Hey there, Real Estate Enthusiasts!
Are you looking to take your real estate investing to the next level?
In our latest episode of “Raising Private Money” with Jay Conner, we had the pleasure of hosting the knowledgeable and experienced Frank Hanna, a private wealth adviser who has raised over $300,000,000 in Private Money!
We delved into Frank’s journey in the world of Private Money, where he shared how his background in the restaurant and hospitality industry led him to become a successful private lender and investor in various asset classes, including multifamily, self-storage, and hotels.
Frank shared valuable insights on tax management, the importance of networking, and the impact of economic trends on making smart investment decisions. As a bonus, Frank revealed valuable opportunities that are available for real estate investors today, including the benefits of bonus depreciation and 1031 exchange planning.
If you’re eager to learn more about Frank’s expertise and the investment opportunities he has to offer, visit his website at https://www.Revxwealth.com or email him at frankhanna@revxwealth.com.
Whether you’re a seasoned investor or a newcomer to the real estate industry, this episode is a treasure trove of practical knowledge and expert advice from Frank Hanna.
Here’s to your success in real estate investing!
Timestamps:
0:01 – Raising Private Money Without Asking For It
0:12 – Frank B. Hanna, Private Wealth Adviser
2:13 – Entrepreneur Creates Real Estate Investment And Financing.
9:50 – Confident In Providing Value To Clients’ Goals.
11:11 – Quality Over Quantity, Inclusive Investment Opportunities Offered.
13:27 – Connect with Frank Hanna: https://www.RevxWealth.com
15:06 – Explore Opportunities, Manage Funds, And Seek Professional Guidance.
17:50 – Uncertainty In Tax And Finance Planning.
21:28 – Deal Completed, Uncertain Future For Depreciation Changes.
24:41 – Jay Conner’s Free Money Guide: https://www.JayConner.com/MoneyGuide
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Maximizing Wealth through Private Money: Frank Hanna and Jay Conner’s Exclusive Discussion
Jay Conner [00:00:01]:
Welcome to another amazing episode of Raising Private Money. I’m Jay Conner, the Private Money authority. Also your guest here on the show or your host, I should rather say. But I’m so excited. The reason the word guest is on my mind is because of the guest that I’ve got today. My guest today here on the show has raised over $300,000,000 in Private Money. And so just a little bit about his background. First of all, he is a private wealth adviser, and he’s got a huge passion for helping individuals build wealth.
Jay Conner [00:00:39]:
Now he’s got an interesting background. His background is running successful family establishments, specifically in the restaurant and hospitality industry. And then he made this huge transition into finance. And that’s all driven by a desire for fulfillment and he recognized the gap in this industry. Now in addition to that, one of his expertise is knowing the ins and outs of actually how 1031 exchanges work, and this thing is called the Delaware Statutory Trust. And so if you’ve never heard about, you know, particularly that second strategy, then we’re gonna pull the curtain back on that. He’s also an expert in estate planning, and wealth management as well. In just a moment, you’re gonna meet my special guest, mister Frank Hanna, right after this.
Narrator [00:01:35]:
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 [00:02:04]:
Well, hello, Frank, and welcome to the show.
Frank Hanna [00:02:07]:
Thanks, Jay.
Jay Conner [00:02:09]:
Excited to be here. Absolutely. So excited to have you, Frank. And first, let’s talk about since this is the Raising Private Money Show. Let’s talk about your journey as it began with Private Money and talk about a little bit how you’ve gone about raising so much Private Money for your real fake deals etcetera. And then we’ll segue over into your, expertise. So one thing that I’ve discovered, Frank, over the years is that investors have something come along in their life that changes or triggers the trajectory of their business, and they have some kind of revelation as to, you know what? I need Private Money for my business. Tell us how you got involved in Private Money, to begin with.
Frank Hanna [00:02:58]:
Well, As you alluded to in the intro, I grew up in the restaurant hospitality business, through, some family-owned companies. And due to some of the successes we had there, we got into fixed financing or private lending, for, you know, entrepreneurs that were looking for, you know, that kind of private capital, and, you know, that kinda segued into our real estate development, and we were building our portfolios of assets and different asset classes, And we had a lot of people coming to us for more traditional fixed financing. So that’s kinda where the light bulb went off and said, hey. You know what? If we can do this we have a little bit of expertise in real estate investment and management. How can we be a resource hub for all-size investors is to be able to participate in different capacities, whether it’s on the private lending side of things or just, you know, private equity, crowdfunding, Real estate syndications. So we became kind of a, you know, a, a focal point in our little market to start, for people that were either looking for financing or wanted to participate in real estate investment, but just didn’t know where to start. So that’s kinda how we got into that space, to begin with. And then, we built kind of a hybrid financial planning consulting business, and, you know, kinda had that, you know, set aside right next to our private real estate investment programs.
Jay Conner [00:04:35]:
So, how do you start in Private Money by being a private lender yourself?
Frank Hanna [00:04:42]:
We Called ourselves the Bank of Frank, and it was a real small town and, low-key, and people still still joke about that, but that’s really how we started. We had local entrepreneurs and investment people coming to us for private investment, and, You know, that’s where it all began.
Jay Conner [00:05:03]:
I got you. And so then as you said, you did that for a while, And then you started opening it up to other individuals that might want to become investors and private lenders as as well. So how did you launch that to where you could go about and find other people that wanted to be investors and wanted to be, you know, Private Money lenders?
Frank Hanna [00:05:29]:
Well, as I said, so when we got into, like, the first kind of phase of, like, our real estate, You know, creation, development, investment, programs, we had a lot of people that were coming to us for that. And then on the same side of things, we had some pretty good wherewithal and some good counsel and relationships that were helping us from more of traditional financial planning, you know, segue. So when those 2 groups of people kinda came to Us in 2 different directions that allowed us to be kind of a matchmaker for lack of a better term. The people that were coming us for more, You know, financial tax planning, trust planning asset protection type stuff, those people all of a sudden said, hey. Wait. Wait. You guys do real estate investment as well. You know, let me see what some of those deals look like.
Frank Hanna [00:06:25]:
And then we had people that were coming to us for private financing or, hey, I’ve got capital. I’m looking to, You know, do real estate investment. They also were able to tap into some of our, you know, more traditional financial, you know, advisory services.
Jay Conner [00:06:41]:
Right. Well, your background is in restaurants. Mine is 2. I only survived 2 years. That’s all I could take. I couldn’t take it.
Frank Hanna [00:06:51]:
That’s still impressive.
Jay Conner [00:06:53]:
I couldn’t take it anymore.
Frank Hanna [00:06:54]:
It is tough.
Jay Conner [00:06:56]:
So what was it that made you decide to leave the restaurant industry and move over to being a wealth adviser?
Frank Hanna [00:07:03]:
I just, you know, I always say it takes a special type of person or somebody that’s got something, You know, wrong with them to be wanting to jump into the restaurant business, and I’ve got all the appreciation and respect in the world for people that are successful in that. But, you know, my father started in that and knew he wanna do that since he was 12 years old is what he told me. And I just didn’t have the passion that he did. At one point in time, we had 15 different restaurants. I was managing 3 restaurants. I did that for 15 years. And at the end of the day, I realized I was never gonna be as successful as he was in it, and I just wasn’t passionate about it. I ended up, not enjoying life and kind of resenting the fact that I felt like I was stuck.
Frank Hanna [00:07:52]:
So, again, along the way, I had picked up a couple of tools As it related to, you know, financial planning, tax planning, real estate investment, and I had a lot of good relationships. And I said, look. I think I could be a, you know, a really good resource hub for the fast-moving entrepreneur to be able to, You know, not be a jack of all trades, master of none, but, hey, you know, if you have a question or need a resource or need a solution, If I can’t help you directly, I know what direction to point you in.
Jay Conner [00:08:28]:
What you just said reminds me of a word that I have come to learn is foundational when it comes to raising funds, being a connector, etcetera, and that’s networking. And so when you started branching out away from the restaurant industry and the restaurant business. How did you start communicating with your network about opportunities to invest in, or how did you if you needed to, how did you end up starting to grow your network?
Frank Hanna [00:09:03]:
So in the beginning, I raced out to anybody who would listen and said, hey. Look. You know, this is what I’m doing now. I’ve reinvented myself, And, you know, I’m motivated and determined to kinda build this. And in the 1st few years, a lot of the people I was, You know, speaking with were skeptical, you know. So they wanted to see us kinda build something, you know, get some financial scale, have some assesses, and make sure that we could stay in this business and sustain long-term success before they were willing to, you know, really give us a shot or, You know, invest with confidence. So, you know, we went out there and, again and I still do this to this day, I just mark it 247. I talk to anybody that’ll listen.
Frank Hanna [00:09:50]:
You know, we’ve got many different tools in our toolbox, and I say this to everybody that I talk to, and I’m 100% confident when I say this. You know, if you allow us to meet with you, understand what you’re working on, what’s important to you, what your goals and objectives are, There’s a 100% chance that I’m gonna be able to show you an idea that’s gonna either create value, make you money, save you money. There’s gonna be something that I can show you or introduce you to that’s gonna, you know, put you in a better place than before we met. So I just run around constantly. I learn along the way, and we’ve built really good relationships that have approved over improved over time. So whatever it is you’re looking for, if it’s, you know, on the real estate side of things, I know who the major players are across the country who’s got the longest standing track record, best success, you know, strongest financial scale. We’ve worked out deals to, you know, be able to partner with them to bring some of those sophisticated opportunities down, you know, from the larger investor down to them to, you know, the quote, unquote smaller investor.
Jay Conner [00:11:04]:
Right. How would you describe your ideal client that you work with and that you’re looking for?
Frank Hanna [00:11:11]:
I always say we look for quality versus quantity. You know, oftentimes, the more complex the situation or the more assets, that are there. We can potentially make a bigger impact, but I just look for quality individuals who are easy to work with, and who have like-minded, goals like I do. And whether you’re making $100,000 a year or 100,000,000 a year, There’s gonna be something that we can show you that’s gonna, again, improve where you are currently, And due to that, you know, heavy duty due diligence that we’ve done over the years and the time and energy we put into kind of vetting the marketplace, so to week.
Frank Hanna [00:11:13]:
We’ve kinda taken on that risk to put our best foot forward to give those smaller investors access to different things that we’re working on. So we don’t discriminate, you know, on size. So I’ll talk to anybody that’s out there that is In a position to, you know, to potentially invest, I’d say most of our deals have thresholds of, Yeah. There’s some there’s some, discrepancies with this, but I’d say most of our deals had minimums as as low as $50,000.
Jay Conner [00:12:32]:
Right. Well and when I’m, teaching my new private lenders, and private investors to invest in our deals, that’s my minimum as well. For 50,000. I mean, you know, it’s it cost me the same to get the deal closed with the attorney whether it’s 50,000 or 5,000,000.
Frank Hanna [00:12:51]:
Yep. Yeah. So you try, you know, you try to do and we spend a lot of time on this, and I’m sure you did too. You know, you wanna be able to pass that value to one of the investors, but you can’t compromise, You know, all your costs and everything there. So you gotta make it work for you as well as the investor, but, I think when it’s all said and done, That’s a relatively low threshold to get access to some sophisticated deals, you know. Some of the big players that are out there don’t wanna talk to you unless you’ve got, You know, 5, $10,000,000.
Jay Conner [00:13:26]:
That’s right. That’s right. Just in case any of our listeners or audience, need to jump off early and can’t stay to the end of the show. Yep. Go ahead and give out, the best way for them to contact you for, your website, and learn more about, the investment opportunities, that you have.
Frank Hanna [00:13:47]:
Sure. So my email is Frank Hanna, spelled frankhanna@rewealth.com. And, the URL of the website is the same, www.revxwealth.com. Shoot us an email. We have sample deals that are on there. It’s a Very, you know, small, portion of our overall deals, but you can kinda get a flavor for some of the things that we’re working on, and happy to Set up a call, and respond to an email. We have all types of different deals that have different tax advantages, shapes, sizes, and different things that you’re looking for. So, Again, confident, that there’d be something we could introduce you to even if the timing’s not perfect.
Jay Conner [00:14:32]:
Sure. And we’ll have, that email address and the website as well, in the show notes, and we’ll also get that again out at the end of the show. So one area that you and your team are good at, Frank, is tax management, you know, mitigating taxes, saving taxes. So what are some common myths? What are some common, let’s say, misconceptions about tax management? And, you know, how can people navigate them effectively?
Frank Hanna [00:15:06]:
I think all different opportunities are out there, and I think what Scares people is kind of allocating too many dollars towards different real estate opportunities or even retirement plans where they can’t necessarily touch that money tomorrow. So what I see is people just getting so caught up in what their perceived liquidity needs are Where their, you know, rainy day fund is that they end up keeping too much capital in those buckets, And then they missed opportunities, and they end up paying Uncle Sam a lot more than they could or should. So it’s, again, about Education and walking through somebody’s, you know, goals, objectives, all the things that they have going on to determine, alright, how much above and beyond, what are your absolute, you know, needs throughout your family and your life, What else is left, and then what can we do to kinda nudge you in a positive way to kinda get those dollars allocated to mitigate some of those taxes, And then use those dollars to continue to grow for you, produce passive income, and I do it myself, you know. When I first got into this, I had a comfort zone and a comfort zone, and I had to push myself and say, okay. What are you willing to save each month towards these goals, and, you know, that that dollar amount is transformed over the years, but there’s a lot of things I’ve been able to do, And I wouldn’t have been able to do that had I not kinda drawn that line in the sand and say, hey. This is something I should pursue. But it’s all about education, Having the right advisers or, you know, mentors that can kinda guide you through that.
Jay Conner [00:16:54]:
For sure, that makes a lot of sense. You know, we’re in a very, very interesting market. Aren’t we? Stock markets all over the place, you know, for some time. Interest rates. I mean, we’ve never seen what the fed has done recently in history As far as, you know, the raising of rates, I don’t have a crystal ball, but I got some good friends that do. I think I know where we’re gonna see interest rates going over the next 12 months. But, you know, people in general have a concern about particularly what kind of decisions they should make, what kind of smart investment decisions they should make in a rapidly changing economy like we’re in. And what a way for people to stay informed and to know what’s the truth about what’s going on.
Frank Hanna [00:17:50]:
Yeah. No. I agree, and I think that you know, whether it’s the fed doing kinda the unprecedented over the last few years or, You know, just tax law in general, you know, you can never you know, the the target is constantly moving. Right? So, You know, we joke and say people get analysis paralysis. Right? So you’re always waiting for the perfect time. It’s gonna give you the perfect game plan that you can, you know, run with for the next, you know, several years at least, and you just never know. Right? So you have to plan within the guidelines of the tax law, And what interest rates look like, and, again, diversification is king. And, you know, again, I feel optimist optimistic about some of the things that could happen here in 24, but, you know, you never know until you know.
Frank Hanna [00:18:42]:
But that’s where I think, You know, planning for, you know, the proper, you know, or planning with the proper tax laws that are in place right now is critical. You know, there are a lot of things that could go in a variety of different directions depending on, you know, who’s in the next administration, so that’s why I say, hey, plan for today, swing the bat today because that bat might be taken out of your hands in a year or 2.
Jay Conner [00:19:08]:
That’s for sure. So, you know, speaking of crystal balls, Frank, is there any kind of, like, new economic trend or new opportunity that you’ve noticed, you know, that’s coming along, that you’ve, you know, shared with your clients that you have now to help them succeed with what they’ve got going on.
Frank Hanna [00:19:28]:
Yeah. I, you know, I, I keep talking about taxes because they get me excited. No. I’m just kidding. But, I think
Jay Conner [00:19:37]:
The taxes got me excited when Uncle Sam told me that actually, my CPA told me the check that I had to write, back in October.
Frank Hanna [00:19:45]:
Yeah. No. Seriously. You know, one of the things my dad taught me early on is, that it’s not what you make, it’s what you keep. Right. So you could have the biggest, you know, gross salary out there, but once you get done with the tax man, it might not look as hot.
Frank Hanna [00:19:46]:
So, You know, we, again, are always focused on tax planning, and that’s kind of, you know, not only on the real estate side of things but also, like, our financial planning side of things. So, You know, one of the things that’s changing that, you know, pertains, I think, to real estate investors is, You know, bonus depreciation or, you know, accelerated depreciate depreciation, whatever you wanna call it.
Frank Hanna [00:20:28]:
As part of Trump’s Tax and Jobs Act of 2017, we were able to get a 100% bonus or accelerated depreciation. So when you invest in certain types of assets, you could take that depreciation schedule that’s typically drawn now, you know, from 20 to, you know, 39 years, and take those tax breaks or the depreciation over time. But for sort certain types of assets In certain segments, you’re able to push all that, you know, depreciation fast forward and get a substantial tax deduction in year 1 or the 1st few years. So we do a lot of deals like that. So so so for real estate investors that have active income. They can participate in those types of deals, or, individuals that just have a substantial amount of passive income. Those could be very impactful. And last year was the last year of a 100% bonus depreciation.
Frank Hanna [00:21:28]:
We just wrapped up a deal, For 80% bonus depreciation next year, it’s supposed to go from 60 to 40 to 20 and then 0. So those opportunities are going away unless Congress votes on extending that, changing that, but they can’t seem to agree on anything. So, again, rather than guesstimate or save my dollars to cross my fingers and hope things are gonna get better in a few years. I’m rolling with what I know is accurate right now. So we just raised a substantial amount of money for those types of investors here in the latter part of 2023. We’re gonna do another program, in the fall of 2024. There are opportunities there, and then, You know, I would say, on the 10/31 exchange planning type of thing, that’s been around forever, so most people are aware of that. But there’s some, you know, there’s some different planning solutions, that go along there that that some people are taking advantage of.
Jay Conner [00:22:30]:
That’s wonderful. Well, I tell you what what an amazing resource, Frank, that you are, you know, for your for your clients. I think one of your main asset classes, is still multifamily, self-storage, and hotels.
Frank Hanna [00:22:46]:
So we, you know, we invest in most asset classes. I’d say the only thing we’re not participating in is is office. So, you know, we do multifamily, self-storage, student housing, hospitality, you know, mostly hotels, industrial. So At any given time, you know, sometimes we’ll lean one way or another depending on what’s going on, but we still do, have, You know, I’d say really attractive deals and all those asset classes.
Jay Conner [00:23:14]:
Gotcha. Well, Frank, one more time, please give out, your website, and your email as, the best way for folks to contact you and continue the conversation as to how you can make an impact on their financial future.
Frank Hanna [00:23:27]:
Sure. So my, email is frankhanna@revxwealth.com, and my URL is www.revxwealth.com. Feel free to shoot me an email. If you go on our website, there’s a lot of good material there. There are sample deals that we have access to currently that could give you a flavor, but by no means is that even close to the total amount of deals that we have, going at any given time. So feel free to reach out at any point.
Jay Conner [00:24:01]:
That’s fantastic. Frank, thank you so much for joining me.
Frank Hanna [00:24:05]:
Thanks a lot. Appreciate it.
Jay Conner [00:24:07]:
Alright. You got it. There you have it. Another amazing episode of Raising Private Money with Jay Conner. I’m your host, and I wanna thank you for taking the time to join us. If you happen to be listening on, iTunes, be sure and follow me, on Spotify, and then be on your other popular platforms. If you happen to be watching on YouTube, Be sure to subscribe and ring that bell so you don’t miss out on any upcoming episodes as well. I look forward to seeing you right here on the next episode of Raising Private Money with Jay Conner.
Narrator [00:24:41]:
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/MoneyGuideto get your free guide. We’ll see you next time on Raising Private Money with Jay Conner.