The entrepreneur-investor relationship #2

The entrepreneur-investor relationship

The entrepreneur-investor relationship #2

 

Post 4 - # Initiated week- Unpleasant experiences, which can only be avoided by a strong partnership

I thought about this post a lot .. write it or not .. On the one hand, this post includes unpleasant experiences for us working with Israeli investors, but on the other hand is a message for entrepreneurs who are at the beginning of their way and can sharpen for investors why it is important to build a system Good relationship with an entrepreneur to have ** Win-Win-Win for everyone. **

About a year ago, my investor, who already made an investment with my escort, approached me and said that she has half a million shekels that she wants to invest and she relies on my word. I told her that I had started working with Yonatan and that I was building a joint work plan with him. She asked to meet him at the meeting and from there to move on to the deals.

We had a nice meeting at a coffee shop when Jonathan impressed her very much and she asked me to look into a deal Jonathan could bring for her. After 4 deals I reviewed for the investor, I found a deal that I was whole with and I was willing to put my money on it.

I accompanied her throughout the purchase process, in full cooperation with Yonatan, and made sure she was satisfied.

After the property went by her name, she decided she wanted to fly to the US to do a round of both business and pleasure. She asked if she could meet the tenants who had entered the house she had purchased (not a recommended move in the US, but she asked nicely) and if she could meet Jonathan's American staff. After being impressed with the tour and returning to Israel, she contacted Yonatan and asked him for 2 more properties.

Jonathan called me to talk to me about the conversation and found that I was not up to date on her request. Such things can happen, so of course I called and asked her about her visit and what she wanted to do now. Said she wanted to buy more 2 properties, but no longer needed my assistance in terms of investment accompaniment, because she would work directly with Jonathan and his American team.

# ** I updated that by Jonathan and he immediately stopped me to tell 2 things: **

1. I will receive a commission for every property that I buy, because I introduced him to the investor and I also accompanied her investment.

2. It turns out that on her tour with the American team, she asked to work directly with them, without me and Yonatan becoming involved. This of course is saving commissions on the way.

Now… It was clear to me and Jonathan that it did not come from a bad place, but from a place of lack of understanding of the structure of society and how things are conducted. After a conversation with the investor, things became clear (although it took some time to explain the system built here, which should serve the Israeli investor) and the investor understood how we work. We were happy to see that she purchased another property and asked to locate another property on a low budget.

For me it was the first time, but I realized that this was part of the cultural differences I had come to know between Israelis and Americans. The culture I knew with the Americans stunned me at first.

I called the owner of an asset that posted his house for sale.

As soon as I contacted the seller of the property and wanted to offer a CPA (after getting all the necessary details for me), I was told to contact the broker who was running the sale. True, it costs me more, but I understand that there is great loyalty to the middlemen there (at least in the area where I worked) and I respect that.

Imagine. A management company that manages your assets and those of your investors and then… someone comes along and decides to find a way to get you out of the equation for him.

It was frustrating to me. I imagine that you too.

# ** So what is the message for entrepreneurs who want these things not to happen: **

1. To make sure that your investors understand your system and that the only person they are addressing is you, even if you made them familiar with the American side. There is no problem doing this thing, because we are happy to be transparent to our investors.

2. You can hide the entire American side and explain that there is no access to it at all.

3. Build such a strong relationship with the American side, as Jonathan did, so as soon as the investor brought up the idea in front of them, they said, "Talk to Jonathan."

That's why I always say: real estate is people. No well-designed exels, no blown-up presentations and certainly no pretty offices. Real estate is people.

# ** What is the message for investors? **

Build a strong relationship with the entrepreneur. As much as he enjoys working with you, you will be first exposed to better deals and certainly to a VIP relationship regarding your investments.

Another thing, which I believe in from a place of consciousness of plenty is that there is enough for everyone. Look for the deal that fits your criteria, without counting how much everyone earns on the way.

For example: You have received an asset whose value is 100,000 $ at the price of 80,000 $. Does it matter that the entrepreneur managed with his team to purchase the property, renovate it and prepare it for a tenant entry on 60,000 $?

In my view, it is important to me that the entrepreneur I work with will make money. Why? Because then I know he is satisfied and his business earns enough for him to continue. As soon as it takes place, he will take care of me more. (Of course it is not binding and there will always be some that this entrepreneurial profit is not enough for them, but I believe that in most cases .. it will benefit the investor)

** So .. No matter if you are an entrepreneur or an investor, always look for how Win Win Win can be produced for everyone. **

I hope you enjoyed ?





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