Asking an investor too lunch/dinner

[Max Murphy]

My old economics teacher is a very intelligent entrepreneur/Investor. How do you ask investors out for lunch and or dinner?

When they agree for lunch/dinner how do you start conversation of wanting to do business with them and or asking if they could be a mentor?

[Erik W.]

Unless you already have an established relationship with a person, I think you have to be very careful how you go about this so as not to seem like all you are interested in is getting something for little or nothing.  Lunch is cheap ($10), and many investors I know put a value on their time...sometimes hundreds or thousands of dollars per hour.  Why would they want to spend an hour with you at lunch and miss out on a deal that would net them $20,000?  Any information you can gather from a seasoned, successful investor could make and/or save you thousands.  So just be aware you aren't doing them any favors by inviting them out to lunch: they are doing YOU a tremendous favor if they accept.

First, I'd introduce myself.  Make it casual, like someone you met at church or a social gathering.  Nothing like "hi my name is Max and I wanna make millions in real estate and I would like to take you to lunch i'm highly motivated please please please puhleeez be my mentor."  Just, "Hi we've met before but it's been awhile.  My name is Max.  I really enjoyed your class in high school / college and it's got me thinking about getting into business.  I'd like to get together sometime and talk about your experiences."

Everyone likes to talk about themselves.  And if you listen carefully, there will be a lot of good info.

It's okay to have some questions you'd like to ask, but I would avoid the "mentor" question until you've developed a solid rapport.  Being a mentor can be very time-consuming, and it's not something a lot of experienced investors are looking for actively.  No multi-millionaire real estate investor wakes up in the morning and after their first cup of coffee says, "Gee, the thing that would make my day is if a newbie called me and wanted me to spend 10-20 hours a week teaching him how not to screw up real estate deals."

Rather, you could ask him, "I heard you say last time we went to lunch that you have some rental properties.  I've been wanting to learn more about that.  Could I help you out with something like checking up on your properties and how well your tenants are maintaining them?"

Offer value without asking for anything in exchange.  He/She will teach you by telling you what they want you to do, if they accept your offer.  For example, you'll learn how to deal with tenants, how to set and keep appointments with people who may not be easy to deal with, what sorts of issues to look at when inspecting a tenant-occupied property, etc.  Then you report back to him and see what he says/does....  Does he kick the guy out for violating the lease?  Does he send a warning letter?  Does he do anything at all?

All this without ever saying the words, "Will you be my mentor?"

Good luck!