Raising private money without the need to ask for it directly is a skill that not many possess. However, Chris Linger, a seasoned real estate investor and accredited investor, has mastered this art. As a general partner in nine apartment syndications, encompassing over 1,750 apartments valued at $270M, Chris has a wealth of knowledge to share. In a recent enlightening conversation with Jay Conner on the Raising Private Money” podcast, Chris detailed his journey and provided invaluable insights into real estate investing, raising private funds, and scaling one’s business.
From Humble Beginnings to Investing Powerhouse
Like many successful investors, Chris Linger began his venture into real estate with modest beginnings. While serving in the military, he faced a dilemma that many in the armed forces encounter—frequent relocations. Chris’s journey began in Pensacola, Florida, where he was unable to sell his home during a move in 2007. This necessitated renting out the property, unknowingly planting the seeds of his future real estate empire.
The Power of Partnership
Chris attributes much of his accelerated growth in real estate to his partnership with his wife Maricela. When they met in 2017, they discovered a mutual interest and synergy in real estate investing. By pooling their resources, Chris and Maricela began purchasing properties, starting with small quadplexes and gradually scaling up. This partnership was not just limited to pooling financial resources but extended to strategic decision-making and support, allowing them to take more calculated risks and bigger steps toward their goals.
The Shift to Raising Private Money
Their foray into raising private money began out of necessity when a lucrative opportunity arose unexpectedly. With funds tied up in another project, Chris and Maricela turned to individuals who had shown interest in investing with them. Instead of approaching institutional lenders—which could be time-consuming—they offered their potential investors short-term loans to fund their project. This approach not only sped up the process but also laid the foundation for future private money-raising endeavors.
The Benefits of Private Money
One of the significant advantages of private money, as highlighted by Chris, is speed. Real estate transactions, especially those involving wholesalers, often require swift action. Private money allows for rapid closings, enabling investors to seize time-sensitive opportunities. Chris also pointed out the value of teaching potential investors about private money, including the use of self-directed IRAs for tax-advantaged returns—an approach that aligns well with Jay Conner’s philosophy of educating rather than pitching.
Scaling Up: Beyond One-on-One Conversations
To scale beyond one-on-one interactions and raise over $20 million in less than four years, Chris leveraged various platforms. Networking at events, attending webinars, participating in podcasts, and maintaining a strong social media presence played significant roles. By consistently sharing their successes and educational content, Chris and Maricela built credibility and attracted a larger pool of investors.
Lessons Learned and Avoiding Pitfalls
Through their journey, Chris and Maricela have learned valuable lessons, some from costly mistakes. One major lesson was the importance of maintaining control of investment opportunities. While initially partnering with others for asset management, they realized the importance of direct oversight to ensure optimal property management and investment performance. Additionally, as lenders themselves, they learned to structure longer-term notes with interest rate increases to mitigate the opportunity costs of tying up capital for extended periods.
Diversifying Through Business Coaching
Beyond real estate, Chris and Maricela are elite business coaches affiliated with Grant Cardone’s 10x community. They coach entrepreneurs on growing their businesses and creating passive income streams. By offering services including business boot camps, sales, and marketing training, they help others achieve accelerated success. This coaching program not only provides an additional revenue stream but also strengthens their network, further supporting their real estate ventures.
Up-Plex: Elevating Real Estate and Business
Chris and Maricela’s company, Up-Plex, embodies their mission to elevate others through real estate investing. Up-Plex offers opportunities for passive investors to benefit from Chris and Maricela’s extensive experience and success in multifamily investments. The company focuses not just on financial returns but also on improving properties and tenant experiences.
Key Questions for New Investors
For those new to passive investing, Chris advises asking key questions before committing to a syndication. Understanding the experience of the syndicators, reviewing past performance, asking for referrals, and ensuring transparent communication are crucial steps. These questions help potential investors gauge the reliability and expertise of the investment managers, ensuring their money is in capable hands.
Conclusion
Chris Linger’s journey from military service to a multifamily real estate mogul is a testament to the power of strategic investing, partnership, and continuous learning. By sharing his experiences and insights, Chris offers a roadmap for aspiring investors to follow. Whether through direct investments like Up-Plex or through educational platforms, Chris and Maricela continue to elevate the field of real estate investing, proving that with the right approach, building a multimillion-dollar portfolio is within reach.
10 Discussion Questions from this Episode:
- Chris Linger mentioned transitioning from small rental portfolios to larger commercial real estate and apartment syndications. What steps did he take to make this transition successful?
- How did Chris Linger and his wife manage to raise over $20,000,000 in private money in less than four years? What strategies did they employ to achieve this?
- Speed is often cited as a major advantage of using private money. Can you discuss other benefits and potential drawbacks of using private money for real estate investments?
- Chris emphasized the importance of educating potential investors and sharing success stories. How can new investors effectively communicate their successes to attract private money?
- Both Chris and Jay mentioned never having to “pitch deals” to raise private money. What are some of the key differences between educating potential investors and pitching them a deal?
- Chris discussed his experience as both a private money raiser and provider. How can being involved on both sides of private money lending provide valuable insights and advantages?
- One of the key lessons Chris mentioned was ensuring a higher level of control over investment opportunities. Why is this important, and how can investors achieve more control in their deals?
- Chris and his wife also coach other business owners and entrepreneurs. How might business coaching skills translate to successful real estate investing, particularly in raising private money?
- Chris suggests that new private lenders ask syndicators about their team, their track record, and whether they’ve ever lost an investor’s money. What other questions could potential investors ask to safeguard their investments?
- The episode highlights the role of networking and attending events in raising private money. What are some effective ways to network with potential investors, both in-person and online?
Fun facts that were revealed in the episode:
- Chris Linger and his wife Maricela impressively raised over $20 million in private money in less than four years, showcasing their rapid success in the real estate investment world.
- Initially, Chris and his wife managed all of their real estate investments on their own, including single-family homes and smaller multi-family properties, before transitioning into larger syndication deals.
- Chris Linger has a robust background serving 26.5 years in the military, where he also took on the role of program director for his nursing specialty, highlighting his extensive leadership and mentoring experience.
Timestamps:
00:01 Raising Private Money Without Asking For It
06:32 Benefits of private money: speed and flexibility.
09:23 Educating about private money and self-directed IRAs.
12:07 Real estate networking, education, and targeted outreach.
14:45 Building control in opportunities for private money.
20:44 Connect with Chris Linger:
23:27 Question team size, experience, and challenges faced.
25:32 Value consistency, accountability, and direct communication.
27:58 Jay Conner’s Free Money Guide:
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