he saw a little bit about my background with marketing. And I started working with him. I took some time off from real estate, helped him grow his company significantly fairly quickly. And then jump back in 2010, started doing, by that time I had good credit and had a few bucks saved up and I started doing a strategy. I don’t know if you’ve heard it, It’s called client first or tenant first rent to own. I don’t know if you know anybody doing that. But basically, you find a really good tenant buyer. Who’s got some cash, but not great credit, but you can help them Get their credit fixed up. You go buy them a house and then you lease option the house to them for two or three years while you help them get lined up for financing. So I did that for, I did my first couple of deals under my own steam and then like a lot of people ran out of cash and credit. And that’s when I jumped in with this whole raising capital thing and I’d love to say, you know, I took off right from the beginning and had massive success. I didn’t, I failed miserably Mike really miserably. Because I’d heard, you know, pick up the phone and dial for dogs. I’d never done that before, but I thought, okay, if that’s what you’re supposed to do, I’ll try it. Sucked massively at it. I mean, talk about nerve wracking. It still brings, makes me sweat the idea of picking up that phone and calling people cold and trying to pitch deals over the phone. I tried that about 12 times, got rejected 12 times. I quit doing it and pouted for a little while. And then I’d also heard, Hey, you know what, Dave, if you need to raise some capital quick, go out and network, network up a storm, schmooze, you know, turn every conversation into a real estate conversation. Use your elevator pitch, your 30 second commercial. I learned all about these things. So I did that. And local chamber commerce, BNI Toastmasters, wherever raised zero capital. Now it’s pretty obvious why 2020 hindsight, I was desperate, right? Like I needed, I needed to raise 85 grand. I only had like two weeks before I had to remove subjects that desperation just oozed out of every pore in my body is basically what happened. Then I came up with a brilliant idea, Mike. I said, Hey, if enough, this is such a good deal. If enough people see it, it’s going to sell itself. Have you ever heard anybody say that? Well slap them. You hear them say that, slap them. So here’s what I did. One smart thing I did. I came up with a list, I went through and I brainstorm a list of about 200 people that are already had a preexisting relationship, that was smart. But what was stupid was I spammed everybody with my deal. I put together a little PDF and I emailed that to everybody. And I was so excited. I sent that out about seven o’clock at night, on a Wednesday. I remember getting up Thursday morning. I was so excited. Cause here were all these replies starting to come into my in inbox. And then I opened them up Mike. And basically they all said, Hey Dave, dude, I haven’t heard from you in a long time. One guy hadn’t heard from me in 18 years Mike, 18 years. And here is the first thing that comes across their inbox is, Hey, it’s Dave, I got a deal, Have you got any cash? Not quite that bad, but basically that was the gist of it. They all told me to take a hike. I lost that deal. I live in a pretty small city, like nowhere near the size of Austin. We’ve got that time of population, about 80,000 people. So everybody knows everybody. Especially in the real estate. So I obviously ticked off my tenant buyer had to return their $10,000 option fee, ticked off the seller big time, obviously tied their property up for a while, ticked off the realtor, mortgage broker and everybody. So major egg on my face. But here’s the worst thing, Mike, because I charged in like that dumb bull in a China shop, I turned off a lot of really good perspective investors. Cause you know, they talk about, you never have a second chance to make a good first impression. Well, I really made a bad first impression when it came to raising capital. So I sat back and after the dust settled and I licked my wounds a little bit. I said, you know what? I don’t want to be in that position again, this whole, you know, find the deal, the money will magically find you think is baloney. What if we could apply some intelligent marketing to this process and try and get our investors lined up first before we got the deal. So I came up with what I call my money partner formulae. And it took a little while as trial and error. Worked really well for me when I was doing those ran tone deals. It wasn’t huge. That was kind of a small business. I raised probably just under a million bucks for those kind of deals. And then a few years later I started getting into passively investing in multifamily deals and raised several millions of dollars for those kind of multifamily deals and really saw that there was a need for what I call mom and pops to get a little bit of help with getting started with raising capital. I’m not talking about, you know, big time syndicators like yourself and some of the folks that you’ve had on the podcast that are raising tens of millions of dollars. I’m talking about how do you get your first 100,000, 500,000, maybe up to a million, $2 million. How do you get that first initial cap and get rolling? So that’s what we really focused on. And these days I’ve basically got a marketing agency and that’s all we do. We work with mom and pop real estate investors and help them get started on their path of raising capital.
Mike Ayala: So let’s dive into that a little bit, cause again, I said this early on, but I think you’re filling, I use a consulting company right now that does a lot of marketing for us and you know, but it’s kind of like the, I feel like there’s this grand canyon we were talking earlier about, you know, not understanding like we get business, we get the concept of buying a house and renting it out and making a spread like that all makes sense. But when we get into this wheelhouse and this is what got me so excited, like so many people are like, okay, Hey yeah, I just want to get out there. And I want to earn my freedom and start getting passive income and all this stuff. And almost everybody teaches people how, you know, go look at a hundred deals and you know, put offers on 10 and 3 and 1 and everybody’s talking about all that, but you know, so many people hit a wall when it comes to the capital. So let’s dive into it. I want to understand what does the money partner formula look like.
Dave Dubeau: Perfect, Mike. So first of all, what I always recommend is that you get, I mean, it’s a lot easier to raise capital if you got at least a little bit of a track record, right? So I always recommend try and get at least one successful deal under your belt under your own steam, if at all possible. Then it just makes life a lot easier. So let’s assume whoever’s listening to this knows what they’re doing, knows what strategy they want to do. They know what market they want to focus on. Hopefully they got at least one successful deal under the belt. Now they’re ready. They’ve run out of cash, run out of credit. Now they want to go to the next level. So that’s our ideal person that we can be about here. So what we do, Mike, and here is the exact process that we walk through with our clients is we start off by thinking, okay, who’s the person most likely to invest with you, right? Who’s the person to most likely invest with you at this stage in your career. Cause a lot of people go out and they say, Hey, you know what? I’m just going to find a credit investors. They’re going to come to me in [27:13 inaudible] and invest in my deals. No, that, ain’t how it works. Because you don’t have a track record, yet, you haven’t worked with any of investors. You need to get some experience under belt with investors first before you start scaling up into that kind of level. So the logical place to start is within your sphere of influence, people that you have a preexisting relationship with. So friends, family members, coworkers, business associates past and current clients, people you know from church, from civic organizations, kids schools, you know them, they know you, right. Because correct me if I’m wrong, Mike, but in order for somebody to invest a hundred grand, the chances are, they’re going to need to know you, like you and trust you with your money. Does that make sense?
Mike Ayala: Correct. Yes sir.
Dave Dubeau: Yeah. So beautiful thing is if we focus on people that you have that preexisting with mm-hmm <affirmative>, we’ve got two out of the three already taken care of. They already know you. Hopefully they already like you. Now we just have to work on that trust factor. Will they trust you with their money to invest in a real estate deal? And that’s, we’ve got two out of those three going we’re well on our way. So what we do is we do a data dump with our clients. We’ll get all of other contacts from their cell phone, email addresses, social media, all this stuff, get all into one place, merge, purge, duplicate that [28:28 inaudible], come up with a clean list and then go through it and take a look at it. And when you see a name, if a face pops into your mind and you like that person keep them on the list. That’s our first kind of [28:40 inaudible] down. So you start with probably 2000 people and then Will it down to a couple of hundred. And that’s what we really want to start with is that target group. But then the second part of this phase here is, we want to start off on the right foot. So if you remember, I charged in like that bull in a China shop, Hey it is Dave, I got this deal. Don’t do that. Don’t, don’t, don’t please Whatever you do, do not do that. Learn from my stupid mistake. Here’s what you do Instead, you want to break the ice with these people first on a personal level before we start talking business. So how do we do this? 200 people. You’re not going to take 200 people out for coffee. You’re not going to make 200 phone calls necessarily. So what we’ve come up with is a very efficient way to do this Mike. And what we do is a very simple three email sequence campaign, right? The beautiful thing about email is you can create one of them, get a CRM system, email [29:34 inaudible] what have you, create one email and send it out to 200 people and it’s personalized for each person. So a couple of messages, first couple of messages are kind of like, Hey, it’s Dave. Chances are, it’s been a while since we’ve connected, just want to reach out, say, hi, let you know what I’ve been up to find out how you’re doing. Here’s what I’ve been doing. And here’s the trick. We do like a little synopsis of what I’ve been up to for the last 3, 4, 5 years yourself, the family, the wife, you know, what’s going on with work. What’s going on. What’s the good stuff. What’s some of the not so good stuff. How’s the pandemic affected you, but don’t leave it on a downer. Make sure you always leave it on a high point, like 80, 20, 80% positive. But also a little bit of reality. Cause everybody’s got crap going on in lives. You know, stuff happening, right? But here’s a big trick. Do not try to subliminally slip real estate stuff in there. Unless you’re a full-time realtor role, full-time real estate investor. But then just mention it in passing, you know, cause some people are trying to NLP stuff in there and state stuff under the wire. Don’t worry about that yet. And here’s the key, at the end of that message Mike you say, Hey, well that’s what I’ve been up to. How about you? How are you doing? Please hit reply to this email, I’d love to catch up. And you send that out to all 200 people. You send that out through your email system, not through Gmail or anything like that. Use a CRM or an email auto responder. And some of them, don’t worry not everybody’s going to get back to you. But if you’re doing this right, you probably should be getting somewhere in the range of 15 to 20 to 30 people replying back to you and then here’s your job. And this is a beautiful thing, right? Because the system sends out all these emails. All you have to do is reply to the people that get back to you and have a little bit of a connection there, go back and forth a little bit. Cause I’ll guarantee this. There is capital in those reconnections. Then that first message out, Send another one out three or four days after that [31:33 inaudible] do a different version of it basically, and then reply to those folks. And then here’s the trick, Mike, the third message we call this one the transition message. And it gives people the heads up that we’re going to switch gears. We’re going to start talking business. We’re going to start talking real estate. We’re excited about real estate. We’re doing really well with it. We think it’s the best way for everyday folks like us and like them to get a month average return on our money, back by a solid asset. And who knows, maybe sometime in their future might even want to partner with me and share the profits on a deal. Hey, we send out that message. Get people the chance to opt out if they’d rather not hear about it. Very few people do Mike, it’s surprising. So if you do it right, well we found we’ve done this with hundreds of clients. You’ll actually only get three or four or five maybe on the outside, six people opting out of that campaign if you do it properly. And now we’re ready to go. Now we’ve primed the pump. Now we have broken the ice. We’ve reconnected with these people and now we can start doing that constant, consistent communication. Does that make sense?
Mike Ayala: It makes total sense. I love it. And you know, as you were sharing all that too, I have, you know, we’ve got so many limiting beliefs and doubts in our mind and everything else. And I’m sitting here thinking about, you know, the person that’s out there saying, yeah, I don’t know if I want to, you know, do all work and the process and it fills unauthentic and all of that. And you know, to that, I say, it’s part of the process. And there’s nothing inauthentic about it. You’ve actually been inauthentic for years by not just staying connected and being relatable. And I was thinking about it as you were talking about this, I heard somebody saying, I don’t know if this is scientific or not, but we can, and really only manage like traditionally like 120 real core key relationships. Well, in this day and age, like you said it to begin with. I mean it’s probably going to start with like 2000 connections. Some people probably have 20,000 and the reality is the way we live today, Like people have to get past the fact this isn’t, we don’t live in little tribes anymore. Like it’s a global, it’s a global world. And so we have to get past that limiting belief of, you know, I don’t want to use a CRM to like keep track of my relationships and all that stuff. And so I love that if I’m hearing you right. You help your clients go through this process. You help manage it.
Dave Dubeau: We pretty much do it all for them. That’s our business now. Yeah, it’s amazing through technology what we can do, but yeah, we find that most of our clients aren’t super techy or they’re super busy. They don’t want to spend all this time doing it. So we do all the nitty gritty stuff for them. They do have to answer the emails. We can’t do that part for them, cause they need to have that genuine connection. But everything else we do for them.
Mike Ayala: Well, and you just solved, like what you just said is the answer to that person. That’s like, you know, I don’t want to be inauthentic. They’re not, you’re just helping them nurture the sequence and nurture that relationship. And then they have to go back in there and continue that through the response.
Dave Dubeau: That’s a really good point Mike and other people have brought that up as well as, Hey, you know what? This feels kind of like bait and switch, like warm and fuzzy, warm, and fuzzy. And then switching gears and now we’re talking business. You know what? It would be bait and switch, If all you did was send out those emails and you never on to anybody who got back to you, but where the magic is, is in those legitimate reconnections, right. They email you back, you have a little bit of back and forth and you catch up, you legitimately reconnect with those people. That is where the magic really lies. And quite frankly, Mike, what the heck else are you going to do? Cause you’re not going to physically reach out to each one of these people. Sometimes people say, well, Dave, maybe I should give each one a call. Well, good luck. Have you called them yet? No, You lost contact with a lot of these people. Most of us aren’t super good at staying in touch. This is the best way I’ve ever seen for most people to make those reconnections.
Mike Ayala: Yeah. Well, and you just brought up a good point. Like if you don’t get into Dave’s system and do it this way, you’re never going to connect with them anyway. So what’s the pain point. I mean, and if they want to opt out or not respond, they don’t have to. But if they reengage that 30% or whatever the number was that you were talking about, that’s huge. That’s enormous. And the bottom line is you get to rekindle a relationship that actually existed at some point in time that may never be rekindled if you’re not reaching out to them. And this is the last thing I want to say on that. I’ve realized that, you know, if you have a deal, it’s a noble cause to let other people invest with you, they need a return on their capital. And so if we’re scared to reach out to people and to nurture that sequence and everything else, then I think you really have to ask yourself, like, is any of this for me? Or should I just go back to my W2 job and stay there and spend the rest of life there because you’re doing something noble and these people actually want to deploy their capital or they wouldn’t be responding.
Dave Dubeau: Yeah. Well, you know what? That’s absolutely right. Like unless you’re willing to do something a little bit different, you’re just going to keep getting the results you’ve been getting so far. And, and that’s fine if you’re happy with those results, but you want something different, you got to do something different. It’s, you know, it’s worked for me, it’s worked for hundreds of clients that we’ve worked with over the years, doing this. Is there the chance that somebody might clue in that this is an automated type thing? Yeah, it can happen. I mean, that technology isn’t perfect. But if somebody says, Hey, this looks like it’s kind of, been sent out to a lot of people say, Hey yeah, Well, this is the most efficient way I know of to get the word out. But all of my replies are personal, just be front. So yeah, you don’t need to pretend you are something, you know.
Mike Ayala: Well, and in this day and age, I think most people other than maybe great aunt Susie, I think most people know that, you know, we’re, I mean, every company in the world uses automated systems to some way shape or form. And I have an automated community text, which a lot of my listeners you know, subscribe to and like, you know, we kick deals or whatever out to them. I actually look at every single one of those texts, but it’s not my personal cell phone number. And every once in a while, you know, this literally how happened yesterday, This is why I’m bringing it up. So there’s one of my best friends from like middle school. I haven’t seen him for, you know, probably 25 years. And he text me on my community text app and you know, three or four days went by and he’s like, what? You too good for me? And he’s like saying all this stuff. And I finally saw him, and I sent him a text back and I said, Hey, look, this is kind of like an automated sequence. I do see it. And I do respond. I said, but you know, text me over here. Cause it’s an existing personal relationship. So worst case scenario, if somebody, you know, your best friend from high school gets on the drip campaign and you want to reconnect with them, you know, other ways you can.
Dave Dubeau: Here’s the big difference like that thing’s probably going out to thousands of people, that text thing you’re doing. Our email, thing’s going out to maybe 150, maybe 200 people. Like it’s a much smaller group. It’s definitely very manageable. And what we do show our clients is make sure that when somebody responds to you, you get back to them right away with this warmup campaign, cause that’s the whole goal is to make those connections. So, don’t let them, you know, sit for too long. Ideally you’re checking your email once or twice a day just to make sure you get back to people. And again, this isn’t over a super long period of time. We’re talking about over a week, a period of a week. So it’s not that big of a deal.
Mike Ayala: So kind of, you know, fast forward, cause this is what I was really intrigued about too. So you got somebody, you know, Mike’s on your list and it’s like, Hey, great to reconnect. Like what happens?
Dave Dubeau: Well, okay, so this reconnection thing’s not really designed to start pitching deals or getting meeting just yet. Big picture, this whole process, the goal of it is to get you a meeting with a prospective investor. That’s what we’re talking about here. And I tell you what and about half the cases that actually happens, Mike you’ll have somebody reach out from that third message and say, Hey Mike, what’s this real estate thing you’re up to man. Sounds kind of interesting. So the second part we do for our clients is we make sure that they’re ready to go with a really good investor presentation, right? So if somebody puts up their hand, then what? I don’t want to be like a deer that caught in the headlights, right? So we put together a really good, simple, easy to follow slide deck presentation. And the reason I like a PowerPoint or a keynote or Google slides, whatever you want to use. The reason I like a slide deck Mike is because number one, it keeps me on track. So I don’t go off on tangents. You can tell we can go off on tangents. Keeps it tight. So we don’t want to spend much more than 20, 25 minutes grow going through this max and it simplifies it. It’s much more interesting for the other person, cause here’s the thing I realized a while ago, Mike, we have to remind ourselves of this all the time. Same with your listeners. Most of your perspective investors are not real estate weirdos like us. I say that with love and affection. But we are, we are weird. Like if you talk to a, I call them civilians, right? Somebody who’s not into real estate, you talk to them about real estate stuff and they zone out with their eyes gloss over, they ROI, IRRS, NOI, all this LTB, all this stuff, confuses the hell out of them and they feel dumb. That’s the last thing we want to make our investor feel is ignorant or dumb. So we got to simplify this. And here’s what I call it. I call it, we make it readers digest level. Mike you’re a younger guy than I am. You might not know it. But did you remember the reader’s digest magazine? Do you remember those?
Mike Ayala: Yeah. Yeah. I remember it.
Dave Dubeau: So that magazine was written for grownups. However, it was written at a 13 year old comprehension and reading level. That’s the same thing we want to do there. Not because our investors are dummies it’s just because they’re busy. They’re not into real estate investing and we got to keep it super simple. So that’s the second part. Let’s make sure we got a good presentation in case somebody puts up their hand. And then what we do next is we kickstart the marketing, constant what I call constant consistent communication. And what we want to try and do is touch, reach out, market to these folks on a weekly basis. Send them something once a week. What we do with our clients is the first week of the month, electronic newsletter goes out. Second week of the month, a blog post goes out, third week of the month It’s a video log. Fourth week of the month, maybe another blog post. So just ding, ding, drip, drip, drip, drip, drip. And then here’s the trick, two tricks. Important ones. Number one, make your marketing Edutaining, edutaining I wish I came up with that phrase. Somebody else did. I can’t remember who, but I love that one. Edutaining, little bit educational, Just a little bit though, right? Cause you got to remember we’re the weirdos. Not them. They don’t want to know everything we know. Otherwise they’d be listening to Mike’s podcast. They’d be taking the courses. They’d be doing it themselves. So a little bit educational, just so they get the gist of it and hopefully a little bit entertaining. So they don’t mind getting your stuff and they open it up on a fairly regular basis. Does that make sense, Mike?
Mike Ayala: Yes, sir.
Dave Dubeau: Then the second part and this is the part that everybody screws up on. Make sure all of your marketing has a very clear call to action. Don’t assume the other person’s going to connect the dots. And just cause you sent them an easing or whatever they’re going to reach out to you. No, if you want people booking meetings on your calendar, you got to tell them to click on button and book a meeting on the [43:34 inaudible]. So you got to show them, here’s the button click on it. So let’s book a meeting. Let’s see if this makes sense for you. And if you do that consistently, constant, consistently not everybody’s good to do it right away, but over time the more they see it, more likely when time and circumstances change for them. When they’ve seen enough information from you that they know you’re serious and they’ve created that curiosity, they’re going to reach out and they’re going to do what you want them to do. Some are going to do it right away. Others it’ll take a little while.
Mike Ayala: What I love about your whole model. And I said this at the beginning and I said it when we were on a call the other day, like you’re filling such a gap, and I think it’s a huge gap because I think everybody, not everybody cause, I like how you called them civilians. I love that. What you’re talking about, I mean, if you want to go out and nurture a list and build a big list and raise millions of dollars, you’re going to have to do the same thing on a larger scale. And that takes time like a long time. Most people stop before they even, you know, get moving really. And I love what you’ve built here because it’s digestible and it gets me from where I’m at today, my existing list taking out the phone, like you’ve created, there’s so many people that would quit and not make it to the other side. But your process I’m fully convinced that the way that you’re holding hands with people, You’re going to take so many more people to a point where they’re going to continue with that process than anybody ever could. I think more people would quit and get frustrated before they even got 10 feet down the road if they don’t use your system.
Dave Dubeau: it’s worked really well. It definitely has. We’ve got investors from all over the free world. We’ve got tons of clients in the states, Canada, UK, Australia, one guy in South Korea. So It works wherever, you know, you’re in the free world where you can buy and sell properties, right? That’s what it’s all about. So yeah, those are the three first steps there, Mike. And we got a couple of other steps, but again, time flies when we’re having fun. So, I am not sure how much time we’ve got here.
Mike Ayala: Well, I think we’re okay to get to the punchline. So just give us the quick version of the next like….
Dave Dubeau: So, we start out, we created that target group. We reconnected with them on a personal level first, second step, we created that investor presentation slide deck. We’re ready to go with that. Third step is we kicked the marketing into gear, all this different stuff. A four step is to really start working on that trust factor. Know, like, and trust. So a lot of people are freaked out and they say, well, how can I, I’m not worthy of raising capital yet. I don’t have, I’m not like Mike, I haven’t done a gazillion deals and I don’t have this huge track record and all this kind of stuff. Who am I to start raising capital from other people? Well, here’s the thing you guys, and this is a statistic I’ve heard. So take it for what it’s worth. I can’t remember where I heard it, but 95% of the general population has never purchased a revenue property. Your own house does not count as revenue property. I’m talking about an investment property. If you even got one little deal, one little successful deal under your belt, in my opinion, you are ready to start working with other people and their capital. It’s all about, you know, being trustworthy, being reliable, treating their money with respect as if it were your own. So all of that, I’m assuming that everybody who’s listening to this is a good, solid human being and not going to get people into crappy deals, but you are worthy. If you’ve got one deal under your belt, it’s kind of like, do you remember back in, Did you go to kindergarten?
Mike Ayala: Yeah. Yeah.
Dave Dubeau: I don’t know. It’s still been a long time for me, man, but I can remember in kindergarten there I was having nappy time and whatever, basically playing all day and I can remember the kids in grade three or grade four, they seem like they had it all together.
They could tie their own shoes. They could print their names. They could add, subtract, and maybe even divide. It just seemed like rocket science to me in the kindergarten. Well, it’s the same thing. You’ve got one deal under your belt. You are light years ahead of somebody who’s never even thought about doing a deal before. Does that makes sense? So, there’s lots of ways to be seen as, we want to be seen as an expert in the eyes of our little group of potential investors. And it’s not that tough, Mike, I mean, you’ve been speaking, you’ve got a podcast. You’ve been doing this for decades now. So you don’t have to have what Mike has to get going with this you guys, here’s a few tips for you. Number one, have a sharp website, investor focused website. That’s really, really important. That’s going to go a long way. That’s going to be your online communication hub. That’s where people are going to check you out. Do a little bit of due diligence on you before they book the call, all that kind of stuff. So sharp looking site, sharp looking materials. When you’re talking with people about their money, dress up, dress up, business casual. That’s my recommendation, right? It’ll show them respect and it’ll get you respect back from them. I don’t care if it’s [48:47 inaudible] I’m used to, you know, change your diapers, Doesn’t matter. Dress up, Even if you’re meeting her on zoom guys, put on the blazer, look sharp, show her respect. She might rip you a little bit, but you will get respect back from her as well. Speak intelligently about your strategy and your market and be able to simplify it. Reader’s digest style, keep it super simple. And anytime you have an opportunity, you know, participate in your local REIC, your local real estate investment club, those kinds of things. And if you can get on stage, talk a little bit, Mike, you’ve seen the benefit of this. Get interviewed on people’s podcasts. If you’re uptight about that stuff, go to Toastmasters ELP, they’ll get you straightened out. And about a month and a half, you’ll be ready to roll. All of this stuff just goes along way. So you don’t have to, you know, start off by writing books and starting your own podcast or anything like that. These little steps go a long way.
Mike Ayala: Yeah. And I guess the last like probably high level question, but do you, let’s say we get to the point where, you know, somebody wants to invest in our deal, do you guys help with that process too? Or is that kind of like somebody else’s problem?
Dave Dubeau: Well, we can advise on that, but I’m not a lawyer. I’m not a security specialist. I’m Canadian, So, you know, we got our own security stuff up here, but securities exchange commission in each state has its own regulatory body and that kind of stuff. So we always recommend make sure that you’ve got everything dialed in for how you’re going to be structuring your deals, make sure you get the appropriate legal counsel around that. But we can point people in directions for sure.
Mike Ayala: Yeah. Well, I think I’ve got my brain around this, but you guys basically, you know, from start to finish kind of help your clients through it. So how do people get into your world if they’re interested and want to reach out and start having a conversation?
Dave Dubeau: Oh, thanks Mike. So again, the process is called the money partner formula. So the website is called www.moneypartner formula.com, www.moneypartnerformula.com. If you go there, you can poke around and see a little bit about what we do. If you want, you can click on a button and book a call. We could have a conversation, see if our services a good fit for you. If you want, you can opt in and get a free copy of my book, money partner formula, and exchange for your name and an email address. If you want to join us for a full day workshop, where we take a deep dive and teach you how to do all of this stuff that we’ve been talking about you can join us for one of those as well. Www.Moneypartnerformula.com is the best place to go.
Mike Ayala: Yeah, I love it. And again, I can’t stress enough. I think that you’re filling this gap that’s out there. People that want to get going and they just don’t know how, and the fact that you’ve built the entire system and help, you know, take their contacts, and automate the sequence for them.
Dave Dubeau: We set up their website for them. We create the slide deck for them. We get all their marketing set up [51:36 inaudible], video blogs, blog posts, send them out for them. We do webinars for them. Yeah, It’s definitely a very hands on system.
Mike Ayala: Yeah, and that’s amazing because I’ve seen even, you know, accredited investors that own 40 properties that have put pitch decks in front of me that looked like, you know, my third grader did it and I can only imagine, you know, how many people are just stuck and have just stopped because they don’t know how to do that part of it. And so I was really intrigued when I heard you talking about this, so good job. You know, making a way that everyday normal people like us can just go out there and make things happen. So I appreciate your time. And you know, just go reach out to Dave, if you guys are interested and appreciate what you’re doing.
Dave Dubeau: Thank you so much, Mike. I appreciate you as well. Keep rocking it with the podcast and all the great things that you’re up to.
Mike Ayala: Thank you sir.
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