Why Your Personal Network is Your Biggest Asset in Real Estate Investing
Navigating the world of real estate investing can be daunting, especially when financing your ventures. Often, it’s not about what you know but who you know. In a recent episode of the “Raising Private Money” podcast, hosts Jay Conner along with Cara Broyles, Erica Camardelle, Chaffee Thanh-Nguyen, and Banjo Camardelle, delved into the five essential steps to successfully raise private money. This blog post expands on their discussion, offering practical advice to help real estate investors unlock the potential of their networks.
- Make Your List
The first step in raising private money is to identify potential lenders within your existing network. This might seem straightforward, yet it’s often overlooked. Jay Conner emphasized the importance of listing people you already know, particularly those you see regularly and individuals who are retired.
Jay pointed out two key categories:
- People you see frequently:
This includes friends, family, co-workers, and members of any social or community organizations you belong to. - Retirees:
They often have investment capital or retirement funds that could be put to work in your real estate projects.
By focusing on these groups, you tap into established relationships where trust is already present—a critical component for successful private lending.
- Start the Conversation
Once your list is ready, it’s time to engage with potential lenders. There are two primary methods for initiating these conversations: the direct and the indirect approaches.
Direct Method
The direct method involves asking a straightforward question, known as the “magic question.” Banjo Camardelle shared his experience with this approach: “Do you have investment capital or retirement funds not giving you a high rate of return safely and securely?”
This question is designed to pique interest without coming off as desperate. It’s a powerful way to shift the focus from your need for funding to the opportunity you are offering.
Indirect Method
If the direct approach feels too confrontational, the indirect method allows for a more subtle introduction. Crystal elaborated on this technique, which includes asking if the person knows anyone dissatisfied with their current investment returns. Often, this leads to the person considering the offer for themselves.
- Leverage Enthusiasm
Both Crystal and Kara highlighted the importance of enthusiasm. Sharing your excitement and genuine belief in your investment opportunities can be contagious. Crystal likened it to the enthusiasm parents show when talking about their newborns—it’s palpable and hard to ignore.
When you’re passionate about your investment program, it organically draws people in, making them more inclined to learn about and participate in your offerings.
- The 16-Minute Introduction: Stress-Free Investing
One of the standout strategies Jay Conner discussed is the use of a 16-minute audio recording called “Stress-Free Investing.” This pre-recorded message serves as an automated way to introduce potential lenders to your investment program, answering common questions and alleviating concerns.
The recording allows you to present a polished, consistent message to all potential lenders, saving you time and ensuring that all key points are covered. It’s an efficient way to get the word out and generate interest without continuous one-on-one meetings.
- Focus on Serving, Not Selling
A recurring theme throughout the discussion was the mindset shift from needing money to offering an opportunity. Chaffee Thanh-Nguyen emphasized leading with a servant’s heart. When you truly believe that you are helping others by offering them a secure investment with higher returns, your approach changes from selling to serving.
This mindset helps in overcoming the hesitation and fear often associated with asking for money. When you position yourself as someone providing value, the reluctance to initiate conversations diminishes significantly.
Raising private money doesn’t have to be a complex or intimidating process. By leveraging your existing networks and shifting your mindset from selling to offering a valuable opportunity, you can unlock immense potential. Follow these five steps—make your list, start the conversation, leverage your enthusiasm, utilize automated messaging, and focus on serving—to pave your way to real estate success. Whether you’re new to real estate investing or looking to scale your business, these strategies provide a solid foundation for attracting the private money you need.
For more in-depth insights, don’t miss Jay Conner’s live event, where he dives deeper into these topics and offers hands-on training sessions. Your journey to mastering private money begins with understanding that money comes first, and with these strategies, you’ll be well on your way to achieving your investment goals.
10 Discussion Questions from this Episode:
- Jay Conner emphasizes the importance of raising private money before finding a deal. Why does he stress this order, and how does it mitigate risk in real estate investing?
- Banjo and Erica Camardelle mentioned going through their cell phone and Facebook contacts to identify potential private lenders. How effective do you think this method is, and what are its pros and cons?
- Crystal shared her approach to using enthusiasm and personal contacts when discussing private lending. How can enthusiasm impact your success in raising private money, and can you share a personal experience where enthusiasm helped you achieve a goal?
- Cara Broyles talked about the mindset shift required to view private lending as a way to bless others. How does this perspective change the dynamics of conversations with potential lenders?
- Chaffee Thanh-Nguyen spoke about the importance of having a servant’s heart and a genuine desire to help others. Can you think of any other industries or professions where this mindset could be equally beneficial?
- The episode discussed two main categories for creating a list of potential private lenders: people you see regularly and those who are retired. Why are these two categories particularly effective, and what other categories would you consider?
- Jay Conner mentioned the concept of “giving birth” to private money through enthusiasm. How can you cultivate and maintain genuine enthusiasm when discussing investment opportunities with potential lenders?
- During the discussion, multiple speakers highlighted the importance of trust and established relationships. How do existing relationships influence the success rate of raising private money, and what strategies can you use to build trust with new contacts?
- Banjo shared his experience with using the direct method and the scripted question for initiating conversations about private lending. In what situations might the indirect method be more appropriate, and how can it be effectively utilized?
- Jay Conner brought up the use of a 16-minute audio called “Stress-Free Investing” as an automated way to get the word out. How can leveraging such tools streamline the process of raising private money, and what other tools might be effective for similar purposes?
Fun facts that were revealed in the episode:
- Banjo and Erica Camardelle have successfully raised over a million dollars in private money, which demonstrates their effectiveness and commitment in this niche.
- Crystal leverages her natural enthusiasm and excitement to share her private money lending program, likening it to sharing baby photos due to her genuine passion and eagerness, making her conversations more engaging and authentic.
- Chaffee Thanh-Nguyen, an expert in networking, emphasizes the importance of leading with a servant’s heart. He passionately believes that when you genuinely aim to help others, it significantly enhances your ability to connect and succeed in raising private money.
Timestamps:
00:01 Engage connections to raise private money effectively.
03:18 Connected with a vast network throughout my career.
08:51 Embrace helping others; overcome feelings of need.
09:44 Share your story passionately; connect and serve.
13:20 Focus on familiar people; trust is crucial.
18:00 Real estate investing offers lenders significant opportunities.
20:42 Choose personal contact over indirect communication methods.
24:06 Promote business using a private money lending strategy.
28:20 Download the free real estate private money guide.
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
Listen to our Podcast:
Comments