Investing in real estate can be an avenue toward financial freedom, yet many find it challenging to break the barrier of funding to initiate or scale their endeavors.
Enter the world of Private Money — a realm where opportunities abound for those who understand its dynamics. Jay Conner, an acclaimed real estate investor, and national speaker, sheds light on this topic as he joins Keith Borie on The Wealth Flow Podcast.
Jay, who excels in raising capital independently, brings insights into his transition from traditional bank loans to Private Money during the 2009 financial crisis. His story serves as a testament to the empowering nature of self-directed funding.
Adopting the Right Mindset
The cornerstone of success in private financing, according to Jay, is a mindset. ‘You can’t own real estate until you own the real estate between your ears,’ he advises, emphasizing the importance of confidence and education in the field. For many real estate investors, the mental shift from seeking loans to offering secure, profitable opportunities to private lenders is a game-changer.
The Private Money Blueprint
In a refreshing departure from bank loans’ stringent criteria, Private Money flips the script. Investors craft their lending programs, dictating mutually beneficial terms. Interested individuals can achieve high returns with security, by tapping into investment capital or retirement funds via self-directed IRAs. This approach not only democratizes real estate investment but also fosters passive income streams for lenders.
Education and Networking: Building Your Investor Pool
Education is paramount in expanding one’s pool of private lenders. Jay practices this by conducting luncheons and informational sessions, casting himself in the role of a teacher rather than a deal-pitcher. This strategy has enabled him to develop a network of 47 private lenders, each previously unaware of the potential of Private Money.
The Mastermind Approach to Real Estate Investment
Jay Conner advocates for joining mastermind groups and seeking mentorship as essential steps toward mastering real estate investment. The collective wisdom and support from experienced members can significantly shorten the learning curve and increase the probability of success.
Commendation for ‘The Go-Giver’
Additionally, Jay looks to literature for inspiration, recommending “The Go-Giver” as an impactful book that resonates with his philosophy on providing value and building relationships in business.
Harnessing the Power of Self-Directed IRAs
One of Jay’s key strategies involves leveraging self-directed IRA companies for real estate deals. QuestTrust, a company based in Houston, Texas, earns praise for exceptional customer service and quick deal funding. Through teaching others about the use of self-directed IRAs for investment, Conner fosters a cycle of education and empowerment.
A Formula for Ongoing Success
Jay’s system does not rest solely on initial education, but on nurturing long-term relationships with private lenders. This involves protecting their interests with agreements that ensure flexibility and security, like loan modifications and collateral substitutions. Such considerations cement trust and underline the imperative of looking after one’s investors.
In the quest to harness Private Money for real estate investments, this episode provides vital cues for navigating the process successfully. Whether you’re an up-and-coming investor or seasoned in the field, considering private funding as part of your investment strategy may well be the pivot toward accelerated wealth and financial autonomy. With wisdom from industry experts like Jay Conner, stepping into the realm of real estate through the power of Private Money seems not only possible but promising.
Protecting Private Lenders in Real Estate:
“So, really, the responsibility is on us to protect and look after our private lenders, because, after all, we’re not looking for a short-term relationship. We’re looking for a very long-term relationship.” – Jay Conner
10 Questions Answered From This Episode:
- Can you provide a brief overview of the differences between investing in single-family housing versus commercial real estate, as discussed by Jay Conner?
- Jay Conner places significant emphasis on having a mentor or joining a mastermind group when starting in real estate investing. Why does he believe this is crucial for success?
- Jay Conner recommends “The Go-Giver” as an impactful book. How does its message align with Jay’s approach to real estate investing, according to the episode?
- What are some key insights Jay provides about real estate investing and private funding on his podcast “Raising Private Money”?
- Jay Conner talks about the advantages of using a self-directed IRA for real estate deals. Can you explain how this works and why it’s beneficial for private lenders?
- In the discussion, Jay mentions having 47 private lenders invested in his deals. What strategies does he use to build trust and maintain long-term relationships with his lenders?
- How does Jay Conner approach the educational aspect of private lending to ensure potential private lenders are well-informed before deciding to invest?
- In the episode, Keith Borie and Jay Conner discuss the 90-day option to call the note on private funds. What are some misconceptions about Private Money that this feature might dispel?
- How does Jay Conner tailor the payment frequency for private lenders to maximize benefits for all parties involved in a real estate deal?
- Jay talks about his method of educating people on Private Money, including private lender luncheons. How important is face-to-face interaction in raising private funds, and what are some key points he makes during these luncheons?
Fun Facts:
One fun fact is that Jay Conner automated his real estate investment business and astonishingly raised $2,150,000 in Private Money after losing his bank funding.
Another is that he has built a network of 47 private lenders who invest in his deals.
Lastly, Jay Conner teaches people about Private Money and real estate investment through unique methods like hosting private lender luncheons.
Timestamps:
00:01 – Accelerate wealth growth through passive real asset investing.
06:03 – Funding for real estate deals suddenly cut.
08:56 – Teaching private lending, not asking for it.
10:01 – Teach, share, and raise money for investments.
14:02 – Private lending offers easy, passive real estate investment.
18:31 – Build referral relationships to secure funding success.
23:06 – Private lenders have a 90-day call option.
26:45 – Key to raising private funds: mental preparation.
27:30 – Private lenders’ impact on retiring individuals discussed.
31:32 – Private lenders choose payment frequency; flexibility key.
36:21 – Finding private lenders through networks and coaching.
37:18 – Existing private lenders are individuals loaning money.
41:55 – Commercial real estate takes longer for payout.
44:27 – Commercial market shaky, property values fluctuate.
47:05 – Get a mentor or coach for success.
Private Money Academy Conference:
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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
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