*** Guest Appearance
Credits to:
https://www.youtube.com/@janebayler
“How To Raise Private Finance Without Ever Asking For Money – With Jay Conner”
https://www.youtube.com/watch?v=CYU_Y9Ff7fE&t=99s
In the fast-paced and competitive world of real estate, having adequate financing is a game-changer. In our latest podcast episode of Raising Private Money with Jay Conner, we delve deep into the myriad strategies for raising private money without ever having to ask for it.
The Journey from Traditional Financing to Private Money
Jay Conner’s journey is one of transformation and adaptation. Growing up in the housing business, Jay initially focused on mobile homes before transitioning to flipping single-family houses. The real game-changer came in 2009 when the global financial crisis led him to lose access to traditional bank funding. This twist of fate pushed Jay to explore the untapped potential of private money and self-directed IRAs. Remarkably, within just 90 days, Jay raised over $2,150,000 in private finance without directly soliciting it, laying the foundation for his innovative fundraising strategy.
The Importance of Being Financially Prepared
One critical insight that Jay emphasizes is the importance of having money ready to make offers on properties. He criticizes the overly optimistic advice from some real estate gurus who suggest getting a deal under contract first and expecting the money to show up later. Jay’s proactive approach involves securing finance upfront, ensuring swift transactions, and maximizing opportunities in the competitive real estate market.
The Role of Networking: From BNI to Community Involvement
Jay’s strategy for raising private finance transcends traditional methods. He highlights the role of Business Network International (BNI), a networking group designed to foster connections and lead sharing among professionals. BNI’s structure, which allows only one member per category, helps streamline connections and build trust. Participating in weekly meetings and one-on-one sessions provides invaluable insights into other members’ businesses and clients. By leveraging BNI, Jay has successfully networked for real estate deals and private lending opportunities.
Beyond BNI, Jay stresses the importance of expanding one’s network by engaging with the community. Potential private lenders often belong to three main categories: those who know you, those who know someone you know, and those who may become clients through networking. Investing time in community involvement and nurturing these relationships can yield fruitful connections and opportunities for securing private financing.
Educating Potential Private Lenders: A Key Element to Success
Negotiation is a typical part of securing financing, yet Jay offers a refreshing alternative by focusing on education over negotiation. Prospective private lenders often lack understanding of private money or self-directed IRAs. Jay explains that by educating these individuals about his private lending program and the security it offers, he mitigates the need for negotiations. This approach builds confidence and trust among lenders, making them more comfortable and willing to invest.
One of Jay’s notable strategies involves offering promissory notes backed by mortgage or deeds of trust, ensuring the property serves as collateral. Maintaining a conservative loan-to-value ratio of 75% further protects the lender, creating a secure and appealing investment prospect.
Marketing Strategies: Direct Outreach to Property Owners
Finding profitable real estate deals is inherently challenging, and Jay’s marketing approach is designed to maximize success. Rather than relying solely on listings, Jay focuses on direct outreach to property owners. This proactive approach can uncover opportunities that might otherwise be overlooked, providing an edge in the competitive real estate market.
The Servant’s Heart Approach to Fundraising
Central to Jay’s philosophy is the “servant’s heart” mindset, which he advocates for in fundraising. By approaching potential lenders with genuine intent to offer them beneficial investment opportunities, rather than simply seeking funds, Jay eradicates the fear of rejection. This strategy not only enhances the likelihood of securing finance but also builds robust, trusting relationships.
Real-Life Impact: The Benefits of Private Lending
Jay’s innovative private lending strategies have had a significant impact on ordinary individuals. Many who had no prior knowledge of private money or self-directed IRAs have become successful private lenders, benefiting from high rates of return on secure investments.
10 Questions Covered in this Episode:
- Jay Conner emphasizes the importance of having funds ready before making property offers. How does this strategy compare to the approach of securing deals first and then finding funding? What are the pros and cons of each method?
- In the episode, Jay Conner talks about teaching potential investors his program to instill confidence. What methods can be used to effectively educate potential private lenders?
- The podcast discusses the role of Business Network International (BNI) in connecting with private lenders. What are the key benefits and potential drawbacks of using a networking group like BNI for raising private finance?
- Jay Conner criticizes the advice of some real estate gurus who advocate getting a deal under contract and then finding the money. What are the potential risks and benefits of this approach?
- Jane Bayler highlights the high cost of real estate in the UK due to overpopulation and lack of housing stock. How should real estate investors adapt their strategies in such high-demand markets?
- Jay Conner mentions three categories of individuals who can be potential private lenders. What criteria should investors use to identify and approach these individuals effectively?
- The episode touches on the concept of using promissory notes backed by a mortgage or deed of trust to protect private lenders. How do these instruments work, and why are they important for establishing trust?
- Jay Conner shares his experience of raising over $2 million in less than 90 days without directly asking for money. What lessons can real estate investors learn from this approach to fundraising?
- The narrator emphasizes the importance of mindset in fundraising, advocating for a servant’s heart and eradicating the fear of rejection. How can adopting this mindset impact an investor’s success in raising private finance?
- Jay Conner discusses the challenge of finding profitable real estate deals and shares his marketing strategies, focusing on direct outreach rather than relying solely on listings. What alternative marketing strategies could help investors find lucrative real estate opportunities?
Fun facts that were revealed in the episode:
- In an impressive feat, Jay Conner managed to raise $2,150,000 in less than 90 days without ever directly asking for the money, showcasing his innovative approach to private financing.
- Jay now collaborates with 47 private lenders for his real estate deals, and remarkably, none of them had any prior knowledge or experience with private money or self-directed IRAs before working with him.
- The episode highlights that real estate in the UK is particularly expensive, driven by factors such as overpopulation and a significant shortage of available housing stock, making it a competitive environment for investors.
Timestamps:
00:01 – Raising Private Money Without Asking For It
05:42 – My Biggest Blessing In Disguise
12:14 – Seeking deals and funding directly from owners.
16:19 – Earn high returns safely and avoid the stock market.
20:09 – Funding real estate with creative methods
23:05 – Private lenders: Your Network Has A Direct Correlation With Your Net Worth
27:11 – Property networking groups educate investors, and limit networking.
29:07 – Private lenders seek specific returns, unfamiliar with private lending.
34:17 – Approach real estate as a serious business.
37:48 – Private money for real estate investment principles.
Connect With Jay Conner:
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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
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Network Your Way to Wealth: Jay Conner’s Advice on Securing Private Funds
Narrator [00:00:01]:
If you’re a real estate investor 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.
Jane Bayler [00:00:29]:
Welcome to the Smart Connector podcast. It’s great to see you here. So I have such an exciting guest for you, Jay Connor. Welcome, Jay.
Jay Conner [00:00:37]:
Hello, Jayne. Thank you so much for inviting me to come along on your show.
Jane Bayler [00:00:42]:
Yeah. You’re very welcome. And what’s even more exciting for me is that Jay has an incredible southern accent, which I absolutely love, and he’s in North Carolina. Aren’t you, Jay?
Jay Conner [00:00:54]:
Yes. Right here on the eastern, coast, on the coastline here at the beach in a real small town called Moorhead City, North Carolina. Only 8, 000 people are in Moorhead City.
Jane Bayler [00:01:06]:
Wow. Okay. So what we’re gonna talk about today is real estate and raising private finance for real estate, which we tend to call property here in the UK. So this is a very interesting topic to a lot of people in my audience. We’re just talking about that beforehand. And Jay is an expert in this area. He’s known as the private money authority, and he helps real estate investors raise private finance without having to solicit funds. Now you might think, oh, come on.
Jane Bayler [00:01:37]:
You know, that’s not possible, but that’s exactly the thing that we’re gonna talk about today. So it’s great to have you here, and I’m looking forward to this conversation, Jay.
Jay Conner [00:01:48]:
I am too, Jayne. And, you know, I get asked all the time, Jay, how do you have all that private money or private finance available to you and you never ask for money? Well, I’m gonna unpack it for your listeners, Jane.
Jane Bayler [00:02:02]:
Fantastic. Well, let’s get right into it. So before we do, Jay, tell us a little bit about you. What’s your background? Have you always been in real estate, or have you been in finance? Or how did you come to be this private money authority person?
Jay Conner [00:02:18]:
Sure. Well, thank you for asking, Jane. So I was actually born and raised right here, and my father has been in the housing business or the property business, as you call it, all of my life. And so we have this product here in the United States that some of your listeners may have never heard of. And the product is called manufactured houses, and they’re also called mobile homes. Well, my father had a company. He was the largest retailer, and the largest seller of mobile homes or manufactured housing in the nation, in the United States. And so I was and what that product was, it’s really not mobile.
Jay Conner [00:03:01]:
Like, you would buy the product. We have these things called single wides and double wides. And so, anyway, the product would be sold, and it would actually be a permanent dwelling. It was for affordable housing. It was affordable housing is what it was. Well, unfortunately, in the early 2000, 2000 and 1, 2000 2, the consumer finance for that product went away. The whole industry fell out of favor with Wall Street, and they no longer were gonna provide loans or back loans for that product. Well, I knew, Jane, if I ever got out of mobile homes and manufactured housing, I wanted to become a flipper of single-family houses.
Jay Conner [00:03:44]:
And a flipper of single-family houses, of course, is you buy a house. If it’s distressed, you renovate it. You turn around and you flip it and you sell it. Well, that was back in 2003 before HGTV and all those flipping TV shows even started coming on the air. And so my wife, Carol Joy, and I, she’s from Texas, we started in 2003 without investing in our first single-family house. Now bear in mind, Jane, back in 2003, I’d never heard of private money. I’d never heard of that world. All I knew to do was go to the local bank, get on my hands and knees, put my hands underneath my chin, and say, please fund my deal.
Jay Conner [00:04:29]:
Please give me a loan. That’s all that’s all I need to do. You know, show tax returns, verification of income, and all that kind of stuff. Well, so that’s what I did. In the 1st year, we only did 3 houses. And then here’s where everything changed. Something happened big time in 2, 009. So from 2, 003 to 2, 009, I relied on the local banks.
Jay Conner [00:04:57]:
I had never even heard of hard money lenders. I don’t even know what that was. So in January 2009, Jane, I was sitting right here at my desk, and I know some of your viewers and listeners probably don’t even know what a handset is and a cord, you know, attached to a handset. That’s like a landline telephone. Right? Well, I sat here at my desk, Jane, in January 2009, I had 2 single-family houses under contract to buy. Now, bear in mind, back then I could, you could get an unsecured line of credit, an unsecured line of credit. Anyway, I called up my banker. His name was Steve at the time and Steve and I had been doing business for 6 years.
Jay Conner [00:05:42]:
He was my funding source. He was my only funding source. And, Jane, I told him about these 2 single-family houses I had under contract to buy, and I learned very quickly, Jane, that my line of credit had been shut down and closed with no notice whatsoever. And I said to Steve, I said, Steve, what do you mean you’ve shut down my line of credit? I’ve got great credit. I’ve always made payments on time. Why are you shutting me down? He says, Jay, don’t you know there’s a global financial crisis going on right now? I said, no, but now you’ve just given me a financial crisis because I don’t have a way to fund these 2 deals. So I hung up the phone, Jane, and I sat here for a moment, and here’s a rider downer. I asked myself a very important question, and that was, who can help me with my problem? Because I had a problem.
Jay Conner [00:06:36]:
And by the way, these people going around saying, oh, every problem’s an opportunity. I want to throw up. I didn’t have an opportunity. I had a problem. And so I immediately thought of a friend who was investing in Greensboro, North Carolina, and I called him up and told him what happened. He said, Jay, welcome to the club. I said, what club? He said, the club of losing your line of credit at the bank. They shut me down last week.
Jay Conner [00:06:59]:
I said, how are you gonna fund your deals, Jeff? He says, have you heard of private money? I said, no. He says, have you heard of self-directed IRAs? Of course, in the UK, you call those something different. I said, no. And so I hung up the phone and I studied what private money, you all call it private finance, I studied what private money is. And you know what, Jane? That was the biggest blessing in disguise of my banker shutting me down because in less than 90 days, I raised $2, 150, 000. I don’t know what that is in pounds. Woah. But anyway, I raised $2, 150, 000 in less than 90 days, and I only had a $1, 000, 000 line of credit with the bank.
Jay Conner [00:07:44]:
And so my banker did me a favor by shutting me down. And so how did I do that? And essentially we’ll talk in detail about it if you want to. But essentially, what I did is I put together, what I call my private lending program, that I was going to start teaching people in my network what I knew. So what did I do? I put on my private money teacher hat, my private money teacher hat, And I just started teaching people that I have an association with how they could earn high rates of return safely and securely. Today, we’ve got 47 individuals, and that’s what a private lender is, an individual who’s loaning us money on our real estate deals. And you know what, Jane? Not 1 of them had ever heard of private money. None of them had heard of what we call self-directed IRA accounts where they can use retirement funds, etcetera. And so the way I raised the money without asking for it is I didn’t ask anybody for anything.
Jay Conner [00:08:46]:
I taught them my program. And then if they loved it, when I had a deal to fund, I would just call them up with the good news phone call and say, look. I got great news. I can now put your money to work on a deal. I’ve never pitched a deal. I don’t ask them if they wanna fund the deal. Of course, they want to fund the deal because they’ve been waiting for me to put their money to work. So, anyway, that’s sort of a 30, 000-foot view as to how we did it and how we do it.
Jane Bayler [00:09:11]:
Right. And I think the interesting thing about that is when people are investing their money, obviously, nobody wants to lose their capital, do they? And so they want to feel safe and secure. And I think the fact that you started teaching this stuff probably made them feel as though, okay, now I understand his process. He knows what he’s talking about. He understands this topic in-depth. He’s not just a fly-by-night who is asking for our money, and that gave them confidence, I suspect. Am I right?
Jay Conner [00:09:48]:
Absolutely. Absolutely. So, you know, how do we look after our private lenders? Well, number 1, we don’t borrow unsecured funds. We back all the promissory notes. How do you say promissory note in the UK?
Jane Bayler [00:10:03]:
Well, yeah, a promissory note is just it’s a loan, isn’t it? It’s,
Jay Conner [00:10:07]:
Same thing. So it’s you you you pronounce it the same. So that promissory note is backed Here in North Carolina, it’s called a deed of trust. In most states in the United States, it’s called a mortgage. So it’s the document, it’s the legal instrument that secures that promissory note. So they’re just not loaning money out on me signing a piece of paper. All those notes are backed by the mortgage or the deed of trust. So what does that mean? That means if I don’t pay them, the property does.
Jay Conner [00:10:41]:
And how could the property pay them? We have a very conservative loan to value to where we don’t borrow more than 75% of the after-repaired value of the property. So that really keeps it safe for the private lender.
Jane Bayler [00:10:57]:
Okay. So I get that. So 75 you don’t borrow more than 75% of the finished,
Jane Bayler [00:11:06]:
Yep. Okay. Right. I get that. So, therefore, they know that there is even if things went horribly wrong, the property would be sold. And over here, we would say a second charge. I don’t know whether you have that kind of thing, but so it would be secured against that property.
Jay Conner [00:11:26]:
Yes. Exactly. It works the same way. Exactly.
Jane Bayler [00:11:30]:
Yeah. Yeah. Okay. Well, that sounds really fascinating because as I said, in my network, particularly here in the UK, we have a lot of real estate investors who are still relatively early stage. They’re building their portfolios, or maybe they’re looking for finance for maybe a small real estate development project. And so they would be very interested in this. I think the challenge that a lot of them find is actually, getting those deals that stack up in terms of the numbers that you’re talking about. That is quite challenging because, yeah, you know, somehow you have to get a very good deal in the first place, don’t you?
Jay Conner [00:12:14]:
Oh, absolutely. Well, you know, the 2 most popular questions I get from new real estate investors are, how do I find the deals how do I fund and how do I fund the deals? Right? And that’s the same here. I mean, in the United States right now, there’s nothing in the multiple listing service. There’s no inventory. And that goes for finding something to rent or finding something to buy. So all the marketing that we do here in our local area and also in the mastermind group that I share with my members, everything we do is targeted towards owners of properties. So doing business directly with the owners instead of trying to rely on the multiple listing service, I don’t know what you call it in the UK, but that’s where realtors list their properties. Right?
Jane Bayler [00:13:02]:
Yes.
Jay Conner [00:13:03]:
For everybody to see them. And since there’s nothing in there, then I mean, I do Google Google Ads. I do Facebook paid ads. Mhmm. I do direct mail campaigns to everyone facing foreclosure. I do SEO, and search engine optimization, on my websites. So in today’s market, you can’t be relying just on 1 or 2 funnels to have your deal flow coming in.
Jane Bayler [00:13:28]:
Yep. Okay. Right. So that’s very, interesting because essentially, you are using, lots of marketing channels. You’re not just going, over here, people would go on this on this search engine called Rightmove. What you’re saying is that’s where obviously all the listings are, that you invest in marketing through channels that anybody, any business would invest in marketing in order to get that direct response from the people who have the deals. In other words, the owners of the
Jay Conner [00:13:59]:
Yes.
Jane Bayler [00:13:59]:
Of the properties that need to have they need to move fast, or they need they need something to happen much faster than they would if they put it on the real market.
Jay Conner [00:14:10]:
Exactly. Jane, let me share this while I’m thinking about it, and that is 1 of the big secrets. I mean, this is like a foundational very foundational part of being successful in attracting private money.
Jay Conner [00:14:26]:
And that is the mindset of the real estate investor who’s looking to raise the capital. K. You see, I hear all the time, particularly from newer investors, that they fear rejection. They fear they’re not going to be able to, you know, talk anybody into doing this and all that. And we have to eradicate that. First of all, here’s my question. How can you be rejected if you’re not asking anybody for anything? You’re not asking them for money. You’re you have to have the mindset of leading with a servant’s heart.
Jay Conner [00:15:03]:
Yeah. Okay? Leading with a servant’s heart. And that’s in everything we do. That’s in talking with our sellers of properties. That’s in talking with new potential private lenders. Lead with a servant’s heart. And what I discovered when I started, I mean, I started raising it in January 2009. What I discovered was I am going to be making a huge impact in these individuals’ lives who are loaning their money out on our deals.
Jay Conner [00:15:32]:
Well, I mean, we had a number of elderly and retired people that came on as private lenders. My wife, Carol Joy, and I have gotten so many thank you notes and in-person thank yous. Thank you for changing our retirement years. We’ve been able to do things that we would not ordinarily have been able to do. So our private lenders are not, I don’t think any of them, maybe 1 of them, 1 out of 47 is an accredited investor. All of them are just ordinary people who have retirement funds. I mean, we’ve even had children under 18 years old who received an inheritance from grandparents who came on as private lenders. So if I’m, if I and how do I live with a servant’s heart? Again, I’m back to my teacher hat.
Jay Conner [00:16:19]:
If I’m just sharing with people how they can earn high rates of returns safely and securely, and I tell you over here, I mean, the stock market is so volatile. I mean, they’re sick and tired of the stock market. And so they don’t have to worry about their investment amount, like losing value. And so, again, the mindset, you’re serving, you’re leading with a servant’s heart. And by the way, here’s another rider downer, Desperation has got a smell to it. And what do I mean by that? What I mean by desperation has a smell to it, the worst time to be looking to raise capital and raise finance is when you’ve got a deal and you need money for that deal. That’s why I preach and practice still to this day, focus on getting the money lined up first. There’s always gonna be deals.
Jay Conner [00:17:10]:
There’s always gonna be deals. And think about how more how much more confident, how many more offers you’re gonna make on properties when you’ve got the money already waiting to be used?
Jane Bayler [00:17:22]:
Yes. That’s a very important point. And I’ve had clients actually in my program. Some of my clients are real estate investors, and I’ve had some in my program that have been in a situation where they’ve had a really good deal, and they’ve had to find, private money very fast, and it’s not a situation that I would I would wanna be in myself because that is it’s very difficult, really, if they put their yeah. And a lot of the time, they will have put some of their own money in to secure this deal as well. And, yeah, it’s difficult, isn’t it?
Jay Conner [00:17:56]:
Yes. Well, over here in the US, a popular thing, and I’ll call them gurus, real estate investing gurus. Right? And so I’ve heard it so many times, and I tell you, Jane, it just makes me want to throw up every time I hear somebody give this advice. And what they’ll say is they’ll say, oh, just get the deal under I bet you’ve heard this. They’ll say, just get the deal under contract. The money will show up.
Jay Conner [00:18:25]:
And I wanna say, where is the money gonna show up? Is it just gonna, like, rain out of the cloud or something? You know? It makes absolutely no sense to me. I was a guest on a podcast not too long ago, Jane, the host and I were having this conversation about why in the world would somebody give that advice. And the host told me they said, Jay, I know why they give that advice. I said, please tell me. He said because they’re selling a program or a course on how to find deals, and they’re not teaching anything about raising money.
Jane Bayler [00:19:01]:
Yeah. Yeah. And I think the other thing that I think tricks people a little bit is people get very excited about the idea of finding deals. It captures their imagination because they think, oh, I’m gonna make this house really beautiful. I’m gonna make loads of money. I’m gonna sell it, and I’m gonna get rich, and all of those kind of things. So they’re all excited because, essentially, they’re the buyers. They’re in buying mode when they’re in that situation.
Jane Bayler [00:19:29]:
They’re buying their house, they’re gonna be buying all the refurbishment, they’ll be hiring all the people, and so it’s always much more fun to be a buyer than a seller. Whereas, when you are raising finance, however, you do it, you don’t have that same feeling of being the buyer. And so people don’t really think that through, and they just think, well, I want to be the person that finds the deals. And so they go into these courses and then they learn how to find a deal, but you’re quite right. And everything you say resonates. You’ve got to learn how to raise the finances. You’ve got to, otherwise, you know, there’s no point.
Jay Conner [00:20:09]:
And, Jane, I would suppose over there in the UK here in the United States, we talk about 1 way you can fund real estate is by using creative methods, such as subject to the existing note, a seller financing. I suppose you have those types of strategies as well, in the UK. But, and I do, I mean, I’ve bought a lot of houses. We call it buying on terms. Is that what we say in the US? Buying on terms. And sometimes I’ll hear new real estate investors say to me, they’ll say, Jay, I don’t need any private money because I just want to buy properties on terms with the seller taking a note back and selling to me, you know, with seller financing. Or they’ll transfer the deed to me in the title, subject to the existing note, and I’ll make their payments for them. And I’ve done a lot of that.
Jay Conner [00:20:59]:
But you know what? After all these years, of course, I’ve reviewed thousands of property lead sheets from potential sellers. And here’s my statistics. And I’m a pretty good negotiator. My statistics show that only 13%, 13% of those property owners will actually sell to me creatively or on terms. Well, of course, what do the other 87% of those sellers require? Yes. All the money. So of course that’s where the private finance or the private money comes into play.
Jane Bayler [00:21:36]:
Yeah. That’s a very powerful statistic. Okay. Well, that sounds great. So we’ve got a question here which says, it’s really interesting with private equity investing being an asset. The most difficult is to make connections necessarily, associate with, maybe the people that have the money, associate with, maybe the people that have the money.
Jane Bayler [00:21:50]:
Let’s say you you just started out in your journey, and most of your friends and the people you associate with are just regular working people. What would you say is the best way to actually start making, connections with those people that do have the money?
Jay Conner [00:22:18]:
That’s an excellent question. And I get that question all the time too. Sometimes my members will say to me they say, Jay, all my people and my connections are broken. They ain’t got they ain’t got any money.
Jay Conner [00:22:30]:
Of course of course, to begin with, I don’t believe them. I think that they’re dealing with a fear thing. But let’s say that’s true. Well, let me answer the question this way. 3 primary categories of people can be or are private lenders, individuals. So the first category is people that you already know and you have a connection with. The second category of potential private lenders is what I call your expanded market or your expanded network. I’ll come back to that in just a second.
Jay Conner [00:23:05]:
And the 3rd category of individuals, private lenders, are what we call existing private lenders. They are already a lender. They’re already loaning money out. How do you find those people? So, let’s come back to the expanded market. And I teach this all the time. And, Jane, I know you’ve heard this and said it plenty of times yourself, but there’s a direct correlation. We know this. There’s a direct correlation between how strong and powerful your network connections are and your net worth, of course.
Jay Conner [00:23:38]:
So I spend a lot of time teaching my members how to expand their network of people and connections very quickly.
Jane Bayler [00:23:48]:
Yes.
Jay Conner [00:23:48]:
So 1 of my top 1 parts of this is getting involved in the community. Here we are back to serving again
Jay Conner [00:23:57]:
We’re back to serving. Right? Leading first. And so we have an organization here in the United States, and I’m guessing it’s also in the UK, and it’s very powerful. Do you have in the UK, Jane, an organization called Business Networking International?
Jane Bayler [00:24:16]:
BNI. Yes.
Jay Conner [00:24:17]:
Yeah. Ivan Meisner, you know, started BNI. I’ve been very involved in even our local BNI here. Well, I recommend to my members, that if you want to grow your network, join BNI. I have raised 1, 000, 000 dollars by just being involved in the local BNI network. Now our our local BNI is small. Of course, in a city, you can have a lot of different BNI, you know, groups. Mhmm.
Jay Conner [00:24:47]:
But the way BNI works is you, you join the local group, of course, you have to apply, you have to be approved. And odds are, you’re gonna be the only real estate investor in that group. Now there’ll be realtors or a realtor. But the neat thing about BNI is there’s only 1 seat per category of person. And so BNI, I mean, you will grow your connections so quickly because the purpose of BNI and being a member of BNI is to share leads and pass leads to each other, right, as far as what you’re looking for? 1 powerful thing about BNI is you have the weekly meeting, but then you, but then you’re encouraged and even required to have what’s called 1 on ones. And a 1 on 1 is you meet 1 of your other fellow BNI members for lunch or for coffee or for breakfast or whatever, and you learn from your fellow BNI members what it is they do, what’s their ideal client, who are they looking to get in front of, and vice versa. You share who you’re looking to get in front of.
Jay Conner [00:25:54]:
So I used BNI, not only to network for real estate deals and properties, but I used it primarily to offer my private lending program. And when I say private lending program, I’m not talking about a course. I’m talking about what is the private lending program that we’re teaching and offering to potential private lenders. So, I would just simply say to my BNI member, when you hear so there’s a magic phrase here, a magic phrase that we use for not asking. It’s called, I need your help. I need your help. And so what I just say to people is, I would say, when you run across someone that is complaining about their investments, complaining about getting no money on a certificate of deposit at the local bank, or the volatility of the stock market, would you refer them to me and I’ll show them how they can get high rates of return safely and securely? So get involved if it’s not BNI, you know, the Rotary Club. You got Rotary Club International.
Jay Conner [00:26:57]:
Right? That’s more of a longer-term play. That’s more of a longer-term play because that’s a civic group. But that’s a long answer to this short answer. Join networking groups.
Jane Bayler [00:27:11]:
Yeah. Yeah. So I think the interesting thing about that, and I can only really talk from my own experience here in the UK, is that a lot of investors will go to property networking groups, or real estate networking groups, as you would say, and the issue with that is that they go along because there’s usually, it’s an educational thing as well. So there will be people talking about how to find deals or how to get a really good deal or how to work with, get, you know, a great broker or something like that is obviously of interest to them, how to turn a house into an Airbnb, or something like that. But the problem that they have is that everybody who is there is that they’re a real estate investor, or they’re all looking to be real estate investors. And I’ve often I’ve sometimes said this to my clients as well, is that I mean, because I’ve done a little bit of this as well. And, you know, my investors were people that I met, you know, I met everyday life. So met at the school gates, and met out dog walking.
Jane Bayler [00:28:20]:
They’re just regular people. And the people that you get at the real estate meetings, they will be people that there are, you know, very experienced people there, but they will be looking for much higher returns because that’s why they’re there. Whereas it’s the regular people, isn’t it, who they they’re not yeah.
Jay Conner [00:28:40]:
That’s the key, Jane. I mean oh, and I didn’t get to the 3rd category. So the the 3rd category of private lenders is what you just said. They are existing private lenders. They’re already loaning money out. Well, that’s a whole different game. That’s a whole different conversation because you see, when you’re talking to an existing private lender, you’re not putting on your teacher hat. They already know what private money is.
Jay Conner [00:29:07]:
They already know what, and they already know the kind of returns that they’re looking to get. So guess what? I don’t do business with private lenders that have already been doing private lending. I mean, all of my private lenders, all 47 of them for personally myself, not 1 of them had ever heard of what private money was. They didn’t know what private lending was. So guess what? Therefore, I get to make the rules. You know, when you borrow money from the bank, they make the rules. They set the interest rate. They set the term.
Jay Conner [00:29:43]:
But in when you got your teacher hat on, I’m teaching, well, in this program, for example, I pay 8%. Well, an existing private lender would laugh at 8%.
Jane Bayler [00:29:56]:
Yeah. They’d be more like 12%, 15%.
Jay Conner [00:30:01]:
At least 12%. And the existing private lender’s gonna charge points or origination fees. Well, you see, I’ve never paid a point. I’ve never paid origination fees. I’ve paid a straight 8% ever since 2009. And I set the term, the frequency of payments, all that. And so it’s like they’re learning about well, you know, like when I started in 2009, a 12 month certificate of deposit in the local bank got all the way down to a return of only a quarter of a percent.
Jay Conner [00:30:36]:
Well, 8% was that was fantastic over putting your money in the bank. Well, I still pay 8% today. Well, guess what? Today, you can get 5% at the local bank. Right? But guess what? 8% is still a whole lot better than 5%.
Jane Bayler [00:30:52]:
It absolutely is. Well, totally.
Jay Conner [00:30:56]:
When you’re doing business with people who have never heard of it, you are like their savior. They go like, wow. I didn’t know I could get that kind of rate of return. So if you’re talking to an existing private lender, now it’s a negotiation. Now it’s a negotiation. But when you put on your teacher hat and you’re showing people that have never been in this world before, there’s no negotiation. You’re just simply educating them on what they can do.
Jane Bayler [00:31:24]:
Yeah. And, I love that because what a great idea that you can essentially, you’ve got a program or call it a pro I know you don’t call it a program, but you are teaching them what private investment into real estate actually is, what it looks like, and so they can consider it, as opposed to you turning up with your hand out and saying, hey, I’ve got a great deal. Would you like to lend me money?
Jay Conner [00:31:52]:
Exactly. It’s a whole different conversation. And, again, lead with the servant’s heart. Lead with the servant’s heart.
Jane Bayler [00:32:00]:
Yep. Yep. And, I’ve got a question another question here. So, actually, somebody’s asking me which networking groups in London or the UK are useful. And there in that respect, I would say, please, send me a direct message, and I will come back to you because, you know, there’s a lot over here, as you can imagine, but it is important to choose a business-specific networking group because otherwise you will be with these professional investors who, you know, they’re looking to take half the profit or they are looking to charge very high interest rates. And you’ve got to be very careful because if somebody wants to charge 15%, a top-up on the bank rates, then that is gonna eat into your profit, and you could very quickly, with a, you know, without too much trouble, end up with nothing. Right?
Jay Conner [00:32:53]:
Or in the red, as we say.
Jane Bayler [00:32:56]:
Yes. Exactly. And nobody wants that, do they?
Jay Conner [00:32:59]:
No. Nobody likes a bloody deal.
Jane Bayler [00:33:02]:
Yes. Yes. Exactly. Exactly. Yeah. So it’s funny really because, you know, exactly the same principles apply really over here in the UK even though the market is very different. We live on an island. It’s very crowded.
Jane Bayler [00:33:16]:
It’s very real estate is very expensive compared to some parts, of the US because there’s obviously a lot more land in the US. You know, we have a problem with overpopulation. There’s a lot of people. There’s a lot of immigration. There’s, there’s not enough housing stock in this country, so it’s very difficult to get deals. And I think for that reason, it’s not just, obviously, finding the right investors, but it’s also actually finding the right deals. But then, how many people are doing what you do and actually approaching it with professional marketing and all of those things that you mentioned? So that is obviously very important, isn’t it, Jay?
Jay Conner [00:34:05]:
Absolutely. Absolutely. Here’s the thing. My advice is if you’re interested in getting into real estate and you haven’t done your first deal yet.
Jay Conner [00:34:17]:
Then don’t approach this as a hobby. Do not approach this as a hobby. Approach this as a serious business. And, by the way, if you are brand new I mean, 1 question I get all the time, Jane, is if I could do it all over again, what would I do differently? There’s 1 big thing I would do differently. Starting out in real estate, my first I was in real I was in investing in real estate and properties for 6 years before I sought a coach to work with. And if I had it all over to do, I would have started out with a coach, such as the brilliant Jane Baylor, start out with a coach that could hold me by the hand instead of me trying to figure all this stuff out by myself. And I’ll tell you another big key to, the success that I’ve experienced is to be very careful about who you are hanging around. My wife, Carol Joy, and I are in 3 different mastermind groups.
Jay Conner [00:35:20]:
3 different mastermind groups. And, you know, Jim Rohn, and they’re all real estate investing. Jim Rohn, the late, great Jim Rohn, was attributed with the quote you are the average of the 5 people that you spend the most time with. So you’ll be very intentional. You wanna hang around people who are like-minded. And if you need some suggestions on what groups to get involved with and be like-minded, Jane Baylor can tell you, particularly in the UK.
Jane Bayler [00:35:50]:
Yeah. Definitely. And I think that’s very interesting because I love that quote. And in fact, I’m a big fan of Jim Rohn in so for so many different reasons. So a very important quote, but I think it often gets misinterpreted. And I’ve heard people say you’re the average of the 5 people you spend the most time with, and what they’re really talking about is your net worth. So if you hang around with, 5 very wealthy people, you will become wealthy. And I always, qualify that by saying it’s not about how much money people have got, it’s about their values.
Jane Bayler [00:36:25]:
Because if you hang around with rich people who they’re really only interested in enriching themselves and their family and they see you as, okay, somebody, who’s just, there to make them feel better about themselves, then they’re not gonna be bringing any value to you. So it has to be a reciprocal thing.
Jane Bayler [00:36:42]:
You have to show up with value. They have to have value, I don’t know if you’d agree with that, Jay. Oh, I agree with it 100%, and I’m I I don’t know if you’d agree with that, Jay.
Jay Conner [00:36:56]:
Oh, I agree with it 100%, and I’m so glad you in fact, when you said it, I just got a chill down my back because it was so meaningful. And, I’m glad you really explained that because that’s so true. That is so true. You know, for you to have a meaningful relationship with someone else, it’s a 2-way street. It’s a 2-way street. You know? And as you just pointed out, Jane, the foundational values. I mean, what’s really important to you? They have to sync up or it’s not gonna be happening.
Jane Bayler [00:37:31]:
Definitely. Definitely. Yeah. So, Jay, you’ve got you’ve got a couple of giveaways, haven’t you? Would you would you like to talk about those, which is amazing, talking about values?
Jay Conner [00:37:42]:
Absolutely. And so I’m all about giving back. So I’ve got 2 gifts
Jay Conner [00:37:48]:
And the gift is going to be and this is all about raising private money, you know, in capital, private finance for your properties. And by the way, even though most of what I’ve done is I’ve done is single-family houses, I’ve done shopping centers as well. I’ve done condominiums and townhouses. So here’s the deal. Whether you’re interested in single-family properties multifamily properties apartments, complexes, etcetera, the principles are the same. The principles are the same. So now, 2 different gifts. If you are in the UK, if you’re in the UK, I’ve got a downloadable free ebook and the name of the ebook is 7 Reasons Why Private Money Will Skyrocket Your Real Estate Business and Help You Build Incredible Wealth.
Jay Conner [00:38:39]:
You can download this free private money guide at www.jayconner. By the way, I’m an ER, not a OR. So www.JayConner.com/MoneyGuide. So that’s www.JayConner.com/MoneyGuide. Now if you are here in the United States, I have a book that you cannot get an ebook form. We actually, 3-day priority, mail it to you. The name of this book is Where to Get the Money Now, and the subtitle is How and Where to Get Money for Your Real Estate Deals Without Relying on Traditional or Hard Money Lenders. So I’ll autograph this book for you.
Jay Conner [00:39:26]:
You can get it on Amazon for $20, but you might as well get it for free. Just cover shipping. And you can get the book. I’ll rush it out to you at www.JayConner.com/Book. So www.JayConner.com/Book. We’ll 3-day priority mail it to you.
Jane Bayler [00:39:48]:
Well, that’s fantastic, Jay. And what we’re gonna do is we’ll put that in the social media post. So that’s this is obviously going out as a live stream, so we’ll make sure that those links are either in the comments or in the post themselves. And if you’re listening to the podcast, we will also make sure they’re in the show notes. So make sure you grab yourself a coffee, and copy, whether you’re in the US or elsewhere in the world. Ebook if you’re elsewhere in the world, and a physical copy, which is amazing, because it’s always lovely to have something you can hold in your hand, right, if you’re in the US.
Jay Conner [00:40:23]:
Absolutely. Jane, thank you so much for having me on. What a lovely conversation with you.
Jane Bayler [00:40:29]:
Oh, yeah. It’s been so great. In the beginning, you weren’t really sure whether what you had to say would be right for my audience, but I can tell just from the comments in the live stream that it’s really hit home, thank you so much, Jay, for creating so much value today. It’s been amazing. Thank you.
Jay Conner [00:40:49]:
You’re certainly welcome, Jane. Thank you for having me.
Jane Bayler [00:40:52]:
Bye-bye for now.
Narrator [00:40:55]:
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 7 reasons why private money will skyrocket your real estate investing business right now. Again, that’s jconnor.com/moneyguide to get your free guide. We’ll see you next time on raising private money with Jay Conner.
