***Guest Appearance
Credits to:
https://www.youtube.com/@clarkstcapital/
“Overcoming The 5 Roadblocks Holding You Back With Private Lending”
https://www.youtube.com/watch?v=scBB0I89ons&t=894s
In this riveting episode of Raising Private Money podcast, Jay Conner joins Ed Mathews on his Real Estate Underground Podcast where Jay dives deep into overcoming barriers in real estate investing, from sourcing distressed properties to managing investment funds and finding deals in smaller markets!
Below, we delve further into the strategies and philosophies Jay Conner has perfected over his long and successful career.
Yard Sales: The Secret Source for Hot Deals
Jay Conner shares a surprisingly effective technique for finding distressed properties before they can be listed by realtors: yard, garage, and moving sales. He advises investors to look in local newspapers or on the Facebook marketplace for yard sale groups. By contacting property owners holding these sales, you could potentially buy distressed properties before they hit the market. These are typically homeowners gearing up for a big move and looking to offload their possessions, translating into motivated sellers eager to make quick deals.
The Magic of Human Connection
Establishing rapport with potential sellers is crucial. Building trust and discovering their motivations can facilitate better deals. By asking open-ended questions, investors can understand the seller’s urgency and needs, allowing for a more tailored negotiation and, ideally, a win-win scenario.
Transitioning from Bank Loans to Private Money
One of the main hurdles for new real estate investors is funding. Jay Conner’s transition from relying on bank loans to harnessing private money is an enlightening story.
After losing his lines of credit during the 2009 financial crisis, Jay turned to private money and self-directed IRAs. He successfully raised millions by teaching his local community about the potential of earning high returns safely and securely, without ever directly asking for money.
Becoming a Private Money Maven
Educating people about interest rates, protection guarantees, and the process of getting their money back is key. This approach not only secures funds but also establishes credibility and trust.
Jay highlights the strategy of making “good news calls,” where he informs potential lenders about a lucrative investment opportunity without asking for money—just presenting an opportunity they’ve been waiting for. This proactive and educational approach keeps private lenders engaged and eager to participate.
Excelling in Small Markets
Jay Conner’s success is proof that significant profits are achievable even in small markets. Based in a tiny North Carolina town with a population of just 8,000, Jay averages $82,000 in profit per deal. His strategy revolves around knowing the market well, leveraging both free and paid marketing methods, and networking rigorously.
Why Small Markets Can Be Goldmines
Small markets often present less competition, allowing diligent and knowledgeable investors to dominate. Investing in high-demand areas with growing populations albeit smaller populations can offer lucrative opportunities with less stress from cutthroat competitors.
Importance of Customer Relationship Management (CRM)
Effective lead management is crucial for scaling any real estate business. Jay Conner underscores the importance of using a Customer Relationship Management (CRM) system to organize and track leads.
A CRM helps in maintaining constant communication with potential sellers and private lenders, ensuring no opportunity slips through the cracks. It’s an essential tool for managing multiple deals and nurturing relationships over time.
The Power of Mindset and Mastermind Groups
Jay firmly believes that mindset plays a critical role in real estate success. Adopting a mindset of teaching and solving problems rather than merely transacting can alter the trajectory of one’s business positively.
Another cornerstone of Jay’s approach is being a part of mastermind groups. Collaborating with like-minded individuals can offer invaluable support, new perspectives, and solutions to challenges that might seem insurmountable alone.
Final Thoughts: A 3D Approach to Success
Jay Conner’s definition of success is encapsulated in his “3D concept”: Dictate, Delegate, and Disappear. By doing what you love and outsourcing the rest, you avoid making your business another job.
Real estate investing is a multifaceted field with numerous roadblocks. Yet, with Jay Conner’s proven strategies and mindset, overcoming these barriers becomes not only possible but highly rewarding. Whether you’re sourcing properties, raising private money, or excelling in small markets, Jay’s insights offer invaluable guidance for every real estate enthusiast.
10 Lessons Learned in this Episode:
- Identifying Potential Sellers
Seek out yard, moving, or garage sales using local newspapers and Facebook Marketplace. Contact owners before they list with realtors.
- Effective Marketing Tools
Utilize Facebook ads and Google pay-per-lead services to attract qualified leads from those actively looking to sell their homes.
- Building Buyer-Seller Relationships
Establish and nurture trust by asking open-ended questions to gauge the sellers’ motivations and tailor your approach accordingly.
- Efficient Lead Management
Leverage customer relationship management (CRM) software to keep your leads organized and ensure no potential opportunities are missed.
- Making Offers
Regardless of the seller’s asking price, always make an offer. The worst response you can receive is “no,” but you open doors to negotiation.
- Terms-Based Acquisitions
Consider acquiring properties subject to the existing mortgage and selling them on similar terms if they don’t require major rehabilitation.
- Preparing for Unexpected Costs
Include a “Murphy factor” in your rehab budgets to cover unforeseen expenses, ensuring your project remains financially viable.
- Educating on Private Money
Put on your “teacher hat” to educate local community members on earning high returns safely via private money and self-directed IRAs.
- Service-Oriented Investment Approach
Prioritize serving and educating potential investors, steering clear of chasing or pressuring them into investing. Provide value first.
- Defining Real Success
Aim to be a 3D person by dictating, delegating, and disappearing. Focus on doing what you love and outsourcing the rest to avoid turning your business into just another job.
Fun facts that were revealed in the episode:
- Unique Lead Source:
Jay Conner recommends targeting properties of owners who are having a yard, moving, or garage sales. Many of these owners are preparing to move, offering a timely opportunity before they list with a realtor.
- Music and Creativity:
Outside of real estate, Jay Conner and his wife enjoy writing music and playing the piano, especially creating songs for their church and performing live events on Facebook during the COVID pandemic.
- Private Money Strategy:
Jay Conner successfully raised over $1,000,000 in 90 days without directly asking anyone for money. He educated potential lenders on earning high returns safely, which led them to pursue investment opportunities with him.
Timestamps:
00:01 – Raising Private Money Without Asking For It
03:26 – Profiting From Small-Area Real Estate Investing.
07:30 – Introduce IRA Company, Secure Funding via call.
10:57 – Conversation about private money investment certainty and return.
15:20 – Create urgency in pre-sale through limited access.
16:49 – Tracking foreclosures, buying from owners, free lead methods.
20:57 – Facebook ad campaign generates 15 leads per house.
24:06 – Identify hot spots, and softening difficulties in conversations.
28:31 – Realtor emphasizes speed, fair payment, and preparation.
30:59 – Buying a book is a valuable exchange.
35:19 – Success means being a 3D person – dictate, delegate, disappear
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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