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CPI Capital has developed a reliable system for investing in multi-family properties in strategic markets across the United States. Our offer to our valued Investment Partners is an opportunity to invest in income generating properties with considerable value-add prospects. With decades of real estate experience and over $100M in real estate transactions, our team understands the time and effort required to create generational wealth through real estate. Transcript: Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. Alrighty. Hope everybody is doing well. My name's Jess for galley. And this week I thought we would do something a little bit different. I was a guest on a show called CPI capital a little bit about my background in real estate from student rentals to assignments, condos multi-family and brokerage.    If you find that at all. Interesting, I think you're going to like this episode, I think we touched on a number of things and they had some great questions. Some of them admittedly completely caught me off guard, but anyways, I hope you enjoyed this episode and we'll see, on the other side,    Ava (59s): Everyone, welcome to the Canadian passive investing show. I'm your host, Ava bene Saki, and I'm joined by my cohost August. Muniez we have another great show for you today, please, please like, and subscribe as it helps us build our channel and allows us to keep bringing you great content and expert guest speakers. Our mission here at CPI is to empower investors, to create financial and time freedom through passive real estate investing. And today we are joined by Jesse for galley.    Got it. Welcome Jesse. Welcome Jesse.    Jesse (1m 34s): Hey everybody. How's it going    Ava (1m 37s): Now? Jesse, Jesse is a commercial real estate broker and investor that started with student rental properties at the age of 19 as his passion for investing grew. He started investing in single family homes and condos. Then he transitioned into multi-family apartments. So today he focuses on operating and raising capital for commercial real estate. So we believe Jesse is going to bring immense value to our audience to make strategic investments in real estate. So Jesse, let's just jump right into things.  If you could start off by telling our viewers a little bit about your background and your involvement with real estate investments, please.  Jesse (2m 13s): Yeah, no problem. And I'll, I'll try to hit that high bar there for you guys. I got started in real estate in college or university bought my first rental property, went to a university in Waterloo. It's about an hour and a half west of Toronto. You know, if there are us listeners, it's kind of Canada's Silicon valley. So a lot of good entrepreneurial spirit out there. And yeah, my first investment property was, was wa wa was Walla, was in school. I saw that I was living with a friend that his father and him went in together on the property that I was actually living with.  So w I saw myself and friends of mine paying rent to another friend and started to realize that it was a great area to invest. And I kind of had a, somewhat of a background in that. My father who's also extremely entrepreneurial and my mom was well, they had a family friend that had a number of single family investment properties. So at a really young age, I'd always ask, you know, what does Mikey do? He doesn't have a job. What is, what exactly does he do? And that kind of got ingrained to me really young, so long story short.  That's how I got into it. This is probably now I was 19, 20 years old. So we're talking about oh 8 0 9. So you don't think of oh 8 0 9 as when you're going through it as a significant time. But looking back, obviously we know now it was a, it was a pretty historic time for the economy and yeah, I mean, going back that far, what I was doing was reading Canadian real estate magazine. If you guys remember that magazine, you know, bigger pockets I think was in its infancy, there wasn't resources, there weren't resources everywhere.  And yeah, that, that was my first, first property was a $250,000 student rental property with five female tenants that I pretended were a lot younger than me, but I really was, was young and trying to try to figure it out.  August(4m 8s): Great. Yeah. I guess timing, timing is always important rate too. You know, they say luck, isn't it. Mathematical equation is when timing meets opportunity. So you jumped on it. That's great. And also, also another item is here in Canada. I mean, a lot of information and content comes over from the, from the U S where you could buy a home in Texas or Arizona or Florida for 300,000 or 250,000. And you can rent it for around $2,000 a month. So you're, you're already cash flowing from the day one, but in, in here in Canada, especially in the larger cities, Vancouver and Toronto, their rent to value ratios are very low.  So that, and the kind of also the entry level to, to get into a single family home is very difficult as well. So talk to us about, you know, early on in your career as a, you know, as you were starting in real estate investing, how did you overcome that particular hurdle to, you know, with the, with the high mark of, you know, the high bar of entry with the low rent to value ratios and also the rigid mortgage laws, our mortgage laws are much more difficult than the U S so  Jesse (5m 8s): Go over there. Yeah, it's funny. I just jumped off my podcast with a, a mortgage commercial and residential mortgage broker. And we were talking about some of the differences with Canada and the U S and, you know, we have the portability of mortgages talk to an American foreign concept for them a 30 year fixed rate. They have that foreign concept to us. So a hundred percent to your point about Toronto Vancouver, I think, you know, I say those things together in every sentence on my podcasts that we're talking about expensive markets at that time, the property, I know what just offhand, because you always remember your first property, the gross rent was approximately 2,400, so $250,000, 2,400 in gross rent.  So, you know, if you go use a 50% rule as your expense ratio, pretty decent property, if you found those types of numbers today, especially our markets you'd jump on them. So it was still relatively affordable in certain markets outside of the, like the, the downtown cores, but yeah, a hundred percent, it was something where you really had to go look for value, adds student rentals still to this day. You know, the valuations are a little bit different. Cap rates are a little bit higher.  You can, you can find those deals, but they're becoming harder and harder to find. So, you know, whether you're in New York, you're in San Francisco, you're in Vancouver, Toronto, you really need to think outside the box. You start, you need to start looking at, you know, the 18 hour cities or the cities towns hour or two hours may be more outside of your general area. But I was lucky at the time. Well, you know, nine, there were still a bunch of deals that were still in our Canadian market. And to your second point about the mortgages, I think at the time I was in the five and a half fixed percent range.  And back then, if you guys remember 5% down was still pretty doable, five, 10% down. Now, when it came to student rentals, there was only a few banks that would lend on those. So that's where you had to start, you know, getting more creative with the financing. But at the time I think it was five or 10% down. I went to my dad and asked, so I had a little bit of cash because I worked summers. I said, listen, this is an awesome investment. Do you want to, do you want to sign on this line of credit so that I can, I could purchase it, gave him the numbers.  He said, absolutely not. You know, my, my parents were divorced. So what is, what does a kid do? He goes to his mom and says, dad's not signing this. So for me, that's, that's kind of how I got my first start. And I always tell this story because I feel like people, you know, when they talk about how they got started, you, you it's always fuzzy. How did the money happen? And I just like to say that everybody you go to the resources you have. I, you know, I didn't, don't come from a very wealthy family, but they gave me every opportunity, you know, family, predominantly immigrants, very entrepreneurial.  But what that allowed me to do was she signed on the guarantee for the, for the line of credit, which added to my down payment, which allowed me to get the space. And then when the second one came around, because I continued to invest in student rentals, then I had, you know, I had a case that the next one, when I partnered on one of them with my father, or I could say, Hey, this is, this is how the business has been doing for the last year and a half or two years. So yeah, that's, that's kind of the background and  August (8m 32s): You build that track record and you were lucky enough to have parents who helped one of your parents. And he was like, finished school, finished school, then we'll dock. There you go. And you were, you were 19 years old. So yeah, I was,  Jesse(8m 48s): Yeah, just turning, just turning 20. Like I, when I put the co the offer in, I was 19, when it finally closed, I was 20.  August (8m 57s): Great, great. And if you could expand on, when you talk about student housing, is that the building or the unit or the home is zone for student housing that you can rent it on for two regular tenants kind of idea.  Jesse (9m 9s): Yeah. So it's a good question because it used to be anything that a student occupies and then what started happening in a lot of cities in the states, and in Canada, you would have either municipalities or cities mandate that you have a student license, you know, we're all big fans of the government. And it was basically, you know, a, a tax that you had to pay to have it licensed. Now, I'm not saying that there isn't good logic for it. There would be, you know, fire code, additional things you would have to do to meet that standard.  But it was also kind of like a, you know, a, a taxi medallion system where, you know, they only would, in, in this particular case, they would only give so many of the moats. So yeah, that, that's how they were kind of categorized in Waterloo. And I know another areas in Ottawa, we have, I still have a couple student rental properties where we're towns are, are kind of talking about implementing that type of thing, but not all towns do. And yeah, so that, that's how it, you know, they'd be categorized as student rentals, some were above board and some people were doing just, you know, without the license.  August (10m 13s): Got it. That makes sense. Just getting back to your point, as far as making strategic investments, and you have to find the kind of diamonds in the rough for it to make sense here in Canada, in Vancouver and Toronto, there are deals, but they're, they're, you know, hard to come by. It's not a scalable business model. It's not somebody, you know, in the U S somebody living in Texas making a hundred thousand dollars a year and they can buy a home for 300,000 and they'd be cash flowing from day one. And, you know, if they do some small renovation and even keep the property, they can, they can, then in a few years, just repeat the same process, buy another property and continue to grow their portfolio.  It's very difficult business model to, to do here. And especially doing a part time, having a, you know, a, a, you know, a job or a profession, and then doing real estate on the, on the, on, on a part-time basis to then find those deals, to be able to be an active investor. So that's an great conversation here.  Ava (11m 6s): So we've, we've we, we learned about what started you in single family. Now, I'm, I'm curious what made you fall in love with multifamily? And when did you kind of start getting into multiple  August (11m 16s): Fell in love with it? Maybe he just likes we're  Jesse (11m 19s): We're we're madly in love. Well,  Jesse (11m 22s): What happened was w so I finished university over that time period. I, I purchased, I believe it was for single family. So these, but these were kind of spread out there. One was in Oshawa. So if you know, Ontario Schwann, Waterloo, they're complete opposite ends of Toronto. And what happened started happening is, and I'm sure you guys were aware of Vancouver was similar where pre-construction condos became a big thing, and this was 20 10, 20 11. I started to purchase those. And what, you know, a lot of people call wholesaling now, or just assigning the contracts.  I did a few times. So w what I did was I kind of kept going down the student rental path. I appreciated a decent amount on a lot of these properties, and then sold them pretty much, not all at the same time, but pretty strategically that I wanted to sell these and have a nest egg to move into the commercial space. It coincided with my job, actually moving from working with the job that I got right out of school to actually a friend of mine kept saying, listen, you'd love this real estate stuff.  You know, what are you doing in your current job? You should be in, in commercial real estate. And I finally got a job in commercial real estate for Avison young as a commercial broker. I happen to work in office leasing and investment sales, but it was kind of through that, where you start really opening your eyes to see what people are doing in different areas. You know, my partner, he also works for the company, but he also is an investor in the multi-family space. Multi-family I think the reason I gravitated towards that is it's just more accessible for the smaller investors that when they get their start, if you're going down retail office, industrial, you know, one, one or two tenants, you could really have large vacancy.  You need a lot of cash for 10 and allowances, tenant inducements. And then the other thing is in Canada. And I believe it's, it's similar in the states, whether it's Fannie Mae, Freddie Mac in the us, or it's CMHC in Canada, there, there are financing products that are more geared to apartments because it's still considered residential, even though it's five units and larger, which lender looks at that as commercial. So yeah. Accessibility for, for lending and yeah, that's, that's how I made the transition.  And we've, yeah, we've kind of focused now, just exclusively on building up the multi-family portfolio,  August(13m 44s): Right? So not only your focus as, as investing changed to multi-family commercial real estate, you, you actually switched your profession to also be involved in the commercial space as a broker. Funny enough, Ava and I were looking at a private equity firm and their principles, and just reading about their bio is, I mean, notice every one of the principals had commercial broker on the bottom of their title, even though some of them, one of them had a PhD, but he still had a commercial broker at the bottom  Jesse (14m 10s): Of their bio. It's funny, it's funny. They there's a lot of people in our industry and NAIOP is a great organization. If you're interested, especially in Canada, in commercial real estate or north America, that's, it covers all areas. But so many of the people that have started their own firms that are CEOs of brokerages or workflow, you know, workplace strategy, it's funny how further back in their career. A lot of times they were brokers or, you know, leasing specialists and really seeing real estate from the ground up.  And I think it's a good foundation as investors, or if you want to have a career in real estate. Yeah,  Ava (14m 48s): Definitely. Great. You got your license. I had my license.  Speaker 3 (14m 52s): Yeah. I couldn't wait to get rid of mine for 10 years.  August(14m 59s): So now I want to talk to you about, let me see, I had a question here for you. Oh yeah. I want to talk to you about, you know, we, we w w w in our research, we are in the space we're in, in Canada and in the real estate of real estate, private equity and, and especially thought leaders in this space who put out content, obviously you came up or you came on on our list. I mean, notice that you are a thought leader in this space. Talk to us about your connection with a bigger pockets and how that came about. Especially one of my biggest complaints with bigger pockets is that most of their content and information is, is a director is for Americans.  And a lot of people do read that information. And now have I have wrong information or information that doesn't make sense. They, they believe that 10 31 exchange exists here in Canada, or that they could, you know, part-time be real estate investors and have 20 single family homes or, or, or other also other compliance verbiage that's that's used in the us, which that doesn't mean the same thing on this at our border, and means something totally different. Something like an offering memorandum is a document provided by a broker to someone looking to purchase a commercial real estate, or an offering memorandum here in Canada is a, is a legal document as security emerges exemption that's used.  And it's a legal document. So talk to us about your connection with bigger pockets and how they came about, and what do you currently do with that group?  Jesse (16m 24s): Yeah, for sure. I think it started from, well, I was on the podcast, the BiggerPockets podcast as a guest years ago. I think that was what started the relationship. I, I really, I don't remember exactly how that relationship started, but it did then. And what it ended up happening is we, we continued communication. Obviously I used a bigger pockets as a resource. And just as a side note for Canadians that are on bigger pockets, even if you have a free account, you can go and put a keyword alerts.  And almost always, I have one keyword alert that is Canada Canadian, us Canada. So like you do get chats that are started specifically about CA Canadian investments. You're going to be pulled into those, into those strings, which, or forums, which is great the way I started doing videos for them. I think Brandon and I, we were talking, or I, I had reached out to him a little while after the podcast. And I had said, you don't, you guys don't seem to have a lot of commercial content, whether that's, you know, industrial retail office, larger apartment buildings, it seems to be focused primarily on single family and, and apartments.    And I said, what if would you guys be open to me doing videos? And he's like, I guess at the time, they're like, yeah, absolutely. It's, we're, we're missing that piece. So yeah, for a couple of years, I was doing videos on a commercial commercial real estate. That's commercial loans, private equity. You're absolutely right though. When you say that, you know, there's that us Canadian gap and a hundred percent it's, you know, you have American her Canadians thinking that they should buy us real estate and put it in an LLC. Okay.  Canada, that doesn't recognize an LLC. You know, you have a certain things, like you're saying what the offering memorandum, you keep hearing, they're raising money for 5 0 6 C offerings that doesn't exist here. So there's all these little intricacies that we need to focus on that when we, when we hear about this type of investment in the states, really need to figure out what that equivalent is up here. And that's what I think we were trying to do to a certain extent there. But like I said, ultimately, as a Canadian, there's definitely Canadians on the, on the forums there, you just kind of have to have to search for it.  But yeah, it's a, it's a really good point.  August (18m 40s): Great, awesome. Talk to us a bit also about your, your own platform. So aside from working with bigger pockets, I believe you have your own YouTube show and podcasts. Talk to us about that in the process and how you came about, you know, starting your show and how it was, how is it going? Yeah,  Jesse(18m 58s): No, it's going great. It's, it's a lot more work as you guys know, then, then, you know, you really realize when you go in, I was just a friend of mine just sent me a stat or a couple stats about podcasts. And it was, I can't remember exactly, but, you know, you know, something like 3% of people go pass episode three, you know, 50%, you know, whatever it is, it's just the consistency. I'm definitely more active on working capital. That's my podcasts. It's working capital, the real estate podcasts. You can get that anywhere, iTunes, Spotify, and the YouTube channel.    I just started putting out like a lot of people, the questions you get asked again, and again, and again, a lot of times it's just easier to make a video, send it out and say, you know, this, this answers it. I think that being on the bigger pockets, realizing that, you know, like when you go on their channel, it's like all of a sudden you have, you know, 70,000 views on something and you can't manage comments like that. So I think for me, it was just like, I didn't realize there was that many people out there that wanted this content. So I try to put stuff up on YouTube as, as much as I can, but really the focus for, for myself is more on the podcast side.    And then through there, you know, people can reach out to me, you know, hear me on the show. And if it's about investing in the future, investing in other investments that we're doing that we're raising capital for. That's where I would say the platform is, but it hasn't been formalized in, in a way where, you know, it's, it's my day job and that's, what's challenging about it. Right. You're, I'm still in brokerage and I don't think I'll ever leave brokerage completely, but yeah, that's, that's kind of where I'm at right now.    August (20m 35s): Yeah. Being a broker is like, you know, the bat, the bat sign put up in the sky when they call it comes in. You've got to go. So yeah, it's definitely a full-time    Speaker 3 (20m 44s): Gig. Yeah. Great.    August (20m 46s): Just to touch on podcast a bit more, what is the podcast mission statement? So what, what problem are you solving? What message are you getting across and what is the kind of the, the final call to action or, you know, the, the, the benefits it has not only for obviously your, your listeners, but also for yourself.    Jesse (21m 4s): Yeah. What I wanted to do is have an educational, real estate investing podcast that where we have guests on, we have them from a range of backgrounds all centered around real estate. So, you know, whether that's a cross border lawyer, whether that's a mortgage broker, whether that's talking to people that are investing in self storage, I wanted to get kind of a round picture of what real estate is and the different niches, or as my podcast guests say, if they're American niches, that drives me crazy, but the different niches in our industry. And through that, I'm what I hope to do too, is when I have people on the show and you touched on it earlier as a Canadian, even though half of the listeners are American, I try every time I can, where somebody is like, well, an FHA loan, and then, okay, well, let's just clarify from the Canadian point of view, it's this.    Or, you know, if they say something like a 30 year fixed mortgage at 3%, and I say, well, in Canada, you can do a CMHC mortgage at 1.6. They're like, that's crazy you at 1.6, because a lot of times you hear, they don't believe that our cap rates are 2.9, 3% in some areas like you're in Vancouver and guarantee some of those office buildings are sub three and they're like, well, our loans are three. It's like, no, no, no, no. Your loans are three. Are our loans are not even though it's still crazy low. So there's only all these little like variation.    So just a long, long winded way to say. What I try to do with the podcast is try to be a north American podcast where I can have Canadians and, and Americans listen to the show and, and feel that they're both getting talked to.    August(22m 36s): Great. Great. So now let's switch the conversation here. Emma has a few questions for you, but let's switch the conversation back to being a real estate investor. As we all know, eventually your real estate investors run out of their own money because they've already deployed it. Or they're looking for bigger projects and a time comes to raise private equity. Where are you at in your, in, in your business currently, are you at that stage that you're, you're raising capital and, and talk to us how that all came about and we can go from there.    Jesse (23m 6s): Yeah. So this year, or I guess the end of last year starting of this year is when I first started to raise capital for real estate. It's, it's kind of a scary thing, which I think is a good thing. If, if you are a fiduciary to somebody else and you're managing somebody else's money, I think you should party. You should be a little scared. I think that's natural that you should have a fear of making sure that you're, you're doing the right thing for your investors. So that coincided with a lot of the podcasts I listened to.    And again, the guests that I've had on my show where, you know, you get connected to masterminds where they are teaching, raising capital or fund to fund model, stuff like that. And again, it kind of goes back to your point of the offering memorandum where like, you know, we sometimes call it an information memorandum. That's more of a brokerage thing than I think a us thing. But yeah, the offering memorandum in Canada, you're, you're talking about legal documents. And the reason I bring that up is the mastermind that I was in was a us centric mastermind for raising capital.    So even there it's like, unless you're investing in the U S it's really challenging to justify what you're spending on that, a mastermind, depending on the cost. But anyways, that got me into the mindset of it, like buying your first property, once you do it once you're like, oh, that I can, I can do that. And that's really what it, what it was for us. Once we started raising capital. So this was the first investment raised a million and a half of equity.    So it's not a huge amount, but it was the first time we ever raised capital it, me and my partner. And, you know, the thing is, there's just, you go through these different cycles while you're raising up. Are we going to have enough? Okay, we're good. No, I don't think we're good. And then it got to the point where we're like, you know what, after it's all said and done, you have subscription agreement signed. You're like, I think if, if I was forced to, I think I could do three, I think it could do five. And I think that's the natural progression when you get used to something and you see that it's, it's achievable.    That's    Ava (25m 10s): Fantastic. And Jesse, I'm curious, what structure do you use to raise private capital?    Jesse (25m 15s): So we do a pretty standard limited partnership agreement. So general partner, limited partner with the caveat of having a asset management company, as part of basically the administration that kind of handles everything. So for those that don't know the, you know, the limited partners are all your investors. They have limited liability. This is not legal advice, but they have limited liability in these investments. The general partner in Canada partnership can not own a real asset that they can't own a property.    So you need to have sometimes a numbered company or a GP. The general partner as a corporation oftentimes owns the property has title, but the limited partner has a beneficial ownership of the property. And then from there, Ava, we do a very simple split where, you know, you have a certain threshold of preferred return that goes to your limited partners. So return of capital first, a preference turn of a certain percentage. Then after that a profit split between the general partners and the, and the limited partners, okay.    August (26m 22s): Maybe you can kind of talk to us more about the deal that you had. So for example, here at CPI, our business model is the multifamily value add and because of their, their higher rental value value ratios that exist in the us on a 70, 30 LTV, you know, we're, we're able to, from the rents we collect, we're able to pay our mortgage payment, pay taxes and fees, third-party property manager, and still have a surplus to pay our investors. Those preferred returns you talk of from day one, because the deals we look at are usually 90% occupied.    So they're, they're well above the mark. So now, how do you go about your deals? Are, are, are your deals ground up development? Is it a value add project? Is it kind of A-class talk to us or what kind of deals you guys work on and how are you able to, is there a return given to investors from day one or is there a kind of a capital event where the project has to go through a certain steps before there is any kind of cashflow coming back to the investor?    Jesse (27m 21s): Yeah. So for us, I'm constantly looking for off market deals, you know, as a broker, you know, first thing we think is we're not bidding on deals. So for me, I was actually land registry looking for properties off market calling, Hey, Jesse, for galley. Listen, I want to put an offer in, on your property when you consider one. So what D constantly outreaching for off market deals happen to find an off market deal? A gentleman owned the property for a number of years. I think it was kind of retirement time for them there. They were, you know, ready to sell.    So for me, this just happened to be a class deal. I wasn't searching for an A-class deal, but it was in probably one of the most expensive areas in Canada, in forest hill and Toronto. It just so happened that when we took a look at these rents, we were, we just saw that it was probably at 60% of what market is. So initially when we went into it, we, what we were going to do. And a lot of our clients do this, where they do what they call condo finishes two older apartments.    So you're putting a dishwasher in the apartment in suite laundry and what our initial thoughts were, were to go in, do $75,000 per unit, really higher end upgrades to achieve higher end rents. Now COVID happens. And all of a sudden, Y you know, you have to be careful about trying to just do a class when the market, you know, might not be able to sustain it. So, for us, what we did was we kind of pivoted and decided to do, you know, instead of a $75,000 upgrade, maybe a 40, 45 more conservative rents, and then kind of, you know, turn over three, four suites within a shorter time period.    So the structure of the deal ultimately was it wasn't, it wasn't a vanilla deal. It was a bridge loan for two years, stabilize the asset, do the renovations, renovate the L renovate a lease at these higher rates, then switch to a conventional, or, you know, CMHC loan switch to the L to that loan once you've achieved that rent. So that, that basically the mortgage takeout takes out your bridge loan. And now you have a stabilized income.    And to answer your last question, in terms of the capital event, this, this deal would be like a development deal. And if anybody has seen, you know, limited partnership agreements, when it comes to the development deals, you get your preferred return. And just as an aside, the preferred is not a guaranteed return. It's a preferred return. And absolutely you try to achieve that, but in a development deal, you know, there's no income. So what happens is that say 7% preferred return a cruise. So your one seven year, two 14, you know, some people compound it.    We don't, it's just simple accrual. And then when there is a capital event, say the refinance, then we decide then do we pay investors all back their initial cash, keep them in the deal, or do we sell a property? Has it gained enough that, you know, it looks appealing to sell and pivot or, or buy another asset so that, yeah, we, we, looking back, I would have had a lot, a lot less stress if we picked a more vanilla investment, but that's, that's what we, what we got our hands on.    August (30m 33s): Great. Oh, how many units was this project?    Jesse(30m 35s): So this one was, this one was seven units, but for anybody that's not in a major market, we're talking about 500,000 plus a unit th the, some that have sold on the street or 700,000 a unit. So this is not, you know, you're not in Boise, Idaho, the first investment, sorry, apartment building we bought was actually west of Toronto and Hamilton 11 unit. And it was a third of the price. So it's just a matter of, you can find expense, more expensive assets, but there definitely has to be a value play there because they're just too expensive to buy.    If they're, if they're already stabilized and at full rent.    Ava (31m 17s): Awesome. And the whole time, Jesse, what's the whole time that you guys were predicting    Jesse(31m 21s): For the, for this one that we're purchasing. So this one, what we have is that to your kind of timeframe, to do the renovations. And then for us, really, we talked to investors, the fund, the sort of the partnership is open for you no longer than that. But I personally, if, if things are where we think they will be in two years in terms of where we want to get the rents, I would love to refinance it, get everybody their capital back and stay in the deal together. And then down the road, because of where it's positioned with a lot of over a billion dollar of Provigil funds in transit.    I think we could add another story to it longer, you know, in the long run. So yeah, we have a few options, but I, the reason I bring that up is I hate seeing these investments where somebody says, like paying out their LPs and then buying them out. It's like, you're the reason they got this asset. You can pay them out and then they're not in the deal. Yeah.    Ava (32m 17s): Options are key. That's fantastic. Now maybe we can discuss your nurturing process for your investors as it's obviously a very important component of, of syndicated investments. So maybe you can please tell us how you nurture your investors and get that know like, and trust and keep that know like, and trust going.    Jesse (32m 36s): Yeah, for sure. I, I can't remember. It was actually a guy in the west end. I think Saskatoon, I had on my podcast and he said, this is very simple. He was, he's like, listen, go on your phone. If you scroll all the way down, if you have an iPhone and you're a contact scroll all the way down to the bottom, you'll see how many contacts you have. It's actually crazy when you're like, how did I accumulate, you know, whatever thousand 700, whatever contacts you can upload those to your computer as a spreadsheet. And you could run through those and really look at who's somebody that haven't had contact with that I could reach out to not to sell them anything.    But as a touch point saying, listen, you know, how are you doing? It's been a while, just a general email. So he had like a three-step, you know, general email, a discussion and just not being salesy. And eventually basically telling people, listen, like, you know what I do in real estate, these are the type of investments that I buy. If this is something that you'd be interested at all, when we have one of these under contract or we're purchasing one, let me know if you'd want, want me to share it? And if you don't just let me know as well.    And nine times out of 10 people don't say, no, they don't say like, no, no, don't tell me. And you know, you be somewhat strategic about the people that you're, you're reaching out to. And then I think what people really need to do, you're in so many more networks than you think you are for me. I did my masters at university of Toronto and just reaching out, literally getting the class list for my year and go and reaching out to all of them. Because, you know, if they, if they did that in school, they're probably, you know, doing something that, you know, might be a little bit different.    They they've made a career change maybe later in life. So you have access where I had access to a lot of people that were like, yeah, a hundred percent sign me up. And some of the people that are in the subscription that, that are LPs were from that. So, you know, I've had people on my podcast that were in law enforcement and they left the force and then they, you know, they had their first indication with 20 cops. So I think you got to look at the networks that you're in and, and don't be afraid to tell people what, they're, what you're doing. Like you, you, you two are doing here, you know, people know when they talked to you August and Ava, like yeah, they're, they're in real estate.    So I think being seen as is important, and I know it's not easy for everybody. We're not all extroverts, but it really is an important part. If you want to attract capital and, you know, that's the path you want to take.    August (34m 58s): Great. Awesome. And I'm sure your shows and your connection to a bigger pot pockets is also a great cultivation process for, for bringing awareness to you and, and investors to, to your services, but maybe briefly touch on your nurturing process when the investors do connect with you, if it's from your own list or from, from your marketing campaigns or from your thought leadership platform, as they come into your database, how do you keep in touch with them? Do you know if it's through newsletters or other content that you send to them? So eventually when you do have a deal, because as, as us being in the syndication business, we're not a fund, we're not continuously buying assets and continuously raising capital, we look for a great deals and then we present it to our investors, to, to us very briefly about your nurturing process when for your leads or your contacts.    Yeah,    Jesse (35m 43s): Absolutely. I think for me, part of it is, you know, when you go to working capital podcasts.com and people will subscribe to the podcast, that'll be part of, you know, me reaching out to people and connecting and nurturing through there when it comes to people that I've, I've reached out to that say, didn't sign up for the last syndication, just touch points with them, whether, you know, constant contact or MailChimp keeping kind of abreast of keeping them abreast of what you're doing. And really, I haven't, I haven't formalized it in like to a T for me, it's just been, you know, the list of people that I have that are in my database, on, you know, through my website where we capture all the emails through the, the list that I have when I reach out to people.    And yeah, it's, it's really, it's really like that right now. If we move to something more formalized as we, as we continue, you know, maybe that, that will be the path. Ideally, I'd like to get to a point where we're going to have committed capital rather than syndication where you're chasing the deal, chasing the clock, whereas where you can call capital and you have the fun there. Yes,    Ava (36m 47s): It's cool. Cause you probably have a long list of people who are watching you on the sideline watching you kind of do your first deal and then your next one. And eventually a lot of syndicators say five years down the road, they've been watching us and boom, they just gave me $2 million. Well, I had a buddy    Jesse (37m 0s): Of mine and like really good buddy that I did, that it was in my MBA and he's like, he opted out of the deal and he was just, you know, you know, you get a guy constantly asking you questions like, and then he's like, ah, so, so did that happen? I'm like, yeah, it happened. And he's like, oh, okay. I'll like, I'll, I'll go on the next one. I'm like I told you, man. So yeah. I mean, you just keep in touch and you know yeah, yeah. And it seems    August (37m 20s): Your process is much more up close and personal and hands-on, that's always the best way to go about when companies get bigger. You never even get the CEO on a call with your cases is very kind of up close and personal and that's great. That's great. Awesome. All right.    Ava (37m 33s): Now, Jesse, let's time to have some fun. We're going to start the next segment of our show. So we like to call this the 10 championship rounds to financial freedom. So please just tell us the first thing that comes to your mind and I'm going to get started.    Speaker 3 (37m 51s): All right. I am. I'm set. All    Ava (37m 53s): Right. So who was the most influential person in your life?    August (37m 59s): Cool.    Jesse (38m 1s): Oh, I'm going to get one of the mad probably my father.    August (38m 4s): He didn't give you that money, man. He's, you're attracted to the hard to get.    Ava (38m 11s): What is the number one book you recommend?    Jesse (38m 14s): Oh man. So many, but all I just say, start with no gym camp. Okay.    Ava (38m 20s): If you had the opportunity to travel back in time, what advice would you give your younger self start    Jesse (38m 29s): Early start, start right away. You    August (38m 31s): Started in 19.    Jesse (38m 33s): I think just in general with other things like anything in life that you go, I'll do this. Oftentimes you don't do so. Just, just jump in. If, if you know you, you will, you will regret not doing it. You know, that'll    August (38m 45s): Be the heavier regret when totally    Ava (38m 49s): All right. What, what's the best investment you've ever made    Jesse (38m 55s): In my education.    Ava (38m 57s): What's the worst investment you've ever made. Let me think your    Jesse (39m 5s): Worst investment I've ever made. One, one student rental property. It's tough to call them the worst because you learn from those. But very, a lot of, a lot of mistakes made on that, that, you know, took, took a while to, to, you know, fix and yeah.    Ava (39m 21s): All right. How much would you need in the bank to retire today? What's your number?    Jesse (39m 28s): Nothing. I, I love being active and working and I don't, I don't find what I do, you know, a job job. So    Ava (39m 38s): If you could have dinner with someone dead or alive, who would it be?    Jesse (39m 43s): Well, dad's more fun and morbid. Probably Milton Friedman. I've the economist. I've, I've always found his, his writing's really good capitalism, freed and freedom free to choose. Yeah.    Ava (39m 56s): Awesome. If you weren't doing what you're doing today, what would you be doing now?    Jesse (40m 1s): That's a good question. Probably law. Okay.    Ava (40m 6s): Book smarts or street smarts.    Jesse (40m 12s): After all my education, I always still say street smarts.    Ava (40m 17s): Okay. If you had a million dollars cash and you had to make one investment today, what would it be? I would put it    Jesse (40m 27s): In a fund as the GPS Capitol to show our skin in the game and you know, whatever we can multiply off that with, with investors. Awesome.    Ava (40m 38s): That's a great answer. Awesome. That's great. Those    Jesse (40m 41s): Are so yeah, you don't get asked those every day. Yeah. There    Ava (40m 44s): You go. Kind of puts you on the spot and it's fun footings, you know, first thing that comes to mind occasional    August (40m 50s): As well, right? It helps others kind of think about these questions and kind of helps them with the process. Hey Jay, Jesse, we really appreciate your time. Thank you for thinking. We know you're super busy. We really appreciate taking the time coming and speaking to us, definitely add a lot of value to our viewers and eventually our listeners listeners when we change this show to a podcast and,    Ava (41m 9s): And yeah, Jesse, if you just want to take a quick moment to tell everybody what, the best way that they can reach you, please.    Jesse (41m 15s): Yeah, for sure. I mean, aside from a Google search, Jesse, for galley working, working capital podcast.com, you can go there if you want to subscribe to, to get the show or Spotify, iTunes and yeah. Reach out to me there I'm as a broker, I'm not hard to find. So that's yeah.    Ava (41m 35s): Johnson, Jesse. Thanks a lot for coming today. Thanks so much.    Jesse (41m 47s): Thank you so much for listening to working capital the real estate podcast. I'm your host, Jesse, for galley. If you liked the episode, head on to iTunes and leave us a five star review and share on social media, it really helps us out. If you have any questions, feel free to reach out to me on Instagram, Jesse for galley, F R a G a L E, have a good one. Take care. 

Welcome to another episode of B2B Marketing & More. I have a very special guest today. Joining us to talk about rebuilding customer loyalty is Jay Baer. He is founder of Convince & Convert and an author and a speaker. In fact, a great, great speaker that was inducted to the Speaker Hall of Fame by National Speakers Association and has published four books. I think. I lost count. And the last one was Talk Triggers. So welcome, Jay!   Jay Baer: Pam, fantastic to see you and talk to you. Thank you very much. Uh, I've been busy. You've been busy, you know, a pandemic got in the way, but other than that, uh, here we are.   Pam Didner: So, how are you and what have you been doing?   Jay Baer: What I haven't been doing is going to airports. I went from traveling 200 days a year to zero days a year, and I thought that would be a terrible, but I actually don't miss it at all, as it turns out.   I've been fortunate. I've been doing a lot of virtual remote keynotes and MC assignments, which I like very much. And then, my consulting team at Convince and Convert, we've been really busy working with a lot of really interesting and exceptional brands--both B2B and B2--helping them with digital marketing and content marketing and social media strategy and customer experience. We're super thankful. My kids were both home from college unexpectedly, for, I guess it would have been six months. Uh, and, and that was terrific. Actually, it was, it was weird. We wouldn't have seen them ordinarily. Of course they would have been at school and probably internships this summer. And so they both came home and that was really terrific to have that kind of time with them that we just wouldn't have had. So they're, they're both back on campus now. Uh, so we are, we have renewed our originally scheduled empty nester program.   Pam Didner: Join the club. I was happy to actually my, I have my sons at home as well, doing a summertime. Now they are actually off to campus. I'm very happy for that. So obviously COVID is reshaping our purchasing behavior, especially for—   Jay Baer: Everything.   Pam Didner: Everything, yeah. I remember seeing, um, a keynote deck from you that 54% of consumers have made a purchase from a new provider or a new brand since the pandemic.   Jay Baer: And 89% of them plan to stay with this new provider. And I'll bet you Pam, most people tuning in, have had that experience. They said, “hey, you know what? Yeah, I'm using a different dentist now, or different restaurants or different software company or any number of things. And so the implication for this is that there are significant shifts in market share in every category of business happening right now in a way that has been unprecedented since the Internet itself was invented. What we're seeing is people making very different purchase decisions than they would have before. And this puts a lot of pressure on businesses, but also a tremendous opportunity. So nobody is pro-pandemic, obviously, but I will tell you this, Pam, this is the single greatest opportunity you will likely ever have in your business career to go out and take market share from competitors. Because the longstanding relationships between customers and companies, which were calcified over months or years or decades of relationships, they're now being frayed. People are like, “you know what? All bets are off. I'm starting from zero. I'm going to reassess all the things that I buy in from home and make different decisions if necessary.” It is an incredible time and there are going to be a ton of winners and some losers on the other side of this.   Pam Didner: So why should brands do, what should marketers do, right, to actually take advantage of that opportunity?   Jay Baer: The most important thing that marketers can do is to understand that in a way that we've never experienced before nobody knows nothing about nothing anymore. And I'll give you an example. It was probably three months ago now, I got my first haircut since the pandemic.   Pam Didner: (laughs) Yeah. My, my husband has been cutting his own hair.   Jay Baer: Yeah. I'm not going to do that, but I appreciate that kind of ingenuity. That's not going to happen for me. I'm a 50 year-old man. I, I sort of felt like, “Hey, at this point in my life, I know a haircuts work.” Turns out, I do not because to get my hair cut, I had to have like 16 questions successfully answered. Is the haircut place still open? Does the woman who cuts my hair at the haircut place? Does she still work there? Where do I park now? Do the parking meters downtown still work? Are the appointments the same length? Are they a different time cause they got to clean up between the appointments. Uh, how do I even make an appointment? Do I wear a mask? Does she wear a mask? Can I tap to pay my phone, or do I have to touch filthy paper, currency and on and on and on and on. This is just to get a haircut. But Pam, this is not just a small business, local business phenomenon. On my podcast “Social Pros” I had on the show a few weeks ago Laurie Meacham, who until recently was the head of social media customer care for Jet Blue Airlines. She told me on my show that their digital team had found a brand new search term in their Google organic spelunking.   Pam Didner: What is that?   Jay Baer: "Are airlines still in business?"   Pam: (laughs) Oh my god.   Jay Baer: That’s not a search term we would have had in February or anytime before that. Nobody knows nothing about nothing. So what we have right now, uh, in a way that I've never seen in my long career is information asymmetry. You know way more about your business and how it works post pandemic during the pandemic than your customers do. So there is this colossal uncertainty gap that all customers have now about how to buy things, where to buy them, what to pay, who to hire. Consumers are more uncertain than they've ever been and your job as a marketer needs to be to fill that uncertainty gap. And essentially what you need is the ultimate FAQ. Like if you think you've answered a lot of questions on your website, trust me, you have not because I had 16 questions just about a haircut.   Pam Didner: Yeah. So that means is it to rewrite content, obviously, or content marketing becomes more important ?or do we need to rethink in terms of how we have to better engage with our potential customers or customers?   Jay Baer: It's all those things. It's, rewiring your customer relationships using information. So it's, it's literally writing down all the questions that your customers have today, which are much more numerous than they would have had in the past. Starting with, are you still in business? Literally—   Pam Didner: --very simple question. Yeah. Am I still open? How long do I open?   Jay Baer: Yes. All of that. Cause they don't know. Nobody knows nothing about nothing anymore. So you got to start with that answer all of those questions with content and then two important things, Pam. Answer all the questions with the content and then. First make your FAQ portable.   Pam Didner: Can you elaborate that a little bit more portable in terms of like it's not PDF, I assume, and the needs to be probably--   Jay Baer: --the PDF is great actually. Yeah, because what happens is most companies and I mean, like the overwhelming majority, they will answer customer questions with a series of web pages. And that's fine, but in these unprecedented times, a lot of times you need to communicate with somebody else, a spouse, a family member, a friend before making that purchase decision. And it may not be very likely that you're going to huddle around the laptop. So the best thing you can do is not only answered these key customer questions on your site, but also then create some longer form content that can be printed, shared, downloaded, that can actually transcend the laptop or the phone and be consumed offline or in a group in some other way.   Pam Didner: So it's kind of like a one-pager—   Jay Baer: Yeah, an Ultimate Guide to Getting a Haircut, for example. Something like that is a really good idea. And then the other piece of that, the kind of companion, is to take your top questions, the ones that are most likely to be asked, the ones that are kind of deal breakers if they're not answered sufficiently. And instead of relying on a pull strategy for customers to show up on your website and then find the questions in your navigation to push those questions and answers out: social email, maybe even some paid, right? Don't rely on your customers to say,” well, I got to get this question answered better go to their website first, I'll go through the navigation and find it.” If you know, it's that important to have a question, push it out to them. Don't make them have to go find it.   Pam Didner: So with that being said, do you see that is marketing's job to actually, rewire customers in terms of their loyalty? What if, you know, the product needs to be changed and or additional features and needs to be add and that's really not marketing’s job. How do you address that?   Jay Baer: Yeah. And it's so critical. Look, you have to offer the products and services in the ways that people want to buy now, which may very well, not be the ways that they wanted to buy from you last year. That's just the nature of a pandemic. You look at a company like Closet Factory and any of the closet companies. They send somebody to your house, they walk around your closet and they got a tape measure. They're like,” okay, how many ties do you have to tie rack over here?” And then they give you a sketch and say, “here’s what it’s gonna look like,” and you, and you write them a deposit check. Then they come back. Well, that doesn't work anymore. Most customers do not want random closet dude walking around their closet, touching all their clothes in the middle of a pandemic. So what most of these closet companies have had to do is pivot to virtual closet design, which gives customers what they want a perceived level of safety when designing the new closet--   Pam Didner: --and also probably communicate if they have to do an installation, what are some of the safety procedures that the installers will—   Jay Baer: That's right. So the core of that, it's not really marketing's job to say, “Hey, we're going to have to go to virtual closet design.” That's probably not a marketing scenario. That's probably a ops scenario or an executive teams scenario.   Pam Didner: Right.   Jay Baer: But communicating all of that, nobody knows nothing about nothing is marketing with sort of a side order of CX and CS. And I will tell you this, the one thing that this pandemic has really brought into sharp focus is the absolute requirement of marketers to be working side by side cheek to jowl--not literally because everybody's working from home--but metaphorically side-by-side cheek to jowl with customer service and customer experience. Yes. Because we've always said, and it's always been true that it's two sides of the same coin and it is even more true right now.   Pam Didner: True, true, true. I 100% agree with that. So it's very hard, obviously, to reeducate your customers. Right. So you actually have any suggestions or any ideas, what would be the best way or any kinds of specific content format that you should use? You're talking about making, you know, the, FAQ as a portable and a one-pager and any other format, would you suggest?   Jay Baer: Well, especially when you're talking about safety concerns--like the closet design thing we just talked about, or even my haircut example--wherever possible, you should show instead of tell. And we've talked about that in marketing for a long time.   Pam Didner: You also talk about you part of the Talk Triggers, as well.   Jay Baer: Yeah, but it's really critical now. So I did a keynote, a couple months ago for a big group of hospital marketers. And of course convincing patients to come back to the hospital to get a knee replaced or, hand to surgery or, you know, Lasik or whatever. All the different procedures that are elective is an enormous challenge for them right now. Hospitals are having a tremendous problem with revenue because people are just delaying and delaying and delaying procedures because they're still concerned about catching coronavirus at the hospital. And so I actually did a side-by-side comparison of one hospital that had a really nice, comprehensive, written series of FAQ's about safety at the hospital. Here's our cleaning procedure. Here's how we're training the staff. And then on the other hand, here is a hospital who did that, but then also had three videos that actually showed people cleaning and showed the actual training program and showed a testimonials from patients saying “I've never felt safer.” And this idea of when you see it, you believe it more than when you read it is incredibly true, especially as it relates to people's perceived health and safety.   Pam Didner: Yeah, I do agree with that. Like when I go to a shopping mall nowadays, like you could go to any, uh, store, right? They have limited amount of occupancy. They also will tell you in terms of, hey, you know, when you walk in, if you want to try certain products, what kind of procedure that you will do. Some of them, they don't even let you try you have to buy. And then you, you know, you go home and then you try it and then you come back and you returned it. So, yes, it's a lot of work to go shopping now. Can you imagine holiday shopping?   Jay Baer: Hey, that's why so much is moving online, right? Like, you know, buying online was already debatably easier for most things, but now? Okay, so I don't have to wear a mask and I'm just sitting in line and I don't have to do all these things. I can just press a button. This is why this is one of the craziest stats: October 5th, we will surpass the totality of all of 2019 e-commerce revenue.   Pam: Wow.   Jay Baer: That's before Halloween, before Thanksgiving, before Black Friday before Cyber Monday before Christmas.   Pam Didner: We have no choice! Everybody's buying online.   Jay Baer: Yeah. So, and that's one of the things to think about, right? Not only do you need to kind of reconfigure your products and services to make sure that customers feel secure, but whatever you can do to move your products and services online/self-serve is obviously a best practice. One of the things that we've been talking to, a lot of our clients about, Pam, is certainly as a thought exercise and at some level, an actual recommendation, how can you build a company now where you never, ever, ever have to see customers face-to-face?   Pam Didner: Yeah, that's actually a great question. I didn't think about that to be honest with you. So if you don't see them face-to-face and there's no, it's kind of like touchless, but virtual. Right? And how do you close the deal without even seeing them face-to-face? That's a great question. It's a hypothetical exercise I think mainly brands probably should consider and explore.  I love that.   Jay Baer: Well, even in B2B, right? So many companies have relied on salespeople having some kind of face-to-face interaction with clients at some point in the consideration funnel...   Pam Didner: --it's kind of essential, in a way, before pandemic.   Jay Baer: Yes, yes, yes. And, and so the, the face-to-face part used to often be the highlight of the customer journey. And now in many cases, it's the hindrance. Right nowm itt's the hangup. And then. If you can build a company that can successfully operate in those circumstances, then maybe once you do more face-to-face that becomes like a bonus, right? It's not a requirement. It's a bonus, right? Like, so, I have a Tesla. I had to take it in for service recently. And never saw human being now, Tesla was kind of a head on, um, touchless/contactless before just kind of the nature of the company. But on the app it was like: “here's what's wrong with the car? Here's the appointment.” Then they texted me to confirm, drop off the car. I get another text that says, “leave your keys in the car and just go. We've got a loaner car for you. Those keys are in that car. We've already wiped it down.” I brought the car back. They said “your keys are in the car” and they sent me another text and “here's what we did and the invoice is in the app.” I literally never saw a human being the entire time or talk to a person.   Pam Didner: It’s very technology driven. That means you all the backend owning integration that needs to be done and very thoughtfully before they can provide that kind of experience to you.   Jay Baer: Yeah. You just have to think, think it through it and look a lot of the things that we have engineered for face-to-face interaction there, just because it was easier or that was the legacy here, that's how we always did it. And we knew it was inefficient. It just, we didn't have enough motivation to change. And most of the things that have changed since the pandemic--as it relates to digital transformation--we're already going to happen, Pam. Telehealth was already happening. Working from home was already happening. E-commerce was already happening. Self-serve information was already happening. It was already happening in all of it.   Pam Didner: It just accelerated.   Jay Baer: Exactly. It was just happening- it was hard to kind of get critical mass because there was no forcing mechanism to drive adoption at any sort of velocity rate. And obviously now we certainly have a forcing mechanism, but that's the part that people are freaked out about all these changes to their customer journey because of the pandemic. I'm like, “How did you not see this coming?” You probably didn't see the pandemic coming, but the fact that customers are going to want everything digital and super fast and low touch and efficient, like we've been talking about this for a decade.   Pam Didner: Yeah, they want fast, quick and cheap. They want all three.   Jay Baer: That's it.   Pam Didner: Exactly. So there's another question I wanted to ask you. During the pandemic, many brands--especially on the B2B side--they scale back on the marketing budget. They will like, “Oh, you know what, we're going to hold the marketing budget or they reduce it? And what is your suggestion on that, in terms of reducing the budget? or should they allocate their budget a little bit differently?   Jay Baer: I think it's insane that you would reduce a marketing budget right now. Let me tell you a story. Um, when I was 22, I think. I was in ad to Phoenix when I live in Phoenix and we had a joint luncheon with the Ad Club, which are the older seasoned professional. I think that cutoff was 30 years old. So under 30 people over 30 people. And the Ad Club brought in as the keynote guest speaker for this luncheon, Herb Kelleher, who was the founder of Southwest Airlines, a curmudgeonly legend of business, you know, literally his drinking Jack Daniels onstage, and smoking a cigarette at 11:30 in the morning luncheon, right? And I was like, “wow, this guy, this guy gives zero F's.” But he said something, Pam that I never forgot. He said, “the worse the economy is, the more we advertise.”   Pam Didner: I love that. I wish every single brand kind of take that into account! (laughs).   Jay Baer: What he emphasized was if you believe in your company and you believe in the long-term future of your company--   Pam Didner: --also you believe in your product!   Jay Baer: Right! Then when times are quote unquote “bad,” that's when you go out and take business from all your competitors who are scared. So what I would tell people and what I do tell my clients right now is the last thing you should do right now is cut your marketing budget. And you should double your marketing budget because you can't cut your way out of a pandemic. It doesn't work like that. You, you can delay your own demise. But nobody cuts themselves to growth. It’s not possible, right? So, so I told you at the outset of this conversation, that the thing that people aren't talking about enough is that is that market share is shifting. Customers of all types, have a wandering eye. Now there are willing to change horses in ways that they wouldn't have been willing to do before. And that is a huge opportunity. And if all your competitors are cutting their budgets and running scared, fantastic! Best possible situation.   Pam Didner: Double down! Double down!   Jay Baer: Yep.   Pam Didner: Um, great. This is fantastic. Any additional parting thoughts that you want to share with us? And also tell our listeners where we can find you and the way you can do it.   Jay Baer: One thing I would pay attention to that's also changed during the pandemic is customer attitudes around speed.   Pam Didner: Okay. So they, they want things fast now. Is that right?   Jay Baer: Faster. Because everybody's uncertain-- I talked about the uncertainty gap. When you're uncertain the entire time that you're uncertain it creates a lot of anguish and angst in your head. So if somebody has a question, how much does this cost or do I want to buy this or that? Or any other question like that, the whole time that they are processing that answer, they are, they are not in an idealized frame of mind. And so speed can actually be a competitive advantage right now, even more so than it was pre-pandemic. I would absolutely work on that. And again, that's another place where marketing and CX and CS, can collaborate.   Pam Didner: Yeah. I, 100% agree with you. So where can they find you?   Jay Baer: Three places. You can go to convinceandconvert.com which is the main site for our company. We have more than 3,000 articles and advice and videos for marketers and business owners: convinceandconvert.com. My personal site for speaking and such is Jay Baer.com. And my podcast is "Social Pros" that's social pros.com, for enterprise social media marketers.   Pam Didner: Wonderful. Hey Jay, thank you so much for coming to my podcast. You've being fantastic and I hope, I sincerely hope, that we'll see each other soon and give each other a hug   Jay Baer: One of these days. I believe in us. Thanks so much for having me.   Pam Didner: Yes. Thank you.  Again, thank you so much for listening to my podcast. And the podcasting is one-way communication, and I don't necessarily know who you are, but your support means a great deal to me. If you want to chat, reach out on any social media channel, you can also join my Facebook community. Build Your Marketing Skills to Get Ahead.  When you join, you get a free Starbucks on me. You can go to the Announcement tab and click on the barcode of the gift card.   Love to hear from you. Take care. Bye-bye!  

Should Major Game Studios Use Kickstarter - Wonderful 101 Kickstarter CvC 178 Hey Jay! by Class vs Crass

When you hear the word success, what comes to mind? The guest in this episode, renowned Jay David, who is an accomplished drummer, singer, songwriter, musician, actor, recovery counselor, and speaker, has dazzled the audience in numerous performances, including his position with Dr. Hook and the Medicine Show and he will dazzle you too! Jay shares how his love and talent for music began. His first appearance was at the age of two and a half. (He will tell you more about it on the show!)! This show intertwines his life’s journey as climbs and rises to the peak of fame and what was to follow. Jay is a hoot to listen to as he talks about being at Mercury Records in New York City… “I was playing whenever all of the songwriters (they had about a hundred fifty songwriters) and whenever the songwriters would come up with a song that management thought was good, they went and they had me come in and record the drum parts for it. Then, along with two other instruments, it would just be a trio, and somebody would sing it. That's how they would shop those songs to other artists that were looking for material in those days (this being the late 60s) and so I was in the studio all the time. Then I began singing the songs too. Then I began playing the piano, then the drums and things. So I was I was very busy. And one day this producer came in and he said, “Hey Jay! Listen to this song! And he played me a song called, “The Last Morning,” and he said, “This is a new group called, “Dr. Hook and the Medicine Show,” and they don't have a drummer. They're looking for a drummer. Do you want to go?” Well, I was the staff drummer.” Later the group went to Columbia Records to meet with Clive Davis. While waiting amongst others and wanting to stand out so as to get a contract, here is what Jay said he did: “I walked behind his desk and took his trash can and turned it upside down and Dennis Andrade took that acoustic guitar and I played the trash can. That's how we did our audition; in his office. The next day they signed us to a $750,000 deal.” Jay also shared how there were challenges with the BBC and what they would not let air due to possible copyright infringement and a “word” in a song, all of which he details and you will find quite interesting when you tune in! Jay has recently been in some films and has released his “hilarious and insightful” new parody, “The Cover of the AARP,” on the album “This Road,” which includes originals and songs by Stephen Stills, Joe Egan (Steeler’s Wheel), and JJ Cale. There is a lot to glean from this episode. For example, through perseverance, envisioning a dream, then pursuing that dream, you CAN achieve it! Jay says, “I'm a drummer for life. I always have been. I always will be and I'll always make music. I have a little recording studio in my house here and I'll be recording later today- JayDavismusic.com.” www.jaydavidmusic.com www.facebook.com/JayDavidMusic Jay David1942@yahoo.com

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Bar talk with Jay; Hey Jay do you think romance can survive without finance? Or do we need to talk about finance before we get too involved.

Bar talk with Jay; Hey Jay do you think romance can survive without finance? Or do we need to talk about finance before we get too involved.

Bar talk with Jay; Hey Jay do you think romance can survive without finance? Or do we need to talk about finance before we get too involved.

Bar talk with Jay; Hey Jay do you think romance can survive without finance? Or do we need to talk about finance before we get too involved.

Bar talk with Jay; Hey Jay do you think romance can survive without finance? Or do we need to talk about finance before we get too involved.

Bar talk with Jay; Hey Jay do you think romance can survive without finance? Or do we need to talk about finance before we get too involved.

Hey Jay do you think romance can survive without finance? Or do we need to talk about finance before we get too involved.

Hey Jay do you think romance can survive without finance? Or do we need to talk about finance before we get too involved.

One of the top marketing guru’s in the history of planet earth called me today and offered me this… On this episode Russell talks about receiving a call from Jay Abraham and what he learned from him over the years. Here are some cool things to listen for in this episode: How Russell is using what he learned from Jay Abraham in Clickfunnels. And what it was like to talk to Jay Abraham on the phone and how he talked Russell into taking his family to the UK. So listen Below to find out how Russell got a free trip to the UK. ---Transcript--- Hey everyone. I am really excited. First, I’ve got to give you some intro music… All right. Welcome to the Marketing In Your Car Podcast. If you’re a first time listener, this is probably not going to make much sense to you, but if you are a faithful, I’m excited and I just want to talk to you guys because you are my people. You listen, you care, and something cool happened to me over the last 24 hours. If you were to ask: “Who were the top two marketing consultants on planet earth?” Not like new internet dues like me. Marketing direct response dudes. There’s two that are in my mind are the guys. Can you guys guess? I’ll give you a hint. One of them wrote the forward to my book. Yes, you’re right, Dan Kennedy, that’s kind of cool. Who’s the other one? Who’s the other person who I would put up in the top two of all time, of the history of the world, I think even more so than a lot of the big names who have passed on? The second person is Jay Abraham. How many of you guys guessed Jay Abraham? I’m sure some of you guys did. I have been a huge Jay Abraham fan for pretty much my entire marketing career. When I first got started, someone wanted me to promote one of his products. They sent me this huge box of Jay Abraham stuff. If I was to buy all that stuff, it would have been probably 10, 15 grand. I had it all and I went through it all, and it was amazing, just amazing stuff. Because I have been a fan for a long time. In fact, I look at ClickFunnels, one of the core principles of our growth right now. I learned from Jay Abraham. This is what he talked about was, he says there are only three ways to grow a business. Number one is get new customers. Number two is get those customers to spend more money. Number three, get them to buy more often. Only three ways to grow a business. You can’t do it any other way. To grow your company, it’s got to be one of those three ways. More customers, get those customers to buy more, and get those customers to buy more often, or spend more, and to buy more often. There you go. That’s huge. ClickFunnel’s goal of year one was customer acquisition, which is the first way to grow a business. For year number two is ascension. We are trying to get all of our customers to spend more money. We’re trying to get everyone to extend from a $97 a month level to a $300 a month level. That’s why we gave Actionetics and BackPack and made this thing amazing because we want people ascend and to upgrade. We’re focusing on growth strategy number two from Jay Abraham this whole year. That’s my number one focus this year is ascension so you guys will start seeing that a lot. There you go. Even today, we are talking Jay Abraham, and quoting him, and implementing what I learned from him all those years ago. The guy is a legend and just amazing. I get a call from Rich Schefren. He’s like, “Hey man, Jay Abraham wants to talk to you.” I’m like, “All right.” He’s like, “Here’s his number. Text him and set up a time to call.” I’m like, “Okay.” I text Jay Abraham. I’m freaking out. This is like texting Michael Jordan if you’re a basketball player. I text Jay Abraham trying to act cool. I’m like, “Hey Jay, Rich told me to give you a call. Let me know when’s good.” He’s like, “Call me right now.” I call him up super nervous, but I’m trying to be all cool Russell. I’m being all cool and we’re talking and he said, “Hey, we never met in person. Right?” I’m like, “No, I’ve been to some of your events and stuff but I never actually met you.” He was like, “I didn’t think so, but he’s like, I keep hearing about you. People keep talking about you. Rich talked about you and talked about you and talked about you’re with ClickFunnels, which is amazing. Then this other guy, one of my clients that we’re doing these big events, he does these big events in the UK. I asked him who he wanted to be a speaker on his stage and he only gave me one name. He said it was you.” He was like, “I don’t know you, but I feel like I should and I wanted to introduce myself and say Hi.” I’m like, “Well, I’ve been a huge fan of yours for a long time. I’m very aware of who you are.” He’s like, “Oh, thank you.” We start talking and he basically asked if I could come speak at this event out in the UK in less than a month from now. Those of you who are my faithful followers know, for me just to drop everything and travel across the world is not easy. I got a beautiful wife, five amazing kids who are in school. One that’s just a newborn. It’s just not easy. I nicely declined and then gave him an excuse of why I couldn’t make it. “I’d love to go but it’s short notice and my wife, I’ve got five kids, and there’s just no way I could leave them for a week.” Jay, who is amazing at closing deals, comes back and says, “Well, how about we do this. When I was younger, I took my family to the UK in the wintertime and we had an amazing time. I was speaking and I brought them and it was so great.” And like sold me on this whole experience. I’m like, “Oh, that sounds cool.” He’s like, “What if we did this. What if I cover your flights, and your wife’s flights, and all your kid flights. Put you guys in business class. Put your kids in coach. We will fly you guys there. You can spend a week. We’ll cover your hotel the whole time you’re there. You’ll live in luxury and we’ll give you spending cash as well. Then you can come speak and sell to a group of 1200 entrepreneurs who are most of them are InfusionFoft users. You can sell ClickFunnels to them and keep half the money. I was like, “You’re telling me, you’re going to fly me, and my wife, and my kids, and my entire family out there. You’re going to pay for everything. Plus, you’ll give us spending money so we can blow some money while we’re there. Plus, I get to sell.” Just so you guys know, right now I think the worst I’ve closed the ClickFunnels pitch in front of a live audience. Well, that’s not true, not the worst. The very first time I did it. The very first time I ever did the presentation, I closed 38%. The second time I did 48%. The third time I did 93%. If I screw it up and I only close 50% of the room at 1200 people, that’s 600 people times a grand. That’ll be $600,000. I get half that. It would be $300,000. And you can say basically he’s paying me $300,000 to come and speak. I was like, “How do you say no to that?” I’m like, “Let me call my wife and I’ll get back to you.” I had to go and call my wife and pitch her on it. Luckily she was closed by the irresistible offer as well, and so we’re going to London, we’re going to UK, and I’m excited. Anyway, it’s just super cool. No real reason to tell you guys for the podcast other than I’m excited. I hope you’re excited. Maybe you got a tip or two out of Jay’s Three Ways to Grow a Business. It’s pretty cool. I’m excited. I’m on cloud nine. I feel like a rock star. It’s like Michael Jordan calling you like, “Hey, man, we want you to play basketball for the Bulls. Are you in?” And you’re like, I can’t do that. He’s like, “How about this, you can move into my house and you and your family can live here while you’re playing for the Bulls.” That’s what it feels like. I don’t know if that analogy makes sense. I’m not really basketball guy. I am a Michael Jordan guy though. That is one dude who I would love to meet. Actually I should do like a success telesummit just with the only goal of getting Michael Jordan on it. How awesome would that be, just coordinate some really cool event just so you can have Michael Jordan be a part of it so you can talk to him? I might actually try to pull that off because that guy is amazing. There you go you guys. I am heading home to go play with the kids. I hope you guys are having a good time. I know I am excited right now. I’m a little tired because the next 30 days I am going to Australia and now the UK. Actually, this is my travel plan for the next 30 days, which is insane. Then I’m taking six months off. New Zealand, Australia, Arizona, Utah, Denver, Arizona, Phoenix I think, and then the UK. Then we have Thanksgiving right after that. It’s nuts, but it will be fun. Helping the world know about ClickFunnels because it’s important. That’s how much I believe in our mission and what we’re doing. I hope you guys believe in what you’re selling. If not, start selling something different. If you do, go out there and share your message with the world because you can change people’s lives. I believe it. Hopefully I am showing you guys out there how I perform and what I’m doing. All right, with that said, I’m out of here guys. I appreciate you all. Have an amazing day. We will talk soon. Bye guys.