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Private Money Mastery: Proven Tactics from a Leading Lending Expert
Private Money Mastery: Proven Tactics from a Leading Lending Expert
In the latest episode of the Raising Private Money podcast, Jay Conner joins Dave Wolcott on his Wealth Strategy Secrets of the Ultra Wealthy podcast and shares invaluable insights into wealth-building through private money lending. Jay’s journey from facing financial constraints to securing over $2,000,000 in private funds is both inspiring and instructional for anyone looking to thrive in the volatile world of real estate investments.
The Two Key Mistakes in Real Estate:
Jay Conner’s successful real estate career wasn’t built overnight; it was forged through hard lessons and strategic pivots. He begins by discussing two major mistakes he made early in his real estate journey:
- Lack of Proper Guidance:
Jay Conner emphasizes the importance of having a mentor or guide when starting out in real estate. Without proper advice, he found himself making costly decisions that could have been avoided with the right guidance.
- Overlooking Carrying Costs:
Another crucial mistake was not adequately calculating the carrying costs on rental properties. Overlooking these costs can drain resources and diminish profits, underlining the necessity of detailed financial planning.
Leveraging Tax Strategies and Self-Directed IRAs
Jay delves into sophisticated tax strategies related to self-directed IRAs, which enable private lending while offering substantial tax advantages. Both borrowers and lenders benefit: borrowers get quick, flexible funding, while lenders enjoy significant tax relief. This win-win strategy highlights the innovative ways investors can minimize tax liabilities while accelerating wealth growth.
The Power of Private Money Over Traditional Lending
One of the pivotal moments in Jay’s career came when he lost his bank credit in 2009. This forced him to explore alternative funding options, which led him to the world of private money lending. Jay contrasts private money with traditional bank loans, emphasizing several advantages:
Control and Flexibility:
Unlike banks, private money lending allows you to set your own terms, avoiding rigid requirements.
No Down Payment Deals:
Private money deals often do not require down payments, making it easier to secure properties.
Quick Closings:
Speed is crucial in real estate, and private lenders can close deals much faster than traditional financial institutions.
No Origination Fees:
Banks often charge hefty fees, which are absent in private deals.
Productive Habits that Drive Success
The Rule of 5:
Prioritize five key activities that align with your goals, ensuring you stay focused daily.
Scheduling Success:
Jay advocates for scheduling critical tasks and activities, making sure they are non-negotiable aspects of your calendar.
Success Nuggets and Strategies
Secure Deals with Private Money:
Jay’s method involves securing properties using private money and providing significant protections to lenders, such as collateralizing the notes and naming them as mortgagees on insurance policies.
Diverse Uses of Private Money:
Funds can be utilized for purchases, refinancing, and renovations, providing a versatile financial tool.
No Limits on Borrowing:
There’s no cap on the amount of private money you can borrow or the number of lenders you can work with, allowing infinite potential for scaling your business.
Thriving in Smaller Markets:
Jay’s success in Carteret County and Craven County suggests that smaller markets can yield high returns without the intense competition of larger cities.
Learning from Two Decades of Real Estate Experience
Jay’s two-decade-long journey offers multiple lessons:
Networking:
Building a robust network of private lenders is foundational to securing consistent funding.
Adaptability:
Be prepared to pivot and find alternative solutions when traditional methods fail.
Mentorship and Education:
Continuous learning and guidance from seasoned mentors are invaluable.
Conclusion
Jay Conner’s experience and expertise in private money lending reveal that even setbacks can open doors to groundbreaking opportunities. His pragmatic advice—from learning from mistakes, leveraging tax strategies, adopting productive habits, and offering valuable resources—provides a comprehensive roadmap for thriving in real estate investments. Whether you’re a novice or a seasoned investor, integrating Jay’s strategies can propel you toward financial freedom and success in the real estate market.
No More Desperate Pitching:
“What do I do? Well, I put on my teacher hat. I teach people how they could earn high rates of returns safely and securely without pitching any kind of a deal.” – Jay Conner
10 Questions Answered in this Episode:
- Initial Challenges and Lessons:
Jay Conner mentions his lack of proper guidance and failure to calculate carrying costs as key mistakes. How can new real estate investors avoid these pitfalls?
- Tax Strategies:
How do self-directed IRAs provide tax advantages for both private lenders and borrowers in real estate transactions?
- Advantages of Private Money:
What are the main benefits of using private money over traditional lending methods as demonstrated by Jay Conner?
- Productivity Hacks:
Jay Conner advocates for the rule of 5 and scheduling successes. How can these productivity strategies be applied outside of real estate investing?
- Educational Resources:
What are the key takeaways from Jay Conner’s book “Where to Get the Money Now,” and how can it help real estate investors?
- Pivoting During Financial Crisis:
How did Jay Conner’s experiences during the 2009 financial crisis shape his approach to securing funds for real estate deals?
- Building a Network:
Why is networking considered crucial in private money lending and real estate investing, according to Jay Conner?
- Loan Terms:
How does Jay Conner structure loan terms to benefit lenders, particularly with 8% interest secured with a deed of trust and 10% for second-position funds?
- Protecting Lenders:
What measures does Jay Conner take to ensure the security of his private lenders, and how effective are these measures?
- Market Adaptability:
With low inventory in the flip market, how does Jay Conner adapt his strategies for real estate investing in different market conditions?
Fun facts that were revealed in the episode:
- Jay Conner has impressively never missed a real estate deal due to a lack of funding since he pivoted to private money lending in 2009.
- As a testament to his successful strategies, Jay currently has $1.5 million from private lenders readily available and waiting to be deployed into new deals.
- Generously, Jay offers his book “Where to Get the Money Now” for free to podcast listeners, asking only for shipping costs, to help others learn how to secure funding for their real estate ventures without relying on traditional lenders.
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
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