*** Guest Appearance
Credits to:
https://www.youtube.com/@TheCREAMrealestate
“How to raise private money without asking for money”
https://www.youtube.com/watch?v=a58toe2v0oo
Raising private money is often shrouded in misconception and apprehension. The intriguing podcast episode featuring Jay Conner, a seasoned expert in the field, hosted by Dave Payerchin and RJ Pepino, dismantles these barriers. Let’s delve into the wisdom shared on the transformative power of mindset, strategic approaches to capital raising, and the pivotal role of education in dominating the real estate market.
Mastering Mindset for Success
Jay Conner begins the conversation with an essential reality check – that the journey to successfully raising private money starts with owning the “real estate between your ears”. This metaphor encapsulates the fundamental idea that confidence, trust, credibility, and reliability are the cornerstones of exciting investment interest in potential partners. Jay stresses that one must exude these qualities from within to attract private lenders.
Central to this is the mindset transformation from viewing oneself as a supplicant, dependent on the whims of traditional banking avenues, to adopting a posture of partnership and opportunity sharing. As Jay reveals, “The power is in the questions.” Asking who within your network can assist with your funding needs opens the door to new possibilities – a strategy that proved invaluable when traditional banks turned down their requests in 2009.
The Educator’s Edge
Innovation often comes through the simplest shifts in approach, and this podcast shines a light on the importance of education in raising private capital. RJ Pepino encapsulates this with the poignant statement, “He who educates the market dominates the market.” Jay echoes this sentiment by emphasizing how crucial it is to become a private money teacher, rather than a salesperson.
By leading with a servant’s heart, an investor can subtly but powerfully distinguish themselves as experts and stewards of opportunity, sparking interest in potential partners. Jay Conner has entirely reframed conversations with private lenders by first educating them about the potential of private money, often before even bringing up a specific deal. This signature move removes the “stink” of desperation, instead focusing on the abundant possibilities available to investors and private lenders alike.
Key Strategies for Private Money Success
Jay articulates a vital strategy in capital raising: keeping investment discussions and deal presentations separate. This step is crucial in ensuring that discussions about opportunities remain educational, rather than transactional. By segregating these conversations, an investor positions themselves as a partner offering valuable knowledge, thus alleviating pressure and creating a natural entry point for later deal-specific discussions.
Moreover, he highlights the benefits of flexibility through tools such as self-directed IRAs, which many potential lenders are unfamiliar with. By leveraging these tools, investors can offer novel ways for partners to gain substantial returns, guided through each step by the investor’s knowledge and experience.
Mindset and Success: The Symphony of Growth
Throughout the episode, Dave Payerchin and RJ Pepino passionately align with Jay Conner’s vision, reminding listeners that mindset is not just about how one views the world, but also how one positions oneself within it. By exercising gratitude and positivity, even seasoned investors can further their growth and prosperity. “Focus on what you are sowing and let what you reap take care of itself,” is a powerful mantra of this mindset.
Conclusion: Cultivating Success Through Service and Knowledge
The engaging discussion in this episode reinforces a crucial takeaway: in the world of private money, the investor’s journey starts internally. Building confidence, educating potential lenders, and approaching private capital with a mindset of abundance and service distinguish great investors. Jay Conner’s insights reveal the transformative power of teaching, partnered with an unwavering commitment to adding value, positions real estate investors for unparalleled success in raising private money. Whether starting on your first deal or expanding your portfolio, these timeless strategies serve as a blueprint for thriving in the competitive arena of real estate investment.
10 Discussion Questions from this Episode:
- How does Jay Conner describe the mindset shift necessary for successfully raising private money?
- What are the key characteristics that Jay believes one should exude when approaching potential private lenders?
- Discuss the “teacher” approach that Jay Conner advises. How can educating potential investors about the investment process benefit both parties?
- According to Jay, what is the significance of the “good news phone call” in his private lending strategy, and how does it facilitate trust with the lenders?
- Examine the importance of the conversation starter Jay uses regarding self-directed IRAs. Why might this be an effective way to begin discussing investment opportunities?
- Reflect on the concept introduced by RJ Papino: “He who educates the market dominates the market.” How is this applicable in real estate investing?
- How does Jay differentiate the risks associated with syndications and funds versus single-property investments with private lenders?
- Discuss Jay’s strategy of letting the interest accrue when securing private money for renovations. How does this impact cash flow and project management?
- What lessons can be learned from Jay’s emphasis on focusing on what you sow rather than what you reap, and how does this relate to building relationships with investors?
- Jay advises pairing with a mentor or experienced investor when starting out. What are the potential benefits and drawbacks of this approach in real estate investing?
Fun facts that were revealed in the episode:
- Jay Conner is not only an expert in raising private money but also an extraordinary piano player.
- Jay introduced his first private lender from a conversation after a Bible study at his church, securing $500,000 within 24 hours.
- Jay emphasized the concept of “exuding” confidence, trust, and reliability, using the phrase “owning the real estate between your ears” to describe the mindset needed for successfully raising private money.
Timestamps:
06:28 Raising Capital Without Directly Asking
10:02 Financial Planning and Teaching Strategies
11:25 Tax-Free Earnings via IRAs
15:17 Commitment to Invest Dave’s Funds
20:20 Expect Nothing, Gain Everything
22:58 Private Lenders Are Investors
26:32 Simplifying Real Estate Financing
30:57 Focus on Sowing, Not Reaping
33:41 Fund Strategy for Large Investments
34:55 Private Lender Deal Coordination
40:21 Creative Real Estate Financing Strategy
44:50 Success: Comfort Zone & Failure Lessons
45:27 Collaborate for Success
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What is Private Money? Real Estate Investing with Jay Conner
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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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