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Despite a real estate market that is currently reeling from falling prices and record high interest rates, one fact remains clear: Americans are obsessed with homes. We only have to scroll through the plethora of RE-focused media to observe that as a society, our homes are both our safe havens and one of our favorite forms of investment and wealth.
Coupled with our thirst for homes, there’s a rapid thirst for competition-style television fueled by shows like shark tank, Billion Dollar Buyerand Profit.
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A new show, Face-to-face financing, feeds both appetites by giving entrepreneurs who range from newbies to pros the chance to pitch their ideas to experienced investors. In its first season, original shark Kevin Harrington joins the panel of experts who will react to RE-themed offerings.
The show is the brainchild of RE investment pro Lori Greymont in conjunction with master trainer and coach Adam Leffler. So what can you learn from an RE investing pitch competition? In a pre-show interview, Harrington shared his top deal-making cues that viewers will observe in person, both from the show and from his own best and worst experiences from his entrepreneurial past, as follows:
When it comes to doing business, it’s not about you.
“Too many people get so caught up in the passion of their deal, they get caught up in their own head, thinking ‘Anybody’s gonna make this deal. It’s the best deal ever,'” Harrington said. “Investors like me hear pitches all day when checking in, then when we go to eat, we get pitched during dinner; I was even pitched in the cab on the way to the airport.” Instead, he advises, think about the recipient, who is busy, who hears hundreds of arguments, and develop a strategy. Harrington’s favorite is to tease, please, then grab.
1. First you tease.
“Tease the deal up front in a way that grabs your viewer’s attention,” Harringon said. “So Billy Mays, he sells Oxy Clean,” Harrington says. “In six seconds, he’s eating a meatball sandwich and it’s dripping down his shirt. ‘Oh oh. Has that ever happened to you?’ So he has your attention.”
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In the real estate business, Harrington suggests the tease should go something like this: “Instead of showing me how you’re going to buy something, magically turn it around, and sell it for an incredible profit, show me the front and after projects you’ve done in the past. If you want attention and credibility, show me some things you’ve done before.
2, then you please.
“Show me the details of how you bought a home for $250,000, put in $80,000, sold $800,000 and it looks like it’s worth $1 million,” Harrington said. “That’s where you have to please. For example, one of the guys who pitched us, he just offered us interest. Interest? I’m not like the bank. I don’t want interest; I want multiples of my investment “I’ll pay you 5% interest?” Just getting a loan today would cost more than that, so be prepared to make an irresistible offer.
3. Now you type.
This trick, in my opinion, is Harrington’s best. For each audience, you do your homework, pair them with the person(s) you’re presenting, and customize your presentation to successfully “grasp.” So you Google and research the investors you’re pitching, you look at their personalities and preferences and past trades they’ve made that they’ve liked, and you use the information to determine who you should pitch to.
“Everyone should be able to find out who their ‘judges’ are. Look them up. Presenters can Google ‘Rotty’ (Ryan ‘Rotty’ Garcilazo), Google my name, find out what interests me.” (Other pundits on the new show will also include Mike Hambright, Travis Johnson, Joe Marques (Cowboy Joe) and Jon Nolen.)
“So, for example, you wouldn’t offer Kevin O’Leary a restaurant deal that only requires cash. He’d be interested in a royalty deal. But Barbara Corcoran, she loves restaurant deals.”
Related: 6 Skills Every Real Estate Investor Should Master
Harrington even shared a tidbit about one of his own past mistakes. “I had a public company that made some $200 million a year and Carl Icon, the big corporate thief, wanted to buy into the company,” he recalls. “And I refused because it was too aggressive. He wanted too much, for not enough. So, a year later, I came back to him with another deal and he was like, ‘Kevin, why are you wasting my time, man?’ ‘What do you mean?’ I said, “I thought you liked the offers. We were talking about deals you liked just a year ago,” to which he replied, “You have a startup here. I’m not going to invest in it. Your other company had $200 million in cash. “I hadn’t done my due diligence and wasted my time. So do your homework.”
Here are some bonus tips for succeeding in the real estate market:
Focus is vital
“Look at everything from the perspective of the learner and the student as well as the provider and the professional,” says Harrington. “Small adjustments in modeling a deal and during the deal-making process can lead to significantly better results.”
Partners are essential
“Find ways to optimize both cash on hand and future profit-sharing opportunities, which can produce exponentially greater returns over the long term,” Harrington said. “For example, find the opportunities to pair well-known personalities and influencers with important platforms with worthwhile products and ideas in their early stages. This gives the opportunity to massively accelerate audience acceptance and growth and generate additional profitability on the rise.”
Accept both success and failure
Face-to-face financing Creator and host Lori Greymont said: “I’ve had both wild successes and devastating failures and learned powerful lessons from both. One of my biggest lessons is that collaboration beats competition. every time. I was able to bounce back much faster from failures thanks to the support and guidance of having the right people around me.”
The first season begins October 13, 2022 on Bargain House Network with additional distribution on Amazon Fire TV, Apple TV, Roku, and Samsung TV Plus, with discussions ongoing for additional distribution and seasons.