When most people think about real estate investing, the first images that come to mind are often an endless stack of contracts, house tours, negotiations, and the hunt for the best properties. But beneath the surface of this transactional world lies a powerful truth: real estate is still very much a people business. This principle is at the heart of the podcast episode.
The episode features Jarrod Frankum, an investor, realtor, and founder of a family-run real estate business, as he sits down with Jay Conner to break down the real journey behind private money, deal-making, and why relationships are the ultimate currency for success.
The Unexpected Path to Private Money
One of the most compelling aspects of Jarrod Frankum’s story is how his path into private money wasn’t something he planned. He didn’t approach investing with a wealthy background, a trove of connections, or a pile of capital. Instead, his journey began with sharing excitement about his business with people he already knew—without any intention of pitching for funds. What happened next signaled a core reality for real estate entrepreneurs: often, genuine enthusiasm and consistent action attract others who want to participate.
By being open about his goals, Jarrod Frankum found himself approached by someone willing to partner and supply the capital he needed for his very first deal. Later opportunities arose through a mixture of referrals and organic connections at investor meetups. The lesson is clear—building trust and communicating authentically about what you are doing can be a magnet in itself. Importantly, many of his early deals were funded by those who believed in him, not just the numbers.
Referrals and Reputation: The Real Deal-Makers
Throughout the episode, Jarrod Frankum repeatedly emphasizes that referrals have played a pivotal role in sourcing private lenders. Instead of chasing every dollar, he focused on being active, visible, and reliable in local investor networks and professional circles. Delivering on promises, managing deals well, and communicating clearly with partners generated a network effect; each successful transaction made the next connection easier.
Jay Conner reinforces this pattern with his own experience, having also raised capital through personal contacts, specifically through shared communities like churches. Being known as someone who does what they say and values transparency becomes much more important over time than any marketing gimmick or pitch. Deals come and go, but reputation endures and pays dividends as word spreads organically among peers.
Transparency: The Ultimate Safeguard
Mistakes in the private lending world can be costly, and Jarrod Frankum notes that the biggest he’s observed among peers is masking risks or being less than forthright with partners. Huge issues arise when people use new funds to patch over old mistakes or don’t present a realistic picture of the numbers. Instead, Jarrod Frankum’s approach is to front-load honesty: he shares comps, renovation budgets, and even points out risks with each deal. Trust is built on full disclosure, and if potential partners walk away, that’s better than jeopardizing anyone’s capital. In his view, always being upfront ensures that only the right kind of people, with the right expectations, get involved.
Preparation Beats Panic
A recurring theme is the importance of finding money before stumbling into desperate need. Too often, novice investors are told to get a deal under contract and assume the money will follow. The reality is that having funding lined up enables investors to act quickly and confidently. This confidence, in turn, makes it easier to secure more deals, grow the business, and help more people.
Getting Started: Mindset and Intentional Action
For those just starting out, Jarrod Frankum stresses the importance of understanding both what you’re raising private money for and what your potential lender needs. Every deal starts with a clear purpose and conviction. Matching great deals with the right people—and being prepared to walk away if the situation doesn’t feel right—forms the backbone of a sustainable business.
The episode closes with a strong reminder: in real estate, taking action on what you’ve learned—starting those conversations, sharing your journey, and being real about your process—is what ultimately opens doors. Build your reputation with each step, focus on meaningful connections, and let the power of community work for you.
Whether you’re just getting started or seeking to strengthen your next deal, remember that in real estate, relationships are the bedrock. When you focus on building them with integrity, the money and the opportunities often follow.
10 Discussion Questions from this Episode:
- What mindset shifts did Jarrod Frankum identify as essential when transitioning from chasing deals to attracting private money, and how did those shifts impact his business trajectory?
- Jarrod shared that his first private lender came from a church connection. In what ways do personal connections play a role in raising private money?
- How did Jarrod’s participation in real estate meetups and networking events help him develop relationships with potential private lenders?
- Jarrod and Jay Conner both mentioned losing access to bank lines of credit. What lessons about funding sources and risk management can real estate investors learn from their stories?
- According to Jarrod, why is it important to be upfront and honest when raising private money, and what consequences has he observed when this is not practiced?
- Both Jarrod and Jay discussed the importance of enthusiasm and sharing excitement about one’s work rather than actively pitching for money. How can this approach create opportunities for private funding?
- What common mistakes do new real estate investors make when trying to raise private money?
- How does having private money “lined up” in advance impact an investor’s confidence and deal-making ability, based on the experiences shared in this episode?
- Jarrod referenced advice about taking action “one bite at a time.” How can breaking down the process benefit new investors facing uncertainty?
- Both speakers stress the power of referrals and the importance of maintaining a solid reputation. What strategies can investors use to build credibility and attract more private lenders organically?
Fun facts that were revealed in the episode:
- Jay Conner’s very first private lender connection was made through his church, and funnily enough, the same was true for Jarrod Frankum—they both got started with private money through personal and community relationships rather than chasing traditional funding.
- Jarrod Frankum raised $50,000 in private money for his very first home purchase without actively asking for it—he simply shared his excitement and progress with people in his network, one of whom offered to partner with him and fund the deal.
- Jarrod Frankum’s journey into raising private money began out of necessity when a bank suddenly declined to renew his credit line, forcing him to find creative ways to fund his deals and build a sustainable business reliant on strong personal connections, organic referrals, and his reputation in real estate circles.
Timestamps:
00:00 Raising Private Money without Banks
05:37 Finding private money for real estate
07:22 Raising funds for new projects
10:31 Starting with private lenders
14:58 Getting first deal funded
18:31 Building trust and attracting investors
19:39 Mistakes to avoid in real estate
23:46 Finding a deeply discounted property
26:27 Evaluating deals and lending criteria
29:40 Connect with Jarrod Frankum
https://www.facebook.com/JarrodFrankum/
30:58 Wrapping up with a call-to-action
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Mindset and Connections: The Real Keys to Raising Private Money for Real Estate Deals with Jarrod Frankum
Jay Conner [00:00:02]:
If you had access to an extra 100,000, 250,000, or even $500,000 in private money, how many more deals would you be doing right now? And here’s the real question. What’s actually stopping you? Is it the lack of deals or the lack of funding? Welcome to another episode of Raising Private Money. I’m Jay Conner, the private Money authority, and today we’re going to show you exactly what’s possible when you stop chasing deals and start attracting the money. Because my guest today didn’t come from a wealthy network, he didn’t start with deep pockets, and he didn’t wait until everything was just perfect to get started. Jarrod Frankum started with nothing but a decision. Fast forward to today. He’s raised over $550,000 in private capital, built a real estate business from the ground up, and consistently helps sellers solve real problems while funding his deals the smart way. He’s an investor, a licensed realtor, and the founder of a family-run business.
Jay Conner [00:01:06]:
But more importantly, he’s proof that you don’t need experience, connections, or capital to get started right now. You just need the right mindset and the right strategy. So in this episode, we’re going to break down how Jarrod did it, how he raised private money, and how you can do the same thing, starting right where you are. You’re going to meet my guest, Jarrod Frankum, right after this.
Narrator [00:01:32]:
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 [00:02:00]:
Jarrod, welcome to Raising Private Money.
Jarrod Frankum [00:02:05]:
Thank you. Thanks for having me. Jay, good to see you.
Jay Conner [00:02:08]:
You bet. Good to see you again as well, Jarrod. Well, I love your story. I want to dig into it. We want to share it with the audience. So first, let’s go back to the beginning. Jarrod, you know, you didn’t start with money. You didn’t start with connections and all that kind of good stuff.
Jay Conner [00:02:23]:
So take us back to the moment that you decided, I’m going to raise private money. What was it that flipped that switch for you? You know, it’s been my experience after interviewing over 800 guests here on raising private money, there was something that happened, there was a trigger that happened in the story that pointed you towards private money. What was that?
Jarrod Frankum [00:02:48]:
Well, I more or less stumbled into it. So I didn’t ask for it. I didn’t make this decision that, oh, man, I’ve got to figure out how to raise private money, necessarily. It kind of. It happened by circumstance, and even happened in the very first house that I purchased for myself. And the way that that had come to be was when I was about four or five real estate deals in. I found a house that the owner owned outright, and he needed a massive down payment. He wanted to buy, and he was willing to own or finance most of it, but wanteda $50,0000 down payment.
Jarrod Frankum [00:03:36]:
I thought, well, if I could get the deal at the right terms, what I would do is. Structure the deal so that I can either resell it or do something. And what I realized was that I. Are you there?
Jay Conner [00:03:56]:
Oh, yes, I’m here. But you’re highlighting.
Jarrod Frankum [00:03:58]:
Sorry. Okay. I thought the whole call dropped. My mistake, my mistake. So I thought that, well, I need to structure the deal in some way. And so this was a house that the owner wanted to buy a tractor for $50,000. He’s a farmer, lives 70,000 miles away. And I thought, well, I don’t have $70,000.
Jarrod Frankum [00:04:17]:
I’m brand new in this business. But the price was low enough. I thought, well, I could resell this deal to someone else. And. Kid you not, they said, we will. We will partner with you and fund you with $50,000 so you can do this deal. It blew me away. I wasn’t even looking forward.
Jarrod Frankum [00:05:04]:
I wasn’t trying to pitch it. I wasn’t trying to do anything like that. I was just sharing my excitement about, hey, my business is getting off the ground and going. And someone offered it to me. And that was my first instance of private money on my very first house that I bought for myself. And what I had been doing previously was wholesaling real estate, where I would find discounted properties and then resell them with the intent that I still wanted to own property. And then I had another instance of raising private money. And this came from.
Jarrod Frankum [00:05:37]:
I had been trying to find lines of credit, unsecured lines of credit, so that I could buy property. And at the time, I was still so new in business that banks really wouldn’t give it to me. But I had just met a handful of connections, Realtors, and other investors. And I would go to this weekly meetup where we would just talk about what our business goals are, how we can help each other, and this and that. And a realtor friend of mine shared with me, well, I use Private money. I’ve got this couple that,t for their retirement, what they do is they lend to real estate investors. And I set up a meeting with them. The entirety of the purchase price, the entirety of the remodel budget, and a way for me to do an assignment fee to fund my real estate acquisitions business.
Jarrod Frankum [00:06:55]:
So I was able to buy the property with no money out of pocket, entirely 100% on private money financing. They loved it. The couple, the deal went smoothly, remodeled the house within three months, we refinanced it, and paid them back. They made a good chunk of money. They’re excited. And then they roll that into the next one, and then roll that next one. So we constantly have money with them. And then now having this as a story of, hey, I’ve done this already.
Jarrod Frankum [00:07:22]:
Now I come across other people, and I’m not actively seeking big private money now, although I know I should, or that’s the next. I should say that’s one of the very next steps for my business,s as we take on more projects like this, is raising more money because we happen to. We happened to lose a line of credit that I had gotten because the bank’s risk tolerance went down, and they weren’t willing to renew it. So I realized, man, I can’t rely exclusively on lines of credit or just banks. It’s really healthy to have access to several types of funds. And also, as the stock market’s not doing so hot and not as predictable when you’ve got people with great track records on buying, remodeling, and doing. Doing well on deals, People who’ve got a stack of cash but are afraid of the stock market or afraid of the volatility, they want to put money with us. And so what started from just someone believing in me and seeing a little bit of success, and that parlaying into someone else wanting to take a piece of that.
Jarrod Frankum [00:08:29]:
And then now it’s starting to grow where we’ve. We’ve got several people who are willing to lend. Maybe not everyone doesn’t lend on the entire deal, but it’s pieces. Maybe it’s 10 to 20, $30,000, or up to 200 or more on the full deal. And right now we’ve got a remodel that we’re doing there. And so I don’t know it. I changed your question. When I realized I had to do it was in April, about a year ago.
Jarrod Frankum [00:08:59]:
Was when my bank. I finally got that line of credit, but my bank elected not to renew it because they’re concerned about the whole political situation and this and that. And I didn’t want to renew the credit line. And so I realized, man, I have to always have access to capital because when the deal is there, the last thing that you want to run into is not having the way to fund it. And oftentimes you need to make decisions quickly, so I could go to a bank and get a typical bank loan, but that takes 30 to 45 days longer. Oftentimes, these deals are for you. You’ve got to be able to jump on the opportunity there, or you lose it. And in fact, we had that same couple.
Jarrod Frankum [00:09:40]:
There was a deal at the house the next morning. I got a call at like 8 pm the next morning. That house was going into foreclosure, and I couldn’t wait for a bank. I couldn’t have even waited for a line of credit for the bank to open. I called that couple at 8 pm and said, Look, I’ve got a wild story for you. You’re gonna think I’m insane. Here’s the deal. Here’s what I found.
Jarrod Frankum [00:10:03]:
Here’s the situation. We’ve got to have this money by 9 am tomorrow, cash in hand, to go pick this up. Sure enough, we closed on it, we bought it, and I raised that money in eight hours or whatever it was. So having access to funds like that really enables you to act on an opportunity when it’s fresh. Otherwise, we would have lost the deal. There was no other way to fund it.
Jay Conner [00:10:31]:
Jarrod, what I love about your story is that your beginning days using private money and my beginning days starting to use private money, which for me goes all the way back to 2009. I had a bank story, right? I had a line of credit at the bank. I thought I had a line of credit at the bank still,l when I had two houses under contract,t and I called up my banker and learned that my line of credit had been closed. And so anyway, you and I have that in common as far as we had to find a better and quicker way to fund our deals. Another commonality that we have in your story and my story is that it sounds like your first private lender was from a church connection. Did I hear that right?
Jarrod Frankum [00:11:14]:
That’s correct.
Jay Conner [00:11:15]:
Mine as well. Our first private lender was a church connection. And there’s a big. I heard a big takeaway, a big takeaway from your story that you just shared about your first private lender. And you said you weren’t asking anybody for money. I never ask anybody for money, but I got over $8 million that I keep turning over and over and over again. And so you didn’t ask. The big takeaway from your story is that you were just sharing your enthusiasm and your excitement for what you were doing with deals and what you had going on.
Jay Conner [00:11:53]:
And that is a great attractor factor, if you will, to get people attracted to you and chasing you to where we’re not chasing the money. There. It’s all about. There’s no selling, persuading, chasing, or begging. Right. No selling. It’s all about letting people know what you do and then letting them know that you’ve got an opportunity. So I can relate to.
Jay Conner [00:12:21]:
I can relate to so much about what you were just sharing in your stories. And, you know, we got a lot of real estate investors that are listening and tuning in to this episode, and a lot of them are stuck because they feel like they just don’t know enough yet. Did you have any lack of confidence at the beginning? And if you did, how did you push through that lack of confidence and start raising money anyway?
Jarrod Frankum [00:12:50]:
Yeah, well, I had no clue what I was doing, to tell you the truth. I thought that I was either A, doing something brilliant, or B, doing something incredibly irresponsible. There was just. There was so much. The thought was, I’m either just doing something so crazy, it doesn’t even matter. Like, there’s no. I’m either gonna fall so hard on my face. Doesn’t matter, or B, that this is gonna be awesome.
Jarrod Frankum [00:13:16]:
And I. I thought, man, let me just take this one step at a time. I knew that one. One thing, especially when I was early in the business, this was 2020, March 2020 is when I closed my. That first deal with private money. It was the first house I had ever bought. I’d never owned any real estate before this, and there were several new things to me. But I knew, well, if the house.
Jarrod Frankum [00:13:47]:
I think the house was going to be worth, like, $320,000; it needed 30 or 40,000 in repairs. And the owner, we had structured either a, we could do an all he wanted $180,000 cash, or 230 with $50,000 down. So I knew, man, there’s still so much margin on top. Even if I totally whiff this thing, I could just sell it out right to someone else, and I’ll be okay. And it just didn’t make sense that it was gonna go bad. I just knew that the numbers just seemed to make so much sense, but I had no idea if it was gonna work or not. It just seems to make sense. And so I put it under contract, and I knew I had no idea where 50 grand was gonna come from.
Jarrod Frankum [00:14:40]:
I had no idea. And, but I was just sharing with people about who cares about me. And hey, I found this deal, and this is what I’m looking at. This is so cool. Look, check this house. It’s, you know, here. And I’m structuring it this way and this and that. And then they brought it up.
Jarrod Frankum [00:14:58]:
They said, Jarrod, why don’t we just fund it for you so you can go do something? This is. You’ve been looking at this for a long time. And I think that’s what encouraged them to even consider loaning the money to me was the consistency I’d had before actually doing other real estate deals like wholesales and that sort of thing, where I never closed on any. But I had found great deals for other people, and they wanted to see me, they wanted to believe in me, invest in and see me level up and actually own and begin building, a nd that sort of thing. And yeah, I had no clue what I was doing. But I thought if I just took the one step to help me move forward, which was to sign the contract. Okay, I signed the contract. Now I need to figure out where the money is coming from.
Jarrod Frankum [00:15:44]:
Well, let me bring the deal to other people. Maybe I can either A, partner with someone, or B, someone will want to buy it or whatever. I didn’t know. I just figured, let me just take the next step. My, my grandma, I love my grandma. She had given me this advice one time. About something not related. I don’t even remember what it was about, but she had said one time, Jarrod, the way to eat an elephant is one bite at a time.
Jarrod Frankum [00:16:09]:
Don’t worry about eating the whole thing at once. Just take the one bite. So I thought, let me focus on this one bite of this deal, which was getting the contract. And then next is finding people to either partner with or buy it. And then three, just telling other people about what I’m doing, just out of excitement, share. And sure enough.
Jay Conner [00:16:28]:
So let’s get tactical, Jarrod, our listeners. A common question I get all the time is where are you finding your private lenders? So I heard where you found two of them. The first one was through a church connection. The second one, you were in a conversation, and they told you about someone who had retirement funds that were lending. And so you had an intentional meeting with them.
Jarrod Frankum [00:16:53]:
Yes.
Jay Conner [00:16:54]:
And. And I suppose you had not met them before. No, this is for like a co-meeting, so what are some other places or areas, or how have you found other private lenders?
Jarrod Frankum [00:17:09]:
By being heavily involved in the real estate scene. As I would go to the real estate investor meetups, I would have good conversations or contacts with hard money lenders and bankers. Being close to people involved in the industry. I don’t know how, but my name gets brought up. It’s referral-based. I don’t market. I know I’m small in the space. Like, I’m not raising millions and millions of dollars yet.
Jarrod Frankum [00:17:37]:
Not yet. I know we will get there, but so far it’s just been based on referrals. Hey Jarrod, we know this guy, we’ve seen what he’s doing, right? And they reach out. It’s so, it’s been all organic to me, but it’s always been related to being active, being profitable, and being successful in real estate. When I say I just complete deals, I deliver on what I’m going to say. I pay the people on time, and they get their returns. I don’t make them wait around for their money. They’re not.
Jarrod Frankum [00:18:10]:
If they want to go walk the property, I’ll let them go look at it. I don’t mind, at least at this stage. I think if I’m doing, you know, several deals that may be a lot of logistics, but I’m not there yet. And so I’m playing with the cards that I have. And so far it’s just all been on referrals, but based on my one, reputation, and then two, being around other people doing similar things.
Jay Conner [00:18:31]:
Yeah, that makes sense. Well, and that’s the way it’s been for me over all these years. I have, I’ve either already known the person had some kind of relationship, already have the trust factor, the credibility in place, or I was referred to someone that I had already been doing business with, that I already had that relationship. So it’s like, I mean, you know, when the referral comes, pretty much they’re already in. It’s just a matter of, you know, that warm-up conversation and reviewing what it is that you offer, you know, the interest rate that you offer, and that type of thing. So let’s talk about mistakes and lessons learned and how to avoid them. Can you identify any mistakes or things that you would do differently now on attracting the money than when you first started attracting the money? And in addition to that, have you observed any mistakes with other real estate investors?
Jarrod Frankum [00:19:34]:
Oh yes.
Jay Conner [00:19:35]:
When they have gone to raise private money, yes.
Jarrod Frankum [00:19:39]:
Let me answer the second question first, which is Have I observed any other mistakes? Absolutely. The number one thing that I’ve seen other people do, and it’s. It wrecked some good, good friends of mine who invested with someone else who wasn’t up front; they were not clear, they were not truthful and honest about this genuine situation of the house, the genuine values of the home, the genuine. None of that. They were raising money to pay for bad debt elsewhere, and that ultimately became this massive house of cards that all fell. So, thankfully, that’s not anything that’s ever happened with me. But I have seen that. And it’s easy to believe in someone when you see that they own several properties, but if it’s not backed up by reality, then it’ll come crashing down.
Jarrod Frankum [00:20:34]:
So, of course, what I do is I’m so upfront. I show my suggestion, or my estimated remodel costs, and I show what I think that house is worth. I’ll give comps, I try to front-load as much as I can, positive proof, and even poke holes in why the deal could be seen as some sort of risk. And here’s how I overcome that. And if someone is not willing to work with me, of course, I just. It’s okay. It’s okay. I forget who says it, but, like, the deal of a lifetime comes around once a month, so it’s not like that’s the only one.
Jay Conner [00:21:13]:
There are always deals, always going to be deals. So true.
Jarrod Frankum [00:21:16]:
Yeah. And I think the mistake that I have is that I’ve waited to find the money when I’m already needing it. I think the thing that really would have accelerated a lot is consistently looking for opportunities to raise money, even when I don’t have a particular need for it, or that deal’s not active, or I don’t have some perfect form that would really help turbocharge the business.
Jay Conner [00:21:43]:
Yes, thank you. Thank you for sharing that. Because I learned early on, it makes a whole lot more sense to get the money lined up first. And, you know, think about it. How many more offers, how much more confidence is someone going to have in making offers if they know where the money is going to come from? And they know. It’s like what I call sitting on the shelf just waiting to be used.
Jarrod Frankum [00:22:13]:
Right?
Jay Conner [00:22:13]:
And I tell you, Jarrod, I tell you one thing that just drives me crazy. Have you ever heard the guru stand on stage talking to a bunch of newbies, and they’ll say, ” Oh, just get the deal under contract. The money will show up. Have you ever heard that?
Jarrod Frankum [00:22:28]:
Of course.
Jay Conner [00:22:29]:
Yeah, of Course we all have. It’s insane. It’s like. Or they’ll say, now, of course, thank goodness in your case, it did show up right in, in your, in your first. But it might not have shown up. It might not have shown up anyway. Or, they’ll say something to the effect of, oh, money finds good deals. And I want to say, you know, if you get a deal on the contract, is a drone going to fly over your front porch and drop a bag of money? Or does money?
Jay Conner [00:22:59]:
Yeah, does money have legs? Is money got like going run around, you know, looking for deals? And so it’s been my experience that the more private money somebody’s got lined up ready to go without a deal attached to it, the more deals they do.
Jarrod Frankum [00:23:17]:
Exactly.
Jay Conner [00:23:19]:
I mean, you know, when that, when that, when that deal comes across your desk, you know, I mean, it’s, it’s sort of downright stressful, as you probably know. It’s sort of stressful to be trying to raise money on a deal you got under contract. And people have heard me say it all the time. You know, desperation’s got a smell to it now. Thank goodness. You didn’t come across desperate. You came across. You were just excited about what you had going on.
Jarrod Frankum [00:23:46]:
And that’s the thing. I think if it was a, if it actually wasn’t a smoking hot screaming deal, there would have been some desperation there. But I think that deal was just incredible. That first one was just nutty. I mean, you walked into $70,000 of equity day one without doing anything, just buying it, and walked into that much. So I knew that there was some genuine value there, not just you throw a number out and hope they take it. Oh, I’ve got the deal. I don’t think money will come to that because that’s everywhere you look on the mls, you can find any sort of retail value deal, but when you really find deeply, deeply discounted property, where there’s a ton of upside, there’s a ton of opportunity and there’s a ton of room, even if it goes apocalyptic, that people are still going to make it out, that’s where money really just flows to you.
Jarrod Frankum [00:24:41]:
But it doesn’t, it doesn’t come like a drone. That came because I was mentioning it, talking about it, and people already knew what I was doing previously to buying real estate. Someone, one of my mentors, had told me that this one time early on, he said, Jarrod, you were like an early. He said, Jarrod, you’re like a McDonald’s with no sign and no Windows and only one door in the alley. And there’s a ton of hungry people outside. But no one knows that you cook hamburgers. And so you have to be loud and not, not boastful, so to speak, but loud. Let people know that it’s there.
Jarrod Frankum [00:25:18]:
Hey, there’s an opportunity here. This is real. This is what’s going on. And that’s how money will come to you. It doesn’t just appear on its own.
Jay Conner [00:25:26]:
Exactly. So, Jarrod, for those that are listening to this show and want to start raising private money, but they never have before, what would be your advice on where to start? Like, what’s the first? What’s the first thing they need to do, or to understand,d or get straight
Jarrod Frankum [00:25:46]:
about raising money? One knows what it is that you’re raising money for. I think, I think you could just claim that you want to raise money, but if you don’t have any real direction or aim or purpose to it, I think it can really frustrate not having any meaningful pitch. What people believed in me, and I can only speak from my own experience, but what people believed in me was my certainty about the direction of where this deal was headed. And I believed with my whole being. And it was so obvious. And that’s where. That’s what raised the money. And so knowing how it would be helpful.
Jarrod Frankum [00:26:27]:
Two is knowing what. What’s the need for someone who’s loaning that money out? People aren’t loaning their money out just because, right, there’s going to be an expectation for return, I’d say 99.9% of the time. So what is it that they would want? Something I often think to myself, if I talk to other people getting involved in real estate, how do they make offers? Is one is if you aren’t willing to buy that and close on it yourself, do you actually have a good deal? And that encourages them to really reconsider what a good deal to make a deep enough discount is. And so then you think, okay, well, would you loan money on this deal? If we want to talk about loaning money, would I loan my own money to someone else if it were this particular person’s deal? And if the answer to that question is no, either I don’t know enough, or two, it’s not a good deal. So you could solve either of those two things by one, learning a little bit more about loaning and expectations and all that, or two is to evaluate if this is actually a good deal? There are bad deals everywhere. There are bad Deals; you don’t have to go far to go find a bad deal. But the really good ones, they don’t last long either. So put yourself in the shoes of someone who would be a lender, and when you’re, how would you structure it so that you would be satisfied yourself?
Jarrod Frankum [00:27:52]:
I think others would also.
Jay Conner [00:27:56]:
That’s great advice, Jarrod. Yeah. When I get asked that question, what’s the first thing that they need to do? My answer is. And it ties in with your answer. My answer is you’ve got to get the right mindset first.
Jarrod Frankum [00:28:08]:
Sure. Yeah.
Jay Conner [00:28:09]:
You gotta get the mind. You’ve got to own the real estate between your ears. And I had to get my mind wrapped around that because, you know, I had been in a bar. We started investing in single-family houses in 2003. And for those first six years, until January 2009, I didn’t know anything about private money. I didn’t know anything about hard money. Of course, for all of our listeners, Jarrod and I have not been talking about hard money. Hard money is institutional money.
Jay Conner [00:28:34]:
We’re talking about private money, you know, doing business with individuals, human beings. And you know, the traditional way to borrow money is 99.9% of the people walking around think whoever’s lending the money makes the rules, whoever’s lending the money sets the interest rate, and all that. And in this world, we’re not asking, we’re not applying for a mortgage, we’re offering an opportunity. I view myself as a teacher, an educator. We’ve had 47 private lenders funding our deals, and not one of them had ever heard of private money or how they could use self-directed IRAs to lend out retirement funds to real estate investors. Until what did I do? I put on my teacher hat, which says, ” Private Money, Teacher. And I just went about educating. But I wouldn’t educate until I had diagnosed first if they had a problem.
Jay Conner [00:29:33]:
Right. So anyway, Jarrod, you and I have got so much in common. It’s been great having you on the show. How can people connect with you and can and continue the conversation?
Jarrod Frankum [00:29:44]:
Absolutely. Find me on Facebook, www.Facebook.com/Jarrodfrankom, and send me a message there. That’s where I’m most active, and that’s the quickest way to get a response from me. Especially these days, it’s hard to even answer a phone call because of so much spam.
Jay Conner [00:30:01]:
Right, exactly. So yeah, you all can find Jarrod on Facebook, and you spell his name. Of course. This will all be in the show notes, Jarrod. J A R R O D Frankum F R A N K U M Jarrod, thanks so much for joining us on Raising Private Money.
Jarrod Frankum [00:30:19]:
Likewise. Thank you, Jay.
Jay Conner [00:30:20]:
You got it. All right, folks, let’s bring this home. If you got value from this episode, and I know you did, here’s the truth. Listening does not change your business, but taking action does. So don’t just sit on what you heard in this episode. Reach out to someone you know, start the conversation, and begin raising private money and attracting it. And here’s the deal. If this episode helped you think bigger, move faster, or gave you the confidence to finally just get started, then help me get this message into the hands of more real estate investors just like you.
Jay Conner [00:30:58]:
I want you to take 30 seconds right now and just do one of these three things. Either one, share this episode with a friend who needs funding for their deals, or post it on your social media and tag me. Or send it directly to someone who’s been saying I don’t have the money to get started because the more people we reach, the more deals get funded, and the more lives that get changed. And hey, if you haven’t already, be sure to subscribe or follow so you don’t miss the next episode of Raising Private Money. I’m Jay Conner, the private money authority, and I’ll see you right here on the next episode.
Narrator [00:31:36]:
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.