In the latest episode of “Raising Private Money,” host Jay Conner brings on Chris Larsen, a financial strategist who, with over two decades of real estate experience, has impressively raised more than $115 million in private money. Larsen, who began his investment journey at the age of 21, shares invaluable insights on how he transitioned from biomechanical engineering and finance to becoming a private lending and real estate investment authority. Here’s a comprehensive look into the key points discussed in this enlightening episode.
From Biomechanical Engineering to Real Estate Maverick
Chris Larsen’s journey into real estate started when he was a young college student juggling degrees in biomechanical engineering and finance at Virginia Tech. His first real estate venture was acquiring a single-family rental property. Despite the heavy academic workload, he demonstrated a knack for recognizing and seizing investment opportunities early on—a skill that would catapult him into various lucrative endeavors over the next 20 years.
The Power of Private Money
Jay Conner introduces Larsen as someone who has successfully raised over $115 million in private money. Chris’s success is anchored in his philosophy of building trust and mutual benefit. As Jay underscores, the challenge isn’t in asking for money but in offering a valuable investment opportunity. Chris emphasizes the importance of shifting the mindset from one of begging or persuading to one of teaching and offering, which is crucial for any budding real estate investor.
Understanding Your Network and Raising Capital
One of the recurrent themes in this episode is the significance of leveraging your existing network. According to Chris, the first step in raising private money is identifying people who might be interested and have the capacity to invest. He advises creating a list that includes the names, phone numbers, and emails of these potential investors.
He shares anecdotes from his sales career, notably his time selling knives and later medical devices, to illustrate how crucial it is to build relationships and understand the needs and goals of your prospective investors. By doing so, you’re more likely to offer them opportunities that align with their financial objectives.
Infinite Banking: A Game-Changer
Chris introduces the concept of Infinite Banking, which he describes as a specialized whole life insurance contract. He shares personal anecdotes and professional tips on how this strategy can serve as an investment tool rather than merely a protective asset. By storing funds in a whole life insurance policy, investors can earn a guaranteed return and simultaneously leverage this cash value for other investments, maximizing their earning potential.
Diversifying Beyond Real Estate: The Case for Cash Flow Businesses
While real estate forms the cornerstone of Chris’s portfolio, he is also a strong proponent of diversifying into cash-flow businesses like car washes. Owning a portfolio of operational businesses not only provides a steady income but also offers opportunities for significant appreciation. Larsen explains that car washes, which bear similarities to real estate in terms of income generation and value addition, can yield substantial returns, especially when scaled.
Conclusion
Chris Larsen’s journey from a young investor to a successful entrepreneur and real estate expert offers invaluable lessons for anyone interested in raising private money and expanding their investment portfolio. His emphasis on mindset transformation, relationship-building, and diversification provides a comprehensive roadmap for financial success.
10 Lessons Covered in this Episode:
- Introduction to Guest’s Experience
Chris Larsen has raised over $115 million in private money with over 20 years of real estate expertise.
- Initial Real Estate Ventures
Started real estate investing at 21, purchasing his first single-family rental while studying engineering and finance.
- Commitment to No Regrets
A close friend’s death catalyzed his mission to live without regrets, emphasizing the need for financial independence.
- First Investment Steps
Shifted from day trading in the stock market to real estate investing for sustainable, long-term financial freedom.
- Simultaneous Careers and Education
Balancing multiple jobs, Larsen completed an MBA, funded his ventures, and secured a real estate license.
- Medical Device Sales Impact
Transitioned to medical device sales for high earnings, inspired by Kiyosaki to become an accredited investor.
- Raising Private Money Basics
Begin with a list of potential investors, contacting them through phone calls, lunches, and personalized conversations.
- Leveraging Personal Network
Engage long-time contacts to discuss real estate opportunities, leveraging existing relationships for raising capital.
- Teaching, Not Pitching
Educate potential investors about private lending opportunities, distinguishing them from begging for money by providing value.
- Understanding Infinite Banking
Utilize specialized insurance contracts for storing capital between deals, maximizing returns while maintaining liquidity.
Fun facts that were revealed in the episode:
- Chris Larsen began racing bicycles at the age of 14 and remained passionate about the sport, even using it as a therapeutic outlet following the tragic death of his best friend.
- Chris made a significant career pivot from biomechanical engineering and finance to real estate investing after realizing that day trading was too stressful and did not provide the financial freedom he sought.
- Jay Conner and his wife Carol Joy have successfully raised capital from 47 private lenders without ever directly asking for money; instead, they focused on educating potential lenders and creating investment opportunities.
Timestamps:
00:01 – Raising Private Money Without Asking For It
06:25 – Financial struggle leads to lucrative medical device sales.
09:56 – Use social media, smile, and have a prospects list.
12:50 – Private lenders learn about private lending through experience.
16:12 – Explore goals, understand challenges, and provide solutions.
19:29 – Infinite banking concept links insurance and investing.
21:20 – Owning a home and whole life insurance.
23:00 – Connect with Chris Larsen: https://www.NextLevelIncome.com
24:31 – Investing in car washes increases total portfolio value.
27:44 – Jay Conner’s Free Money Guide: https://www.JayConner.com/MoneyGuide
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