***Guest Appearance
Credits to:
https://www.youtube.com/@jerryscarlato
“Becoming Resilient, Private Lending, and Your Money Mindset with Jay Conner”
https://www.youtube.com/watch?v=-w-a6JPweUk&t=96s
Real estate investing often requires substantial capital, and navigating the funding landscape can be daunting for both seasoned and new investors. In the recent episode of the Raising Private Money podcast, Jay Conner joins Jerry Scarlato in the Good Wolf Project podcast where they delve into the nuances of raising private money—a strategy that can redefine your approach to real estate investments.
Understanding the Difference: Hard Money vs. Private Money
In the world of real estate, financing options are plentiful but can often be confusing. Jay Conner explains a common misunderstanding between hard money and private money. Hard money typically comes from brokers who pool and lend funds from individual investors, charging high interest rates and fees. This traditional route involves jumping through numerous hoops, including credit checks and financial disclosures, which can be time-consuming.
Conversely, private money is a more direct transaction, where a real estate investor borrows money from an individual, cutting out the middleman. Here, the investor sets the terms, interest rates, and payment schedules, providing a more flexible and tailored financing option. This approach eliminates the need to borrow from traditional banks or hard money lenders, offering more autonomy and speed in closing deals.
Navigating the Challenges with a Resilient Mindset
Real estate investing is not without its hurdles. During the conversation, Jerry and Jay highlight the importance of resilience when facing financial setbacks. Jay shares his experience during the 2008 financial crisis when he unexpectedly lost his line of credit with a local bank. This pivotal moment pushed him towards private lending, leading to a successful reevaluation and expansion of his business model.
The key to overcoming challenges is adopting a proactive mindset. Rather than seeing obstacles as insurmountable problems, Jay emphasizes responding constructively and connecting with the right people who can facilitate solutions. This mindset shift from “victim” to “victor” is essential for navigating the volatile waters of real estate investing.
The Power of Community and Mentorship
Another critical element of success in real estate investing is surrounding oneself with like-minded individuals and mentors. Jerry and Jay underscore the transformative impact of joining mastermind groups and engaging in communities that foster collaboration and learning. Jay recounts how mastermind groups have expedited his success by providing access to a wealth of experience and insights from industry peers.
Learning from seasoned investors and sharing experiences can significantly decrease the learning curve, preventing costly mistakes and leading to more informed decision-making. As Jay aptly puts it, “What got you here today will not get you there tomorrow.”
Building a Sustainable Strategy for Raising Private Money
To successfully raise private money, Jay advises a strategic approach focused on education and relationship-building. By teaching potential lenders about the benefits of private lending and offering them a secure and appealing investment opportunity, investors can attract capital without resorting to high-pressure sales tactics. He demonstrates the power of seamless communication and structured programs in cultivating a network of private lenders eager to invest.
Prospective investors can start small by hosting informational luncheons or one-on-one meetings to share insights about private lending programs. By educating others about investment opportunities, investors can build trust and secure funding that aligns with their goals.
Conclusion: Embrace the Journey
The conversation between Jerry Scarlato and Jay Conner offers valuable insights into the world of raising private money in real estate. By understanding the differences between funding options, adopting a resilient mindset, and leveraging community and mentorship, real estate investors can navigate the complexities of financing with confidence. Embrace the journey, redefine your strategies, and open the door to endless possibilities in real estate investment.
10 Discussion Questions from this Episode:
- What are the main differences between private money lending and hard money lending as discussed by Jay Conner in this episode?
- How did Jay Conner’s experience during the 2008 financial crisis influence his approach to real estate investing and private money lending?
- Discuss the concept of “who not how” as mentioned in the episode. How might this mindset shift benefit an entrepreneur?
- Jay Conner emphasizes the importance of being resilient in business. What are some key examples from the episode that demonstrate this point?
- What is the significance of separating the private money program from specific deals when discussing potential investments with private lenders?
- How does Jay Conner utilize private lender luncheons to attract potential private money lenders, and what are the key components of these events?
- Jay talks about the importance of responding to events rather than reacting to them. How does this approach impact decision-making in a business context?
- How does Jay Conner’s philosophy of not asking for money directly align with his overall strategy for raising private capital?
- What role does personal connection and trust play in Jay Conner’s method for acquiring private money, as demonstrated in his conversation with Wayne?
- Reflect on Jay Conner’s emphasis on education and teaching about private money opportunities. How does this align with the values and goals of his business model?
Fun facts that were revealed in the episode:
- Jay Conner’s first introduction to private lending was after he lost his line of credit during the 2008 financial crisis, which led him to raise a couple of million dollars in less than ninety days.
- Jay doesn’t pitch deals; instead, he educates people about private lending and lets them express their interest and potential investment amount.
- Private lender luncheons have proven to be successful for Jay, with one event raising $969,000 without even pitching specific deals.
Timestamps:
00:01 Real Estate Investment and Resilience
06:04 Understanding Self-Directed IRAs
09:13 Financing a Business Acquisition
11:59 Entrepreneurial Financial Strategy Pitfalls
14:54 Purposeful Impact on Real Estate
19:52 Self-Directed IRA Private Lending
23:13 8% Fixed Return Agreement
26:53 Dominating Small Markets Successfully
28:07 Unexpected Credit Line Closure
30:40 Exploring Private Money Strategies
34:28 Investment Rate Negotiation: 8% Offer
38:03 Private Money Strategies for Real Estate
42:29 Proactive Solutions to Financial Crisis
44:56 Business Success: Resilience & Guidance
48:12 Masterminds Revolutionize Real Estate Success
52:03 Private Money Strategies Podcast
Private Money Academy Conference:
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Have you read Jay’s new book: Where to Get The Money Now?
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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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