In this episode of the Raising Private Money podcast, Jay Conner, along with co-hosts Crystal Baker and Chaffee Thanh-Nguyen, and guest Jay Mora, delves deep into the essential elements of leveraging private money for real estate deals. If you’re a real estate investor looking to understand how to raise and use private money to your advantage, this episode offers invaluable insights. The focus is on the common questions private lenders are likely to ask and the strategic importance of setting minimum investment amounts. Below, we break down the key points discussed in this enlightening session.
The Vital Role of Private Money in Real Estate Deals
Jay Conner on the Abundance of Private Money
Jay Conner opens the discussion with a pivotal insight: “There’s more private money than you can use.” He elaborates with an anecdote demonstrating the importance of sticking to a minimum investment amount. Conversations with potential investors often highlight the availability and abundance of private capital waiting to be tapped by savvy real estate investors. Conner emphasizes that understanding this landscape can significantly impact your success in securing necessary funds.
Setting the Minimum Investment Amount
Crystal Baker provides her perspective on setting a minimum investment amount, emphasizing flexibility and the benefits of pooling funds from smaller investors. Crystal mentions her minimum investment amount of $30,000 but points out that combining smaller sums from family members or friends can also work. On the other hand, Chaffee Thanh-Nguyen highlights that the optimum minimum investment amount can vary greatly depending on the location and type of investment. Setting a strategic minimum, usually around renovation costs, can ensure you do not undervalue your services or stretch your resources too thin.
Preparing for Private Lender Questions
Understanding Common Questions from Private Lenders
Jay Conner introduces a pivotal part of the discussion by listing nine questions that potential private lenders usually ask before funding a real estate deal. Based on a recent webinar with potential lenders, Jay emphasizes the importance of being prepared to answer these questions convincingly. “If they’re asking questions, they’re interested in lending you money,” Jay notes, underscoring the critical nature of these inquiries. Crystal Baker and Chaffee Thanh-Nguyen reinforce the need for thorough preparation to instill confidence in potential lenders.
Key Questions to Anticipate
Jay Conner shares the insights from his recent webinar with investors, highlighting that these questions are not hypothetical but come directly from recent interactions. Important questions include:
- What is the timeline for this investment?
- What guarantees or security can you offer?
- How do you determine the value of the property?
- What is your experience in real estate investing?
- How do you handle potential market fluctuations?
Jay advises having clear, honest answers ready, using real-life examples when possible, to build credibility and trust. Chaffee Thanh-Nguyen adds that specificity goes a long way in building lender confidence.
Liquidity and Timeline of Funds
Self-Directed IRAs and Investment Timelines
The episode also touches on another significant aspect: investment timelines, particularly concerning self-directed IRAs. Crystal Baker emphasizes the importance of discussing the timeline and liquidity of funds with investors, especially those considering using retirement funds. Jay Conner acknowledges having both liquid capital and retirement funds, facilitating flexibility in his investment strategies. Crystal points out that while liquid capital can be quickly invested once a deal is available, self-directed IRAs require more structured conversations to determine the next steps and transfer timelines.
Aligning Investment Goals with Timelines
Chaffee Thanh-Nguyen stresses the value of clarifying questions when investors inquire about timelines. Understanding the investors’ goals allows for better alignment and ensures that the investments meet their expectations. This approach not only enhances transparency but also fosters a stronger investor-investee relationship.
Geographic Investment Strategies
Investing Beyond Local Markets
Crystal Baker and Chaffee Thanh-Nguyen discuss their experiences investing in various locations. Crystal outlines her investments in Virginia Beach, Chesapeake, and North Carolina, while Chaffee shares his extensive experience across more than ten states. Jay Conner highlights the importance of assessing property criteria and ensuring the lender’s money is protected, regardless of the investment’s geographical location. This segment underscores the importance of being open to opportunities beyond one’s immediate market, provided due diligence is conducted.
10 Lessons Discussed in this Episode:
- Private Money Foundations
Delve into the critical importance of leveraging private money to finance real estate deals, exploring foundational concepts and benefits.
- Navigating Webinar Content
Jay Conner introduces the topic and shares nine essential questions private lenders will ask before funding a deal, based on his recent webinar experience.
- Insights from Live Webinars
Gain valuable insights from Jay’s live webinar, where potential lenders raised pivotal questions—a must-know for any real estate investor.
- Answering Lender Questions
Learn how to prepare and articulate answers to common queries from private lenders, ensuring you signal genuine interest and credibility.
- Host and Guest Exchanges
Engaging discussions between hosts and guests, exploring additional questions and considerations new private lenders might have.
- Profile of a Successful Investor
Meet Jay Mora, a high-volume wholesaler and fix-and-flip expert, and learn about his successful investment journey and key takeaways.
- From Realtor to Wholesaler
Gain insights into Jay Mora’s transition from a traditional realtor to a high-volume wholesaler and fix-and-flip investor, highlighting pivotal moments and lessons learned.
- Managing Multiple Lenders
Understand the dynamics and strategies of working with multiple private lenders, and how to address their specific questions and concerns.
- Investment Timeline Clarity
Crystal Baker explains how to address private lender inquiries about investment timelines and fund liquidity, ensuring clear and effective communication.
- Actionable Steps for Investors
Learn strategies for mobilizing investment capital and preparing liquid funds for real estate deals, emphasizing practical steps for immediate application.
Fun facts that were revealed in the episode:
- Diverse Investment Locations:
Crystal Baker invests in a range of locations, including Virginia Beach, Chesapeake, Portsmouth, Isle of Wight County, Suffolk, and even across state lines in North Carolina. She highlights how diverse investment locations can mitigate risks and maximize opportunities.
- Pooling Funds with Family:
Crystal shares an intriguing strategy of pooling smaller investment amounts with family members to meet the minimum investment thresholds. This collaborative approach allows those with limited funds to still participate in lucrative real estate deals.
- Investing Outside Local Area:
Chaffee Thanh-Nguyen reveals that he has bought and sold properties in over 10 different states. He justifies this strategy by emphasizing the importance of selecting properties based on criteria that protect the lender’s money, showcasing how geography doesn’t limit successful real estate investing.
Timestamps:
00:01 – Raising Private Money Without Asking For It
03:18 – Prepare for potential lender questions from the webinar.
09:48 – Invest your capital and set up a call.
10:38 – Answer with a clarifying question for clarity.
13:51 – Investor need to know their timelines well.
20:07 – Establish minimum amount based on renovation costs.
22:03 – Consider smaller amounts for foreclosure property buying.
27:10 – “Truth always guides investment decisions in all markets.”
28:04 – Private lenders seek secure investments in individuals.
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Key Questions Private Lenders Ask Before Funding Your Real Estate Deals
Jay Conner [00:00:00]:
I’m walking out the door. Listen to what he said to me. He said, so your minimum is 50,000? And I said, yes. He said, well, let me work on that. I said, alright. You work on that, and you let me know. So you see, if I had agreed to his $20,000 then I mean, here’s the thing though, folks. There’s more money than you can use.
Jay Conner [00:00:30]:
There’s more private money than you can use.
Narrator [00:00:35]:
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 [00:01:02]:
Roland, welcome to everybody to our live Zoom training on private money. Today’s topic is, well, I promoted today’s topic as 7 Questions A Private Lender Will Ask You Before They Fund Your Real Estate Deal or Deals. And it’s actually not 7 questions. It’s actually 9 questions. I thought it was 7 questions, but it’s 9 questions. Now, how in the world do I know? Now, these are the questions that a private lender will ask you before they fund your deal. Well, Crystal, are Willie and Haruna here by chance or not?
Crystal Baker [00:01:51]:
I thought I saw them, but I’m not sure. Give me just one second here.
Jay Conner [00:01:55]:
Well, if you see them show up, let me know.
Crystal Baker [00:01:59]:
No. I don’t see them here.
Jay Conner [00:02:00]:
Okay. Well, if you see Willie or Harinna show up, let me know. So here’s how I know. Chaffee, I know you wanna know how I know. So, I’m going to tell you, Chaffee, how I know. 100% sure what they’re going to ask. Putting aside the fact I’ve been answering private lender questions ever since 2009 when I started borrowing private money from private lenders. But these are hot off the press.
Jay Conner [00:02:27]:
Here’s how I know. I did a live webinar with Willie and Haruna. They are Platinum and Mastermind members. I did a live webinar with them the day before yesterday, and they had at least, the last count I saw, they had at least 17 new potential private lenders on their webinar that they invited. By the way, one of the best webinars I’ve ever done. I mean, fantastic engagement. Great questions. Well, guess what? I’m going to share on this private money training right here, right now on this Zoom, the 9 questions that the potential private lenders asked during the webinar.
Jay Conner [00:03:18]:
So I don’t have to guess what’s on the top of these people’s minds. I mean, I went to Brenda’s office. I said, Brenda, pull up that webinar I did on Monday and read out to me all the questions that the private lenders ask. And so I got them. I’m going to share them with you. So since private, since new private lenders were asking these questions 48 hours ago, I would say it’s a pretty good idea for you to write these down and make sure you’ve got your answer ready to go when they ask you these questions and they’re interested in funding it, by the way. Nobody’s going to add no potential private lender is going to ask you a question unless they’re interested in lending you money. I mean, right? I mean, questions.
Jay Conner [00:04:11]:
That’s a buying signal. People don’t ask questions about what you’re doing unless they’re interested in what you’re doing. Right? So love the questions. So that’s what we’re going to talk about today. Now, this list is not exhaustive. These are not all the questions that a private lender will possibly ask you. There are other questions. In fact, we’ll talk about that if we have time.
Jay Conner [00:04:40]:
What other questions that Crystal, Chaffee, some of our Platinum members, and Mastermind members been asked by, new private lenders? So be sure you have a pen and a pad handy wherever you take your notes, cause this is going to be some very, very, very valuable information. By the way, I’m curious. I see, Jay Mora here from, North Carolina, fellow North Carolinian. So Jay, unmute. Let us know where you at in North Carolina.
Jay Mora [00:05:13]:
Hey, brother. How are you?
Jay Conner [00:05:14]:
I actually actually don’t
Jay Mora [00:05:16]:
physically live in North Carolina. I do own rentals, right outside of Charlotte in Mint Hill. I do a lot of business in North Carolina. So, I’m a high-volume disposition wholesaler in the state. Also, fix and flip is my jam. I’ve been a contractor going on 8 years now and I started a real estate business in 2014 as a realtor. And I got out of it full-time as a traditional realtor after I bought a deal from a wholesaler. The wholesaler made $85,000 on the deal.
Jay Mora [00:05:47]:
I made 7,000 on the flip, and I got I got the bug. I was like, how
Crystal Baker [00:05:50]:
did this guy do it?
Jay Mora [00:05:52]:
And so I got, heavily involved in that.
Jay Conner [00:05:55]:
That’s awesome. Well, by the way, you said how long you’ve you’ve been wholesaling did you say?
Jay Mora [00:06:02]:
Wholesaling full-time? Going on for 2 years now.
Jay Conner [00:06:05]:
And how long you’ve been real estate investing?
Jay Mora [00:06:07]:
Since 2014.
Jay Conner [00:06:10]:
Well, that’s 10 years ago. So all I can say is you don’t look old enough to be investing for 10 years. You must have started when you were 12. Right?
Jay Mora [00:06:20]:
Started when I was 18.
Jay Conner [00:06:22]:
I love it. I love it. Y’all give a great big fancy golf clap to Jay Mora right there for starting. You know, I wish I had started investing when you started investing, and I wish I knew then what I now know. Anyway, welcome to the Zoom today, Jay. Glad to have you. So, Chaffee and Crystal, I’m gonna bounce off of, you all. So I want you all, so everybody here, I want you to write these questions down.
Jay Conner [00:06:52]:
Now, some of these answers, or some of the answers, to some of these questions are going to depend obviously on your market. It’s going to depend on your market and the kind of deals that you do. But I want you to be ready to answer these questions when you get asked the question by a potential private lender. Just to make sure everybody understands, we’re talking about private lenders. I mean, my wife, Carol Joy, and I have 47 private lenders right now that are funding our deals by all means. And for goodness sakes, you don’t need 47. You just need 1 or 2 to start. But, then, these questions are real questions that just came in.
Jay Conner [00:07:35]:
So, ladies first, senior Rita Crystal is there. Ladies first. So let’s say so Crystal and Chavy, here’s the way we’re going to do this. Let’s pretend that I am a new potential private lender. We haven’t done business yet. You’ve taught me your program. You’ve taught me, you know, what it is. You’ve told me the interest rate that you’re going to pay, etcetera.
Jay Conner [00:08:02]:
You’ve told me the length of the note. I know how I can get my money back in case of an emergency. You’ve gone through the PowerPoint presentation. You know, all those answers already. But now I have some other answers. I mean, questions that you didn’t tell me about when we went through the program. So here we go, Crystal. First one.
Jay Conner [00:08:22]:
Hi, Krystal. I’m, I’m sort of interested here in investing in your deals, learning, and learning your money on your deals, but I really wanna know how soon can you invest my money.
Crystal Baker [00:08:37]:
So, I’m gonna sidebar for just a second because this is it it’s gonna depend. So I’m not gonna say it depends necessarily on that person, but I am gonna sidebar and say it’s gonna depend. So if this is somebody who needs to move, funds over to a self-directed IRA, I’m gonna ask them that question, so that I can determine what my timeline looks like. And if they’re liquid, obviously, I know that they’re probably fairly ready avail readily available as well as it’s gonna depend on how much they have to invest. So now going back to if I were just to directly answer Jay, I would say, are your funds in a, invest are they investment capital? Are they something that’s gonna need to be moved to a self-directed IRA, or are they liquid?
Jay Conner [00:09:23]:
Actually, they’re both. I’ve got investment capital that is just sitting in my savings account ready to go, But I’m not happy getting the returns on my retirement funds either. I’ve got them in the stock market, and I’m just sick and tired of the volatility. So, I’ve got funds as well that are retirement funds that I would like to, you know, invest as well.
Crystal Baker [00:09:48]:
Yeah. So your liquid capital, we can invest as quickly as we’re able to locate a deal that meets the criteria for the loan to value and the amount of money that you have. And those that are in, that is investment capital right now, it’s just really a matter of us setting up a conference call with my rep at Quest so we can have a conversation and determine your next steps with those. So, you know, when can you set that up? Let’s let’s go ahead and make sure that we can get that on the books. I’ll get in touch with them. We’ll identify a time. And then it’s really a matter of how long it takes for that transfer to occur. And as soon as the transfer occurs, then we can get those invested and start working with those as well.
Jay Conner [00:10:29]:
Okay. Very good. Chaffee, same role play here. How soon can you invest my money?
Chaffee Thanh-Nguyen [00:10:38]:
Well, you know, again, I love what and hit this is more of a strategy than an answer today. Only I’m gonna share the strategy and exactly what Crystal did is that usually when somebody asks you a question like that, the best way to answer them is with a clarifying question. So as Crystal said, you know, how much like, how fast can you, invest my money? I would do the same thing and really, you know, say, how fast are you looking to invest your money? Right? So really, you know, go back to them and find out what they’re looking for, what they’re searching for. Typically, when somebody is asked a question, right, they’re looking for some kind of answer. And, you wanna make sure that you’re answering the question that they’re actually asking versus just throwing a number out there.
Jay Conner [00:11:25]:
Yep.
Chaffee Thanh-Nguyen [00:11:26]:
So that’s really the strategy. And the bottom line is, you know, as Crystal said, first of all, is it, readily available investment capital, or is it retirement funds? And, the answer is, you know, if it’s readily available cash, then as soon as we find a deal that fits the investment
Jay Conner [00:11:52]:
Chavy. Well, I’ve got money ready to go, and, you know, I don’t wanna be sitting around 3 months for you to find me a deal. So based on your, experience there, Chaffee, and you’re doing deals, you know, how long do I need to sit on this before I could really expect, you know, getting it to work?
Chaffee Thanh-Nguyen [00:12:18]:
Well, again, you know, market conditions are gonna affect that, your local marketing conditions. And and if you’ve been following Jay and doing what Jay does, you know, you’ve already started looking for deals. And so, you know, some of you I know already have d gild and are looking for money. Obviously, you know, that’s not something that, we discuss right away. And those of you who don’t have deals yet, man, hit that road. You’re like like, find a deal. The sooner, the better. Right? So the answer to that investor though is, it is, again, the same thing is, you know what? We’re gonna get looking for a deal as soon as this meeting’s over.
Chaffee Thanh-Nguyen [00:12:56]:
I wanna make some phone calls, and, we’re we’re gonna find that deal for you and then get that money working as soon as possible.
Jay Conner [00:13:02]:
I don’t want you all to miss what both Crystal and Chaffee did. They did not allow my questions to be in a corner. They did not commit to saying, well, I can probably put her to work in 30 days. They didn’t say I can do it in 2 weeks. They didn’t say 3 months because truth be told, you really don’t know, do you? I mean, you know what? I mean, if you’ve been investing, you know, on average, how often you’re getting a deal on a contract, but history doesn’t repeat itself. So, by the way, Chaffee, you should run for president because you did an excellent job 3 times not answering my question.
Chaffee Thanh-Nguyen [00:13:47]:
That’s right.
Jay Conner [00:13:47]:
But you made me feel warm and fuzzy about your answer.
Crystal Baker [00:13:51]:
Well and may I add as well, Jay, the thing that you need to know yourself as the investor is you need to know timelines. One, you know, what does your pipeline look like on average? How many is it you know, how much time does it take you to get a deal based on your marketing? You need to know how long it’s gonna take at the attorney’s office to get your trial work done, to get these things to a close because you are gonna have to mentally build that in as you’re as you are communicating. So if somebody does push you further and try to get you to get to a timeline, you wanna be able to give them some kind of an average so that they know. So if you happen to have something that’s under contract and you know how long it takes at the attorney’s office, and then you can be talking to them about, you know, if that fits that deal. So, you know but you gotta you gotta know your numbers. So know your timelines as well. Because if you don’t, then you’re really just gonna be like
Jay Conner [00:14:49]:
That’s so true. So true. And also, did you notice what Chaffey said in answering my question when he really didn’t answer my question, but he did answer my question, when he said, we’re going to be looking for you a deal immediately right away to match the criteria of maximum loan to value and all the criteria of the program that I’ve already shared with you. So what did he do? He looped back in his answer, giving me, what’s the word I’m looking for? Giving me security, giving me a warm and fuzzy that I’m just not going to get you I’m not just not going to put your money to work for the sake of putting your money to work. I’m going to invest your money and at the same time, make sure you are protected. As I’ve already taught you, you’re going to be protected. So excellent job there, Crystal and Chavy. All right.
Jay Conner [00:15:41]:
So let’s continue the role play. Number 2 question back to Krystal. And I’m telling you, every private lender asks me this. In fact, Mike Conolly, at the studio today, when I finished recording, the owner of the studio said, well, if somebody had $20,000 just hypothetically speaking, what would you do with that $20,000 And so he, a roundabout way, was asking this question, Crystal, Is there a minimum amount to invest?
Crystal Baker [00:16:21]:
Actually, I do have a minimum amount because, you know, typically, we have to have a certain amount even if we’re gonna do a rehab. However, how much do you have to invest?
Jay Conner [00:16:32]:
So do you see what Crystal just said? She is doing what Jesus did. She answered a question with a question, and what Chaffey just preached a little bit about. So she threw the ball back in my court. By the way, there’s already a trend going on here, and we haven’t even finished the second question. And that is you answer questions with what Chavis said, and that’s clarifying questions. So, Crystal said back to me, well, she said, well, do you do you have a particular amount in mind? No. Not really.
Crystal Baker [00:17:09]:
Okay. Well, generally, we start at around 30,000. However, I’m often able to work with people even if they have a smaller amount. Maybe they’re close, and so we can still work together. Or they may have a smaller amount, but maybe they have a son, a daughter, a grandchild, or a spouse that they wanna put those funds together with. So we don’t ever pull funds. So we wouldn’t do that with a stranger or anyone else, but we can put you on the same note. So sometimes it’s just a matter of you partnering with a family member so that both of you can take advantage of the program and get those high rates of return safely and securely, and we can get your money working for you that way.
Jay Conner [00:17:46]:
So did you all notice what Crystal just did? See, what she did was she said her minimum is 30,000, but she didn’t want to run the risk of me not having 30,000. So what she said was, we can put monies together from, you know, family members and etc. In order to reach the minimum. And so what she was doing was mitigating the possibility of me saying, oh, well, I don’t have that, blah blah blah blah. She answered that before it was even, you know, an issue. Same question, Chavy. Is there a minimum amount to invest?
Chaffee Thanh-Nguyen [00:18:28]:
And, again, you know, depending on where you’re investing, you know, your minimums are gonna be different. So, you know, we had a mastermind student who could buy a house for 15,000, and his rehab costs were getting anywhere between 15 20,000. So all in, he’d have, you know, $30,35,000 on a house that’s worth 75 to 100000. And then, obviously, in Charlotte, you got houses that are half a1000000. So 15 grand ain’t gonna do jack squat. So your minimums might be a little bit higher. Right? So with that in mind, obviously, know your target market, know your area, to determine what your minimum is. And I always go back to, you know, as Crystal said, so, you know, what did you have in mind? Did you have a particular amount in mind? And if they came up with a really low minimum, let’s say my minimum was 30,000 and, they had a 20 or 25,000, I would do a follow-up question and say, hey.
Chaffee Thanh-Nguyen [00:19:27]:
If I sat down and came up, with some suggestions and ideas, you think you might be able to come up with a little bit more. As Jay says, they they always have more. And the question is, you know, what is the minimum necessary for them to get started to test, feel you out, test you out? And so if you can sit down again and and offer some suggestions, offer some methods, they might have, you know, 30 or 40 they might have 50,000, and they only want to start with the 25,000. So, so that’s, again, going back with the clarifying questions and then just prodding them for, you know, what is really going on here.
Jay Conner [00:20:07]:
Along with that, just to let everybody know, where do we come up with these minimums? So, you know, Crystal, in all likelihood, is not going to be able to buy a house for $30,000 That’s her minimum. But she’s not gonna buy a house typically for $30,000 So where is she getting her minimum from? She’s getting her minimum from what she is willing to accept for renovation or rehab money. That’s where she’s getting that dollar figure for renovation or rehab money. And that private money can be in a junior position, a second lane, underneath the 1st position private money that would be used for the purchase of the property. So when you’re when someone’s asking you your minimum amount, don’t tell them your minimum based on what you’re buying properties for. You want to have your minimum set at what your average or minimum amount of money you would accept for renovations. And, I just said something that I don’t want anybody to miss. It’s no problem having more than one private lender secured by the same property, but what you have to watch out for is the maximum loan to value.
Jay Conner [00:21:22]:
So if you’ve got more than 1 private lender being secured by the same property, be sure and add up both notes, private lender in first position, private lender in second position, get that total amount, divide all your notes by the after repaired value of the property, and you don’t want that to exceed more than 75%. That’s called 75% total loan to value of the after-repaired value. I didn’t say 75% of the purchase price. So a maximum of 75% of the after-repaired value. 3rd question oh, go ahead, Chavy. Did you have
Chaffee Thanh-Nguyen [00:22:03]:
something Let me just add to that, Jay. We’ve had several students, and I know Crystal does this quite a bit as well, is that you know, if you have a smaller amount, let’s just say 20,000 instead of, you know, a 100,000, sometimes if you’re working foreclosures and you’re buying properties subject to the existing note, you know, that 20,000, they might only need 10,000 to bring the note current. And then, you know, so you might be able to do a smaller amount if you’re doing a strategy like a subject too. And just be aware that, again, know your market and your strategy. If you did a subject 2 before, you know, don’t use that as a minimum as your basis. Right? So, and, again, if you have, then then that’s an option for you.
Jay Conner [00:22:52]:
Thank you, Chaffee. Alright, Crystal, 3rd question, that was real live. The real live question here, this week. So, Crystal, I think I’m interested in, investing with you and and loaning you money on your deals. But where is the property oh, by the way, before I have you before we do that role play, I got to tell y’all what happened to the studio owner, this morning when I was recording Mike Connelly’s audio. So he said, hypothetically, hypothetically when everybody tells you something’s hypothetical, trust me. It’s not hypothetical. Alright? So he says to me, hypothetically, let’s say somebody had $20,000.
Jay Conner [00:23:34]:
You know? What could you do with that? And so, you know, we had our conversation, but he found out my minimum is 50,000. And I said my minimum is $50,000 here in the here in my market. And I said, and here’s why. I said the re I said, that’s just not an arbitrary figure. I said the reason my minimum is $50,000 is that I have to pay Julie Wickheiser, an attorney who’s right next door to our office. I have to pay her the same $650 in closing cost and dot prep fee whether I’m borrowing 500,000, 250,000, 50,000, or 20,000. And that was the reason, that I gave him, which is true. And so we, you know, we started talking about other stuff.
Jay Conner [00:24:29]:
I’m walking out the door. Listen to what he said to me. He said, so your minimum is 50,000? And I said, yes. He said, well, let me work on that. I said, alright. You work on that and you let me know. So you see, if I had agreed to his $20,000, then I mean, here’s the thing though, folks. There’s more money than you can use.
Jay Conner [00:24:59]:
There’s more private money than you can use. And you see, Jay, my buddy Jay, with my same name Jay in North Carolina, who’s not in North Carolina, If Jay had all that private money that I can plug him into, he wouldn’t even be wholesaling that deal right here on this Zoom with everybody else. Exactly. Right? Right? Right? I mean, let me tell you. You know what my average profits are right now, Jay? My average profit per deal, and I’m not bragging, is some this is data, not drama. This is data, not drama. Alright? $82,000 per single-family house. But the only reason it’s $82,000 is because I have private money available.
Jay Conner [00:25:45]:
Right? But, anyway, picking on my new buddy, Jay. Alright. Back to the role play there, Crystal. So I’m interested in investing with you. Right. But where are these properties that you’re investing in?
Crystal Baker [00:26:01]:
So I purchased properties in Virginia Beach, Chesapeake, Portsmouth, Isle of Wight County, and Suffolk. So kind of all over Hampton Roads in Southeastern Virginia. And I have a few properties that are in North Carolina.
Jay Conner [00:26:18]:
So you don’t pretty much invest outside your area? No. Chaffee. Let’s role-play the same question. Well, Chaffee, I’m I’m pretty interested in, you know, doing business with you, loaning you money on your deals, but where are the properties, that you’re investing in? Where are they located?
Chaffee Thanh-Nguyen [00:26:36]:
So, Jay, you know, I bought and sold properties in multiple different states, over 10 different states, a matter of fact. And you know the funny thing I found out? I found out that a brick in Arizona pretty much looks exactly the same as a brick in Florida. A brick is a brick. And so what’s important to me is to make sure that the property fits the right criteria, and that your money is protected. As long as I can find a property that fits that and I can ensure that your money is gonna be protected, then I’m gonna do a deal.
Jay Conner [00:27:10]:
So I want you all to dissect and unpack both Crystal and Chaffey’s answers. The answer is the truth. Right? The answer is the truth. The answer is always the truth. If you’re only investing right around your area and that’s the business decision you’ve made, then that’s your answer. If you’re investing in other markets and not right around in your area, then that’s what you tell them. But do you see what Chaffey did in a very, very soft way? Chaffee justified why he is able to invest outside of his area. Because what you don’t know is you don’t know why the person is asking the question, but I can guarantee you, here’s partly why they’re asking.
Jay Conner [00:28:04]:
They want to feel secure about their money and they want to make sure that you know the market that you are investing in. Because at the end of the day, private lenders are really not investing in your properties. It’s secured. Their loan amount, their principal loan amount is secured by the property, but they are not investing in your properties. What are they doing? They’re investing in you. That’s what they’re doing. They’re in
Narrator [00:28:36]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/MoneyGuide to get your free guide. We’ll see you next time on raising Private Money with Jay Conner.
