Tilden Moschetti: Okay,
congratulations, you've gotten

all your forms together, you
know, what SEC section you're

going under, I'm going to assume
that you're going to be doing a

506c, for this module. And the
reason for that is we're talking

about marketing the, the
investment opportunity that you

have, how do you put it out
there, you're going to do a lot

more marketing in the context of
a 506c than a 506b, it's not to

say you don't mark it in 506 B.
But when I use the word market,

and I'm talking about 506, B,
I'm really just talking about

how do you have the pitch
between you and the contacts

that you already have that are
already established, those pre

existing relationships,
remember, we cannot mark it out

to the external world, in a
506b, we cannot take money from

unaccredited investors in and
market out. In that context, if

you're doing a 506b, it has to
be only two people that you have

a preexisting business
relationship with. So I'm making

the assumption here that you're
going to be doing a 506c. But if

you're doing a 506b still pay
attention, because we're talking

about some general things which
are important, like accredited

investors, who they are what
they are, you still need to know

that because you can only have
up to 35 unaccredited investors,

and the rest of them, you can
have an unlimited amount of

accredited investors. And then
for the we're also going to talk

about how you pitch it itself,
and how do you frame that

investment. So let's go ahead
and get started.

Alright, so let's go ahead and
get started in this module on

marketing the investment itself.
So first off, let's have a

conversation about accredited
investors, because they're the

people that you are marketing to
primarily, we're talking again,

about 506c, because in that
point, we are only able to take

money from people who are
accredited investors. So for

someone to be an accredited
investor there is they really

have to meet one of say, really
three criteria that we normally

encounter. So the first criteria
is their income level, that

income level is needs to be
either $200,000 If we're relying

just on one person's income, so
they need to be making more than

$200,000 of taxable income in
order to meet that level. Or

they need to be making $300,000
If we're using the income of a

spouse, as well. So over
$300,000, and again, this isn't

your, your net income, that
before expenses on your taxes,

if you've got your own business
we're talking about this is your

actual taxable income. That's
what matters here. So taxable

income needs to be of that
level. So the other test is what

is the the wealth level of the
of the investor are to become an

accredited investor, it needs to
be over $1 million. Now in what

what do we count as that as
going towards that we do not

count the personal residence of
the investor. Now, that is a

huge amount of wealth that is
not being counted, but it

doesn't still exclude the
personal residence from what we

have to do to make sure that
they're there. So for example,

if Bob Smith has a, a net
income, or a personal wealth of

$1,200,000, so Bob has that
money $1.2 million in cash in

his checking account. Does that
mean he is an accredited

investor? Maybe, maybe not. So
that's where personal residence

comes into play. So if the
personal residence is let's say

he owns a home, that's present
value is $800,000. So it's an

$800,000. Home that's on the
market, but you know, he bought

it right before the market
crashed and he bought it for

$1.1 million. So that property
is underwater $300,000, which we

subtract out of his personal
wealth, which remember was 1.2

million. Now his personal wealth
is $900,000. He is not an

accredited investor. So that's
why it matters. The third

category is the SEC now allows
accredited vectors to be people

who have a securities license.
And so those people can be

considered accredited investors
as well. So that is how we

determine who's an accredited
investor, because those are the

people that we're selling to. So
the second thing I wanted to

talk about is, how do we put
ourselves forward. Now, we

talked a little bit before about
marketing to investors, but we

want to make sure that our
branding really is in place,

right? I want somebody when they
look me up to see, wow, this

guy's the real deal. So that
does mean that we need to have a

good website, maybe a sales
funnel, things like that, in

order to make it clear that
we've got a good, a good

presence, and we know what we're
doing. Let's go ahead and look

at the whiteboard real quick.
Because you heard me use a term

sales funnel, I want to say,
describe exactly what I'm

talking about here. And it
doesn't really matter when I'm

talking sales funnel or website,
the same functionality should be

there for your investors. So
you've got a location on the

internet, and here's your logo.
And you've got an about us. And

you've got a investments,
whatever. You know, that's your

menu bar. And then if you look
at a huge number of websites,

mine included, we've got like a
video or something here. And

then we've got a whole bunch of
information here.

And then up here, this is what
you really should think about

having now this, you would only
do on a 506c, do not do this, if

you have a 506b, you do not want
to be putting on the internet

that this is even something that
somebody could even think about

investing in, because that will
get you in trouble. Guaranteed,

you will get caught, you will be
in trouble. This is in violation

of that exception. And it will
not go well for you. So for 560,

though, I want to capture the
name and the email, maybe the

phone. Right. So it's what this
is, is a lead capture form. I

want to know if people are
interested in investing. And so

putting something like this on
your website is really, really

helpful. It's not, you may not
get a lot of traffic through

there. But you certainly will
look like you are ready and

you're doing business the right
way when people do look you up

and see you there. So having
this kind of presence on the

Internet is important. So that's
one of the things in terms of

marketing. So again, not
critical in terms of actually

using this to find investors,
just like I talked about in the

finding investor piece. The
reality is you're not going to

be finding a lot of investors,
by just putting something on the

internet, it's not gonna happen.
I've said that time and time

again, the people who are
marketing that way out there are

doing a great disservice to the
people who are wanting to get

started in syndication, it's
setting unrealistic

expectations, that does not
happen. So now, you've

identified this group of people,
they're accredited investors

that you you think they're
accredited investors, how do we

actually pitch this deal? Now,
part of what we do is we put

together a pitch deck and we go
through. And that's there. It's

just like, if you're a real
estate agent, doing a listing

presentation, it's very similar
in terms of what that looks

like. But I would pose to you
that it's difficult to get an

investor to just give you money,
a lot of money in with just a

listing presentation. The
conversation needs to change. So

they've said that they're
interested, but to get them from

interested to read how hot ready
to buy, you know, ready to

invest excited to do this? It's
a lot more difficult than just,

you know, putting together just
a simple thing, or is it more

difficult than I want to ask
you? It's definitely difficult

if you're doing it the way that
you think you should if you're

doing it the way that some other
gurus tell you to do it, if you

do it by just talking to them
about how great the deal is.

You're missing the boat, because
somebody isn't going to make

that leap in their mental head
from interested to ready to

invest. Now, why is that? Well,
first off, investors are tend to

be rather conservative about how
who they give their money to,

they don't have $250,000 to
invest, because they just give

it out willy nilly, they need to
be really kind of convinced and

persuaded that this is something
that's worthwhile for them to

do. And in order for them to
make that leap, they need to do

first make sure that they
understand the deal. So they

need to understand it. So that's
part of the conversation. But

then they need to have an
emotional change that takes

place, when you do a listing
presentation, you are going to

add it directly on a logical
basis. If you look at it in this

frame

you've got this little bit here
is the logical decision making

process. The reality is the
iceberg is ginormous. And this

is the emotional part. I would
suggest to you and a lot of

people agree with me that we
make our decisions with emotion.

And then we checked with our
rational side in order to make

sure that we may are making a
good decision. So you need to,

yes, you need to talk about the
rational side. But you need to

make a create an emotional shift
in your investor to how do we do

that? It is not by using a
listing presentation style of,

well, you're going to be able to
get a 17% return annualized over

this property by investing
$250,000 with me divided into

$1,000 shares, we're gonna have
a five year hold, and we're

estimating No, no, no, no, no
way Is anybody going to invest

in that it's awful. So we have
to come to this person to where

they're at. This person exists
in the world, in their own head,

right. So this person has
emotions, they have a backstory,

they have everything that takes
place about themselves, they

have a lens through which they
see the entire world. And this

person has feelings. This person
has emotions. And this person

has problems. Problems here. So
we don't forget, problems.

People make emotional decisions,
because they have problems. And

they want answers to those
problems, they want a resolution

to it. They start off with a
problem here, right, they're

here on this basis with a
problem, they have no idea how

to cross this chiasm and get to
the promised land over here.

Oops. With that problem is
resolved. There is a pit here

that needs to be navigated. So
you may be asking yourself, that

guy's got $250,000 A million
dollars to invest, what kind of

problems does he have that
relate to what I do? I mean, I'm

certainly not talking about the
problems in his marriage of the

problems with his kids are the
problems that we have about the,

you know, whoever's in the White
House or not in the White House

or whatnot. We're not talking
about those, right? So the

answer is no, we're not talking
about this, but this guy has

particular problems that you can
solve. For example, one problem

that many people have is
diversity in what they're

invested in, they may have all
of their money in stocks, and

that is just not a proper way to
do a portfolio of assets. Or

they have all of their money,
even worse in their company

stock, all of their money
sitting in their company stock

and if their company goes
bankrupt, they are screwed. So

diversity is a real problem is
that they're not diverse. It's

all concentrated in one asset
type. And that is most people

are concentrated in just one
asset type. Or they're just

concentrated in Non alternative
investments. So real estate is

considered an alternative
investment. They've got all

their money in stocks, bonds,
maybe some futures and

commodities. And that is it. But
what we're offering is to

actually diversify into another
asset class, which is real

estate. And real estate is a
great asset, which leads us to,

they want to invest in real
estate, but they may not have

the $5 million to invest in the
property that you're

syndicating. They don't have $5
million. And if they did have $5

million, and they wanted to
invest all of that money, they

also now they're suddenly not
diverse. Right now, all their

money is in that one properties
basket. So they got a problem

that they want to get in. But
they also can't get in the way

they want to. Or maybe they
don't have time, they just don't

have time to manage a property,
or they don't have time in order

to find a good property to
invest it.

Maybe they're very concerned
about inflation. Real estate is

an excellent hedge on inflation,
because you're using today's

money in order to make money at
tomorrow's rental rates. So it's

a great hedge on inflation, then
there is credit risk, maybe they

just don't want to be signing
for a loan for a property, like

a 5 million property $5 million
property, they want to be

exposed to real estate, and they
want to find a good investment,

but they just don't have the
inclination to take yet a more

debt on their name for
themselves. So we can solve

these problems. Oops. So
diversity, real estate is

diverse. It is an alternative
investment. And it as is at a

lower dollar amount. I mean, I
typically do $50,000 As my

threshold, in order to get into
my investment, I generally don't

target people at the 50,000 I
try to get at least 100,000. But

then some people just want to
get experimental, you know, just

get a little exposure and come
in for 50. That's fine, happy to

take their money and make them
some money. So it is, so they

can also invest now in mind, and
then another one of mine, and

then another one of mine, and
then this other guys and then

this other guys, they can spread
their money around. And now

they've got real diversity, not
just in asset class, but also in

location and property type. So
we've got also the that they

want to get into real estate.
Well, this is a perfect

mechanism in order for them to
do that without spending that $5

million time this is
professionally managed. This is

you a syndicator managing the
property or managing the asset,

making sure it's managed the
right way and really maximizing

that value. It's an inflation
edge, you've already got that.

And you've got the whole issue
that they're not signing on the

credit. As long as they've been
investing less than 20% in the

into the property in general.
They suddenly are now a minority

holder, that very not even a
minority holder that does not

need to sign on loan documents.
So they're getting that exposure

and they're you're solving this
problem for them. And how are

you solving the problem for
them? You're solving the problem

through your syndication.

So your syndication is taking
them from where they're at with

these problems, not having the
diversity or the time of them

being wanting to be in real
estate, but not able to do that

and giving them that and that
makes the transformation as soon

as you identify the problem. And
they really feel that problem.

And then you hold up the
solution, the probability that

while they could possibly own
all these things, and all that

pain can be eliminated. Well,
this gap here opens up and then

your answer is the answer in
order to take them there. And

that's how you market a property
in a pitch so that they can

understand that your what you're
offering is not just some boring

mode or in 17%. Now what you're
offering is a solution to that

problem. They're putting their
money to work, but they're doing

it in a way that solves that,
that kind of irritation that

they've got and makes it much
better for them so that they can

do things Like be comfortable
about that spend time doing

other things rather than
thinking about real estate, real

estate, they can take care of
their kids, they can build their

legacy, whatever those goals are
for them over here, you can help

deliver that. And that's one of
the great things about being a

syndicator. Because you get to
be part of this solution for

them and to make that bridge. So
that is the way that we talk

about how to solve their problem
and do that, do that pitch for

them. Now, in the next module,
we're going to now now that

we've solved that problem for
them, and they understand and

they're excited to buy now what
do we do with those investors?

So we do three things. We're
going to be latching the

investor to the investment.
We're going to get them

accredited, and we're going to
start taking that money that's

that's from them and start
putting it towards the

investment. So we're gonna go
through those three steps in the

next module.