In the world of real estate investing, it’s tempting to believe the hype: that every deal can be a winner if only you hold onto it long enough or apply the right strategies. But as Jay Conner explored with guest Ryan Cadwell in the insightful episode of Raising Private Money Podcast, true success in real estate requires discipline, honest self-reflection, and a willingness to walk away from deals that don’t truly serve your goals.
Ryan Cadwell’s background speaks for itself. With over 17 years of experience, more than $100 million in transactions, and a history that spans development, asset management, and property management, Ryan has lived through several market cycles—including the dizzying rise and painful aftermath of the 2008 crisis. It was clear from his conversation with Jay that Ryan’s approach is defined not by a relentless chase for deals, but by a careful, methodical process grounded in both data and emotional intelligence.
One of the central themes Ryan brought to the discussion is the danger of over-optimism in real estate. A pervasive myth in the industry is that real estate always creates wealth and that nearly any property, if held long enough, will yield a positive return. Ryan was quick to challenge this assumption, explaining that too many investors act without a proper plan, jumping into deals based on broad-stroke advice rather than a personalized investment strategy.
Perhaps Ryan’s most valuable insight was his emphasis on the power of saying “no.” He reflected on his early days working with his father on multifamily properties and realizing, through experience and after-the-fact analysis, that the real measure of skill is not in how many properties you buy, but in your willingness to walk away from those that don’t fit strictly defined investment criteria. In his view, investors should expect to say “no” to the vast majority of deals, knowing that only a select few will truly meet both their financial and strategic requirements.
Ryan also highlighted an often overlooked aspect of dealmaking—the art of listening. Too many investors, especially newer ones, fall into the trap of over-explaining or pitching their deals to brokers, lenders, or potential partners, rather than asking open-ended questions and genuinely listening to the responses. Ryan attributes much of his success to his ability to build rapport and trust simply by giving others space to share their needs and concerns. This approach, he believes, leads to more transparent negotiations and stronger, longer-lasting relationships.
The conversation also touched on the changing dynamics of the current market. Ryan pointed out that with rising interest rates and more frequent volatility, the game has shifted. He noted that some savvy investors are now focusing on acquiring real estate notes—essentially stepping into the shoes of the lender at a discount—rather than overpaying for inflated property values. This strategy requires its own caution, however, as the lending landscape is filled with complex, sometimes predatory terms. Ryan advised rigorous due diligence and a willingness to walk away from financing partners who do not inspire confidence.
Jay Conner, ever the champion of relationship-driven investing, reinforced Ryan’s points by stressing the necessity of diagnosing a potential partner’s or investor’s real needs before offering any solution. In their conversation, both men agreed that the true test of a good dealmaker is their ability to help others get what they want, without ever veering into salesy territory or rote scripts.
Ultimately, this episode delivers a message that every investor—new or seasoned—needs to hear. Discipline, honest self-evaluation, a strategic approach to listening, and the courage to walk away are all critical to long-term success. As Ryan and Jay reminded listeners, sometimes the best deal is the one you never do.
If you’re ready to move beyond the hype and start building lasting wealth on your own terms, this episode is a must-listen. Ryan Cadwell’s approach offers not just practical strategies, but a mindset shift that can help you avoid costly mistakes while forging a business—and a life—that doesn’t need an escape.
10 Discussion Questions from this Episode:
- Jay Conner asks about the “biggest lie” real estate investors believe. What do you think is the most dangerous misconception in real estate investing today?
- Ryan Cadwell emphasizes the importance of having a plan before investing. What steps should an investor take to build a solid investment plan?
- Ryan Cadwell discusses balancing optimism with realism when analyzing deals. How can investors best avoid falling into the trap of over-optimism?
- The episode highlights the value of listening more than talking in negotiations. Can you share a situation where listening led to a better investment outcome?
- Both speakers mention building trust with private lenders and investors. What strategies can help foster trust in investment relationships?
- Jay Conner references the idea that the biggest profit might come from deals you don’t do. How do you judge when walking away is the smartest move?
- Ryan Cadwell shares experiences working across asset classes. What are the unique risks and opportunities in single-family vs. multifamily or commercial real estate deals?
- The episode touches on recent trends such as investing by buying notes rather than properties directly. What’s your take on note buying as a strategy, and what risks should new investors be mindful of?
- What role does transparency play in long-term client relationships, according to Ryan Cadwell, and how can transparency help investors make better decisions?
- Reflecting on the advice shared about not rushing and adhering to predetermined investment criteria, what personal or observed examples do you have where patience led to a better investment?
Fun facts that were revealed in the episode:
- Ryan Cadwell revealed that, according to research, people may actually lie to themselves up to 200 times a day, especially when analyzing deals or making investment decisions. This self-deception can heavily impact real estate investing if not kept in check.
- Jay Conner shared a definition of malpractice he likes: “giving a solution before there’s a diagnosis”—and compared it to raising capital, emphasizing that you shouldn’t pitch investment opportunities unless you know the potential investor’s actual problem or needs.
- Ryan Cadwell believes that in real estate investing, the most money you can sometimes make is from the deal you don’t do. He pointed out that saying “no” to most deals is not only common but wise, as “yes” should be a surprise when carefully analyzing offers.
Timestamps:
00:00 Ryan’s unique real estate approach
06:17 Importance of Active Listening
08:24 Approaching lenders and brokers
12:13 Discussing investment opportunities
18:04 Choosing the right investment deals
20:53 Working with diverse real estate clients
24:50 Importance of buying real estate wisely
28:37 Buying undervalued property notes
30:29 Reviewing loan agreement terms
32:03 Connect with Ryan Cadwell:
33:11 Straight talk on investment mistakes
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The Biggest Lies Real Estate Investors Still Believe, Explained by Ryan Cadwell
Jay Conner [00:00:02]:
If you’re a real estate investor, let me ask you something. How many deals have you almost done, but something just didn’t feel right? Or worse, how many deals did you do and later realize that you overpaid or you miscalculated the renovations or whatever? Well, here’s the real question. Who’s actually telling you when not to buy that piece of real estate? Today’s guest will tell you when not to. I’m Jay Conner, the private money authority. Welcome to raising private money. Now today, I’ve got Ryan Cadwell on the show, and he’s not here to sell you hype. Ryan’s been in the trenches for over 17 years. Broker since 2008, involved in over $100 million in real estate transactions.
Jay Conner [00:00:55]:
Everything from development to asset management to property management. But what is it that really sets Ryan apart? Well, he doesn’t drink the Kool-Aid. That’s what sets Ryan apart. He doesn’t drink the Kool-Aid. He’s the guy who’ll tell you the deal is bad, why you’re overpaying, and how most real estate investors are getting it wrong at the same time. He’s building something bigger than just profits. Serving on the board of nine in one place, helping young adults aging out of foster care find stable housing, all while building a business and life you don’t need a vacation from. So if you want real talk about deals, discipline, and how to actually win long term in this business, you’re going to love this episode.
Jay Conner [00:01:49]:
Don’t go away because you’re going to meet Ryan Cadwell right after this.
Narrator [00:01:56]:
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 [00:02:24]:
Ryan, welcome to the show, man.
Ryan Cadwell [00:02:27]:
Hey, Jay, thanks for having me, man.
Jay Conner [00:02:30]:
I’m so excited to have you. Because it’s you, it’s your talent, it’s your skill set, it’s your experience that helps people stay out of the ditches. So let’s go ahead and dive in right here. What would you say is the biggest lie? The biggest lie? Real estate investors still believe in 2026.
Ryan Cadwell [00:02:53]:
The biggest lie. It’s probably something that we tell ourselves. Depends. I mean, the biggest lie is probably just over optimization, not over optimism. Over optimism? Over Optimism that that you can make money in any market, which is, I mean, all these broad-brush, broad-brush cliché phrases that people use to get you to transact. And as long as you have a long enough timeline in the deal, you know you’ll eventually make money. So what they’re telling you is true, but in reality, it doesn’t really meet what you need. And, I think the biggest thing is just when you ask what the
Ryan Cadwell [00:03:42]:
The biggest lie is that my head goes to. Buying real estate is the best, one of the best ways to become wealthy. And people never put a plan around it.
Ryan Cadwell [00:03:54]:
They just take that. Then they go find it. You know, they might go find a broker, go find a deal, and listen to what the broker tells them. Doesn’t make the broker wrong. But there’s just no plan in place. There’s no, there’s no. What, what do you want? Why do you want it? Understanding what you’re actually going to do and how you’re going to execute.
Jay Conner [00:04:13]:
Right. Well, as I said in my introduction, you know, you’re the, you’re the guy that’ll tell you why you shouldn’t do that deal. So let’s talk about mindset. How do you balance? How do you coach your clients? How do you talk to yourself? And how do you balance when it comes to mindset, optimism, realism, and negativity? Where’s the balance in all that?
Ryan Cadwell [00:04:44]:
The balance, I mean, the balance to me, it starts with your habits. It starts with knowing yourself. It starts with being brutally honest with yourself. I mean, I’m doing some research for a class that we’re currently teaching, and I started looking up, like, how often do humans lie? Typically, you lie at least one to two times a day, according to the research. But if you dig deeper, and you say, ” How often do you lie to yourselves? That number can be as high as 200 times a day. So when you, when you’re analyzing the deal, you need to pay attention to how it makes you feel? Like, there is a gut check there. You know, when you have enough experience behind you, you’ve made enough mistakes, you’ve treaded water through rough market cycles, maybe you’ve raised capital to save a deal. When you have enough experience behind you, your gut is better.
Ryan Cadwell [00:05:41]:
If you’re trusting your gut, and this is like your first year or two in the game, those are usually emotional drivers. That usually is optimism, surrounding optimism. That’s coding the fear and the concern you have about the real risks involved. So number one, take an inventory of your habits. Take an Inventory of. How do you handle pressure? How do you handle stress? How do you manage those things? Are you paying attention to, are you paying attention to stressors? Like
Ryan Cadwell [00:06:17]:
Are you listening enough? I mean when you’re, when you’re working with a deal, and you’re working with a broker, one of the biggest things I think that a lot of investors do is they talk too much and they listen too little. If you, thank you. You can hear, you can hear a lot more about what’s going on in a deal. And a lot of times, you know, in this digital age, in the age of tech, you know, texting and Slack channels and emails, you know, a lot of people want to do everything in writing, which is fine. There is a, there is an advantage right now. If you’re willing to get on the phone, if you’re willing to meet face to face, and then learn how to ask really good open-ended questions, and then shut up. See what they say, like that they will tell you stories about stuff, and then ask another question, become a professional of, just of, of listening to people, and that strengthens your deals. And a lot of time,s if you’re the one talking the most, you’re telling everybody else the amount of experience you have.
Jay Conner [00:07:31]:
So when you were giving that advice, were you speaking to, from, from which perspective now it applies to all of us? It applies to all of us. Yeah, but specifically, did you have a particular context in mind when you were thinking, you know, the more you talk, the more you’re revealing how much experience or little experience you have from, from whose perspective were you thinking about my own?
Ryan Cadwell [00:07:57]:
I can go back into my own life and say, man, I should have shut up. I probably would have done better on that deal.
Jay Conner [00:08:05]:
Now, when you say shut up, who are you talking to? No, but what I’m saying is,s were you talking to a potential private lender? Were you talking to a seller? Were you talking to what other type of party might you have been talking to?
Ryan Cadwell [00:08:19]:
Sure,
Jay Conner [00:08:21]:
Let’s see a few examples in addition to yourself.
Ryan Cadwell [00:08:24]:
Yeah, a few examples would be, I mean, all of those actually come to mind there, there are times with a lender that if you ask them about pricing, then be quiet,t and then how are you getting paid? What is your debt yield? You need to approach them with questions that are self-serving to them. Less about you, more about them. In the, in the lender approach, when you’re talking to brokers, brokers are full of information. A lot of them like to talk. Those are the ones that I think you, you need to, you need to learn the art of, you know, just ask and listen and then, and then go again. If it’s it, let’s speak directly to you, you know, what you talk about. If it’s about raising private money and you’re talking to an investor, a lot of times you want to, you know, you, you’re, you get a little nervous, you’re thinking about, okay, I got to make sure I say this, I can’t forget to say this. And when you’re talking to that private investor, a lot of times, they just want to feel hurt.
Ryan Cadwell [00:09:29]:
They’re going to ask you questions about the deal. They’re going to, you know, the bigger, the bigger thing to do is if, if they feel heard,
Ryan Cadwell [00:09:41]:
that creates, that
Ryan Cadwell [00:09:43]:
creates a trust in the conversation. And then you’re going to have a conversation that is going to kind of pull out the information that they need. And you don’t need to oversell it. You don’t need to talk about points they may not care about. So it really depends on, in those private investor, you know, the biggest thing is to find out who they are, where they’ve been, what their bad experiences were, because those, those, the answers to those questions are going to tell you exactly how to pro, to, to share any type of opportunity with them. And just make sure you’re answering those things because those are already the concerns they have in their mind. I had a bad deal with this guy. He didn’t communicate well.
Ryan Cadwell [00:10:33]:
Turned out I, you know, could have helped him with some of the marketing pieces, that kind of stuff. So, listening applies to all of them. The art of it is learning how to apply it in each conversation in a way that creates empathy, empathy with them, so that you understand where they’re coming from. And then what you’re actually telling them is answering their real questions as opposed to I think the biggest thing when people get into feeling salesy, anytime someone feels salesy to me, they’re telling me stuff I don’t, I, I, I, I either know or I don’t care about. And as soon as you start telling me stuff I don’t, I don’t necessarily care about, now I know you’re going through your script. You’re doing what you typically do. This doesn’t have anything to do with me other than you just want me to, to, to buy into whatever you’re, whatever I’m here listening to.
Jay Conner [00:11:39]:
I tell you, man, Ryan, I appreciate you sharing that so much because when you were just saying, you know, you’re going through your script, you’re trying to persuade me. You’re trying to sell me on whatever thing it is that you want me to do. That reminds me of the definition of malpractice. The definition of malpractice is giving a solution before there’s a diagnosis. Right?
Ryan Cadwell [00:12:08]:
No, that was the actual difference. I didn’t even know that was the thing.
Jay Conner [00:12:13]:
So it’s like, you know, well, you know, in the context of a doctor, a doctor, you know, is. Is malpractice if he’s given a prescription for a drug before he’s diagnosed, what the problem is they’re trying to fix? So, you know, if I’m looking to raise capital, why in the world do I want to go, you know, talk to you, Ryan, and tell you about my wonderful opportunity in this world of private money, and you don’t even have a problem. You know, it’s like, let’s. Let’s do first things first. We’re having a conversation. We’re having a coffee. You know, I’m gonna say to you, if I’m raising capital, I’m going to say, you know, by the way, Ryan, with the market’s crazy these days, are you getting some high returns on investments? What are you investing in that you’re really happy about? And you say, yeah, man, I got 15% last year.
Jay Conner [00:13:07]:
Well, I’m not going to talk to you about my private money opportunity. You ain’t got no problem. I’m going to say, man, Ryan, tell me about that 15%. I want some of that, right?
Ryan Cadwell [00:13:16]:
100.
Jay Conner [00:13:17]:
But, you know, if you come back to me and say, man, I got this 401k that’s collecting dust, it’s going nowhere, the volatility of the market, you know, I’m like, losing sleep at night. Well, your answer just diagnosed as to whether I should even bring up a possible solution for you. And, man, you said it a second ago in so many words. The. The. The issue, the problem, the challenge, the mistake that I see so many new capital raisers make is that they talk too much. You know, if somebody’s talking to me, it’s like, you know, but you already ran me off, you know, kind of thing. And so that’s why, in my opinion, it’s so important to have the other person’s interest at heart first.
Jay Conner [00:14:09]:
And let’s figure out a way if we can serve them. I don’t know, Ryan, you might not be old enough to even remember Zig Ziglar. But I love Zig Ziglar. I love. Well, I’m gonna date myself. My first sales career when I was 24 years old. The company required me to listen to all of Zig Ziglar’s cassette tapes. I just, I just dated myself.
Jay Conner [00:14:31]:
Right? But you know, Zig says, if you help enough other people get what they want, you’re not gonna have to worry about yourself. So I gotta, I gotta go back, I gotta go back a ways here, Ryan, because I’m just super curious. I’m super curious. How did you become known? How did you become known for the reputation that you’ll tell people when not to buy? And by the way, let’s give it context. Is that an asset class of single-family houses, Multifamily commercial self-storage? In other words, what asset classes have you been advising people not to buy, and how did you get that reputation?
Ryan Cadwell [00:15:13]:
Asset classes. So that would be single-family, multi-family.
Ryan Cadwell [00:15:18]:
family land development, doing a doing a multi family development deal now, and then working on some small bay industrial development right now as well. That’s in the early stages.
Ryan Cadwell [00:15:42]:
You know, when did I come up with telling people? I, I think, I think I’ve just always, I’ve always been in a position where when things just didn’t make sense, I would ask enough questions. I mean, it started earlier on, I think, like one of the first deals I did with my dad. My dad, my dad was super into this, you know, this multi-unit, multi-apartment building. Now I grew up, I grew up in a world where he had owned low-income multi-unit properties, and I’d been around him all this time. So I had assumed that, you know, that he, he’d fine-tuned more of his craft.
Ryan Cadwell [00:16:30]:
Now he was running a business while he was operating those apartments at the same time. And when we got into that, into that unit, we managed it for a while, and then, and then when we went to liquidate it and move it through a 1031 exchange into something else. And I, and I was kind of doing a, I, I, I did a reverse analysis on how well that investment actually did, and then I started, then I started looking at okay, why did
Ryan Cadwell [00:16:55]:
We get into it? What were the main drivers? I started asking more of those questions around our decision-making process, which wasn’t much of one. It was. This is available for rent. Run the numbers. Does it cover our debt service? Sure. May cash flow a couple of hundred dollars, a couple thousand dollars a month depending on, depending on what’s going on. So I moved over into that because the more deals after, after I kind of started creating our investment strategy, and then when I was looking at deals. And I just kept saying no. And I kept saying no.
Ryan Cadwell [00:17:35]:
I kept saying no. I still see people buy them up. I have relationships with brokers who were bringing them to market. And, and, and I’d have direct conversations with him. I just, I, I just tell them, look, from the analysis standpoint, this doesn’t work for us. I didn’t think my returns were too high, but I just started realizing, like part of investing, saying no almost 99% of the time,
Ryan Cadwell [00:18:04]:
If you get one out of 10 that you’ve analyzed that works that you don’t, that you get to say yes to, like, yes, should actually surprise you. And then it should surprise you. And then also it should lead you into the second thing, which is, did I miss something? Is there a reason why, Is there a reason why this deal works that I missed? And then you check it a couple of times. And I think the other reason, to answer your question, again, like, as from a broker’s perspective, just seeing all the gurus on TikTok and Instagram and everybody, everybody’s constantly pushing, now’s a good time to buy. And here’s why. It can’t always be the right time to buy for everyone. Now, there are certain people for whom a specific deal might work, and that’s great. Their investment criteria are different than mine.
Ryan Cadwell [00:19:06]:
So there could always be somebody in the market where that’s going to work. I do think, like, at the peak of 2023, when no one was thinking that interest rates would ever go up because staying around zero is normal. The fact that nobody, like, priced that in. Okay, there’s got to be an adjustment. This can’t last forever. And I mean, I was taking lenders out to lunch, and I was like, how are you guys? How is this not extremely risky? Like, you know that this has to go up at some point. And I mean, they taught me a lot about, you know, publicly traded banks care about stock price more than they do about loan risk most of the time. Not every bank.
Ryan Cadwell [00:19:57]:
That’s a broad, rusty generality. But yeah, I mean, that’s, that’s what started leading me to, like, if I, I don’t want to be known as the broker who’s, who always has something for sale. That’s, that’s awesome for somebody. Like, I want my clients to come to me and know that anything Ryan puts in front of me either fits it, it fits some part of my investment strategy, some part of my portfolio, or it could just be a deal that’s going to be profitable between, you know what, whatever your return requires. Requirement is 8 to 8 to 12 if you’re in the middle of core assets, or if you’re in development, closer to 20.
Jay Conner [00:20:44]:
Ron, you just mentioned your clients. You said a client comes to you. Describe your ideal client. Who are your clients?
Ryan Cadwell [00:20:53]:
Ideal clients? They usually become friends. Right now I’m working with business owners, restraint like helping them strategize their real estate portfolios or use of real estate if they’re in a business that’s, you know, that uses real estate, leases it, and then operates businesses because they make more money. Or I’ve got some clients who run their business in commercial space, but then they lease another part. So we’re helping re, you know, restabilize several clients, and then I’ve got, I’ve got investors in single-family that we’ve operated for. I mean, we’ve got some clients that are 10, 15, 16 years old that we’ve, you know, we’ve managed assets for. So we have clients all over the, you know, all over the board in, in many different, many different portfolio types. Some of them, they don’t, you know, they don’t necessarily want to do the planning side. They don’t want to get into asking the question.
Ryan Cadwell [00:21:56]:
They may just hold the asset forever. And that’s just one, you know, a savings account that they’re not putting money into, the tenant is kind of a thing. And then we’ve got clients that are the home office, larger, you know, larger capital infusions.
Jay Conner [00:22:19]:
So, so you have, you have family offices that are clients.
Ryan Cadwell [00:22:24]:
Yeah, family offices.
Jay Conner [00:22:25]:
What, what, what’s the driver? What’s the, what’s the service that you’re, that you and your team are really good at servicing family offices?
Ryan Cadwell [00:22:40]:
Main thing is it’s, it’s transparency. It’s deal, deal flow and then it’s, it’s not being, you know, it’s not being a solution to every problem. It’s just we have specific solutions, and if they want to be in, you know, in the multi-family space, or if they want to be, you know, if they have a specific part of their portfolio, and they’re going to put money over here, that might be what we answer. The biggest thing is just that it’s the transparency. It’s the, it’s the history of operation to being good operators has a big, has a big draw for those types of clients because at the end of the day, you make your money on what’s done in the trenches. So that’s the biggest Service side on that.
Jay Conner [00:23:39]:
Still thinking about your clients. What is a common problem that your clients have had before you started working with them? And what is that problem that you and your team were able to fix? And I know there’s more than one, but I mean some of the most common problems that your clients come to you for, for relief. They’re looking for relief.
Ryan Cadwell [00:24:05]:
Yeah. A lot of times, actually in history, like what, what got us into being people that say no. It, it’s kind of like you go through the trauma with your clients. So, like over the years, when we came out of the Great Recession,n and we like we were just starting, and we had, we had some clients that got in, they were in a bad spot, we were helping them negotiate that. A lot of that was short sales. Distressed properties. We haven’t quite got there in this market cycle. But during that, during that phase started to kind of teach the don’t buy.
Ryan Cadwell [00:24:50]:
You know, buying wrong is the bigger, is a much bigger problem than most people realize. And that’s usually the, that’s usually one of the things that people step right over and don’t even realize that you make money in real estate by what you pay for it. You don’t realize the money, it’s not in your pocket right then, but what you pay for it determines so much of how mobile you can be with the investment, how creative you can be with solutions,s and where your capital is going to get tied up. Your capital, as it is, you know, as cash is flowing on those kinds of deals, it’s flowing to either pay your debt service because you overpaid, or it’s flowing into solutions to add value to that asset. So the biggest, the biggest common denominator is usually moving too quickly, not having a plan, and then not having your own investment criteria that you just never pivot off of. If you, I mean, if you have money to invest and you don’t have this is the criteria that I’m investing this money, call it a hundred thousand dollars, call it $50,000, no matter what the amount is. If your target market is single-family residential, it’s the Midwest, your required return is 8%, right? And you get a deal that’s six and a half percent.
Ryan Cadwell [00:26:27]:
There’s a way to make that work by paying the, paying the purchase price that’s going to meet that 8% or a different part of the deal structure. Right. So many people are tempted in that negotiation to just accept the six and a half, maybe they can negotiate a seven, and that’s still an okay deal. The majority of the time you may, you probably should have walked away.
Jay Conner [00:26:55]:
Yeah, well, you know, when you just said that, I don’t know who, who gets credit for saying this. Maybe more than one person, but it’s like stuck in my brain. And that is sometimes the most money you can make is by the deal you don’t do.
Ryan Cadwell [00:27:11]:
Yep, 100%. And there are some deals that I’ve been grateful that fell apart, and then there are some deals I wish had fallen apart.
Jay Conner [00:27:22]:
I hear you, man. I’m just curious. I mean, nothing particular may come to your mind when I ask you this question, but I think there’s a good chance. So I’m not presupposing some answer you have. I just have a very curious mind. And you’ve got a lot of experience in this arena. And the question is, what’s changed? Or has there been anything changed, like a lot in the last few years that real estate investors haven’t adjusted to yet, but they need to immediately?
Ryan Cadwell [00:28:02]:
I mean, my, my initial thought goes into,
Ryan Cadwell [00:28:11]:
I, I always knew that there was a, there was an investment play within real estate where you buy the notes. You buy the notes, and then you might acquire the asset through distress, foreclosure, or deed, and Lou, that kind of thing, that’s becoming more common. It’s actually a business strategy right now for some of the bigger, the bigger investors.
Jay Conner [00:28:35]:
They’re buying notes.
Ryan Cadwell [00:28:37]:
Yeah, they’re buying notes because the property’s overvalued. So instead of dealing with the equity partners who put the money down, they just come in, and they pay 60, 70 cents on the dollar. Whatever the deal is they get from the loan, maybe they pay 90 cents on the dollar. But if the if the loan to value was 70%, they’re already getting a 30% discount off of what it was paid for to begin with. But usually, the price of that’s already adjusted. It’s just a quicker way for them to get rid of, to scrape off that top row of investors that they’re going to lose their equity. Essentially, if you keep that in mind
Ryan Cadwell [00:29:14]:
And just understand that, that, that version of, of real estate investing, it may sound heartless, but it’s business. And that’s a way for you know, that is a way for people to do business. There are ways to do that, to be lenders, to be, to specifically be distressed lenders with the plan of
Ryan Cadwell [00:29:46]:
of capitalizing on a distressed asset. The other side of this is if you’re the investor that’s taken on, on the note, be careful with the person you’re borrowing money from. I had one deal, and I ended up closing it. I had one deal where we used we used hard money lender out in New York. I thought that I thought they were actually from the marketing company that got me involved was from the West Coast, like San Diego or something. And when I showed up to closing, the stack of closing documents was like their loan documents were that thick.
Jay Conner [00:30:27]:
That’s a little scary.
Ryan Cadwell [00:30:29]:
Yeah, yeah. And I, I told the, I told the closer, I told the guy selling, and I said, I apologize, but I’m gonna read this like in Indiana are, you know, your loan docs might be like this, the standard stuff, promissory notes and all that. I mean, when, when, when they showed up with. And then it was New York jurisdiction, there was all the, And I was like, wow, are the. It actually went through my head. Are these guys really in the business of capturing good deals by default? Like, they create terms that you can’t, you can’t pay. Just to keep that in mind.
Jay Conner [00:31:06]:
There’s a lot, there’s a lot of them out there.
Ryan Cadwell [00:31:08]:
Yeah, that, that’s, I mean, that stuff happens, that is, that’s going on. It’s happening right now.
Ryan Cadwell [00:31:16]:
So
Ryan Cadwell [00:31:18]:
now there’s there’s a legitimate business in that world. There’s also a way to kind of screw people over if you’re not paying attention. So just pay attention to the details. The one thing I would have done differently is just gotten to know the lender a little bit better, used, and gotten more due diligence. Made sure before I showed up to closing, I got, you know, give me the promissory notes, give me the stuff that I’m going to be signing ahead of time, that kind of thing.
Jay Conner [00:31:50]:
Yeah, I guarantee you I wouldn’t just be reading it. My attorney would be reading it.
Ryan Cadwell [00:31:54]:
There you go. That too.
Jay Conner [00:31:57]:
Yeah, for sure. Wow. Ryan, thank you so much for joining me here on the show. What’s the best way for our listeners to reach out to you and learn more about how you can serve them?
Ryan Cadwell [00:32:10]:
So, on our website, resoluterdm.com, and Facebook, you can find us. And what about Instagram and LinkedIn? LinkedIn. If you contact us on LinkedIn, if you find me, I’m, you know, I don’t have anybody that answers that for me. So that’s, that is a quick way, a quick way to get a hold of us. And we do have resources for investors on our website. Just go to the resources page. Got an investing journal and a few other things to help investors along the way.
Jay Conner [00:32:46]:
Awesome. I want to give out that website again. That website is www.resoluterdm.com. That’s r e s o l u t e resolute rdm.com, and of course, all of the contact information is in the show notes. Again, Ryan, thank you so much for joining me.
Ryan Cadwell [00:33:09]:
Jay, it’s been a pleasure. Thanks for having me on.
Jay Conner [00:33:11]:
You got it, man. All right, there you have it, my friend. No hype, no fluff, just real, down-to-earth talk from Ryan Cadwell on how not to lose money and how to actually play this game the right way. So here’s the thing. You probably know at least one investor right now who needs to hear this. Someone chasing deals, overpaying, or about to walk into a mistake, or an operator who has just gotten a mess going on with their operation. Do them a favor. Share this episode with them.
Jay Conner [00:33:47]:
Not tomorrow, not tonight, right now. Text it to them, post it, tag them. Because sometimes the best deal is the one that you won’t do. It’s the one that you don’t do. And this episode could save someone tens of thousands of dollars. And if you haven’t yet, be sure to subscribe. Leave a review. Let me know what hit home for you.
Jay Conner [00:34:11]:
I read all the comments. I’m Jay Conner, the private money authority. This is raising private money, and I’ll see you right here on the next episode.
Narrator [00:34:23]:
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.