*** Guest Appearance
Credits to:
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“Private Money Tips in 2024: Secret Framework”
https://www.youtube.com/watch?v=CLUARp0bf6Q
In a recent episode of the Raising Private Money podcast, Chaz Wolfe and Jay Conner delve into the world of private lending, offering invaluable advice for real estate entrepreneurs on how to navigate financing without traditional banks. This conversation highlights essential principles, from developing the right mindset to leveraging networks such as Business Networking International (BNI), which can transform the way you approach your real estate ventures. Here’s a comprehensive look at the key insights from this enlightening episode.
The Formula for Success: E + R = O
Jay Conner introduces a powerful concept that challenges conventional thinking: E + R = O (event + response = outcome). This principle dictates that while events in our lives are often outside our control, our responses to those events are key to shaping our outcomes.
Jay recounts a personal story where his funding line was abruptly cut off by the bank during the 2009 financial crisis. Instead of succumbing to despair, he chose to seek alternative funding solutions. This proactive response led him to discover private money and self-directed IRAs, which played a pivotal role in his continued success in real estate.
Mastering the Mindset of Abundance and Service
One of the major takeaways from the episode is the importance of adopting an abundance mindset and focusing on service. Chaz Wolfe applauds Jay Conner’s emphasis on these aspects, noting how they can transform the approach to private lending and real estate.
Jay underscores that having an abundance mindset—believing there’s plenty of money for good deals—can significantly impact how one interacts with potential lenders. He stresses serving others, reassuring lenders about the safety and high returns on their investments.
Unpacking the Three Tips for Private Money Success
Jay Conner outlines three fundamental tips for utilizing private money effectively:
- Serve and Secure the Right Mindset:
Approach private money with a mindset of service, not desperation. Educate lenders about the benefits and security of their investment without pitching specific deals upfront.
- Establish Control and Make Your Own Rules:
Unlike traditional mortgage applications with stringent requirements, private lending allows you to set the terms and create win-win scenarios.
- Recognize the Benefits of Private Money:
Understand that private money offers limitless availability, no credit checks, quick closings, and fewer fees compared to hard money options.
Leveraging Networks for Private Lending
Networking is a crucial element in private lending. Jay Conner highlights the role of Business Networking International (BNI) and self-directed IRA companies in expanding one’s network of potential lenders. By engaging in these networks, real estate entrepreneurs can present their investment opportunities to individuals already familiar with and confident in the program.
Chaz Wolfe reinforces this idea, noting how BNI’s structured framework facilitates meaningful connections which can lead to securing private funds.
The Art of Making a Good Offer
Jay Conner also discusses the importance of making a compelling offer to mitigate risks and close deals quickly. He introduces a formula for determining the maximum allowable offer, which ensures offers are both attractive to sellers and secure for investors.
He emphasizes the urgency in real estate deals, suggesting that “time kills deals.” Therefore, presenting a strong offer promptly can mean the difference between closing a deal and losing it.
Avoiding Desperation in Sales
One crucial aspect of securing private money is maintaining a professional demeanor without appearing desperate. Chaz Wolfe highlights the significance of simplicity in sales—keeping information straightforward and critical helps maintain credibility and control.
Jay Conner advises against overwhelming potential lenders with excessive details. Instead, a concise and confident presentation of investment opportunities is more effective.
The Influence of Mastermind Groups
Beyond technical strategies, Jay also lauds the benefits of mastermind groups in nurturing personal and business growth. He shares how joining a mastermind group in 2011 provided accountability, new perspectives, and a safe space for sharing, significantly contributing to his success.
Conclusion
The episode with Jay Conner and Chaz Wolfe provides actionable insights for real estate investors seeking to master private lending. By focusing on mindset, strategic networking, clear communication, and leveraging mastermind groups, entrepreneurs can navigate the complexities of real estate financing and capitalize on abundant opportunities. Embracing the formula of E + R = O and approaching lenders with confidence and service-oriented mindsets can unlock transformative potential in the real estate sector.
10 Lessons Discussed this Episode:
- Formula for Success
**Event + Response = Outcome**
Jay Conner emphasizes the importance of taking 100% responsibility for your life’s outcomes. Your response to events shapes your future.
- Creative Financing
**Raising $2.15 Million Easily**
Jay shares his story on how he raised $2.15 million in new funding using private lenders, highlighting the innovative ways to secure finances without directly asking for money.
- Teaching, Not Selling
**Educate to Attract Funds**
Education over sales. By educating potential lenders about earning high returns, you can generate interest without appearing desperate, creating a more attractive proposition for investment.
- Right Mindset
**Confidence is Key**
Jay stresses the importance of having a confident and abundant mindset. Believing in yourself and your offers is crucial for attracting private money in real estate.
- Rules of Private Money
**You Set the Rules**
Unlike traditional loans, private money allows you to set the terms and conditions. It’s a paradigm shift from seeking approval to granting opportunities.
- Benefits of Private Money
**Limitless and Flexible Financing**
Private money brings enormous benefits: limitless availability, quick closings, no credit checks, and no hard money terms or fees. It’s a flexible and powerful financing option.
- Networking Tools
**Expand Your Network with BNI**
Utilize Business Networking International (BNI) to grow your personal network. It’s an effective way to find private lenders and other professionals who can support your real estate ventures.
- Risk Mitigation
**Making Strong Offers**
Mitigate risks by making sound offers. Jay provides a formula to determine the maximum allowable offer, ensuring that deals remain profitable even if things go wrong.
- Win-Win Scenarios
**Everyone Should Benefit**
Jay and Chaz discuss the importance of creating win-win situations in business, personal life, and marriage. Your success should come from mutual benefits.
- The Power of Masterminds
**Synergy and Support**
Joining mastermind groups brings invaluable benefits like building deep relationships, sharing in a safe environment, and holding each other accountable. These elements significantly contribute to long-term success.
Fun facts that were revealed in the episode:
- Jay Conner raised $2,150,000 in new funding for his real estate deals without directly asking for money.
- Jay Conner learned about private money and self-directed IRAs from his friend Jeff Blankenship during a global financial crisis.
- The concept E + R = O (event + response = outcome) was discussed, highlighting the power of one’s response in shaping their life outcomes.
Timestamps:
00:01 Raising Private Money Without Asking For It
04:06 Transition from mobile homes to single-family houses.
08:18 Steve reveals the bank’s closure of the credit line.
10:17 Using private money to fund real estate deals.
15:08 Pitch program to lenders for high returns.
19:23 Simplicity in communication leads to successful outcomes.
21:57 Confidence is crucial for success and partnerships.
24:26 Abundant mindset, serving others, changing lives through investments.
27:44 Private money is vital for limitless business scaling.
31:18 Private money fuels real estate investing success.
37:33 Profit on a deal involves various expenses.
40:56 Urgency and irresistible offers are essential for success.
45:36 The Mastermind principle is integral to success and growth.
50:25 E plus R equals O, taking responsibility.
54:01 Podcast on raising private money for real estate.
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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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