Ever wonder why landowners don’t list their properties themselves?
Dan Haberkost & Jay Conner reflect on this, affirming one lesson: Never second-guess people’s choices. There’s profit in understanding different perspectives.
In the world of real estate investing, having access to capital is as crucial as identifying the right property. Jay Conner, an authority on private lending, recently shared invaluable insights on his podcast, ‘Raising Private Money,’ featuring an interview with Dan Haberkost, who has raised over $2 million in private funds and left his traditional job by the age of 23 to pursue real estate investing full time.
The Genesis of a Real Estate Mogul
At 16, Dan Haberkost was already managing a farm and rental properties, dealing with tenant issues, and learning the harsh realities of running older real estate. This early foray into property management taught him the types of real estate he didn’t want to own. By 21, he purchased his first duplex and soon relocated to Colorado to expand his portfolio, quickly realizing the significance of having financial backing for investing.
Front Range Land: A Model of Arbitrage
Dan Haberkost detailed his venture, Front Range Land, which focuses on buying land at a discount and then reselling it, mostly through direct marketing efforts. He emphasized the distinction between his active business, which is not investing per se but a means to an end—an arbitrage business aimed at generating funds for further investment into his preferred buy-and-hold asset classes.
Understanding the Investor Mindset
Dan Haberkost advises new investors against short-term thinking. Plans like hosting a real estate group might not pay off immediately, but they establish credibility and authority, attracting long-term business connections. He stresses maintaining a solid reputation and ensuring lenders are always made whole, even if it results in personal loss.
Raising Private Money: A Balancing Act
While Sean advocates securing deals before having all the funds lined up, given the abundance of investment-ready cash, Jay Conner takes a more cautious approach, advising to secure funds first. Both agree that educating potential lenders on Private Money and self-directed IRAs is paramount, stressing that teaching and leading with a servant’s heart can build trust and open funding pathways.
Land Investing: Inefficiency Equals Opportunity
Investing in land can be more efficient due to its market inefficiency. Unlike residential properties or multifamily units, land is often mispriced and not well understood, allowing for profitable arbitrage opportunities. Dan Haberkost uses direct marketing to reach landowners, capitalizing on their apathy rather than distress, and selling the property for a profit on the multiple listing service.
Looking ahead, Dan Haberkost and his partner have launched GroundUp Partners, offering capital for land deals in response to limited lending options for this asset class. They’re now raising funds to grow this endeavor, showcasing Dant’s keen insight into realizing where the demand lies and fulfilling it to shape his real estate future.
Investing in Long-Term Success:
“It’s always hard to make the investments into something like hosting a real estate group, whether it’s time or money, … but down the road, you’re gonna be really glad you did them.” – Dan Haberkost
Visit https://www.JayConner.com for more information on Private Money benefits in real estate, and keep an eye out for future enlightening episodes from Jay Conner, dedicated to helping real estate investors climb to new heights through strategic private funding.
Questions discussed in this episode:
- What specific types of land does Dan focus on for simple subdivision, and how does the resale process work through multiple listing services?
- Based on Dan’s experience, why might some landowners choose not to list their properties themselves, and how does this create opportunities for land investors?
- Discuss the contrast between Dan’s advice on securing deals before having money lined up and Jay Conner’s approach of lining up funds first. Which do you think is more effective for new investors?
- How important do you think education and teaching potential lenders about private money and self-directed IRAs are to raising private capital?
- What strategies does Dan employ to build trust and maintain a good reputation among private money lenders?
Fun Facts:
- Dan began his journey into real estate at just 16 years old, managing a farm and rental properties, which taught him about the kind of real estate he did NOT want to own.
- In his direct marketing endeavors, Dan enjoys focusing on legitimacy and the ability to close, as this is a major concern for land sellers who have often had their time wasted by others who couldn’t follow through with a deal.
- Dan and a friend have recently launched GroundUp Partners, providing capital for land deals due to the scarce lending options for land, showing his innovative approach to identifying and solving industry problems.
Timestamps
0:01 – Raising Private Money Without Asking For It
5:16 – Started helping a developer, now owns a company.
9:41 – Investing in new opportunities pays off later.
13:45 – Struggles with finding money for educational deals.
17:09 – Owning rental properties gives a passive income stream.
18:28 – Real estate investing, efficiency, and business strategies.
22:26 – Simple infill lots, specific areas, acreage subdivides.
25:13 – Teaching acquisition managers about new construction essentials.
27:47 – Connect with Dan Haberkost: https://www.DanHaberkost.com
28:20 – Land financing challenges lead to business opportunities.
31:27 – Jay Conner’s Free Money Guide: https://www.JayConner.com/MoneyGuide
Private Money Academy Conference:
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book: Where to Get The Money Now?
It is available FREE (all you pay is the shipping and handling) at
https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
https://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. He maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal without using his money or credit.
What is Real Estate Investing? Live Private Money Academy Conference
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcasts:
Facebook:
https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
Listen to our Podcast:
Comments