In the exciting realm of real estate investing, leveraging private money stands as a cornerstone for achieving success. In the latest episode of the Raising Private Money podcast, Jay Conner and a panel of seasoned guests delve into the dynamics of raising and utilizing private money. The conversation offers invaluable insights and practical advice to both novice and experienced investors. This blog post captures the essence of their discussion, shedding light on strategies, personal journeys, and actionable steps to secure private lenders.
The Power of a Solid Plan
Jay Conner, a master in real estate investing, emphasizes the importance of having a concrete plan when seeking private money. He outlines three fundamental steps to success:
- Writing Down a Plan:
Clearly articulate your goals, strategies, and the milestones you aim to achieve. This written plan acts as your roadmap, ensuring you remain focused and organized.
- Scheduling the Plan:
Allocate specific timelines for each step in your plan. Setting deadlines helps maintain momentum and ensures tasks are completed in a timely manner.
- Executing the Plan:
Taking action is pivotal. Perfect planning means nothing without execution. Conner encourages taking “imperfect action” daily, a concept inspired by Dan Kennedy, to learn and adapt quickly.
Networking: Your Best Tool for Securing Private Money
The episode highlights the significance of networking as a powerful tool for attracting private lenders. Chaffee Thanh-Nguyen, a seasoned real estate investor turned coach, shares his journey from engineering to owning a successful investment portfolio. He emphasizes that networking, whether through presentations, service organizations, or community groups, establishes credibility and trust.
Jay praises Chaffee’s networking prowess, noting that Chaffee has been facilitating networking groups since the mid-2000s. To maximize networking efforts, Conner suggests:
Using the “I Need Your Help” Script:
Engage professionals such as realtors, attorneys, and accountants to spread the word about private lending opportunities.
Reaching Out to Your Warm Market:
Start conversations with people you already know. Banjo Camardelle, a dedicated platinum member, highlights that the warm market often includes real estate investors and community groups who are more likely to trust and invest in your projects.
Inspirational Journeys in Real Estate
The podcast features inspiring stories from successful investors who have harnessed the power of private money to transform their careers. Crystal Baker shares her journey into real estate investing, revealing how it changed her life and allowed her to mentor others in the community.
Crystal recounts a pivotal deal: buying a property for $273,000, spending $67,000 on repairs, and achieving a gross profit of $85,000. This deal was made possible through private money, showcasing the tangible impact of leveraging such funds effectively.
Similarly, Banjo Camardelle, who aims to flip at least one property per month with a profit threshold of $30,000 each, underscores the importance of consistent action and a strategic approach in attracting private lenders. Their stories are a testament to the transformative power of private money in real estate investing.
Strategies for Attracting Private Lenders
Securing private money requires a mix of strategic thought, consistent action, and effective communication. The podcast consolidates several approaches:
Targeting the Expanded Warm Market:
Beyond your immediate connections, look to friends of friends, real estate groups, and community organizations.
Utilizing Private Lender Data Feeds:
Access lists of existing private lenders who actively loan to real estate investors, particularly through self-directed IRA companies.
10 Lessons Discussed in this Episode:
- Secure Your First Deal
Discover effective negotiation tactics and strategies to go under contract quickly. Learn how Jay Conner’s team secured a 1500-square-foot oceanfront condo for $425,000 with an after-repair value of $625,000, leveraging private money for rapid acquisition.
- Consistent Networking
Emphasize the importance of consistent networking within your warm market and expanded network. Engaging frequently with real estate investors, community members, and potential lenders ensures a steady flow of private money.
- Share Success Stories
Use real-life success stories to build credibility and attract new private lenders. Showcasing achieved profits and successful deal closures can serve as compelling evidence for potential investors.
- Utilize Warm Market
Tap into your existing network to find potential private lenders. The fastest way to secure private money is by talking to people you already know and have built trust with, including friends, family, and colleagues.
- Effective Communication
Master various communication scripts, such as the “I need your help” script, to approach prospective private lenders indirectly. Learn how to present your private lending program without appearing desperate or sales.
- Community Engagement
Participate in local business networking groups like Rotary Club and Business Networking International (BNI) to grow your network. Active community engagement increases your exposure to potential private money sources.
- Existing Private Lenders
Identify and connect with existing private lenders who are already familiar with private money lending. This saves time on educating new lenders and allows for quicker negotiations and deal closures.
- Create Urgency
Develop a mindset that prioritizes a sense of urgency in attracting private lenders. Believing in the effectiveness of your program and positioning yourself as an expert can accelerate the process of raising private money.
- Credibility Through Presentations
Establish yourself as an authority in real estate by conducting educational presentations at networking groups and service organizations. Sharing valuable knowledge builds trust and positions you as a go-to expert.
- Structured Planning
Systematically approach private money raising by writing down, scheduling, and executing a detailed plan. Consistent action, as highlighted by Jay Conner, involves taking massive imperfect action daily to achieve success in raising private money.
Fun facts that were revealed in the episode:
- Crystal Baker has achieved an impressive milestone by raising over $4.75 million in private money to fund her real estate investing ventures.
- Banjo Camardelle has established a remarkable track record by consistently flipping at least one property per month, ensuring a minimum profit of $30,000 on each deal.
- Jay Conner and his acquisitionist team secured an incredible deal on a 1500 square feet oceanfront condominium, purchasing it for just $425,000. With an after-repair value of $625,000 and repair costs under $10,000, this deal showcases the power of effective real estate investing.
Timestamps
00:01 – Raising Private Without Asking For It
06:53 – Shifted career from therapist to real estate agent.
13:23 – Join Private Money Academy for a free trial.
17:17 – Warm market and personal connections.
22:41 – Starting a new venture, seeking support, achieving success.
28:58 – Mom became a private lender, now profitable.
33:29 – Consistent communication and networking are key to success.
37:12 – Effort is essential for achieving results.
40:32 – Gaining expertise through presentations and networking.
43:14 – Take imperfect action daily for success.
46:21 – Start fresh, and ask direct and indirect questions.
Connect With Jay Conner:
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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
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
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Three Proven Strategies to Raise Millions in Private Funds for Real Estate
Jay Conner [00:00:00]:
This past Friday night at 7 o’clock, Kim, our acquisitionist, has been with us for 18 years. She’s working late on Friday night. And check this out. We went under contract to buy an oceanfront, direct ocean view, up-in-the-sky, drop-dead gorgeous condominium. Almost got 1500 square feet. That’s a lot of square footage for a condominium around here. Oceanfront, after repaired value, 6 $125,000.
Narrator [00:00:37]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:01:05]:
The topic is what is the fastest way to get your first private lender or your next private lender? I’m so excited to have this discussion. I’m going to, I’m gonna put a few platinum and mastermind members on the hot seat, and I’m gonna ask them and their opinion and from their experience, what is the fastest way to get your next or your first private lender? And, so we’re gonna have a great discussion about that. Use the chat. I encourage you to use the chat. If you’ve got any kind of questions about raising private money, what is private money, how to get private money, terms about private money, where you find private lenders, anything you can think of that you might want to know about money. Be sure and type those questions in the chat. I wanna share something with y’all that I’m just all excited about. I know y’all wanna hear about this.
Jay Conner [00:02:02]:
I mean, we’re talking deals, right? So, what’s today? Today is Wednesday. So, yeah, this past Friday night at 7 o’clock, Kim, our acquisitionist, has been with us for 18 years. She’s working late on Friday night. And check this out. We went under contract to buy an oceanfront, direct ocean view, up-in-the-sky, drop-dead gorgeous condominium, almost 1500 square feet. That’s a lot of square footage for a condominium around here. Oceanfront after repaired value, $625,000 is the after repaired value. Repairs for less than $10,000 All it needs is a front door and maybe interior paint.
Jay Conner [00:03:00]:
I’m not even convinced of that yet. So after the repaired value is 625,000 repairs, less than 10. Who wants to guess what I’m under contract to buy this property for? 350. You know, that was his first asking price, but then and I was all excited about that. But then somebody else offered him 400. He says, well, you’re gonna have to beat 400 to get it. And I told him, I said, offer him $425,000 and we’ll close it in 7 days, all cash. And that’s what we’re doing.
Jay Conner [00:03:41]:
I didn’t have to take this deal to the committee, right, for approval. 625 after repaired value, less than 10 repairs, buy for 425, sort of seems to work for me. Right? Now, let me tell you the secret to getting that deal. The secret to getting that deal was being able to close in 7 days. So why do they discount it? You know, Julius, that’s a great question. You know, I used to try to figure out why in the world people do what they do. But I got a pretty good guess, Julius. Thank you, Terry.
Jay Conner [00:04:18]:
7 day. Very enticing offer. Yes. So here’s my guess as to why I’m buying this beautiful. I mean, I wanna, like, stay there before I sell it. But for $200,000, I guess I’ll just have to forego that. But anyway, I got 2 really good guesses as to why we’re buying this property for 425. They have 2 big motivators.
Jay Conner [00:04:43]:
Number 1, it’s inherited. It’s in it’s still in the name of the seller’s parents, but both the father and the mother have passed away. It’s inherited. He lives out of state. They don’t have any interest in it. But here’s another really big motivator. It’s going to the courthouse steps for sale as foreclosure on June 6th. So that’s probably sort of playing into that sale as well because come June 6th, ain’t nobody getting any money except the bank who was selling it.
Jay Conner [00:05:22]:
How did I get the lead? I got the lead by Google Pay Per Lead, not pay per click. We don’t do our own Google ads and stuff. So I pay for a service. I’ve got 4 different services that I use. But anyway, it was it was a Google pay-per-lead. So that’s my win. We have time for another win. Who wants to celebrate something? Go ahead.
Jay Conner [00:05:41]:
Whoever’s talking. Oh, hello there, Banjo.
Banjo Camardelle [00:05:44]:
Hey. So we had a goal set to do at least 1 flip per month and make at least $30 on it per month and started in January. And so far, we’re tracking right along. Of course, we’re making a little bit more than 30 grand per flip, but we’re tracking 1 flip per month so far this year.
Jay Conner [00:06:01]:
My lands, banjo, that right there deserves the very sophisticated golf clap right there. Congratulations, Scott Crystal. Say hello and who you are.
Crystal Baker [00:06:12]:
Absolutely. I’m Crystal Baker, and I started investing in real estate back in 1996. Super traditionally, I would buy a house, using the bank. I would tip it was my side hustle, so I’d purchase it, move in, work on it, and after about a year, would sell it. So I did pretty well in that, fortunately. And then, around 2008, time frame, I decided to get married and have kiddos a little late in life, so I decided that it was time to kinda drop the side hustle. So I sold my last house in a bidding war. And, unfortunately, when my daughter was a baby, I found myself a single mom, which was not part of my game plan.
Crystal Baker [00:06:53]:
That being the case, I was working 1000000 hours as an occupational therapist in leadership. And so nights, weekends, long, long, long days, and, just knew that I needed to do something different, and not have the daycare raising my kids and us existing rather than living. So started looking at real estate, took a bunch of courses, and hired coaches and mentors. Did not go particularly well at the beginning. However, I found myself at the live event in the room with Jay Conner. And I knew at that point despite having invested so much already that I was in the right place, and I and I absolutely needed to do it. So I signed up, to do the platinum program. And after about 9 months, I stepped away from a 26-year career as an occupational therapist in leadership and went Woo.
Crystal Baker [00:07:43]:
In real estate. It was very woo. Totally changed my life. Everything that, like, could never have had a perception that my life could be so amazing. So raising my kids, going and being a room mom, traveling, just just absolutely fantastic. And shortly thereafter, Jay had asked if I would help, coach the students. So I, of course, said yes. I got my coaching certification.
Crystal Baker [00:08:09]:
I now work with all of the students, both in the platinum, platinum plus, and mastermind levels. So I help, I’m on all accountability calls, platinum q and calls, Hour of Power hotline. I provide general support by phone and email. I help facilitate the mastermind group. I’m at all the live events, and it has been the greatest blessing and allows me to really live out my passion by helping others. I would have never thought that’d be my path in life, but it is so fantastic. And I thank you so much, Jay Conner, for allowing me to be a part of this family. It is just really a dream to get to enjoy my time the way I do.
Crystal Baker [00:08:48]:
Work is work is play. So thank you so much for that.
Jay Conner [00:08:52]:
Yeehaw right there! One of the big benefits is you, like, sorta get to set your own schedule. Don’t you, Crystal? You get to go to Mexico when you wanna go to Mexico. You take along who you wanna take with you to Mexico, all that kind of good stuff. Thank you for all the contributions that you bring to our community and our membership. If you’ve just joined us, today’s topic is the fastest way to get your 1st or next private lender. If you’ve got experience in doing that, share in the chat. We wanna hear how you got your first private lender or one that you got recently.
Jay Conner [00:09:33]:
I’ve got some platinum in Masterminds. We’re gonna put on the hot spot here. So, Chaffee, say hello and who you are.
Chaffee Thanh-Nguyen [00:09:40]:
Hello, everyone. My name’s Chaffee Thanh-Nguyen. Jay, Conner says, yeehaw. I’m so excited to be here. So who am I? I was when I was growing up, I was forced into this mantra called to go to school, get good grades, and get a job. And I did exactly that. I graduated as an engineer, went into the corporate world, and started working as an engineer, and quickly found out that this is not what I wanna do for the rest of my life. So, I was in the corporate world for, over 10 years, though, and very successful in the corporate world.
Chaffee Thanh-Nguyen [00:10:17]:
Again, realizing that this was not what I wanted to do, I looked for something else and I found this thing called real estate investing, and this was in the early 2000s. Started investing in real estate, buying and selling properties in multiple different states, got into development, buying raw land, developing and titling land, building triplexes, and getting on to bigger, better deals. And along that journey, I got asked a lot of questions by a lot of people, and I fell in love with this thing called coaching. I realized that every single time I worked with a great coach, my businesses grew, and I loved that feeling of that light bulb going on going, Oh, wow. I could do that or I could do this, and then helping other people get that light bulb themselves. And so I started transitioning into coaching. I’ve been coaching full-time in my own business since 2008. And along that journey, I met this guy named Jay Conner at an event that I was coaching, and, we immediately connected and kept in touch over the years.
Chaffee Thanh-Nguyen [00:11:18]:
And then when Jay decided to launch and go big with his coaching program, said, hey, come, Chaffee, come join the party and help me do this coaching mentoring thing with this real estate program that I got. And I gotta tell you, Jay, you know, from our humble beginnings over a decade ago to of that one pamphlet and one CD that you to the one pamphlet and one CD that you had of where to get the money now to what you’ve been able to grow and the team that you put together and the family. I really say a family that has, come around you. It’s just been, as Crystal said, a wonderful journey, and thank you so much for having me, and I enjoy every moment of it.
Jay Conner [00:11:56]:
Absolutely. We’ve been partying for over a decade now, Chaffee, at all the live events. Lawrence in the chat says it’s best to buy a private lender list to get your first or your next private lender. Lawrence, we’re going to talk about that. Thank you for putting that there. Derek says in the chat, 495. Derek, I don’t know what that means, but we’ll come back around to you.
Crystal Baker [00:12:19]:
It was a guess on what you purchased the property for, Jason.
Jay Conner [00:12:22]:
Thank you. Thank you.
Crystal Baker [00:12:23]:
Couple of those. Yep.
Jay Conner [00:12:24]:
Okay. Gotcha. Well, that was a good guess, Derek. But now you know the answer, 425. Terry, I like your number better, 320. I answered Julius’ question. Thank you, Terry. And, Lily, yes.
Jay Conner [00:12:38]:
I saw you in Texas last year. Happy birthday to you next week. Ben, Joe, and Erica, you got some shout-outs there great job on your journey so far this year. Ashley puts in the put in the chat, and y’all make a note of this. For those of you who are Private Money Academy members, you also are able to join the private Facebook group as a Private Money Academy member. And, all you gotta do is search for Jay’s Private Money Academy. What do I search for, Ashley, to get into a Facebook group?
Crystal Baker [00:13:17]:
I forgot to put Conner. It’s supposed to be Jay Conner’s Private Money Academy members. If I could edit that,
Ashley [00:13:22]:
I would.
Jay Conner [00:13:23]:
Okay. So just go to Facebook. If you are a Private Money Academy member, just go to Facebook, search for Jay Conners Private Money Academy members, ask to join, and Ashley will confirm you are a member and she’ll let you in. If you’re not in the Private Money Academy membership, then come check us out for 30 days free at www.JayConner.com/Trial. Come hang out with us for free for 30 days. And all these Zoom trainings we do are archived in the membership. And, with that, Crystal, since I’ve asked, well, I’m going to put some platinum and masterminds on the hot seat here to answer the question, fastest, quickest way to get your 1st private lender or your next private lender.
Jay Conner [00:14:11]:
Crystal, please introduce our platinum and masterminds that we’ve got here on Zoom.
Crystal Baker [00:14:18]:
Absolutely.
Jay Conner [00:14:19]:
Oh, I’m sorry. I’m sorry, Crystal. Tim. Congratulations. Tim is closing on their 5th property on the 29th of this month. Y’all give a great big golf clap right there to Tim on closing that property coming up here on the 29th of this month. Congratulations, Tim. Back to you, Crystal.
Crystal Baker [00:14:40]:
Beki and Kelly Castle. I don’t see Kelly, but, Platinum Plus and Masterminds, Platinum Plus Graduates and Masterminds. Eric and Erica Comerdo, Platinum Plus Graduates and Mastermind. Tim and Robin Benskin, platinum plus in the mastermind. Lee and Lynette Grider, platinum plus in mastermind. Norman looks better. Platinum plus.
Crystal Baker [00:15:07]:
Let’s see here. Kara and Jonathan Broyles, Platinum Plus Graduates
Crystal Baker [00:15:22]:
and mastermind.
Crystal Baker [00:15:24]:
And Okay. I think that’s everybody.
Jay Conner [00:15:27]:
Alright. Welcome Platinum and Master I’m sorry.
Crystal Baker [00:15:30]:
I just said, hopefully, I didn’t miss anyone. Please put your hand up if I did.
Jay Conner [00:15:35]:
Alright. Welcome, Platinum and Mastermind members here to the Zoom training. So, Chaffee and Crystal, let’s put some folks on the hot seat right now. So if I had one of those, like, little spinning things like you see at the game shows, I put platinum and masterminds in there and spin them around. So here we go. Let’s pull one out of the hat. Beki and Kelly. Or is it Beki or is it Kelly or is it just Beki?
Ashley [00:16:05]:
Just Beki today.
Jay Conner [00:16:06]:
Oh, there you are, Beki, in your beautiful spring green top right there. So Beki is graduated platinum and her husband, Beki and Kelly, and has, been in Mastermind now for more than 1 year, maybe 3 years. I’ll lose track of time.
Jay Conner [00:16:24]:
Anyway, very, very active 2 years. They do deals, they raise private money. They are an amazing couple. So, Beki, I’m putting you on the hot seat. From your experience, what’s the fastest way to get your 1st private lender or your next private lender?
Ashley [00:16:44]:
Talk to the people, you know, just the people that
Jay Conner [00:16:48]:
the people you so if y’all are not taking notes, now would be a good time. When would now be a good time to start taking notes? Cut the gap, and get on the pad. So talk to people you know. So let me give a little comment on that, Beki, and then I want us to drill down. Chaffee and Crystal, you can help me interview these Platinum and Masterminds. Again, if you’re not a Platinum or Mastermind, type in the chat your ideas or experience. We’ll talk about them too. So Beki says, talk to the people you know.
Jay Conner [00:17:17]:
There are 3 categories of where you find private lenders. You might want to write these down. The 3 categories of where private lenders are and who they are is number 1, what we call your warm market, And your warm market is exactly what it sounds like. Those are people you know or have some kind of connection with. Beki, be thinking about my next question, which is what are the steps to talking to people you know? What are the steps to talking to people talking to people you know since this is what you say? So you’re more market. People that people that have, that are in your cell phone, you go to church with, you play golf, you play poker. Who knows? I don’t know how you know them. Right.
Jay Conner [00:18:04]:
There is social media, email lists, Christmas card lists, everybody, you know. And so that’s the first, that’s one category. People that you’ve got some kind of connection with. That’s the warm market. 2nd category where you find private lenders is what we call your expanded warm market. Your expanded warm market. So what in the world is your expanded warm market? You know, real estate investors that are starting out raising private money. I hear it all the time.
Jay Conner [00:18:33]:
They say my warm market’s broke. My people ain’t got no money. Well, first of all, I don’t believe them. But secondly, whether you think you have money in your world market or not, by the way, you do. But I think you, I teach and practice, you should expand your warm market, grow your warm market. Well, how do you do that? Well, it’s really easy. You get involved in your community. You can join the Rotary Club.
Jay Conner [00:19:03]:
You can join the local Business Networking International. I’ve gotten over $1,000,000 just from the local Business Networking International Group. So you get involved, right? And there’s, there’s all kinds of other groups that we teach and talk about. So, that’s your expanded market. The 3rd category of existing, private lenders is what we call existing private lenders. Existing private lenders. These are individuals. By the way, if you’re new here, we’re not talking hard money.
Jay Conner [00:19:34]:
This has nothing to do with hard money. It’s got nothing to do with institutional money. This is getting money from individuals just like you and me who are loaning money to us real estate investors, either from their investment capital or their retirement funds. Now, if they’re sitting, if they’re borrowing, if they’re loaning us money from the retirement funds, they’ve got to move those funds over to an IRS-approved self-directed IRA company. We recommend QuestTrust dotcom out of Houston, Texas. I get my deals funded in 3 days from my private lenders who have accounts at Quest. So existing private lenders. Well, here’s the thing.
Jay Conner [00:20:16]:
When you borrow money, from an existing private lender, you’re not putting on your teacher hat like I have on right now. You’re not teaching those existing private lenders what private money is. They already know what private money is. They’re a private lender. They’re already loaning it out. You know, the thing about the warm market and your expanding warm market is we get to make the rules. We make the rules. We set the interest rate.
Jay Conner [00:20:43]:
We set the term. We set the frequency of payment, blah blah blah blah blah. But, you know, when I was borrowing money from the banks, they made the rules. Well, when you borrow money from an existing private lender, it’s a negotiation process, right? It’s a negotiation process because they already know. They already know the game. Now, where do you find existing private lenders? Well, if you are an owner of my new private money success system, you get access to the private lender data feed, which we update every month. We get every private lender loan closing in the nation. You get their contact information, etcetera.
Jay Conner [00:21:23]:
Interest rates, they’re being paid. We get about 12,000 a month private lenders in that data feed. In addition to that, you may find it interesting to know that self-directed IRA companies, such as questtrust.com, have a free Zoom networking event on the 4th Wednesday of every month at 6 pm CST, 7 pm Eastern, and their account holders come to that Zoom wanting to loan you money. That’s what they want to do. Over 70% of QuestTrust account holders want to loan you money from their account. They want to loan money to real estate investors. So you can go there for free. You don’t have to be an account holder.
Jay Conner [00:22:07]:
You can go there for free. They put you in breakout rooms. You can network with each other. Again, the challenge though, with existing private lenders, you’re now into a negotiation process. You’re not making the rules. I got 47 private lenders. Not one of them ever heard of private money until I put on my teacher hat. None of them ever heard of self-directed IRAs.
Jay Conner [00:22:25]:
Right? And so that’s the difference. That’s the categories of where private lenders are. Back to you, Beki. Drill that down for us. Talk to people you know. What are the steps of that and what does that look like?
Ashley [00:22:41]:
Well, for us, we were starting something new. You know, Kelly was leaving one job, starting something new, so it kind of created some natural interest in what we were doing. And so it kind of brought those natural conversations about investing into real estate, how we were doing it, things that we were, you know, learning. And we really utilized your script, I guess you could say, for lack of a better word, about wanting some help. We had a webinar where we asked for help people to come listen to what we were doing. We got a private lender immediately after the webinar. Also, you know, had a luncheon and had people come help us by listening to what our our new program was, our new investment, our new working, business was. That really helped a lot.
Ashley [00:23:39]:
And we’ve gotten private lenders every time we’ve done something like that.
Jay Conner [00:23:44]:
How much private money have you and, Kelly raised so far?
Ashley [00:23:48]:
So Crystal asked that the other day, and we haven’t gone back and added it up. But somewhere in between 6,700,000 somewhere.
Jay Conner [00:23:55]:
Well, that deserves a golf clap right there, 600, $700,000 in private money. Sort of transformed your business, didn’t it?
Ashley [00:24:04]:
It did. Absolutely.
Jay Conner [00:24:06]:
So let’s unpack what Beki just shared. Y’all should be writing this down. When she says talk to people, you know, you’re simply telling people what you’re now doing, right? You open your mouth and you say, here’s what I’m doing. And here’s the script. I’ve now opened up my real estate investing business to people I know and trust by referral only. I’ve now opened up my real estate investing business to people I know by referral only, and I’m paying insane high rates of returns. I need your help. When you run across somebody who’s complaining about the stock market volatility and getting no money and CDs, would you refer them to me? That’s called the indirect method.
Jay Conner [00:24:49]:
You know, all these 47 private lenders, I’ve never asked for money and never pitched a deal. I’ve never asked for money and never pitched a deal. How do we do that? Well, you put on your teacher hat, teach the program first, and don’t bring in a deal for that conversation, because now desperation’s got a smell. You stink. You stink. If you bring up a deal and private money in the initial conversation. So we separate those conversations, Then you give them the great news phone call when you’ve got a deal for them to fund. No pitching at all.
Jay Conner [00:25:23]:
Beki, you mentioned a webinar, So you can get the word out by doing a webinar, inviting people to your webinar, and teaching your private lending program, the interest rate you’re paying etcetera. You mentioned a private lender luncheon, right? All you Platinums and Masterminds, y’all do that. And then 1 on ones. Beki, thank you for sharing. Y’all let’s give Beki one great big golf play right there. Thank you, Beki. Alright. Next hot seat, Crystal and Chaffee.
Jay Conner [00:25:50]:
Let’s put in the hot seat right now. Did I hear you say, Crystal, that Cara Broyles is with us?
Crystal Baker [00:25:58]:
She is with us.
Jay Conner [00:25:59]:
Say hello, Cara. Hello. There you are at the top of my screen. Hey, Cara. Your husband, Jonathan, I heard through the grapevine, was not able to join us today because what’s he doing on some property out there that you got going on?
Crystal Baker [00:26:17]:
Oh, he’s, checking the punch list that we had, a long list, so we can list our property next week. So he was going through that with a fine tooth comb, making sure everything looked perfect so we could put it on the market and get a quick high sale.
Jay Conner [00:26:35]:
So you’re getting ready to cash out on a property?
Crystal Baker [00:26:38]:
That’s right.
Jay Conner [00:26:38]:
Did you fund it with private money?
Crystal Baker [00:26:41]:
Absolutely.
Jay Conner [00:26:41]:
Well, we wanna hear the numbers, don’t we?
Crystal Baker [00:26:44]:
Zoom numbers
Jay Conner [00:26:45]:
right here. We wanna hear numbers, don’t we? Do you know numbers off the top of your head?
Crystal Baker [00:26:48]:
I don’t know if well, hang on. I could probably
Jay Conner [00:26:50]:
Have you got have you got ballpark numbers? We wanna hear numbers. We want the nitty gritty.
Crystal Baker [00:26:56]:
Alright. This one, we bought it for 273,000.
Jay Conner [00:27:04]:
Alright. You bought it for 2.73.
Crystal Baker [00:27:06]:
And the ARV is 425.
Jay Conner [00:27:11]:
Tell everybody what arve is.
Crystal Baker [00:27:13]:
The after-repair value that we got from our realtor. She pulled comps and, gave us a very, direct number. So that’s very important.
Jay Conner [00:27:25]:
So let me let me put this here now on the phone here now. So you got you’re you’re selling it for 425. Right?
Crystal Baker [00:27:33]:
Well, actually, she just told us that we can probably list it for a little more than that, but that’s what she told that’s what we based our numbers on, which was 425.
Jay Conner [00:27:40]:
Okay. So we’ll be conservative. So 425. And what did you buy it for?
Crystal Baker [00:27:47]:
273.
Jay Conner [00:27:48]:
- And what were the repairs?
Crystal Baker [00:27:52]:
67,000 on repairs.
Jay Conner [00:27:54]:
67,000. So we got a gross profit of 85,000. Mhmm. What percentage are you paying your, realtor?
Crystal Baker [00:28:04]:
5%? 6%? Her 5. Yes.
Jay Conner [00:28:07]:
Alright. So round figures, you’re gonna subtract 20,004 realtor fees, then you got a little bit of carrying cost. So you’re at $65,000 with a little bit of carrying cost going on there. So you probably got about 60,000, 55, 60,000. That deserves a golf clap right there, $60,000 going into your pocket because you’re using private money. How much private money have you all raised so far, Cara?
Crystal Baker [00:28:30]:
We are over 1.5 now.
Jay Conner [00:28:34]:
1.5. I think I hear the word million after that. Right? Alright. Another golf clap for 1 and a half $1,000,000 in private money. Whoo. I just had a chill go up my spine when I heard that. Alright, Carol. I’m gonna put you on the spot.
Jay Conner [00:28:50]:
Ask this quickest way to get your 1st or next private lender.
Crystal Baker [00:28:58]:
Well, Beki, she nailed it. Obviously, talking to people is pretty critical, if you’re but, for me, our 1st private lender wound up being my mom. She had, so my dad passed away, and she found herself with a lump sum that her financial adviser brother, advised her to put in a money market. And she was getting very, very, very low return on it. And so when we started up our business, we, of course, shared the program with her. She couldn’t pull her money out quickly enough to start investing with us. And she so I think she at one point, she was making less than $700 a year, something around there. And now she’s making over 12,000, a year.
Jay Conner [00:29:52]:
So you’re making you’re making an impact on her financial Yes.
Crystal Baker [00:29:57]:
Absolutely. And that’s very important to me, you know, as her daughter, of course, and always wanting her money to be using being used nonstop. So we’re very intentional. I mean, we wanna use all of our private money, but, she’s obviously a special person for us. So, that was our first lender. But, yeah, you know, every time Jonathan and I sat down and would talk about, like, who we know or who we met, and we’re like, oh. It would be great. It actually doesn’t turn out to be who aligns with us.
Crystal Baker [00:30:36]:
It’s the person we’re not expecting or that we think has tons of money. You know? But there’s a lot of people out there that do have money, their capital or, you know, real estate I’m sorry, investment capital and retirement funds. I’m gonna get it right here. They just really don’t know what to do with it. Or they’re just playing it super safe or not safe? It’s because it’s in the stock market. So anyway, they just weren’t aware of this option. And so we feel really excited to be able to share this with others.
Crystal Baker [00:31:17]:
We tell everyone that we know about it, because they’re like, Oh, what are you guys up to? And we, of course, share that we’re buying and selling real estate. And the way we do that is through private lending, private money lending. So, it’s been neat. And then one last thing here real quick. There was one fella who posted on Facebook about this off-market property he was selling. He was the owner, and he happened to be a realtor also. And so we wound up looking at the property, and we bought it from him. And he had to it took him some time for to close because he made hard money, to buy that house, and then I guess he just decided not to do anything with it.
Crystal Baker [00:32:02]:
And so he’s, like, trying to work it out with his hard money lender, and paying him. And anyway, it sounded like it was pretty full. And so then, of course, he’s hearing how we’re purchasing the property, and, he calls us up. We’ve already closed on the property and everything, and he’s like, hey. I just can’t get what you told me out of my out of out of my mind. He said, what are you doing? How are you buying your properties? Like, you’re setting the rates. You’re in I’m like, this is our program. And so, anyways, he was just like intrigued, you know? So he’s someone who wants to do real estate investing and, just really had his mind open to this possibility.
Crystal Baker [00:32:49]:
So it’s cool.
Jay Conner [00:32:50]:
I love it. I love it. Y’all give Cara another golf clap for sharing. Thank you for sharing, Cara. Absolutely. Let’s put Banjo on the hot seat right here. Banjo and his wife, Erica, graduated platinum, active mastermind members. I don’t know how many years you’ve been in.
Jay Conner [00:33:08]:
10 years, Banjo? I don’t know. 3. Over 3 years. Now. Banjo is on his way now to being a certified coach also. So congratulations on getting that started, Banjo. So, Banjo, what’s the fastest way to get your 1st private lender or your next private lender?
Banjo Camardelle [00:33:29]:
Well, Beki and, and and, Cara said you gotta talk to people. Right? And so we know we have to talk to people. You gave them the script of what you have to tell them. I would say the most important thing that made me my first got me my first private lender and is gonna give me my next private lender is to make a plan. So in the beginning, the plan looked a little bit different for me than it did for Erica, but it was definitely a plan of action and a plan of consistency where we were I was calling 12, at least 5 of my warm market contacts per day and talking to them about our private lending program. Erica was using a direct method, And Erica was Facebook messaging everybody in her warm market using the indirect method. Fast forward to nowadays, when you run out of your warm market, you gotta start networking. You gotta talk to people and make new friends, expand your warm market.
Banjo Camardelle [00:34:24]:
And so that’s what I’m doing. And what my plan is now is to have at least one one-on-one sit down or phone call with a potential private lender per week. So that’s I would say to have a consistent, plan and and take action consistently.
Jay Conner [00:34:41]:
So there’s a keyword right there if you’re taking notes, consistently. You know, the worst time to be attracting private money is when you need it for a deal. Right? These gurus going around telling people, and I know every one of y’all have heard what I’m getting ready to say. They go around saying, oh, just get the deal under contract. The money will show up. That, like, makes me wanna just cuss, and I don’t even cuss. For goodness sakes. I mean, hey, raise your hand if you’ve ever heard anybody say that.
Jay Conner [00:35:14]:
They’ll just get the deal under contract. The money will show up. Have you heard that? Yeah. Where’s the money going to show up? Like, going to rain out of clouds or something? You know, it just makes sense to me. Be consistent. Like Banjo says, attract private money. Get it lined up. There’s always gonna be deals.
Jay Conner [00:35:33]:
Banjo, just so everybody knows that you know what you’re talking about. How much private money have you and Erica raised so far?
Banjo Camardelle [00:35:39]:
Over 2,500,000 so far.
Jay Conner [00:35:41]:
2 and a half million. Give a golf clap right there for 2 and a half million in private money. That’s amazing, man, Joe. Yeah. You know, I thought I was really gonna be able to share with some folks some really good stuff. But, you know, when I let you all go first, you’re like taking my best stuff away. Right? So thank you for sharing that, Vangelis. Come up to you, Crystal.
Jay Conner [00:36:04]:
Sure. My lands. I’ll put you on the hot spot. But then again, you’re put on the hot spot every day with all these members. They put you on the hot spot. You just were on the hot spot for an hour from 3 PM to 4 pm for our power. Right?
Crystal Baker [00:36:18]:
That’s right.
Jay Conner [00:36:19]:
I’m not letting you off the hook. From, your experience, Crystal, the fastest and, the best way to get your 1st private lender or your next one?
Crystal Baker [00:36:29]:
Yeah. So, so everybody said, some fantastic things already, so I would definitely echo what was shared. And I wanna emphasize the consistency thing. To me, the fastest way is just to make sure you’re talking to as many people as possible. And so those people in your warm market are gonna be your fastest method to do that. But making sure that you’re planting seeds. So consistently having conversations, sharing the audio that you record, for us, talking about your program, presenting to as many people as you can, getting those 1 on ones, setting up those meetings. So I know I just kind of reiterated what was said, but my point is the fastest method is as many as you can.
Crystal Baker [00:37:12]:
So you need to be doing it consistently all the time. You know, I really took it to heart when we talked about, you know, networking getting it out there and getting out there, talking to my warm market and sharing with people. I was sending out 5 every single solitary day and doing more than that on days that I had more opportunity to do so. It was really just that intentional, consistent, solid effort, and that’s really what bets it out you know, the key difference is you could say, absolutely talk to the people that are in a warm market, but you’re if you’re not doing that a lot consistently, you don’t have a plan in place, then it’s not gonna happen as quickly. And if we’re talking about how you’re gonna make that happen quickly, it’s really about your intentionality, your consistency, and doing so all of the time. Just as many people as you possibly can.
Jay Conner [00:38:03]:
How much private money have you raised, Crystal?
Crystal Baker [00:38:06]:
4.75 mil right
Jay Conner [00:38:08]:
now. There’s a golf clap right there for 4 and 3 quarters million in private money. Wow. Thank you for sharing, Crystal I’m a come back to you to get us current on the chat here in just a minute. Chaffee Thanh-Nguyen, my lands. You’ve done about every kind of real estate deal there is to do from wholesaling to commercial to single family to virtual investing, on and on and on. Land, blah blah blah blah blah, developments, etcetera.
Jay Conner [00:38:40]:
And you’ve raised a bunch of private money, of course. What’s the fastest and quickest way to get your 1st lender or your next lender?
Chaffee Thanh-Nguyen [00:38:48]:
So, Jay, how do you say this? As you said, you know, let me set the stage first. Right? So the stage is the first step to raising private money or doing anything successful is getting your head on right. I think you’ve mentioned many times that you gotta get in this mindset of I am going to go out there and help as many people as I can make more money on their money. Period. Right? And so in, in essence, you’re creating a sense of urgency within yourself to go out there and make something happen. And you know, if you think about it, if everybody here thinks about a time when they had, you know, a deadline for a project or they had to do something, you know, very large or it seemed insurmountable and you know you had to get it done, you went out and you attacked it. Right? You went out and you did everything you could. You did, you know, whatever it took, you went out and you did it.
Chaffee Thanh-Nguyen [00:39:45]:
And that’s the kind of mentality that you wanna get into if you wanna raise a lot of money quickly. Right? And so, you know, it’s I agree with everybody, that has, talked before is that you gotta go out and talk to people. You gotta be consistent. You gotta, you know, do all this kind of stuff. And I gotta say the first step though is you gotta get your head on straight and realize that this program works. You have to have a belief that it works, and it’ll work for you and for everybody. And then go out there and as Jay says, teach and educate as many people as possible. And I will tell you personally for me, the number one way that I have raised private money and the number one way that, it just helps your business in general is to be the expert.
Chaffee Thanh-Nguyen [00:40:32]:
And in order to be the expert, in order to become the expert, the easiest way to do that is to do presentations. So, you know, one of the things that I’ve done is I will go out and then I will reach out to the organizers of networking groups, the organizers of, service organizations, the organizers of different groups and say, hey. I have something that I would love to share with your members. And, do you guys meet on a regular basis? Is there any way that I can get in front of everybody and just share this opportunity with them and let them know what’s available for them and then see if I can get on the schedule to get in front of a group of 5, 10, 50, a 100 people, whatever that group size is, and do the presentation that Jay has? Right? Jay has a full presentation on raising private money for civic groups as well as for private lenders that you put together doing luncheons or anything else. And I tell you, there’s no better way of creating credibility, of creating a sense of expertise than getting in front of a group of people and teaching them and educating them. And just because you’re the speaker, they look up to you. Not because they’re sitting down and you’re standing up.
Chaffee Thanh-Nguyen [00:41:41]:
Well, that’s one way. They actually look at you because you’re sharing information that they don’t have. And so, again, creating that sense of urgency in your head and then going out there and doing everything you can. And like I said, for me, when you establish yourself as the expert, people will naturally want to gravitate towards you because you’re there helping them and you’re teaching them, you’re educating them with, things that, they’ve never learned before, and the opportunities that are available to them.
Jay Conner [00:42:11]:
Right on, Chaffee. Y’all give Chaffee the sophisticated golf clap right there. Awesome. One of the best networkers, by the way, that I know. Chaffee, you’ve been running you’ve been running your own network, networking group, since what year? Every week? Do you meet every week?
Chaffee Thanh-Nguyen [00:42:29]:
End of 2004, 2005.
Jay Conner [00:42:31]:
So almost 20 years.
Chaffee Thanh-Nguyen [00:42:33]:
Yep. Mhmm. Every week
Jay Conner [00:42:35]:
And that’s another way that you’ve established yourself as an expert and a connector. And so like in that group, of course, you’re the go-to person. So let me summarize what we’ve been hearing here. So So I want you all to write this down. Here’s a quote from Dan Kennedy, who I’ve been following for about 15 or 17 years. And here’s a quote I want you to write down. Whether you’re raising private money or whatever it is your goal is, in addition to having your head right that Chaffee just talked about, here’s the answer to achieving whatever you want to achieve.
Jay Conner [00:43:14]:
Are you ready? Are you ready to write this down? Here we go. Quote, the surefire path, the surefire path, in fact, actually you might want to put this in the chat, the surefire path to success, the surefire path to success is to take the surefire path to success is to take massive imperfect action every day. Take massive imperfect action every day. Notice the word imperfect. If you’re gonna wait, thank you, Ashley. The surefire path to success is to take massive imperfect action every day. If you wait until you think you are 100% prepared to start taking action, you ain’t never gonna take action. Right? Get out there and screw it up royally.
Jay Conner [00:44:18]:
The best way I know to get it right. Ask me now how I got it right. I messed it up really badly. And I took a lot of imperfect, messed up action. But you know what? I don’t believe in mistakes. I believe in lessons. I don’t believe in mistakes. I believe in lessons.
Jay Conner [00:44:39]:
The thing is when you mess it up okay. What’s the lesson? What’s the lesson here? Like, my first question is, what did I do to cause this or allow this to happen? My second question is, what am I gonna do about it? Right? Right. So I want you to write down the 3 steps. These are the notes that I made prior to this call to answer the question, fastest or next private lender? And, Banjo stepped all over me. So poohing on you, Banjo. So here are the 3 steps to success on your fastest or next private lender. Step number 1, write down your plan. Write down your plan.
Jay Conner [00:45:25]:
This is what you’re gonna do. Banjo shared his and Erica’s plan. She had one plan. He had another plan. Write down your plan. What are you gonna do to raise private money? You just heard some specific examples of what you’re gonna do. Step number 2, Crystal can guess what step number 2 is. Schedule your plan.
Jay Conner [00:45:45]:
Do you want to write down your plan? You’re going to schedule your plan. So Banjo shared He’s reaching out. He was reaching out to 5 people in his warm market a day with one of the scripts. His wife, Erica, was doing the same thing on her social media. So schedule your plan. They knew exactly when they were going to do it. And step number 3 is to execute your plan. Scheduling your plan is no good unless you actually keep your promise to yourself, Right? So let’s say I had 0 private money, 0 private money.
Jay Conner [00:46:21]:
What would I do if I was starting all over from scratch? And I knew the scripts, I knew the direct method, asking somebody, do you have investment capital or retirement funds not giving your giving you a high rate of return, safe and secure? That’s the direct question. Magic question. The indirect method is I need your help. If I was starting all over, here is what I would do. And it’s really hard to choose because we have such amazing strategies that all of us platinum and masterminds implement, right? The first thing I would do is I would use the I need your help script. And, the I need your help script pretty much goes like this. Whether you’re talking with somebody in person or over the phone, I need your help. I’ve now opened up my real estate investing business to people I know and trust.
Jay Conner [00:47:13]:
It’s by referral only. I’m now paying insane high rates of returns to my private lenders and investors. And when you run across somebody who’s complaining about the returns they’re getting at the bank on CDs, the volatility of the stock market, would you refer them to 1,000,000? I’ll tell them about how I’m paying crazy returns. That’s the indirect method. I need your help. You’re not asking for money. You’re asking people you know to spread the word. So here’s what I would do.
Jay Conner [00:47:42]:
I would write down, I’d go through my phone. I’d write down all the centers of influence, the influencers that I know. And I’d call them up and ask them for their help. So who are the influencers that you know? Well, write these down. Here are the influencers that you already know. You know, Realtors. They know a lot of people. The question is, who do you know that knows a lot of people? So realtors, attorneys, and lawyers.
Jay Conner [00:48:14]:
They know people with money. CPAs, accountants, attorneys. They know people. If you’re like Crystal, you’re gonna call up the mayor and you’re gonna ask the mayor for help. She actually met the mayor at a networking event, and now they go to lunch together and eat scones and drink hot tea. They’re just like best of buddies. Right? So who do you know that by the way, in the Private Money Success System, I actually have a trigger or a checklist of how you identify these centers of influence. And you call them up and you make that script.
Jay Conner [00:48:52]:
I like what Beki shared as well. And that is private lender luncheons. I mean, you know, it takes the same amount of time to teach the private lending program to 20 potential private lenders as it does one. So I love I love great private lender luncheons, etcetera. With that, speaking of networking, private lender luncheons, learning what the private lending program is, how to raise 1,000,000, 1 and a half 1000000, 700 1,000, 4,500,000. You’ve been hearing it here on the live Zoom today.
Crystal Baker [00:49:24]:
I think that’s it.
Jay Conner [00:49:25]:
Awesome. Well, y’all, this was a fantastic and amazing Zoom training on private money. Thank you all for taking the time to join us. Look forward to seeing you right here 2 weeks from right now. Our platinum and mastermind members that joined us, thank you so much for your contribution. Thank you, Felicia Cox. I’m glad you got a lot of value out of being here, Felicia. So good to see you there.
Jay Conner [00:49:48]:
And Chaffey and Crystal and Banjo and Beki and Cara and everybody that joined in. God bless you. Lots of love coming from Morehead City, North Carolina. We’ll see you right here 2 weeks from today. God bless you. Have a great week.
Narrator [00:50:07]:
Bye. Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide. and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/MoneyGuide. to get your free guide. We’ll see you next time on raising private money with Jay Conner.