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“Jay Conner Reveals Top Secret to Raising $2M in 90 Days!”
https://www.youtube.com/watch?v=98ClNRyF20g
In one of the most enlightening episodes of the “Raising Private Money with Jay Conner” podcast, Jay Conner, along with guest host Jack Hoss, delves into the intricacies of securing and leveraging private money for real estate investments. This post encapsulates the key takeaways and practical strategies shared during this conversation, focusing on mindset, preparation, security for lenders, and invaluable advice for new investors.
The Essential Mindset in Private Money
Cultivating the Right Mindset
Jay Conner emphasizes the paramount importance of the right mindset when approaching private money. Unlike the common approach of chasing funds, Jay advocates for an educational and service-oriented mindset. By focusing on educating potential lenders about the benefits and security of private lending, investors can establish a strong foundation of trust and interest. As Jay cleverly analogizes, chasing money is like chasing a runaway puppy—desperation makes it elusive, while a measured, informative approach makes it attainable.
Program Confidence and Security for Lenders
An investor’s confidence stems largely from their knowledge and understanding of their private lending program. Jay Conner consistently offers an interest rate of 8%, secured by real estate, providing a solid return with collateral for safety. This assurance of security, where the borrowed money is collateralized with the real estate property, serves as a significant selling point, especially for conservative investors wary of potential defaults.
The Timing and Process of Raising Money
Securing Funds Before the Deal
A recurring theme in Jay’s advice is the necessity of pre-arranging private funds before locating a deal. This proactive approach eliminates desperation and positions investors to confidently pursue deals knowing they have the necessary financial backing. Jay presents the notion of having lenders lined up as akin to bringing a loaded gun to a knife fight—preparedness gives a competitive edge.
Implementation Strategy: The Good News Phone Call
Once potential lenders are educated and express interest, Jay employs his signature “good news phone call” tactic. During this call, Jay shares vital details about the new investment opportunity, including the community location, after-repaired value, required funding, and closing date—without appearing needy or desperate. This method ensures that lenders stay engaged and excited about the opportunity without feeling pressured.
Critical Advice for New Investors
Finding a Mentor
For novices in the real estate investment arena, Jay stresses the importance of mentorship. A mentor can provide guidance and share their wealth of experience, significantly reducing the learning curve and avoiding common pitfalls. Leveraging a mentor’s expertise also enables new investors to gain confidence and credibility when securing funds.
Resourcefulness and Education
Jay’s educational approach sets him apart from many industry educators who often withhold key details. His transparency and willingness to share practical information empower new investors to make informed decisions. He recommends the book “University of Success” by Og Mandino as a vital read to bolster one’s mindset.
Leveraging Real Estate Financing Strategies
Maximizing Returns with Creative Financing
Jay elaborates on a strategic approach for buying and financing properties. By purchasing a property for $100,000 with an after-repair value allowing for a loan of up to $150,000, investors can take home a $50,000 check while covering renovation costs. This practice ensures the financial feasibility of the deal and secures multiple paydays.
Exit Strategies Based on Market Conditions
Another highlight is Jay’s advice on exit strategies based on the market. In a hot market with little inventory, selling for cash becomes the ideal exit. Conversely, in other scenarios, options like lease purchases provide flexibility, especially when the initial acquisition involves creative financing.
Organizational Efficacy through CRM Systems
The Value of CRM Systems
Jay underscores the importance of maintaining an organized client database using comprehensive CRM systems. Effective use of CRM can facilitate timely follow-ups and maximize potential leads. Jay shares a real-life example of closing a deal with a lead fostered over nine months, underscoring the importance of consistency and organization in real estate.
Concluding Thoughts: Embrace Education and Preparedness
The episode wraps up with a reflection on the insights shared and the importance of education and preparedness in real estate investing. Jay promotes his book, “Where to Get the Money Now,” with an enticing offer of two tickets to a private money conference in Eastern North Carolina, further encouraging listeners to deepen their knowledge and expand their network.
In conclusion, Jay Conner’s expert advice underscores the importance of mindset, strategic preparation, and educational engagement in securing private money for real estate investments. His proactive approach, combined with practical tips and organizational strategies, provides a roadmap for both seasoned and novice investors aiming to succeed in the competitive world of real estate.
10 Discussion Questions from this Episode:
- Mindset Shifts: Jay Conner emphasizes the importance of mindset in approaching private money. How do you think shifting from a mindset of chasing money to one of educating and serving can impact your success in real estate investing?
- Timing of Raising Funds: Why does Jay Conner suggest securing private funds before you actually need them for a deal, and what are the potential consequences of not following this advice?
- Security for Lenders: How does collateralizing the money borrowed with real estate provide security for lenders, and why is this an effective strategy?
- Program Confidence: Jay mentions that understanding your private lending program is crucial for confidence. How might a clear understanding of your interest rates and terms help you when speaking with potential investors?
- Mentorship for Beginners: What are the benefits of finding a mentor in real estate investing, and how can leveraging a mentor’s experience be advantageous when securing funds?
- Educational Approach vs. Pitching: Jay advocates for an educational approach rather than directly asking for money or pitching deals. How can educating your network about private money create more opportunities for investment?
- Exit Strategies: Given the varying market conditions, why does Jay recommend selling for cash in a hot market with little inventory, and selling on terms like lease purchase in other scenarios?
- Borrowing Limits and Equity: Why does Jay advise not borrowing more than 75% of the after-repaired value of a property, and how does this align with ensuring deals are bought at a discounted rate?
- Challenges in Real Estate: What are some common misconceptions about needing personal investment in every deal, and how can leveraging available equity address these challenges?
- CRM Systems and Follow-Up: How does the use of comprehensive CRM systems enhance business organization and efficiency, and what examples from Jay’s experience illustrate the long-term benefits of consistent follow-up in real estate investing?
Fun facts that were revealed in the episode:
- Runaway Puppy Analogy: Jay Conner humorously compares chasing money to chasing a runaway puppy—both becoming more elusive when pursued out of desperation.
- $1.4 Million in Four Weeks: A new member of Jay’s program secured an impressive $1.4 million in private money in just four weeks.
- Creative Financing Gap: Jay mentions that only 13% of sellers are open to creative financing deals, emphasizing the importance of cash for the remaining 87%.
Timestamps:
00:01 Raising Private Money Without Asking For IT
03:21 Marketing requires time or money for sourcing leads.
08:35 Mindset is key to attracting private lenders.
10:12 Launched private lending program for trusted referrals.
14:18 Waiting for investments to generate returns call.
19:44 Notes backed by real estate; mentorship advised.
26:04 Borrow $50K excess for renovations and balance.
26:58 The Lease option strategy offers multiple paydays.
30:33 “The University of Success” by Og Mandino recommended.
33:43 Use software for effective lead communication and organization.
Private Money Academy Conference:
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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
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