In the latest episode of the Raising Private Money podcast, Jay Conner sits down with Tim Benskin, a former Marine and National Guardsman turned real estate investor, to delve into the world of raising private money for real estate.
Tim has successfully transformed his approach to property investments by leveraging private money—a strategy that offers an alternative to the lengthy and often frustrating process of traditional bank financing. For those looking to break into the real estate market or further their existing endeavors, Tim’s journey offers invaluable insights and actionable advice.
Raising Private Money: Tim Benskin’s Journey
Tim Benskin’s foray into real estate wasn’t without its challenges. Initially, he faced setbacks with traditional bank financing, which ultimately led him to explore alternative avenues. Through mentorship and strategic networking, Tim discovered the power of private money. Today, he has raised over $500,000 in private funds and is working on securing an additional $200,000.
Key Highlights:
- Tim’s first major deal was funded entirely by private money secured via personal relationships, including contacts from his church community.
- Use of promissory notes and mortgages recorded with the county to ensure security for lenders.
- Protecting lenders by naming them on the insurance policy for purchased properties.
The Mechanics of Securing Private Lending
Tim’s approach to securing private lending is both structured and transparent, focusing on ensuring the lender’s protection and trust. Here’s a breakdown of how he makes it work:
- Promissory Notes and Mortgages:
All loans acquired by Tim are secured via legally binding promissory notes and mortgages, which are recorded with the county. This ensures that all transactions are not only formalized but also provide legal protection to the lender.
- Insurance Policies:
Tim goes a step further by including lenders on the insurance policies of the properties he buys. This ensures that lenders enjoy the same protection as a traditional bank would.
- Attractive Interest Rates and Loan Terms:
He offers highly competitive interest rates of 8% on first-position loans and 10% on rehab money. This, coupled with interest-only payments and conservative loan-to-value ratios, makes his program irresistible to investors seeking safe yet profitable avenues for their money.
Success through Networking and Education
After retiring from the military, Tim plans to focus on networking and hosting luncheons to attract more private money for his real estate ventures. He emphasizes the importance of education, not just for oneself but also for potential lenders.
The Power of Mentorship:
Tim credits his mentors for helping him develop his strategies and gain the confidence to invite potential lenders to hear about private money. These mentors provided him with the roadmap to success, allowing him to bypass many of the common pitfalls novice investors face.
Case Study – 210 Skylark Drive:
One of Tim’s notable successes is the property at 210 Skylark Drive. Purchased for $110,000 with a minimal renovation cost of $17,000, this property had an after-repaired value of $360,000. Post-renovation, Tim was able to secure a gross profit of $50,000—an impressive feat made possible through private lending.
Educating and Empowering New Investors
Tim is passionate about sharing his knowledge and empowering others to succeed in real estate. He offers education on private funds and self-directed IRAs through luncheons and presentations, demonstrating how individuals can earn high rates of return safely and securely.
Live Events and Resources:
Moreover, Tim encourages new investors to attend live events hosted by Jay Conner. These events are designed to provide in-depth knowledge and a practical understanding of how to raise private money.
Tim’s Book:
For those who prefer self-study, Tim’s book, “Passive Income Without Tenants and Toilets,” serves as a comprehensive guide for becoming a private lender, outlining the nuances of private lending and offering advice on avoiding common mistakes.
Conclusion:
Tim Benskin’s story is a testament to the transformative power of private money in real estate investing. By focusing on relationships, education, and ethical practices, Tim has built a robust investment portfolio and continues to help others achieve similar success. Whether you’re a seasoned investor or just starting, the insights shared in this podcast episode are sure to inspire and guide you on your journey to financial freedom through real estate investing.
Stay tuned for the next episode, where we’ll dive deeper into the intricacies of using private money in real estate. Don’t forget to grab Tim’s book for more detailed guidance on becoming a successful private lender.
“It’s great to get out and teach people how they can invest money and not be in the stock market and not have to play that up and down trends or worry about the stock market going down at any time.” – Tim Benskin
10 Lessons Discussed in this Episode:
- Mentorship Importance
Find experienced mentors to guide you, provide plans, and build confidence for investment success.
- Private Lender Overview
Understand who private lenders are and how to approach individuals not familiar with private money concepts.
- Raising Funds Effectively
Learn strategies to attract private lenders through webinars, luncheons, and personal networking.
- Quick Closing Power
Discover the significance of closing deals rapidly to capitalize on urgent sales situations and avoid deal collapses.
- Security for Lenders
Ensure lender confidence by securing loans with promissory notes, recording mortgages, and naming them on insurance policies.
- High Returns Assurance
Offer competitive interest rates on first-position and rehab money to attract private lenders looking for stable returns.
- Self-directed IRA Education
Educate potential lenders about using self-directed IRAs to invest in real estate and gain tax advantages.
- Bank Financing Limitations
Recognize the constraints of traditional bank financing and how private money provides flexibility and efficiency.
- Leveraging Relationships
Utilize long-standing relationships to secure initial private lending, emphasizing trust and reliability.
- Community Impact
Highlight the positive local impact of investments funded by private lenders, thus encouraging their involvement.
Fun facts that were revealed in the episode:
- Tim Benskin has successfully raised over $500,000 in private money for his real estate investments and is currently working on securing an additional $200,000. This impressive feat highlights his effective networking and persuasive skills in the realm of private lending.
- Tim managed to buy and renovate a property on 210 Skylark Drive, which he purchased for $110,000 and, after minimal renovations costing around $17,000, brought in a gross profit of $50,000. This deal underscores the potential profitability of skilled real estate investing using private money.
- Interestingly, none of Tim’s private lenders had heard of private money or self-directed IRAs before he educated them. This indicates that there is a significant untapped market of potential lenders who are not yet aware of these lucrative investment opportunities.
Timestamps
00:01 – Raising Private Money Without Asking For It
06:06 – Investment program aids retirees and private lenders.
08:26 – Successful start attributed to invaluable mentorship and confidence.
12:15 – Conducts informative luncheons on investment strategies.
15:55 – Private lenders are long-time acquaintances from the warm market.
18:39 – Private lender receives bank-level protection for loans.
22:33 – “Calculating a gross profit of $50,000.”
24:38 – Transitioning from the army to focus on raising private money.
29:43 – Over 700 episodes in 6 years; subscribe.
30:15 – Jay Conner’s Free Money Guide – https://www.JayConner.com/MoneyGuide
Connect With Jay Conner:
Private Money Academy Conference:
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book: Where to Get The Money Now?
It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
#RealEstate #RealEstateInvesting #RealEstateInvestingForBeginners #Foreclosures #FlippingHouses #PrivateMoney #RaisingPrivateMoney #JayConner
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcast:
Facebook:
https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
Tim Benskin’s Journey from Army to Real Estate with $500k in Private Money
Jay Conner [00:00:01]:
Welcome to another amazing episode of Raising Private Money. I’m your host Jay Conner, also known as the Private Money Authority. This is the podcast where we talk about how to raise private money without ever having to ask for money. Well, I’m so excited. Joining me here on the show today is a very, very good friend of mine. He’s also a member of my very, very top-level Elite Mastermind group. Well, first of all, my guest has already raised over $500,000 in private money, and he’s got another 200,000 in the works. We’re gonna dissect exactly how he has raised this private money for his real estate investing business.
Jay Conner [00:00:43]:
Well, first of all, we wanna thank him for his service to our country. He was in the, US Marine Corps and the Wisconsin Army National Guard, retiring after 22 years of service, and now he’s all in on real estate investing. Now, he’s married to his wife, Robin. They got married in 1980 5. They bought and flipped homes as a side hustle to their full-time jobs. He also has his general contractor’s license and has a goal of providing more affordable housing in their local area, both with new construction and rehabbing of distressed properties. In just a moment, you’re gonna meet my good friend and mastermind member, Mr. Tim Benskin, right after this.
Narrator [00:01:30]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:01:58]:
Well, hello, Tim, and welcome to the show.
Tim Benskin [00:02:02]:
Hi, Jay. Thanks. I appreciate the invitation.
Jay Conner [00:02:06]:
Absolutely. So excited to have you on here, Tim. What an amazing story that you’ve got, your background, your service to our country. We started working together last year, in Mastermind, and you’re also a platinum member. You’re having phenomenal success. You’ve already raised half a $1,000,000 in private money. You got another couple of 100,000 in the works. So my first question to you, Tim, is what was it? What did your business look like before you started using private money in your business to fund your deals?
Tim Benskin [00:02:45]:
Well, it was tough. It was trying to go to the banks and do the bank thing, which, you know, everybody knows that takes a long time. You can’t, you know, you have to have you’d be prequalified. You gotta go jump through their hoops just to get a deal done, And, it’s really, really hard to go that way when you’re trying to find either distressed sellers, people that really need their house, you know, sell their house fast and whatnot. So, I mean, private money has just opened up the door for us and quite a few more deals.
Jay Conner [00:03:19]:
Well, as both of us know, in this world of private money, you know, you mentioned a moment ago about going to the local banks to, apply for loans and etcetera. And, of course, you know, there’s a limit to the amount that you can borrow. There’s a limit to the number of deals you can do when you’re using traditional funding. But, in this world of private money, it’s all totally different. So, from your experience, Tim, how about go ahead and share what are the biggest differences that you have discovered and experienced personally on using private money versus using traditional money from the local bank?
Tim Benskin [00:04:00]:
Well, the biggest is closing fast. So, I mean, we can close in 7 days, sometimes even less than that, with our private lenders. And it’s
Jay Conner [00:04:09]:
Now why is that important? Why is being able to close fast important? Why is that, like, even an issue?
Tim Benskin [00:04:17]:
Well, if you have somebody that tuition, a lot of times they wanna sell fast because they wanna liquidate that property, foreclosures, you know, pre-foreclosures, They have to sell that house fast so that they don’t get foreclosed on. And then there’s just people that need to move, you know, there’s all kinds of, you know, different situation divorces that they need to sell fast to get on with their lives. And it’s just so nice to have private money do that with, And we can close fast. We can take care of that customer and have a house to flip.
Jay Conner [00:04:52]:
Absolutely. You know, Tim, it’s been my experience that time kills deals. In other words, the more time that goes by from the time we are negotiating with a seller of a property and then actually closing that deal, the more likely it could be that the deal is going to fall through the cracks. I just closed on a deal myself, last week and, this is on an oceanfront condominium here in Atlantic Beach, North Carolina. We first got the phone call from the seller on a Wednesday afternoon and we closed the following Thursday. One day or one week and one-day closing. They actually had another offer from another real estate investor that was more money. But, they went with our offer because we could close so quickly.
Jay Conner [00:05:45]:
And, of course, that was pretty important on this particular deal because it was also going to the courthouse steps as a foreclosure as well. Tim, just to make sure the audience understands what we’re talking about when we say private money, really, what are we talking about? I mean, who is a private lender?
Tim Benskin [00:06:06]:
It could be anybody. Anybody that has, you know, cash and a CD, you know, money in an IRA or Roth IRA. I mean, you know, I’ve had private money lenders that, you know, had Roth IRAs and they’re making that money tax-free, and they’re making a really good rate of return on their money. And, they love they love our program. And then I have some retirees that are in their eighties that don’t wanna be in the stock market anymore. They’re having to take, you know, money out of their traditional IRAs because of the required distributions, and they’re able to keep their money working and actually live off the money that they have in the bank now and, you know, save that money for future or if they have any medical bills or anything that come up on them, you know. So, I mean, everybody that’s in our program loves our program.
Jay Conner [00:06:58]:
So, really, what you’re saying, Tim, is a private lender is, has nothing to do with an institutional lender, nothing to do with banks. We’re not talking hard money or hard money lenders or hard money brokers. What you’re talking about is just doing business and borrowing money from individuals, human beings, just like you and me, from either their investment capital or, as you mentioned, their retirement accounts. Right?
Tim Benskin [00:07:24]:
Yeah. Correct. And, know the retirement accounts that just people don’t know about. You know? So I mean, it’s great to get out and teach people, you know, how they can invest money and not be in the stock market and not have to play that up and down, you know, trends or worry about the stock market going down at any time. They just know that we’re gonna pay them a good rate of return every single month. They’re gonna get that same rate of return, or if we’re paying them quarterly, they know that money’s gonna show up in their account every quarter. And they love to see their money not going down, and they love to see that money coming into their account.
Jay Conner [00:08:02]:
So when you first started raising private money, how did you even get started? How did you, I mean, think about that first private lender? How did you get started in raising private money?
Tim Benskin [00:08:17]:
Well, I joined your group, Jay. So You know? It
Jay Conner [00:08:22]:
sounds like that it sounds like that was a good place to start.
Tim Benskin [00:08:26]:
Right. Right. So I had good mentors. You know, that’s the very first place you need to start if they have good mentors. And, you know, which helps you, you know, which actually helped me, you know, come up with a plan, you know, come up with, you know, the whole, you know, way of doing things, you know, really doing the business. So, it gave me the confidence to get out and start doing luncheons, start inviting people to luncheons. I think I got my first private lender right out of our webinar that you did with me, and it was somebody that I never thought in 100 years they’d ever be interested, you know. But I invited them and they ended up, giving me $250,000 to invest.
Tim Benskin [00:09:10]:
So and, he’s he’s loved it, you know, because, you know, my wife, Robin, sends the money right to his account. It comes into his account. He didn’t have to do anything. So, you know, he’s really been enjoying being part of our program.
Jay Conner [00:09:26]:
Something you just said reminds me to ask you this. I know what the case is with all the private lenders that my wife, Carol Joy, and I have, but you’ve raised, 500,000 so far. You’ve got another 200,000 that’s probably coming on, available to you pretty quickly. But, of the private lenders that you have, these individuals, had any of them ever heard of private money before you told them about what private money is and how they can earn high rates of return safely and securely?
Tim Benskin [00:10:05]:
No. They never have. And, everybody I run into, it’s it’s a new concept to them. So, I mean, it’s great to be, you know, put on my private teacher hat, you know, and go out and teach. And, a lot of people, you
Tim Benskin [00:10:21]:
know, they haven’t jumped on board right away. I’ve been working on this other 200,000 probably for about 6 months now.
Tim Benskin [00:10:27]:
So he’s finally gonna, you know, come on here probably the next month or so. So, I mean, you know, it’s just been fun going out and teaching and putting that teacher hat on and showing people what we can actually pay and how their money won’t go down, their principal stays the same, and how they can be safe and secure, and earn a really really good rate of return.
Jay Conner [00:10:48]:
Well, let’s let’s dive into that a little bit. You say you put on your teacher hat. You say you teach people. Well, explain exactly what you mean by that. I mean, particularly your private lenders never heard of private money. I assume they never heard of self-directed IRAs either.
Tim Benskin [00:11:06]:
No. No. Until you And that’s probably been the biggest that’s probably been the biggest teach, you know, has been self-directed IRAs because nobody It’s amazing how many people don’t know about that, you know.
Jay Conner [00:11:19]:
Even financial advisors.
Tim Benskin [00:11:22]:
Yes. Yes.
Jay Conner [00:11:24]:
And, of course, the reason financial advisors or stockbrokers don’t know about self-directed IRAs and how an individual can take their current retirement funds, and transfer them over to a self-directed IRA company. Of course, we recommend Quest Trust out of Houston, Texas. They can move that money over tax I mean, no tax consequence, no penalty, no tax effect. They can move that money over and then become a private lender with you and use their retirement funds. So how did you start out? How did you, how did you go about teaching people in your own network, people that you’ve got your own connections with? How did you start teaching them and exposing them to even what private money is?
Tim Benskin [00:12:15]:
Well, I mean, we started having luncheons. So, we invited people, we fed them lunch, and, you know, it usually takes me about 45 minutes to an hour. I try to hold it, you know, to that hour for lunch because a lot of people have to get going, you know, back to work. But, yeah, we just, you know, I have, presentation I do and I just teach people, and then if anybody wants to stay after, you know, I stay, you know, pretty much as long as I need to to answer any questions they possibly have, about any part of our program, You know, and, you know, it’s amazing too, you know, with, you know, we’re talking about self directed IRAs, but you know, there’s a lot of people that have money just in CDs and they’re only making about 5, you know, a little bit over 5%. And, one of my other private lenders well, a couple I got another one, that I’m working on too. He’s got money in CDs. We’re just waiting for some CDs to, you know, mature because he didn’t wanna pull them out, pay a penalty. But, what’s so nice is I could teach him how I can pay him, you know, more money on his money that he has in a CD right now.
Tim Benskin [00:13:23]:
And if he needs that money back, there is no penalty. The banks always charge a penalty, so we don’t do that. And, they can always get their money back, you know, if they need to. It just was giving us a little bit of a heads up so we can get that property refinanced with another private lender so we can get their money back if they need it for an emergency.
Jay Conner [00:13:45]:
When you talk about your private lending program, what does that really mean? When you say, you know, they love our program, What do you mean by your private lending program?
Tim Benskin [00:13:56]:
Well, I mean, we, we pay, you know, on first position loans, 8 8 percent, and then for rehab money we pay 10%. And people love and we pay interest only. So they know exactly how much money they’re gonna be getting when we, make the payment to them, which is awesome. A lot of people love that. And, you know, they love making more interest than they can in the bank safely and securely. And, you know, all the properties we buy, we have at least 25% equity in every property we buy because of the way we buy. We’re buying the properties the right way, the way mister Jay Conner teaches, by the way. And, you know, it just opens up the world and they feel safe because they know they have equity in that property.
Tim Benskin [00:14:43]:
And then when they see, you know, what we’ve done to make that beautiful again and resell that property, it just makes them proud that you know, they’re able to kind of, you know, help their community and help beautify their community. And, you know, which is a really nice thing for these private lenders. You know? They can see their money at work.
Jay Conner [00:15:04]:
So essentially, when you’re talking about your private lending program, you’re talking about what it is that you offer to potentially new private lenders, as far as the interest rates you’re going to pay them, the length of the note, how often you’re going to pay them, frequency of payments, how they can get their money back in case of emergency, how they’re protected, how they’re secure, how it is a conservative loan to value. So your program is really what’s being offered to the private lenders. So, speaking of your private lenders, through your own experience, Tim, why would you say your private lenders decided, I know there’s more than one reason, but why did your private lenders decide to start doing business with you, Tim Biscans, Binskens, as a private lender? Why’d they decide to come on board?
Tim Benskin [00:15:55]:
Well, I mean, some of them I mean, it was my warm market so I knew him for a long time. One of my private lenders has seen houses that we redid, back when I was using banks. So, I mean, he knew the work we did. He knew the person I was. I went to church with him, which I know I’ve heard you say in the past that, you know, people that you know for a long time and that you worship with, you know, at church every Sunday just trust you and they want to, you know, they see you doing good things and they want to be part of that. So, I mean, both, you know, all my private lenders, if so far have been people I’ve known for a really long time. And, they just trust, what we’re doing and they like what we’re doing, so they wanna be a part of that.
Jay Conner [00:16:42]:
Well, and, of course, you’re not borrowing unsecured funds. You are securing every note and giving them security. So, go ahead and share. How do you protect your private lenders so they are secure?
Tim Benskin [00:16:56]:
Yeah. So, I mean, like I said before, we’re buying that property at a discount. So we never go above 75% loan to value of the after-repair value of that house. And then how we’re securing them is I have my lawyer drop a promissory note in a mortgage. And so that’s recorded with the county, where that house is. So everything’s done exactly like a bank would do it. And, and because of that loan to value, you know, even if the market went down, we’d be able to sell that house at a discount, and our private lenders are never gonna, you know, have their money at risk, because of that. So, once I teach them that, you know, in my luncheons, and I’ve done webinars and whatnot, to teach people and 1 ones on Zoom too.
Tim Benskin [00:17:49]:
I’ve done done it all. And, once they learn that and see how we do business, you know, a lot of times it’s, you know, yep. As soon as I get some money ready, you know, it’s going with you because I know you, Tim. I trust you, Tim, and we like to see what you’re doing.
Jay Conner [00:18:06]:
That’s wonderful. So you’re not borrowing unsecured money. I mean, you could legally, but you’re not borrowing unsecured money. You are backing those notes with the real estate that your company is purchasing. And in addition to that, you’re also naming your private lender on the insurance policy of that property and casualty insurance policy as the mortgagee. Right?
Tim Benskin [00:18:32]:
Yes. That’s correct. So, yeah. I missed that part. But, yeah, that’s a very important part. Thanks for bringing that up, Jay.
Jay Conner [00:18:39]:
Sure. And, of course, the reason that’s important to the private lender is, as you just said to him, they’re getting the same protection as the local bank would. I mean, if you borrow money from the bank on real estate, the bank’s gonna be named as the mortgagee on that insurance policy. And what that means to the lender is that if there’s ever a claim on that insurance policy, then the insurance company is going to make that check payable, not only to you, your company, Pemtum, but it’s also gonna be payable to the lender. And, therefore, the lender’s got to sign off on that check and that gives them another layer of protection, if you will. So with that, Tim, I know you’re having some great success with the real estate deals that you’re doing being funded by private money. One, property that you’ve done recently that you told me about before we started the show is located at 210 Skylark Drive. So, let’s talk about this deal that you’ve done and how it’s a win-win for everybody.
Jay Conner [00:19:39]:
Your private lender is winning. You’re winning with a profit. The person or the people that you bought it from are winning. They probably had, some distress going on. So, let’s dissect and unpack 210 Skylark Drive. First of all, what is the after-repair value of that property? In other words, after all fixed up, absolutely beautiful, and, it’s ready to sell or you sold it, What’s the after-repaired value?
Tim Benskin [00:20:10]:
$360,000
Jay Conner [00:20:14]:
$360,000 after-repaired value. Now, what did you buy it for? What was your purchase price?
Tim Benskin [00:20:18]:
We bought it for 110.
Jay Conner [00:20:21]
So how in the world do you buy a $110,000 property for $180,000? My guess is your seller was motivated. So what was the motivation of the seller? I assume you did not find this property in the multiple listing service.
Tim Benskin [00:20:38]:
No. We actually, get a list from US Leads, which is right in Wisconsin. So where we live is right on the Wisconsin-Illinois border. So we pretty much our business, we go from Rockford, Illinois, which is to our south up to just north of Beloit, Wisconsin. So US Leads is in Wisconsin. We buy lists from them. We mailed those lists, and it came off one of those leads. That’s how we got that lead.
Jay Conner [00:21:07]:
And, what type of owners are on the US lead list?
Tim Benskin [00:21:12]:
Well, that one is, anybody that’s lost a loved one in inherited property.
Jay Conner [00:21:18]:
So these are inherited these are inherited properties. What kind of what kind of letter or direct mail do you mail out to these people?
Tim Benskin [00:21:26]:
Well, it’s a basic yellow letter that says, hi. My name is Tim Benskin, and, you know, we’d like to buy your property. And we just keep it really simple and with our, you know, phone number on there.
Jay Conner [00:21:40]:
Very good. So it was a US Leads List lead that you did a direct mail piece to. And, how extensive was the renovation or rehab?
Tim Benskin [00:21:51]:
That house was beautiful, so there wasn’t a lot of rehab. The only thing I really had to do was, do the bathroom and, do the kitchen, and the rest of the house was just paint. And, it had carpet throughout the house, and guess what I found underneath the carpet was beautiful hardwood for hardwood floors.
Jay Conner [00:22:12]:
Oh, wow.
Tim Benskin [00:22:12]:
So we had the hard, yeah, it really turned out beautiful. We had the hardwood floors redone, and it it just, you know, really made that house, you know, so yeah.
Jay Conner [00:22:24]:
So approximately, how much did the rehab cost you?
Tim Benskin [00:22:27]:
About $17,000.
Jay Conner [00:22:30]:
Okay. Well, let’s just
Tim Benskin [00:22:32]:
Yep. Go ahead.
Jay Conner [00:22:33]:
I was just gonna say, let’s let’s round it up to 20,000. It didn’t cost 20. But just for easy figuring here. So, let’s just run the numbers on this deal. And here we run the numbers. So, the after-repaired value was $180,000, and subtract from that your purchase price of $110,000 which leaves 70,000. Subtract 17,000, round it up to 20,000, subtract $20,000 So here we’ve got a gross profit of $50,000 on this deal. And have you already sold it?
Tim Benskin [00:23:09]:
Actually, we have. It’s it was a lease option. So
Jay Conner [00:23:13]:
Okay.
Tim Benskin [00:23:13]:
The people that are in there are lease optioning it, and they’re gonna get a bank loan on it next March.
Jay Conner [00:23:20]:
Wow. Very good. I assume you collected a nonrefundable lease option deposit from your lease option buyer?
Tim Benskin [00:23:28]:
We did. We did.
Jay Conner [00:23:29]:
And how much was that?
Tim Benskin [00:23:31]:
That was $12,000.
Jay Conner [00:23:33]:
Very nice. You got a $12,000 cash flow right there immediately when you sold this property. So, it was a win for the seller. It was inherited. You got a win for the buyer of this property because you’re selling it on lease purchase, which means they couldn’t go to the bank for whatever reason today, but you still collected $12,000 upfront. You got all this deal funded by your private lender. Did you have to dig into your personal pocket for any of this funding or any of the rehab, or did your private lender cash flow the whole thing for you?
Tim Benskin [00:24:09]:
Private lender cash flowed the whole thing. So
Jay Conner [00:24:12]:
Beautiful. Beautiful. Yeah. And so they’ll be cashing out next March. Well, that’s what it’s about is, creating win-win scenarios where everybody wins. The private lender wins, the seller wins, the buyer wins, and all that. So, as far as private money goes, what’s your favorite way to raise private money these days?
Tim Benskin [00:24:38]:
Well, you know, I like doing luncheons, you know, and I like trying to invite as many people as I can to the luncheons. And I haven’t really hit the tip of the iceberg yet with my networking. So, you know, this year, I’m I’m retiring from the army. So, you know, my time is gonna get more and more, you know, available for me to do things. And I just, you know, joined a couple more networking groups. So we’re gonna start networking a little harder, coming up here in the next, you know, 6 months. That’s gonna be my primary primary focus is the network and then have luncheons and get as many people on those luncheons as I possibly can. So, you know, I really think the sky’s the limit with our business, going forward here, Jay.
Jay Conner [00:25:28]:
That’s fantastic. If you were talking to a brand new real estate investor who had never raised private money before, what advice would you give them?
Tim Benskin [00:25:38]:
Well, first I’d say, you know, Joy, you know, you can get hooked up with Jay Conner and go to his live event, which is coming up, what, in another week or so?
Jay Conner [00:25:47]:
Yeah. It’s right around the corner.
Tim Benskin [00:25:50]:
So that would be my first, recommendation.
Jay Conner [00:25:53]:
Well, if they can’t make it to the live event and they want to start raising private money, what’s the best way for them to start? Or here’s another way for me to here’s another way for me to ask that question. If you had it all to do over again, is there any kind of mistake that you’ve made in raising private money that you now do differently than when you started out?
Tim Benskin [00:26:14]:
No. I pretty much follow, you know, the program that that you set forward, so I don’t I don’t really change up a lot of things. I just kinda stick with that program. So it works. Well, it
Jay Conner [00:26:28]:
it seems been working for a long time. I’ve I’ve been, doing business with private lenders and individuals all the way since February of, 2009. So, it’s been going on for quite a while. Well, if you’re listening to this show and podcast, let me tell you something. There’s no more reputable, real estate entrepreneur that I know than Tim Benskin. And if you are interested in getting a high rate of return, safely and securely, to where you’re going to earn a whole lot more money than you can in the local bank, and it’s backed by real estate. There’s nothing unsecured. You’re all protected.
Jay Conner [00:27:06]:
There’s a good chance that you may want to reach out to Tim Binsten and consider the possibility of being a private lender with Tim. So, Tim, please share your contact information. We’ll have it in the show notes as well. Sure. But share your contact information, with our audience and, you will probably hear from some folks that would love to talk with you 1 on 1.
Tim Benskin [00:27:30]:
Yeah. That’d be awesome. Yeah. So I can be reached by email at tim@lifelinepropertysolution.info. And then, also, I have a book, you know, and mister Jay Conner did the forward on our book. So we’re running a a special with that, and, we’re giving the book away free with a $7 shipping and handling. And you can get the book at, www.stressfreeinvestinginformation.info. And, our book’s right there.
Tim Benskin [00:28:07]:
You can order it right online. The book is also on Amazon and a few other outlets that sell books.
Jay Conner [00:28:13]:
And what’s the name of your book, Tim?
Tim Benskin [00:28:15]:
It is called Passive Income Without Tenants and Toilets.
Jay Conner [00:28:20]:
I like that. Passive income, sit back, collect checks without tenants and toilets. Well, listen, everybody. If you’re listening autograph it. He’s going to autograph it. He’s going to mail it to you. He’s going to ship it right to you in the mail. And yes, I wrote the forward for his book.
Jay Conner [00:28:43]:
It’s an amazing book and it tells you exactly how to be a private lender and how to be safe in being a private lender so you make those returns. Get Tim’s book. Get right on over to www. And his, URL is stress-free investing information dot info. Stress-free investing information dot info. Tim will autograph it and he’ll rush it right out to you. Tim, thank you so much for joining me here on Raising Private Money.
Tim Benskin [00:29:17]:
Thank you so much, Jay. It was a pleasure. So Thank you.
Jay Conner [00:29:20]:
God bless you. And, again, thank you for your service to our country. God bless you.
Tim Benskin [00:29:25]:
Thank you, Jay. Thanks a lot.
Jay Conner [00:29:27]:
You got it. There you have it. Another amazing episode of Raising Private Money with Jay Conner. I’m Jay Conner, your host. Also, the Private Money Authority. Be sure not to miss out on any more amazing episodes. They’re going to be coming up.
Jay Conner [00:29:43]:
We’re knocking on 700 episodes right now after doing this show for over 6 years, beginning our 7th year in the podcast. If you happen to be watching on YouTube, be sure and ring that bell and don’t miss out on any upcoming live events or, any of these episodes. Be sure to like, share, subscribe, and click that bell, and I look forward to seeing you. Yes. You. Right here on the very next episode of Raising Private Money.
Narrator [00:30:15]:
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.
