Approaching Physicians to Invest in Syndications

[Account Closed]

I am an aspiring real estate syndicator looking to invest in apartment buildings around major universities, and renting them out to a niche group of university students. Based on my research, I feel this is a group that is often not really marketed to by universities and or developers. I'm creating a pitch book that highlights my investment strategy. Of course, in a syndication the investor has a passive role because they do not participate in the day to day management, and invest only some capital. Additionally, I would have some of my own capital invested in every deal. About 100K.

What is the best way to approach physicians about my investment strategy? Do you think physicians or other high net worth individuals would be receptive to receiving the pitch book by mail, or email? I'm just trying to figure out ways to grow my potential investor base before finding a good deal for us to invest in.  FYI, I would not be marketing a security here, just an idea.  

[Mary K.]

Marc C. and Brian Adams has great advice - find out their pain points. Many doctors overspend to have a certain lifestyle but are still paying off student loans and have high overhead at the office, and are unsophisticated when it comes to investing, leaving them unprepared financially for retirement. (see http://whitecoatinvestor.com/personal-finance/) article on "why doctors aren't rich"

One idea: You might call Hospitals and speak to either the Marketing Director or Benefits/HR or COO. I did this once in marketing something to physicians. Hospitals often look for "free or almost free benefits" they can offer physicians to entice them into their systems and keep them happy. i.e. a free car detail once a year on Doctor Day, a free session with a work/life balance counselor, etc.). I have a friend who has a book company that comes to the hospital every 8 weeks and sets up displays in the lobby and sells books (a mini Barnes and Noble) and donates 10 percent to the hospitals favorite charity. You get the idea - make it sound like its a benefit to the hospital and the doctors (not you).

Ask the Benefits/Marketing person if you can offer their doctors a seminar on a "How To" that addresses their pain points and have maybe 2-3 experts so it doesn't seem overly self-promoting and more benefit-oriented (you being 1 of the speakers). For example, their pain point is that they don't have the time or knowledge to focus on a serious retirement plan that will offer better than standard returns and provide a dependable annual income with low taxes.  You put on a seminar like this at a dozen hospitals.  Give the seminar a catchy name such as "Get Your RX To A Happy Retirement...blah blah" or something.

Each person speaks for 20 minutes (a 1 hour lunchtime seminar)  You talk about RE investing (briefly talk about college investment property, most detail about that could be provided to those who show interest during/after the seminar so don't get overly bogged down with details). 

Someone else talks about dividend paying stocks (a financial planner) and why dividend paying stocks are great for retirement and how to learn which ones to buy.  And someone else talks about annuities or trusts or something. 

The HOSPITAL promotes the seminar for you to their doctors.  You can offer it several days, different times to hit the most doctors (morning, lunch, evening, Saturdays).  Ask everyone to register or sign in, so you can follow up.  Provide sandwiches, coffee. 

If you have a "success story" where a doctor partnered with you and is doing great with it, he/she could stand up and intro to you and say "My name is Dr. John Doe and I want to introduce my good friend and investment partner @Michael Ibarra. I've invested with Mr. Ibarra and have had a great experience with him and am enjoying excellent returns that should lead to a solid retirement with little or not interaction on my part.  I'm really excited about my future now that I've been investing with Mr. Ibarra.  And now Here is Mr. Ibarra..."  

You should have a pro videographer film one of the seminars and edit it into a validating testimonial and informational video, for those who cannot attend a seminar but want to learn about it later.  This can go on your website, in e-blasts, etc.

This is my 2 cents on how to do marketing on a shoestring and get others to do most of the work for you.  If the hospitals won't cooperate, hold this seminar somewhere else - Country Club? - and mail and email announcements (handwriting an invitation gets attention, though its a pain but teenagers are cheap).  Direct mail is if you want to send hundreds/thousands and just need to do a fast blitz.  It can have mixed results.   You can also hold a webinar.  Or give a "workshop on real estate investing for medical professionals" at an industry trade show - try the smaller, local shows first to build up your reputation in the medical industry.  Good luck.