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Founders Club - For Real Estate Entrepreneurs


Aug 13, 2019

How do you build relationships with high-net-worth individuals who have the resources to invest in your real estate deals? By treating them like friends, not ATMs.

Connect with Founders Club Host Oliver Graf on Instagram

Sal Buscemi is Managing Director at Dandrew Partners, a market leader in short-term loans and equity financing. He mentors aspiring fund managers through The Commercial Investor, a division of Dandrew that teaches wealth creation through real estate the Wall Street way. Sal started his career as an investment banker with Goldman Sachs before transitioning to real estate, and to date, he has raised a total of $500M in capital for other people’s projects as well as his own. He is also a sought-after speaker in the realm of real estate finance and has written countless articles on residential and commercial investing.

Today, Sal joins Oliver to discuss the details of his current project, a 166K square-foot class A industrial development in Las Vegas. He shares his three rules for choosing an operator and offers advice on vetting real estate deals ‘like a jilted ex-lover going through the cell phone records.’ Sal also provides guidance on presenting deals to potential investors, staying top-of-mind without becoming annoying, and conducting a capital call for a new deal. Listen in for insight into how Sal raised money for his current commercial investment and learn how to build and nurture positive relationships with a network of investors!

Key Takeaways

[0:45] An overview of Sal’s current project

  • 166K ft2 industrial development
  • Class A (credit-worthy tenants)

[3:54] Sal’s background and experience

  • 5 years at Goldman Sachs
  • ‘Hired gun’ for family office
  • Two distressed credit funds

[9:42] Sal’s 3 rules for choosing operators

  1. Audited track record
  2. Been through 2 market cycles
  3. 10% hard equity in game

[21:01] Sal’s advice on vetting deals

  • Compare to market (cap rate)
  • Rental income drives value

[24:38] Why Sal prefers industrial to multifamily

  • Fewer inefficiencies
  • Steady, credible tenants

[31:18] How to present a deal if you can’t put your own money in

  • Equity in building business and relationships
  • Demo conviction in other ways (e.g.: no management fee)

[35:20] Sal’s guidance around raising money

  • Talk to people trust, build following
  • Handle concerns re: liquidity

[40:16] How to build positive relationships with HNWI

  • Get involved with charities, boards
  • Treat network like friends
  • Avoid conspicuous spending

[46:33] How to present deals to potential investors

  • Reach out with newsletter on market
  • Host cocktail mixers at office

[48:43] How to stay top-of-mind without becoming annoying

  • Send article or text once per quarter
  • Dedicated time to reach out via email

[59:36] How to conduct a capital call

  • Offer fast-action bonuses
  • Be specific with deadlines to create urgency

[1:06:07] How to deal with overbearing investors

  • Recommend different asset
  • Put in place (professional, passive investment)

[1:09:23] Sal’s process for offering a new deal

  • Send out tear sheet
  • Wiring instructions on page 1 of email

Connect with Sal

The Dandrew Letter

Connect with Oliver

Big Block Realty

Oliver on Facebook

Oliver on LinkedIn

Resources

Monkey Business: Swinging Through the Wall Street Jungle by John Rolfe and Peter Troob

The 100 Million Dollar IRA: The Closely Guarded Secrets to Building a 9-Figure IRA by Salvatore M. Buscemi

Real Closers

Tony Robbins

Upwork

Joe Polish

Slybroadcast

Google Voice

DocuSign