Navigating the world of real estate investing often comes down to having sufficient capital to make the right deals. Raising private money offers the most straightforward and beneficial bridge to financial freedom, giving you access to funds without the hoops of traditional loans. In a recent episode of the “Raising Private Money” podcast, host Jay Conner and his dynamic team laid down a five-step roadmap designed to help both new and seasoned investors master the art of securing private money.
Step 1: Make Your List
The journey to raising private money begins with a well-curated list of potential lenders. Start by identifying people within your network, including friends, family, and business associates, who might be interested in real estate investments. Jay emphasizes the importance of having “a conversation in person” with each individual on your list. While scripts can serve as useful guides, your passion, and drive are your most valuable tools in those initial discussions.
Step 2: Casual Conversations
Once your list is in place, the next step involves reaching out to these individuals to initiate a casual conversation. The goal is to pique their interest without overwhelming them with details. According to Jay, asking the simple qualifying question, “Do you have any money not earning you a high rate of return safely and securely?” serves as an excellent conversation starter. This approach efficiently filters out those who may not be interested, allowing you to focus your efforts on warmer leads.
Step 3: The 16-Minute Audio
One of the standout tools Jay discussed is the 16-minute audio titled “Stress-Free Investing.” This audio snippet serves as an excellent way to inform potential lenders about the benefits of private lending without requiring you to constantly explain the concept. Crystal, Jay’s co-host, explained that this tool essentially saves you time, energy, and money—a true system that works efficiently. The key here is to distribute this audio widely to pique the interest of as many qualifying individuals as possible.
Step 4: Teaching the Program
After your potential lenders have shown interest by engaging with the audio, the next critical step is to teach them your private lending program. According to Jay, at this stage, you’re not pitching individual deals but educating your potential lenders on how the overall private lending program works. Providing them with comprehensive details helps build their confidence and trust in you. Jay advises mimicking an already successful program—his program details can be found in his book, and examples are shared during his live events.
Step 5: Securing a Verbal Pledge
The fifth and final step involves getting a verbal pledge from your potential lenders. This means understanding exactly how much they are willing to invest and the source of their funds. If their funds originate from retirement accounts, you may introduce them to a self-directed IRA company. Jay elaborates on the importance of this step, emphasizing that you don’t need to pitch individual deals once they’re onboard with your program. They are already committed to investing their funds based on the terms laid out during your presentation of the program.
Leveraging Live Events
Attending live events such as Jay Conner’s upcoming event on October 23-25 provides an invaluable opportunity to dive deeper into each of these steps. These events offer a hands-on learning experience with expert presentations, real-life case studies, and interactive sessions. Participants can meet Jay’s team members, including real estate attorneys, project managers, and acquisitionists, and even hear from private lenders who have invested in Jay’s deals. Additionally, these live events frequently feature a live bus tour, allowing attendees to view ongoing projects and see firsthand how strategies are implemented.
The Importance of Systems
Throughout the podcast, the importance of having a structured system was underscored multiple times. Jay Conner’s methodology is built around creating and following a well-defined system that saves time, energy, and money. This systematic approach is what allows investors to scale their operations and achieve consistent results without needing to reinvent the wheel each time they engage with a new potential lender.
Conclusion
Raising private money doesn’t have to be a daunting task. With a well-defined system in place, such as the one laid out by Jay Conner, real estate investors can unlock the financial backing they need to elevate their businesses. From creating your list to securing verbal pledges, each step in this process is designed to streamline and simplify the way you attract and manage private funds. If you’re looking to delve deeper into these strategies, attending live events and engaging with seasoned experts can give you the edge needed to thrive in the competitive world of real estate investing.
Take the first step towards financial freedom by mastering these five essential steps to raise private money and revolutionize your real estate investment strategy.
10 Discussion Questions from this Episode:
- Getting Started with Private Money: How does Jay Conner suggest starting the process of raising private money, and what are the initial steps he recommends taking?
- Effective Use of Tools: Crystal emphasizes the importance of the 16-minute audio in Jay’s system. How does this tool help investors save time, energy, and money?
- Educational Strategies: What are the benefits of teaching a private lending program to potential investors, and how does Jay suggest structuring these teaching sessions?
- Networking for Introverts: Erica provided insights on how introverts can handle raising private money. What strategies did she mention, and how can introverts effectively use them?
- Utilizing Private Money: How does Jay Conner’s five-step system simplify the process of raising private money and ensuring that the money is efficiently utilized?
- Overcoming Common Challenges: What obstacles do new investors often face when starting to raise private money, and how does Jay’s system address these challenges?
- Live Event Insights: What are some of the unique features of Jay Conner’s live events, and how do they enhance the learning experience for attendees?
- Benefits of In-Person Training: Why does Jay emphasize the importance of attending the live event in person, especially with the return of the live bus tour?
- Managing Excess Private Money: How did Banjo address the concern about raising too much private money, and what can investors learn from his experience?
- Integration of Technology: How does integrating digital tools, such as business cards with QR codes linking to the 16-minute audio, improve the efficiency of communication and networking with potential private lenders?
Fun facts that were revealed in the episode:
- Jay Conner’s average profit per real estate deal has increased to an impressive $82,000, significantly boosting the returns for his business.
- In one notable instance, Jay managed to raise a whopping $969,000 at a single private lender luncheon, showcasing the effectiveness of his fundraising techniques.
- After a hiatus of 4.5 years due to COVID, Jay is excited to bring back the live bus tour during his events, allowing attendees to visit his real estate properties in person and gain firsthand insights into his renovation and investment strategies.
Timestamps:
00:01 Five-step system piques interest in private lending.
05:38 Jay’s audio is essential for successful fundraising efforts.
09:38 Teaching program for successful private lender luncheons.
11:51 Introduce lenders to a self-directed IRA company.
15:31 Introvert using Facebook messaging to connect with others.
18:17 Join our event: Transform your business impact.
21:27 Calculating private money needed for deals.
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