***Guest Appearance
Credits to:
https://www.youtube.com/@FusionNotes
“Raising Private Money, with Jay Conner”
https://www.youtube.com/watch?v=PF4zvLVu04Q&t=4s
Raising private money is a crucial step for many real estate investors looking to grow their businesses. Understanding the mindset shift needed and how to strategize effectively can make a world of difference. In this episode, we’ll delve into key insights from a recent discussion between Jay Conner, the Private Money Authority, and Dan Deppen, host of the Note Investor podcast.
Adopting the Right Mindset
Switch from Asking to Attracting
One of the foremost strategies Jay Conner emphasizes is changing your mindset from asking for money to attracting it. This mental shift transforms investors from beggars to educators. By leading with a servant’s heart and imparting knowledge about private money to potential lenders, investors can attract funds without ever directly asking for them. This approach not only alleviates the fear of rejection but also positions you as a valuable resource to your lenders.
Building Your Private Money Program
Know What You’re Offering
Having a clear, consistent program to offer potential private lenders is foundational in raising private money. Jay maintains a uniform program for all his lenders, covering interest rates, securing the funds, and the duration of the notes. This consistency helps build trust and makes the offering straightforward and attractive. Knowing exactly what you are offering allows potential lenders to clearly understand the benefits and terms, assuring them of the safety and profitability of their investment.
The Power of Teaching
Educating Potential Lenders
Educating potential lenders is crucial. Most of Jay’s private lenders had never heard of private money or self-directed IRAs until he taught them. He conducts educational events and one-on-one meetings to explain how private money works and the benefits of using self-directed IRAs for investment. By taking on the role of a teacher, you can demystify the process for your lenders, showing them the promise of high returns and the security of their investments. This educational approach ensures that lenders are not just willing but eager to be part of your investment ventures.
Leverage Networking Groups
Expand Your Reach
Networking groups, like Business Networking International (BNI), are potent channels for expanding your reach. These groups consist of individuals committed to helping each other grow their businesses through referrals. Leveraging these groups can amplify your message and attract more potential lenders. Regular attendance and participation in such groups can lead to valuable connections and opportunities to present your private money program in a supportive setting.
Utilizing Self-Directed IRAs
Unlocking Retirement Funds
Self-directed IRAs are a powerful tool for raising private money. They allow individuals to use retirement funds to invest in real estate or notes. Collaborating with companies like Directed IRA, where experts help prospective lenders set up their accounts, can significantly streamline the process. Self-directed IRAs offer a flexible and tax-efficient way for lenders to achieve high returns on their investments, thus making your program even more appealing.
Maintaining and Managing Relationships
Building Trust and Encouraging Referrals
Trust is paramount in maintaining relationships with private lenders. Once you’ve secured a lender and completed a deal, fostering that relationship can lead to valuable referrals. Jay highlights the concept of the “trust bridge,” where the trust a current lender has in him transfers to new referrals. Successfully managing these relationships by keeping communication lines open, providing regular updates, and ensuring the agreed terms are met will encourage your lenders to not only continue working with you but also to refer new potential lenders to your program.
Conclusion
Consistency and Education are Key
Raising private money for real estate investments hinges on adopting the right mindset, building a strong program, educating potential lenders, leveraging networking groups, utilizing self-directed IRAs, and maintaining strong relationships. Following these strategies, as outlined by Jay Conner, can help you attract private money without ever directly asking for it.
10 Discussion Questions from this Episode:
- Familiarity with Guest: How has Jay Conner’s longstanding acquaintance with Nate Haire benefited his understanding and implementation of self-directed IRAs?
- Company Insights: What roles do companies like directedira.com play in facilitating self-directed IRAs, and why is their IRS approval significant for investors?
- Investment Flexibility: What are the advantages of investing through a self-directed IRA compared to traditional IRAs, and how can this flexibility affect an investor’s portfolio?
- Earnings Structure: How do the tax-free or tax-deferred benefits of self-directed IRAs impact an investor’s long-term financial strategy?
- Partial Rollovers: In what scenarios might partial rollovers of existing retirement funds into self-directed IRAs be advantageous, and how does this approach aid in fund management?
- Building Trust with Lenders: What strategies does Jay Conner use to build and transfer trust with private lenders, and how does he ensure transparency and security?
- Engagement with Private Lenders: How effective is Jay Conner’s method of securing verbal commitments from private lenders before presenting deals, and what are the key elements of his approach?
- Jay Conner’s System: How does Jay Conner’s sophisticated system of managing multiple investors and tracking properties and lenders contribute to his success in raising private money?
- Substitution of Collateral: What is the process of substituting collateral in real estate investments, and why do lenders generally prefer keeping their investments active with an 8% return rate?
- Educational Resources: How do Jay Conner’s educational initiatives, such as the “7 Day Private Money Challenge” and the free guide available at jconner.com/moneyguide, provide value to new and experienced investors alike in raising private money?
Fun facts that were revealed in the episode:
- Jay Conner manages $8.5 million through 47 private lenders without directly pitching deals.
- He uses a “good news phone call” approach to inform lenders about opportunities without soliciting funds directly.
- Jay once raised $969,000 from a single private lender event through educational presentations and structured programs.
Timestamps:
00:01 Mindset shift is essential for real estate.
06:15 Program consistency and communication drive investment success.
08:44 House funding deal with $150K by Tuesday.
13:17 Get the money first
17:14 Self-directed IRA companies are IRS-approved custodians.
18:47 Invest IRA gains tax-free/ deferred until retirement.
21:47 Referrals build trust, attracting more private lenders.
25:28 Substitution of collateral maintains lender’s note security.
28:53 Learn to raise private money with fun.
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