In the world of real estate investing, the ability to raise and utilize private money can be transformative. Jay Conner, The Private Money Authority, engages in an enlightening conversation with Jeremy Beland, a seasoned real estate investor, about their journey in leveraging private money to build lucrative real estate portfolios. This blog post delves into the key insights and strategies discussed in their podcast episode, focusing on raising private money, educating potential lenders, and maximizing off-market deals.
Understanding the Concept of Private Money
The Foundation of Private Money
Private money refers to capital sourced from private individuals rather than traditional financial institutions. It allows real estate investors to fund their deals without the stringent requirements and red tape associated with bank loans. Jay Conner emphasizes that private money is vital for investors who want to avoid the hassle of traditional financing methods and need quick access to funds.
The Misconceptions About Private Lenders
Jeremy Beland dispels the myth that private lenders are always highly sophisticated, extremely wealthy individuals. Through his experience, Jeremy has found that private lenders are often regular people within one’s network. These individuals might have savings in retirement accounts, home equity, or other untapped financial resources that they wish to invest for higher returns.
Educating and Engaging Potential Private Lenders
The Importance of Education
One of the standout points in the podcast is the emphasis on educating prospective private lenders. Jeremy recounts how he would create brochures outlining deal details, projected returns, and property pictures to inform potential lenders. Educating them not only builds trust but also demystifies the investment process, making them more comfortable and likely to invest.
Utilizing Social Media to Build Credibility
Both Jay and Jeremy highlight the power of social media in establishing credibility and attracting private lenders. By consistently sharing details of deals closed, properties under contract, and success stories, investors can demonstrate their expertise and reliability. Jeremy mentions how posting regularly about his deals helped build his reputation, leading to people reaching out to him with investment interests.
Strategies for Raising Private Money
Start with Your Existing Network
Jeremy’s advice for new investors is straightforward: begin by reaching out to contacts within your cell phone and social media network. He learned that often, individuals who seem unlikely to have investment funds might have savings or equity they are willing to invest. Not prejudging potential lenders can uncover unexpected opportunities.
One-on-One Meetings and Luncheons
Jay Conner shares his approach to educating potential lenders through one-on-one meetings at local cafes like Starbucks or organizing private lender luncheons. These settings provide a relaxed environment to explain the investment opportunity, answer questions, and build a personal connection.
Maximizing Profits Through Off-Market Deals
The Power of Off-Market Acquisitions
Jeremy Beland and his wife have thrived by mastering off-market acquisitions. These deals, not listed on the multiple listing service (MLS), often come with better negotiation opportunities and lower competition. Jay Conner and Jeremy agree that honing skills in off-market acquisition sales is pivotal for success in real estate investing.
Pre-Marketing on MLS for Higher Returns
Jeremy introduces a strategy of pre-marketing deals on the MLS to maximize returns. With proper legal language and documentation, pre-marketing allows investors to attract a broader audience, potentially leading to higher sale prices. This approach helped Jeremy increase his assignment fees significantly, from $20,000 to $35,000 per deal.
Building a Sustainable Real Estate Business Model
Long-Term Benefits of Private Money
Private money has been instrumental in Jeremy’s significant business growth, propelling him from a half-million-dollar wholesaling operation to a seven-figure real estate business. By having access to private funds, he can now selectively stay in deals, wholesale them for higher profits, or add valuable properties to his rental portfolio.
Continual Learning and Adaptation
Jeremy’s journey underscores the importance of continual education and adaptation. Learning from other experts, attending seminars, and constantly refining acquisition and disposition strategies have enabled him to stay competitive and maximize his business’s potential.
Conclusion
The conversation between Jay Conner and Jeremy Beland offers valuable insights for both novice and seasoned real estate investors. By understanding and leveraging private money, educating potential lenders, using social media for credibility, and mastering off-market acquisitions, investors can significantly enhance their success and profitability. For those aspiring to scale their real estate business, adopting these strategies can be a game-changer.
For more detailed insights, visit REIFreedom.com and explore the available resources offered by Jeremy and his team.
10 Discussion Questions from this Episode:
- How did Jeremy Beland transition from wholesaling properties to successfully raising private money for his real estate investments?
- What are some misconceptions about private lenders that Jay Conner and Jeremy Beland discussed in this episode?
- How has the use of private money changed Jeremy Beland’s business model and success in real estate investing?
- What strategies does Jeremy Beland suggest for someone just starting to raise private money for real estate deals?
- What role does social media play in establishing credibility and attracting potential private lenders according to Jeremy Beland?
- How does Jeremy Beland educate potential private lenders about the benefits and processes of private lending?
- Discuss the importance of the personal relationship and trust-building process in securing private lenders, as emphasized by Jeremy Beland.
- What strategies and tools does Jeremy Beland use to identify and connect with potential private lenders within his network?
- How does Jeremy Beland use the Multiple Listing Service (MLS) to get more money out of his real estate deals?
- Analyze how the concept of converting leads into deals is central to real estate success, as discussed by Jeremy Beland.
Fun facts that were revealed in the episode:
- Jeremy Beland and his wife have closed over 400 off-market properties across six states, starting with just an $11,000 investment.
- Jeremy and his wife balance their thriving real estate investing business with full-time jobs and a blended family of five kids.
- One of Jeremy’s private lenders was a retired car salesman who took a private lending course and was referred to Jeremy through a friend.
Timestamps:
00:01 Achieving Time Freedom Through Real Estate
06:13 “Discovering Private Lending Opportunities”
10:02 Business Growth Through Private Lending
13:18 Networking and Investment Opportunities
16:27 Networking Without Assumptions
19:48 Mastering Off-Market Acquisition Sales
20:45 Connect with Jeremy Beland:
https://www.reifreedom.com/topsales/
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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.
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