*** Guest Appearance
Credits to:
https://www.youtube.com/@janebayler
“How To Raise Private Finance Without Ever Asking For Money – With Jay Conner”
https://www.youtube.com/watch?v=CYU_Y9Ff7fE&t=99s
In the fast-paced and competitive world of real estate, having adequate financing is a game-changer. In our latest podcast episode of Raising Private Money with Jay Conner, we delve deep into the myriad strategies for raising private money without ever having to ask for it.
The Journey from Traditional Financing to Private Money
Jay Conner’s journey is one of transformation and adaptation. Growing up in the housing business, Jay initially focused on mobile homes before transitioning to flipping single-family houses. The real game-changer came in 2009 when the global financial crisis led him to lose access to traditional bank funding. This twist of fate pushed Jay to explore the untapped potential of private money and self-directed IRAs. Remarkably, within just 90 days, Jay raised over $2,150,000 in private finance without directly soliciting it, laying the foundation for his innovative fundraising strategy.
The Importance of Being Financially Prepared
One critical insight that Jay emphasizes is the importance of having money ready to make offers on properties. He criticizes the overly optimistic advice from some real estate gurus who suggest getting a deal under contract first and expecting the money to show up later. Jay’s proactive approach involves securing finance upfront, ensuring swift transactions, and maximizing opportunities in the competitive real estate market.
The Role of Networking: From BNI to Community Involvement
Jay’s strategy for raising private finance transcends traditional methods. He highlights the role of Business Network International (BNI), a networking group designed to foster connections and lead sharing among professionals. BNI’s structure, which allows only one member per category, helps streamline connections and build trust. Participating in weekly meetings and one-on-one sessions provides invaluable insights into other members’ businesses and clients. By leveraging BNI, Jay has successfully networked for real estate deals and private lending opportunities.
Beyond BNI, Jay stresses the importance of expanding one’s network by engaging with the community. Potential private lenders often belong to three main categories: those who know you, those who know someone you know, and those who may become clients through networking. Investing time in community involvement and nurturing these relationships can yield fruitful connections and opportunities for securing private financing.
Educating Potential Private Lenders: A Key Element to Success
Negotiation is a typical part of securing financing, yet Jay offers a refreshing alternative by focusing on education over negotiation. Prospective private lenders often lack understanding of private money or self-directed IRAs. Jay explains that by educating these individuals about his private lending program and the security it offers, he mitigates the need for negotiations. This approach builds confidence and trust among lenders, making them more comfortable and willing to invest.
One of Jay’s notable strategies involves offering promissory notes backed by mortgage or deeds of trust, ensuring the property serves as collateral. Maintaining a conservative loan-to-value ratio of 75% further protects the lender, creating a secure and appealing investment prospect.
Marketing Strategies: Direct Outreach to Property Owners
Finding profitable real estate deals is inherently challenging, and Jay’s marketing approach is designed to maximize success. Rather than relying solely on listings, Jay focuses on direct outreach to property owners. This proactive approach can uncover opportunities that might otherwise be overlooked, providing an edge in the competitive real estate market.
The Servant’s Heart Approach to Fundraising
Central to Jay’s philosophy is the “servant’s heart” mindset, which he advocates for in fundraising. By approaching potential lenders with genuine intent to offer them beneficial investment opportunities, rather than simply seeking funds, Jay eradicates the fear of rejection. This strategy not only enhances the likelihood of securing finance but also builds robust, trusting relationships.
Real-Life Impact: The Benefits of Private Lending
Jay’s innovative private lending strategies have had a significant impact on ordinary individuals. Many who had no prior knowledge of private money or self-directed IRAs have become successful private lenders, benefiting from high rates of return on secure investments.
10 Questions Covered in this Episode:
- Jay Conner emphasizes the importance of having funds ready before making property offers. How does this strategy compare to the approach of securing deals first and then finding funding? What are the pros and cons of each method?
- In the episode, Jay Conner talks about teaching potential investors his program to instill confidence. What methods can be used to effectively educate potential private lenders?
- The podcast discusses the role of Business Network International (BNI) in connecting with private lenders. What are the key benefits and potential drawbacks of using a networking group like BNI for raising private finance?
- Jay Conner criticizes the advice of some real estate gurus who advocate getting a deal under contract and then finding the money. What are the potential risks and benefits of this approach?
- Jane Bayler highlights the high cost of real estate in the UK due to overpopulation and lack of housing stock. How should real estate investors adapt their strategies in such high-demand markets?
- Jay Conner mentions three categories of individuals who can be potential private lenders. What criteria should investors use to identify and approach these individuals effectively?
- The episode touches on the concept of using promissory notes backed by a mortgage or deed of trust to protect private lenders. How do these instruments work, and why are they important for establishing trust?
- Jay Conner shares his experience of raising over $2 million in less than 90 days without directly asking for money. What lessons can real estate investors learn from this approach to fundraising?
- The narrator emphasizes the importance of mindset in fundraising, advocating for a servant’s heart and eradicating the fear of rejection. How can adopting this mindset impact an investor’s success in raising private finance?
- Jay Conner discusses the challenge of finding profitable real estate deals and shares his marketing strategies, focusing on direct outreach rather than relying solely on listings. What alternative marketing strategies could help investors find lucrative real estate opportunities?
Fun facts that were revealed in the episode:
- In an impressive feat, Jay Conner managed to raise $2,150,000 in less than 90 days without ever directly asking for the money, showcasing his innovative approach to private financing.
- Jay now collaborates with 47 private lenders for his real estate deals, and remarkably, none of them had any prior knowledge or experience with private money or self-directed IRAs before working with him.
- The episode highlights that real estate in the UK is particularly expensive, driven by factors such as overpopulation and a significant shortage of available housing stock, making it a competitive environment for investors.
Timestamps:
00:01 – Raising Private Money Without Asking For It
05:42 – My Biggest Blessing In Disguise
12:14 – Seeking deals and funding directly from owners.
16:19 – Earn high returns safely and avoid the stock market.
20:09 – Funding real estate with creative methods
23:05 – Private lenders: Your Network Has A Direct Correlation With Your Net Worth
27:11 – Property networking groups educate investors, and limit networking.
29:07 – Private lenders seek specific returns, unfamiliar with private lending.
34:17 – Approach real estate as a serious business.
37:48 – Private money for real estate investment principles.
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
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