***Guest Appearance
Credits to:
https://www.youtube.com/@AlexPardo
“How to Raise Private Money Without Asking for It”
https://www.youtube.com/watch?v=_wTrV0XW52k
In the latest episode of the Raising Private Money podcast, Alex Pardo and Jay Conner delve into the complexities of raising private money for real estate investments. A key takeaway from their conversation is the importance of securing investments with a mortgage or deed of trust. This not only ensures the protection of investments but also adds additional layers of security by incorporating elements such as naming the investor on the insurance policy and maintaining a conservative loan-to-value ratio. The foundation of these secure investments is built on trust, something Jay emphasizes by creating a “trust bridge” through referrals.
The Crucial Role of Trust
Trust is an essential element in securing private money, as highlighted by both Jay and Alex. Many of Jay’s lenders are referrals, which fosters an inherent level of trust. Rather than relying on traditional credibility packages, Jay emphasizes the development of strong, transparent relationships to build and sustain trust with lenders. This approach underlines the importance of personal connections in the world of private lending.
Diversifying with Self-Storage Investments
Alex introduces the concept of investing in self-storage facilities as an alternative to the traditional single-family home market. He enumerates the benefits of self-storage investments, which include automation, recession resistance, and the absence of tenant management issues. For investors looking to diversify their portfolios and reduce traditional property management headaches, self-storage offers an attractive avenue.
Educational Approach: Transforming Conversations into Investment Opportunities
One of the insights shared by Jay is his approach to seeking private money—not as asking for funds but as presenting opportunities. This shift in mindset reduces the pressure on both the investor and the potential lender. Educating potential lenders about private money and high-return options helps engage them in a non-confrontational manner. Jay encourages initiating conversations with “Did you know” questions to spark interest and introduce concepts like self-directed IRAs, thereby making the idea of private lending more accessible and less intimidating.
Jay Conner’s 7-Day Private Money Challenge
For those interested in mastering the art of raising private money, Jay introduces his 7-day private money challenge. This program includes concise instructional videos aimed at educating investors on effective fundraising techniques. Originally priced at $197, the challenge is now available for just $17, making it highly accessible. Alex endorses this challenge, urging listeners to take advantage of this valuable resource to enhance their investment strategies.
Capital Abundance Post-COVID: A Proactive Approach
In light of the substantial amount of cash available in the market post-COVID—approximately $31 trillion—Jay emphasizes the importance of securing funding before pursuing deals. He critiques the commonly held belief that “the money will show up” once a deal is under contract. Instead, he advocates for a proactive approach, advising investors to secure capital ahead of time to avoid financial stress and uncertainty.
Building Success Through Education and Networking
A crucial aspect of Jay’s success involves educating and networking. By informing his network—including church members and club associates—about private money, Jay has built a significant pool of private lenders. He partners with a self-directed IRA company to facilitate the transfer of retirement funds and uses a specific script to present investment opportunities in a non-pressuring manner. This approach avoids desperation and helps maintain trustworthy relationships with lenders.
Final Thoughts: Embracing Financial Freedom
The strategies shared by Jay Conner and Alex Pardo in this episode provide a comprehensive guide for investors seeking to raise private money for real estate. The focus on trust, education, and proactive funding underscores the need for solid relationships and effective opportunity presentation. By adopting these strategies, investors can navigate the complexities of real estate investment with enhanced confidence and financial security.
Additional Resources and Support
Listeners are encouraged to explore further resources on Flip Empire’s show notes page, which includes tools and insights aimed at business growth. Alex also offers bonuses for those who use his affiliate link to try recommended resources. For personalized support, listeners can contact Alex via email. A free guide on private money is also available at jconnor.com/moneyguide, providing valuable insights for those looking to secure private funds.
Embarking on the journey to financial freedom involves adopting proven strategies and unlocking the potential of private money in real estate investments. By following the insights shared in this podcast episode, investors can strengthen their financial foundations and explore new investment opportunities with confidence.
10 Discussion Questions from this Episode:
- Understanding Security Measures: How important do you think securing investments with mortgages or deeds of trust is in real estate investing, as emphasized by Jay Conner? What additional layers of protection would you consider essential?
- Creating Trust: Jay Conner and Alex Pardo emphasize the significance of trust in real estate transactions. How can new investors build trust with potential lenders if they lack an established network?
- Exploring Self-Storage: Alex Pardo promotes self-storage as a viable real estate strategy. What are the advantages and disadvantages of investing in self-storage compared to single-family homes?
- Credibility Packages: Jay Conner debates the necessity of a credibility package, relying instead on referrals and relationships. Do you think a credibility package is necessary for all investors, or can trust and referrals suffice? Why?
- Marketing and Education: Jay Conner suggests presenting opportunities rather than asking for money directly. How can investors effectively educate their network about private lending opportunities without coming across as salesy?
- Abundance of Capital: Post-COVID, Jay mentions the availability of substantial amounts of cash in the market. What strategies can investors adopt to tap into this abundance of capital efficiently?
- Private Money Challenge: Jay Conner’s 7-day private money challenge is presented as a valuable resource for raising private money. How beneficial do you think such short, intensive courses can be for real estate investors?
- Mindset in Real Estate: Jay Conner discusses the importance of having the right mindset or “owning the real estate between your ears.” How do you think mindset influences success in real estate investing, and what practices can boost a positive mindset?
- Term Setting in Private Money: Jay Conner emphasizes the advantage of setting terms in private money deals, such as offering an 8% return. What considerations should investors make when setting terms for private lenders?
- Educating on Self-Directed IRAs: Jay highlights the role of self-directed IRAs in tapping into retirement funds for real estate investments. How would you go about educating a potential lender on the benefits of using a self-directed IRA for private lending?
Fun facts that were revealed in the episode:
- Self-Storage Appeal: Alex promotes self-storage investments as not only recession-resistant but also automated, meaning less hassle with tenant management.
- Creative Approach: Jay uses a unique “great news phone call” script to present private lending opportunities to potential investors, steering clear of directly asking for money.
- Significant Discount: Jay’s course on raising private money, originally priced at $197, is now available for just $17, offering a valuable resource at a fraction of the cost.
Timestamps
00:01 Jay’s system simplifies raising money for entrepreneurs.
08:14 Don’t seek money when urgently needed; proactively secure.
10:20 Confidence and control enable favorable lending terms.
15:02 Using self-directed IRAs for unlimited, tax-free income?
16:33 Connect investors with self-directed IRA opportunities.
21:54 Build trust, repay on time, and gain referrals.
23:12 Private lenders invest based on personal relationships.
27:50 Focus on presenting opportunities, not selling deals.
32:22 Learn to raise money; build relationships, and act.
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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