In the exciting realm of real estate investing, leveraging private money stands as a cornerstone for achieving success. In the latest episode of the Raising Private Money podcast, Jay Conner and a panel of seasoned guests delve into the dynamics of raising and utilizing private money. The conversation offers invaluable insights and practical advice to both novice and experienced investors. This blog post captures the essence of their discussion, shedding light on strategies, personal journeys, and actionable steps to secure private lenders.
The Power of a Solid Plan
Jay Conner, a master in real estate investing, emphasizes the importance of having a concrete plan when seeking private money. He outlines three fundamental steps to success:
- Writing Down a Plan:
Clearly articulate your goals, strategies, and the milestones you aim to achieve. This written plan acts as your roadmap, ensuring you remain focused and organized.
- Scheduling the Plan:
Allocate specific timelines for each step in your plan. Setting deadlines helps maintain momentum and ensures tasks are completed in a timely manner.
- Executing the Plan:
Taking action is pivotal. Perfect planning means nothing without execution. Conner encourages taking “imperfect action” daily, a concept inspired by Dan Kennedy, to learn and adapt quickly.
Networking: Your Best Tool for Securing Private Money
The episode highlights the significance of networking as a powerful tool for attracting private lenders. Chaffee Thanh-Nguyen, a seasoned real estate investor turned coach, shares his journey from engineering to owning a successful investment portfolio. He emphasizes that networking, whether through presentations, service organizations, or community groups, establishes credibility and trust.
Jay praises Chaffee’s networking prowess, noting that Chaffee has been facilitating networking groups since the mid-2000s. To maximize networking efforts, Conner suggests:
Using the “I Need Your Help” Script:
Engage professionals such as realtors, attorneys, and accountants to spread the word about private lending opportunities.
Reaching Out to Your Warm Market:
Start conversations with people you already know. Banjo Camardelle, a dedicated platinum member, highlights that the warm market often includes real estate investors and community groups who are more likely to trust and invest in your projects.
Inspirational Journeys in Real Estate
The podcast features inspiring stories from successful investors who have harnessed the power of private money to transform their careers. Crystal Baker shares her journey into real estate investing, revealing how it changed her life and allowed her to mentor others in the community.
Crystal recounts a pivotal deal: buying a property for $273,000, spending $67,000 on repairs, and achieving a gross profit of $85,000. This deal was made possible through private money, showcasing the tangible impact of leveraging such funds effectively.
Similarly, Banjo Camardelle, who aims to flip at least one property per month with a profit threshold of $30,000 each, underscores the importance of consistent action and a strategic approach in attracting private lenders. Their stories are a testament to the transformative power of private money in real estate investing.
Strategies for Attracting Private Lenders
Securing private money requires a mix of strategic thought, consistent action, and effective communication. The podcast consolidates several approaches:
Targeting the Expanded Warm Market:
Beyond your immediate connections, look to friends of friends, real estate groups, and community organizations.
Utilizing Private Lender Data Feeds:
Access lists of existing private lenders who actively loan to real estate investors, particularly through self-directed IRA companies.
10 Lessons Discussed in this Episode:
- Secure Your First Deal
Discover effective negotiation tactics and strategies to go under contract quickly. Learn how Jay Conner’s team secured a 1500-square-foot oceanfront condo for $425,000 with an after-repair value of $625,000, leveraging private money for rapid acquisition.
- Consistent Networking
Emphasize the importance of consistent networking within your warm market and expanded network. Engaging frequently with real estate investors, community members, and potential lenders ensures a steady flow of private money.
- Share Success Stories
Use real-life success stories to build credibility and attract new private lenders. Showcasing achieved profits and successful deal closures can serve as compelling evidence for potential investors.
- Utilize Warm Market
Tap into your existing network to find potential private lenders. The fastest way to secure private money is by talking to people you already know and have built trust with, including friends, family, and colleagues.
- Effective Communication
Master various communication scripts, such as the “I need your help” script, to approach prospective private lenders indirectly. Learn how to present your private lending program without appearing desperate or sales.
- Community Engagement
Participate in local business networking groups like Rotary Club and Business Networking International (BNI) to grow your network. Active community engagement increases your exposure to potential private money sources.
- Existing Private Lenders
Identify and connect with existing private lenders who are already familiar with private money lending. This saves time on educating new lenders and allows for quicker negotiations and deal closures.
- Create Urgency
Develop a mindset that prioritizes a sense of urgency in attracting private lenders. Believing in the effectiveness of your program and positioning yourself as an expert can accelerate the process of raising private money.
- Credibility Through Presentations
Establish yourself as an authority in real estate by conducting educational presentations at networking groups and service organizations. Sharing valuable knowledge builds trust and positions you as a go-to expert.
- Structured Planning
Systematically approach private money raising by writing down, scheduling, and executing a detailed plan. Consistent action, as highlighted by Jay Conner, involves taking massive imperfect action daily to achieve success in raising private money.
Fun facts that were revealed in the episode:
- Crystal Baker has achieved an impressive milestone by raising over $4.75 million in private money to fund her real estate investing ventures.
- Banjo Camardelle has established a remarkable track record by consistently flipping at least one property per month, ensuring a minimum profit of $30,000 on each deal.
- Jay Conner and his acquisitionist team secured an incredible deal on a 1500 square feet oceanfront condominium, purchasing it for just $425,000. With an after-repair value of $625,000 and repair costs under $10,000, this deal showcases the power of effective real estate investing.
Timestamps
00:01 – Raising Private Without Asking For It
06:53 – Shifted career from therapist to real estate agent.
13:23 – Join Private Money Academy for a free trial.
17:17 – Warm market and personal connections.
22:41 – Starting a new venture, seeking support, achieving success.
28:58 – Mom became a private lender, now profitable.
33:29 – Consistent communication and networking are key to success.
37:12 – Effort is essential for achieving results.
40:32 – Gaining expertise through presentations and networking.
43:14 – Take imperfect action daily for success.
46:21 – Start fresh, and ask direct and indirect questions.
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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.
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