The Fastest Way To Build A Six Or Even… Seven Figure Real Estate EMPIRE!
Raising capital and finding access to equity and debt quickly is crucial if you want to close more deals. If your first few deals were basically figured out on the back of a napkin, that approach won’t work if you’re looking to accelerate and scale your business. On that note, allow me to introduce today’s guest.
Jake Marmulstein is the founder and developer of Groundbreaker.co, where he’s helped over 19,000 investors raise over $2 billion in capital. Their software helps to streamline every part of the subscription process to save time and make real estate syndications easier.
If you have a few dozen or even hundreds of units and you’re looking to acquire thousands more, check out Groundbreaker’s solutions. They can help you automate your fundraising, close deals, and create exceptional experiences for your investors.
In today’s episode, Jake and I talk about how rising interest rates and a bear market have changed the game and how to find more debt and LP equity for your deals. He’ll also show you what sets their software apart from other solutions that are available and how to get started with Groundbreaker today for free to bring a new level of professionalism to your syndications.
Key Takeaways with Jake Marmulstein
- Why it’s so much harder to raise capital now than it was six months ago.
- How investors are overcoming some of the incredible challenges in today’s market.
- How Groundbreaker has helped syndicators build out their investor bases, raise more money, and close more deals in less time.
- What new investors need to know about building trust with prospects.
- What differentiates Groundbreaker from AppFolio, SyndicationPro, and other solutions.
Jake Marmulstein Tweetables
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Connect with Josh Cantwell
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Josh Cantwell: So, hey there, welcome back to Accelerated Investor. I’m Josh Cantwell, your host. And today, I’m going to bring you a fantastic resource to help you grow and scale your multifamily investing business, also could be mobile home parks or self-storage, anything that you’re going to do with commercial real estate. Today, I’m interviewing the CEO and founder of Groundbreaker.co. His name is Jake Marmulstein.
Jake is the founder and developer of Groundbreaker.co, where they help kind of new to intermediate investors really scale their fundraising. So, for those of you that have maybe bought 100 units or 50 units or 200 units and you did it on the back of a napkin or you did it through an Excel spreadsheet or you did just through friends and family and you’re looking to get to 1,000 units or 5,000 units or 10,000 units, one of the first things that you have to do is you need to find some real estate investment technology solutions that will impress your investors, help you close deals, help you automate the process of fundraising, help you make a winning impression with investors, run personalized email campaigns, help you subscribe, get subscriptions to your deals, and ultimately provide an amazing investor experience. That’s what Jake has created at Groundbreaker.co.
We’re also going to talk about today some of the challenges that have happened with today’s marketplace with rising interest rates, with rising costs of interest rate caps, and with less limited partner interests because, look, the stock market’s down 25%. So, people are less interested in investing in everything. And Jake’s got some specific solutions through his network to help you locate more debt and more LP equity for your deals.
We’re going to talk about why Groundbreaker is different from other syndication solutions, and also, how you can subscribe to the software, get access to a free demo to help you handle your real estate syndications and make your investor management much, much easier, right? So, that’s what you need, raise more capital, make it easier. Here we go with Jake Marmulstein.
Josh Cantwell: So, hey, Jake, listen, thanks for joining me today on Accelerated Investor. We’re going to talk today about how to make our fundraising and capital raising process much easier. So, Jake, I have been looking forward to having you on the show for a long time. Thanks for joining me today.
Jake Marmulstein: Thank you for having me, Josh. It’s a pleasure to be here.
Josh Cantwell: You bet, Jake. So, let’s talk about what you’re working on. Before we talk a little bit more about your software and your investor program and Groundbreaker.co, I’d love to hear more about you from a personal perspective, an entrepreneurial perspective. What are you kind of working on right now that gets you up in the morning that you’re passionate about? From an entrepreneurial perspective, where your passions lie and what keeps you up and gets you going in the morning?
Jake Marmulstein: Yeah. So, what I get excited about is helping our customers close their deals. And right now, I’m actually working on an expansion of Groundbreaker where we help our clients match capital to their deals, whether it’s debt or equity. So, yesterday and today, I’m working on sourcing capital for a development deal for a customer and calling on institutional investors, working with the groups that we partner with to find that capital is generally what I would have been doing. And that just gets me excited because I love being in this business for the deals and for digging into the details of the deals and making a difference for my clients when it’s challenging right now in today’s current market.
Josh Cantwell: Yeah, it is challenging. And why don’t you just elaborate on that? Like the market’s obviously changed a lot about a year ago from now. The 10 year treasury was at 1.65%. You could get that at three and a quarter. Every deal was cash-flowing because the cost of debt was so cheap, and every limited partner wanted to invest. How have things changed? How have you seen the market change, especially in the last six months?
Jake Marmulstein: Yeah. We’re just seeing a lot of cap rate changes, and lenders are dropping their ability to lend. Obviously, interest rates are higher, so it’s forcing sponsors to raise more equity, and they just might not have as much dry powder in their investor base anymore. Also, because of the economic changes, people have lost a lot of money in the stock market. So, it’s forcing a lot of people to raise, to really dig harder on raising capital for the same deals.
And then the sellers are holding on to the prices that they thought they could sell for six months ago. And people are renegotiating and retraining deals, which is causing a major slowdown also with the macroeconomic environment and the tenants having less income potentially that might affect our ability to increase rents on value-add deals. So, maybe we’re seeing a shift away from value-add deals somewhat and more to development. And so, people just have to shift with the times, and also, they just have to be patient right now while things are shifting and sellers are getting readjusted to the new reality.
Josh Cantwell: Yeah, that was very well said. I concur and agree on almost everything you said right there. And so, let’s peel back in a little further, Jake, specifically on, as you mentioned, with lenders, they have certain interest rates. Guys are buying interest rate caps. Those caps are really expensive now. And so, because of that, we’re trying to keep our loan-to-values lower on the debt side, which is forcing us all to raise more money.
And I remember a year ago, some of my buddies that were in the space, they would be like, yeah, I threw my deal, I recorded a video, threw it in my investor portal, told everybody it was in there and it would fully subscribe in two days and they’re like, yeah, now, I actually have to talk to my investors because people have seen a little bit more risk in the market. So, you’ve probably seen that, you have a lot of customers that obviously use your software to raise capital. And so, to fix that problem, maybe we were just too lazy a year ago, maybe we weren’t working that hard. All the fundamentals of the market were working in our favor. And some people didn’t want to work that hard.
Other people, look, if they dig in now, my opinion is, is now’s the time to dig in, get on the phone with your investors, nurture those investors, and really raise more capital than ever because other people just don’t want to work as hard. Because you talk to so many investors, what are they doing to overcome some of the challenges? Is it just working harder? Is it adopting more software? Is it creating more automation? How are people using your software? And how are people overcoming some of the challenges in today’s market?
Jake Marmulstein: Some people are looking at more forms of mezzanine debt to help them raise less equity from their own fees. Some of them are having to re-trade their deals and push the purchase price down and they’re extending more and deals are dragging out longer as a result. But the groups that have, let’s say, a large investor base, like a sizable investor base of 300, 400, 500 investors, they’re fine. They’re pretty much just still going and still doing deals.
And the thing I just get concerned about is that people get into deals that just might not be priced favorably and they end up getting stuck in an asset where they might have gotten underwater and their business plan isn’t able to be executed according to what they projected. And you just don’t know what things are going to look like in the future. So, we hope that those people who are really aggressive, maybe, slow down a little bit and they’re more careful with their underwriting. I think that’s what needs to be the major adjustment for those guys.
Josh Cantwell: I agree. And I think that, again, the cheap availability of debt, availability of tons of limited partner equity made the whole thing take off. And when things are taking off, you feel like you can’t lose, right? It’s no different than investing in the stock market before 2001. And you think, I bought all these tech stocks and they’re just going crazy and I’m such a winner until you’re not, or in 2008, when I’m flipping all these houses and I’m investing in condos in Miami and I’m such a winner until I’m not.
And so, you hope that people were smart and bought the right assets at the right prices because the best thing about commercial real estate, as we know, is that it cash flows. And if it cash flows and it’s at least breaking even, you’re paying your investors, you’re paying your debt, you’re paying your expenses, man, you’re going to build equity over time using other people’s money and other people’s rent.
So, Jake, I think one of the biggest things I agree with you on the lines that limited partners are more careful, they have less money because their stock market portfolio just took a 24% haircut this year. And in order to win with limited partners, we have to do things to impress them, like we probably have to work a little harder to impress them. So, obviously, adopting technology, adopting software, that’s the niche that you’re in. Talk a little bit more about Groundbreaker. Why did you start it? And how does it help people impress investors?
Jake Marmulstein: So, the main reason for Groundbreaker, and now is an interesting time, this totally relates to the market cycle because as there are fewer deals that people are doing and they’re looking at their operations and how they’re able to be more efficient, there’s a higher adoption rate of technology. And we saw this spike also during COVID when there was a slowdown and there was a massive adoption of the technology because it professionalizes your business, makes you look good to your investors. It gives them a place to go to be able to see all your information. It makes you easier to work with as a sponsor.
You drive that convenience factor and that customer service, every experience you have with your investors, and they have more confidence in you as an operator as a result. And you’re also going to be able to spend less time being able to service them. So, Groundbreaker helps to modernize the investment process from fundraising to paying out distributions.
It’s a portal, and the reason why we started it was because I was working in a REIT. I was doing all this work manually, pulling out my hair after midnight in the office, trying to get things done. Because we had so many deals and so many investor presentations to make, I was basically spending all my time putting together the PowerPoint presentations, emailing them out and herding the cats, if you will, into real estate deals. And I threw up my hands, I was like, there must be a better way to do this. And there wasn’t really any solution. And especially for small operators, it’s amazing now what kind of technology we have.
So, Groundbreaker fits into that tech stack to be this solution that you can use to onboard your investors into a portal, nurture them when you have a deal that you want to raise money for. You can run a deal, fundraise without even having your subdocs, your entity form. See if there’s investor appetite for a deal before you actually put it under contract even. And then when you’re ready to raise money, you can run the whole process through our software where it’s fully branded to your company and you have full control over your investor base.
And it just makes that process that could take multiple weeks and tens of hours having to go back and forth with investors into one or two hours of fundraising from your investor base. And then once you close the process for keeping everybody updated on the deal, also runs through the system. And we also handle distribution payments back to investors all electronically.
Josh Cantwell: I love it. So, we’re really speaking to and we’re kind of prepping for this interview. You said kind of one of the things that really gets you going that you’re passionate for is working with that, maybe a newer syndicator that just bought a deal or maybe didn’t syndicate it or syndicated it, but did it on the back of a napkin or on an Excel spreadsheet, or the guy that’s done one or two deals and is looking for more professionalism, more notoriety, better visibility with investors, that kind of thing.
So, it sounds like the ideal client is somebody maybe like take David, who’s in my mastermind group, who just bought a 77-unit, and I don’t know that he used any kind of software to do that raise. He was able to close the deal and still kind of limp in the closing. David, I know you’re going to listen to this, so no disrespect. I’m just telling the case study, just telling the story. But he kind of limped into closing with just enough money to close and just barely got across the goal line on the closing date.
Sounds like your passion is helping that guy now become a professional syndicator doing the next deal and the next deal and the next deal much faster and easier and helping them grow. Because a guy like me that’s got 4,000 units that already has adopted software and has marketing funnels, sure, I could use Groundbreaker and just things that you could add. But you even said your passion is helping those newer investors, getting them to kind of a newer syndicator to kind of that intermediate level. Is that right?
Jake Marmulstein: Yeah, we have a service that helps people who are at your level as well. And it’s pretty unique, but for the guys who are just starting out, also that’s where the capital services help come in because they don’t have as many relationships and we’re fully networked across the industry. So, we really want to help our clients when they’re getting started to be able to be more programmatic in everything that they do from getting access to more investors, to onboarding them to a system, making it scalable, being professional.
So, a lot of our customers that started with us, I’ll give you an example. We work with a group called Tri-City Equity. I think they have around 1,200 units now. When they started with us, they had done some JVs across the partnership and they did their very first syndication with Groundbreaker. It was, I think, a 48-unit multifamily value-add deal in El Paso, Texas. And they might have had to raise a million, $1.1 million or so for the deal. And they were able to build out their investor base from 20 friends and family to 80 to 100 investors now, two years later, and they’re doing $15 million deals, they’re doing a deal every quarter.
The portal helped them to be able to make their business more professional. It gave them a place to give their investors access to their deals so they could get in and see their returns and see all their documents and reduce the load on the admin team so they could really focus on performing on the properties. And it also led to a lot of referrals because those investors who are now members of their portfolio were able to refer their friends and that investor base just kept growing and growing.
And so, we like to see groups like that where they go from their first syndication to having a portfolio. And as they’re growing, we’re talking about, hey, can we get you some programmatic equity? Can we help you guys to go into bigger deals, maybe find you KP guarantors from our network and help you in more ways than just being a software provider?
Josh Cantwell: Yeah, fantastic. I’ve talked to a lot of software providers that don’t offer all that stuff that you mentioned. The relationships, the networking, looking specifically at a need and going out and solving it, that’s a big time. Again, value-add that you and Groundbreaker are providing that other softwares, including the one that I use, doesn’t offer. So, we’re going to particularly…
Jake Marmulstein: Yeah. And we have to talk about our investment sales services later, so.
Josh Cantwell: Yeah, for sure, Jake. As soon as I get off the phone, done recording, I’ll give you my cell phone. We could talk next week for sure. But listen, my audience knows I talk in this podcast and webinars and things about what I call the regular recurring multimedia marketing approach. It’s the 2R3M approach, regular recurring multimedia marketing. So, you’re talking about content, you’re talking about podcasts, YouTube channel, blog posts, Facebook lives, Facebook posts, LinkedIn posts, going to meetups, going to Facebook groups, contributing there, physical face-to-face seminars, webinars, and even a physical snail mail newsletter.
And then you got to take all of that and you got to push all that audience somewhere. If you’re pushing them to your cell phone or just say, hey, send me an email, like I’ve tried that, it’s very manual, very tough to scale. I created a software program called Realeflow with my buddy Greg Clement all the way back in 2006 for this exact purpose for residential real estate. Greg bought me out of that business in 2011, but it did everything you just described. It was basically a software program with all the apps and tools for resi and the ability to raise money.
But if you don’t have something like Groundbreaker and you don’t have a way to capture these people, somebody’s interested, look, people hate to be sold, right? Jake, people hate to be sold. What they want is to show interest and then they want to consume information, content, marketing, material, infographics. They want to consume that stuff on their own time. And the best client is a client that convinces themselves to invest in your syndication, not you reaching out, pestering them, calling them, cold calling them, and asking them to invest.
So, I heard a phrase years ago. Marketing is sales in print. And so, all that marketing is great, but where are these people going to go when they make the decision to opt in or raise their hand? So, Jake, why don’t you talk for a second about the set it and forget it of Groundbreaker? Just buying it, doing a demo, guys, go to Groundbreaker.co, schedule a freakin’ demo. And if you’re going to do any kind of syndication in the next two years, sign up for the software, period, that’s all I’m going to tell you. Groundbreaker.co, just do it. Get the demo, get the software.
Then, Jake, why don’t you just elaborate on some of the things I just mentioned about this multimedia marketing approach and allowing the prospects to kind of convince themselves to invest in a syndication and allowing them to drive the boss versus cold calling, reaching out because you kind of look desperate when you’re doing it that way?
Jake Marmulstein: Yeah, there’s some in sales, you have to have so many different touchpoints to be able to close a deal with somebody. And so, I look at it as extending yourself into marketing. You extend yourself, your one-to-one communication with you calling them and talk on the phone into all of your marketing collateral and all the things that you’re doing to touch the prospect so many different times so that when they finally arrive to you, they feel like they know you, they feel like they trust you, they like you, they like the content you’re putting out, and they’re much more likely to invest in anything that you’re doing because you’ve had that chance to nurture the relationship and get across your values, what you’re doing. So, you answer all the easy questions, and then when it comes to bring them on board as an investor, they may be asking you more pointed questions or the very final questions that they have to really address their doubts, as opposed to you having to dig and get to know them and build that trust and confidence so that they’re willing to even ask you those types of questions and show that vulnerability.
So, what Josh is talking about is being able to develop that trust digitally over time so that you can nurture those investors in through your funnel. And then when they do get to the tool like Groundbreaker, we make it really easy, like Amazon one-click checkout.
Josh Cantwell: One-click checkout, reserve your spot. There you go. Fantastic stuff. So, Jake, tell me a little bit more about– so there’s the front-end marketing that we would put out, like this podcast is one version of this multimedia approach. In a talk that I gave about the 9 Traits of Elite Entrepreneurs, one of the traits is that elite entrepreneurs scale what I call the one-to-many concept.
We do one interview, me and Jake. We’re going to touch many hundreds, thousands, tens of thousands of people through this interview. And then people are going to know, like, and trust us and want to do business with us. So, you get that right. Then how does the Groundbreaker help in the follow-up process, the autoresponder, the follow through with an investor because there’s work to get people into a portal and then there’s work to kind of convert them from a prospect to an investor?
Jake Marmulstein: Yeah. So, our software gives the sponsor all the visibility into what their investors are doing. You can see when they access the deal, you can see if they’ve clicked on a button, expressed interest, signed any documents. You can have the ability to see if an investor has even set up their account or filled in their details. So, that kind of helps with any kind of outreach you would want to do.
And then there are these automated notifications that do go out to investors based on actions that they take in the software. And it’s fully customizable for people because there are different groups that use us. Some groups, they don’t like the automation. They don’t want to spam their investors. So, we give them the option to do that if they want to.
And then, we integrate essentially with CRM systems so that if you’re using like HubSpot or Mailchimp or ActiveCampaign or Constant Contact and those are your systems for your lead nurturing campaigns. You can use that and then sync that data with Groundbreaker, have all the data available inside of the system so you know what’s going on but then rely on those best-in-class systems that are going to do high deliverability of email and customized sequences to be able to be that marketing funnel for you.
Josh Cantwell: Yeah, because that email marketing is a little bit of a science unto itself. I’ve sent out probably 200 million permission-based emails in my career, and so, solving that for opens, open rates, clickthrough rates, spam, people that cancel their account, and then you can’t keep mailing them because that’s a negative ding on your deliverability. That’s a little bit of kind of a Chinese puzzle, if you will. It’s a little bit of something that’s hard to solve for. So, you need kind of a marketing guru, but a really good marketing director to understand where your marketing is going.
And so, yeah, using those best-in-class platforms, that’s all they do, is really smart for you guys at Groundbreaker to just integrate that through an API and let it rip. That’s really good. So, Jake, listen, again, I just want to encourage my audience to go Groundbreaker.co. So, David, if you listen to this, you got to schedule up a demo. Jesse, when you listen to this, schedule the demo. Tony, Asia, Dominique, schedule up a demo, okay? Groundbreaker.co.
All right, now, Jake, listen, we know that this is going to give us more professionalism, more credibility, make things easier on investors, which gives us a more likelihood that they’re going to invest of all that. Let’s peel back the onion, though, on the Groundbreaker story. Why did you, as the founder/CEO, build this? From your entrepreneurial journey and the journey of Groundbreaker, I’d love to hear the entrepreneurial journey, and what were some of the early challenges? Because I’ve started lots of businesses, I’ve sold several companies. For you, why did you create this business? And what was the early going like because raising money to have a guy write code is not cheap? I’ve paid that bill before. So, how did you get this thing off the ground? What are some stumbles that you had? And what do you think ultimately is going to be the– this is separate question, what makes you different from an AppFolio or from a SyndicationPro or some of the other programs that are out there? But first, tell us about your story and the start of Groundbreaker.
Jake Marmulstein: All right. So, this is a thank you for all the questions. I’m really enjoying it. And this is my favorite part because being…
Josh Cantwell: Because you get to talk what I talk. We all like to talk…
Jake Marmulstein: We had talked for someone who came from a real estate background with no tech experience. It was a hell of a journey. And I started off really fortunate to be able to find a CTO and we bootstrapped the company together, building it with a Ruby on Rails app with this bootstrap framework, which is basically like a plug-in. And Ruby, you can install these gems. So, we kind of hacked a solution together, got it off the ground, and had customers, and people were paying us large implementation fees and we were funding the software through our customers at the beginning.
And we knew though that we needed to redo the solution, and our CTO kind of ran out of bandwidth. So, I’ve had to buy him out, restructure the company. And I raised money and hired an engineer who I met in Chicago through a recruiting firm to start the new build of software. Here’s where everything went wrong.
We had fresh capital in the bank. We knew what we were building and we ended up recruiting somebody, but I didn’t have enough technical knowledge at the time to really understand what the technologies were that they were using and how difficult or easy it was to implement those technologies. So, long story short, we ran way over budget, over timeline on the new build. And when it came out, it was very, very complex, much worse in complexity than we had imagined in terms of adding on new features, keeping stability.
So, that really hurt us. It was a huge time suck and cost suck. So, we ended up going to market, getting customers on board. And well, we did really well, and what we can continue doing well is focusing on solving the core needs of our client, who is this small operator, small partnership. And it’s grown to being small teams and some middle-market firms that are not institutional but at the institutional level. Our focus on solving those customers’ problems and making the software really easy to use helped us as we went through different areas of the technology and basically rebuilt them while we had customers on board.
And it forced us to be maniacal about resources and our focus. And we had to transition a lot of things through this journey, reset expectations with a lot of people in order to power through it. But we never gave up. We just have been super persistent and just grinding away at growing the platform, making it better and growing the business at the same time. And I’m still thankfully with my head of product, he’s been with me for five years now through all the ups and downs of the business, and it’s helped me to see who the people are at the end of the day after the dust settles that are still there. So, that’s been a rewarding part of the journey.
And I’ve had to learn a lot about technology, so I’ll never commit those mistakes again on the tech side. And I know how important it is to be really, really focused, laser-focused on the customer segment you’re serving because our space is so, so fragmented and complex, and there are so many different needs that real estate operators have depending on how big they are, what kind of investors they serve, so.
Josh Cantwell: Love it. Jake, some of our listening audience might be like, well, you are building the software as you were taking on customers. The software wasn’t done yet, like it wasn’t finished, but you had customers. Weren’t those customers pissed off?
Now, I know the answer because I’ve done this in the resi space with Realeflow. But I would love to hear your take on the relationship that you and your company have to have with customers that allow you to make mistakes to redevelop the software, completely retool it, but have those customers stuck with you? So, talk for a second about that relationship between you and the customer base that allowed you to make pivots, make changes, make optimizations, and probably pissed some people off along the way, some customers along the way that didn’t like some of those, but still retain the vast majority of those customers and actually turn those customers into your biggest advocate that want to help you optimize the software. Tell that story.
Jake Marmulstein: Yeah. So, you know exactly what it’s like. I can tell, it is really tough. And like just with you’re dealing with your investors, it’s the same thing. You have to communicate and be able to be transparent and reset expectations. And everyone wants to know, well, what are you going to do for me? How are you going to make up for it?
So, we just overindexed on customer support. Honestly, we do provide the industry-leading support. Our people are phenomenal. We have the highest customer support ratings. Our customers leave us raving reviews. And it’s because we had to. When the software was falling over, our customer support team was calling investors, like calling your investors, holding their hand, helping them complete tasks, reassuring everything was okay, making sure that the raise got done, making sure that people were able to use the technology or get what they needed no matter what, whether it was through the software or not. And so, that kind of support can get expensive, but it’s been the reason for why people have stayed with us. And it’s one of our differentiators today.
Josh Cantwell: And that customer support is sticky, right? So, once somebody signs up for a software program and they’re paying X amount of dollars a month and they have all their investors in there and their staff finally learns how to use all the features, and then you’re like, as an owner, like for me as a CEO, the last thing I want to do is offload a software and then reteach all my people to reuse it unless I know that the next decision to use the next software is going to make everything that much better.
And so, it becomes like your customer service makes you sticky. It makes you sticky that people will want to stay versus a lot of other softwares, like, oh, they’re not using it, but they’re paying the bill. It’s 500 bucks a month, it’s 200 bucks a month, it’s a thousand bucks a month, whatever it is. So, let’s just leave them alone. They just keep paying versus, hey, let’s reach out to the customer and make sure that the more they adopt it, the more sticky it is, the more longer-term customer we have. Not only is the software company more successful, but so is the customer as well. So, I definitely want to applaud you guys for pushing all your chips in and your customers in that customer service. That’s really great. Last question, Jake. Go ahead.
Jake Marmulstein: And like an example of that was not too long ago, we had a client that was raising capital for a deal and they were doing a ton of marketing and they had all these funnels and everything, just like you were talking about. And they were bringing a lot of people to the portal signing up, and there was no problem at all with the technology, whatsoever, but their investors weren’t investing. And because of our high level of customer service, we started calling their investors for them because they hadn’t even reached out to their investors. They hadn’t even asked them, why aren’t you investing or what issues do you have with the deal. They just thought that the investors would invest if they showed them the opportunity.
And sometimes, that’s the case, if you’ve built enough trust, but in this case, a lot of investors, they didn’t like the deal, they didn’t like the terms, or they just hadn’t gotten around to it or they forgot to do it. And so, we actually closed a few million dollars for that customer.
Josh Cantwell: Oh, that’s great. So, Jake, you’ve already kind of explained this a few times, but in your mind, as the founder, developer, CEO, what truly makes you guys different than a SyndicationPro, an AppFolio? If you had to pinpoint yourself to one or two or three or four things, whatever, that makes you truly different that you say, okay, some of the things are similar, there are certain functions that are absolutely mandatory, we have that, so does everybody else, what makes you guys different?
Jake Marmulstein: Yeah. So, features you can compare head to head and they’re more or less the same, but ease of use and visually clean user interface is something that you guys would notice if you’d look at our tool. I think it is a fantastically beautiful software in the way that it works and functions, and we just really build for the needs of our clients. So, we know the space, we know all the regulations. We can guide people and help them on questions about real estate or securities law.
The caveat that we’re not securities attorneys, but we have somebody who can help you. We have a network of resources. We have a closeness with our customers where we’re helping them and we’re providing value above and beyond just being a software vendor. We’re more like a partner to our clients. And so, we’re doing that by understanding their business, by understanding where they are, by guiding them to resources, by providing with incredible support that really helps them succeed at their business and focus on the only things that they can do, which is finding great deals and meeting new investors and closing capital so that they can be the best. And the other side of this is some of the upsell services that we offer as they scale, which are investment specialist services and access to capital relationships.
Josh Cantwell: Yeah, love it. Fantastic stuff. Jake, listen, again, just want to encourage all of our listeners, especially those guys in my Forever Passive Income Mastermind if a lot of you guys have done deals, you guys have done small deals, you guys have done 30 units, 100 units, 500 units. Look, man, in my opinion, because I’ve done it, it only works with software. I developed it and I’ve logged in and subscribed to other people’s software that make my life easier. People ask me, how do you scale to 4,400 units? How do you do 19 syndications? This that we’re talking about with Jake is an absolute must-do, probably even before everything else. Like if you don’t have a way to recruit capital, you’re going to limp. If you get across the goal line at all and close the deal, you’re going to limp through it versus automating the process and really scaling at a significant level.
So, Jake, listen, thanks so much for carving out some time today for Accelerated Investor for our audience. All of our audience can go to Groundbreaker.co, which is dot co, not dot com, dot co. Go there, schedule a demo, and engage with Jake and his company. Jake, thanks so much for carving out some time today.
Jake Marmulstein: Thank you, Josh. It’s a pleasure.
Josh Cantwell: Well, there you have it, guys. Listen, I really enjoyed that interview with Jake because I’ve built software just like that for the residential space. And I know what it’s like to bootstrap, raising and creating a software. I know what it’s like to bootstrap using customer subscription fees, to add applications, to add benefits and optimizations for those customers. I know what that’s like so I have a lot of respect for what Jake has done.
And now, Jake’s had over 19,000 investors invest through their portal and they’ve helped customers raise over $2 billion. So, I really enjoy hearing his entrepreneurial journey, some of the challenges that he faced in creating the software and then tearing it apart and redeveloping it. I did that a few times, and also, what some of the challenges are for investors right now and how Groundbreaker can help you solve those. So, I really enjoyed that interview.
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And also, listen, I’m in the business of investing in real estate and then teaching that to my mastermind group. Okay, that’s what I do. I invest in real estate with a $300 million portfolio. We’ve done 19 syndications. We’ve raised and deployed $100 million. And I’m in the business of helping other people do what we’ve done. If you want help, go apply. You’ve got to have some skin in the game and you can be part of our Forever Passive Income Mastermind. Go visit us at JoshCantwellCoaching.com. We’ll see you next time. Take care.