One of the questions that always come up in the topic of raising private money is, “How do you even find Private Money lenders?”
To tackle the age-old question and more from Private Money Academy members, we’re bringing on four guests to the show to discuss their personal methods, techniques, and advice for people who want to start growing their investing business with Private Money.
Catch the full discussion!
Key Takeaways:
- How do you find Private Money lenders?
- Why connections are important.
- Take matters into your own hands—build your network and start new warm markets.
- Learn to believe in the program/product.
- How to identify the top people in your warm market.
- How to present the private money lending program.
- Why private lenders shouldn’t be a part of property negotiations.
Check out my book: 7 Reasons Why Private Money Will Skyrocket Your Real Estate Business and Help You Build Incredible Wealth!
Get it here for FREE: www.jayconner.com/moneyguide
Timestamps:
0:01 – Raising Private Money with Jay Conner
4:42 – Real Estate Success Story Of Eric & Erica Camardelle
5:53 – I Am A Loner And I Don’t Know How To Find Private Money
9:49 – What Is Warm Market?
12:32 – How Can You Expand Your Warm Market? Start A Conversation.
17:31 – How Can You Identify The Top Tier People In Your Warm Market? You Don’t!
24:03 – Should Your Private Lenders Be Involved When Buying/Selling A Property?
27:00 – “Do Not Miss This!” – Jay Conner
How Do You Find Private Money Lenders?
Jay Conner (00:00):
I’ve never asked anybody for money for a deal. I’ve never asked anybody for money. People say, well, Jay, how do you have eight and a half million dollars in private money that you move from project to project? And here’s the way it works.
Narrator (00:17):
If you are a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal then you are in the right place on raising private money, we’ll speak with new end 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 Connor.
Jay Conner (00:44):
We have a fella whose name on his zoom box is Banjo. His real name is Eric Camardelle, Banjo. Are you able to unmute and say hello while you’re driving that vehicle?
Eric Camardelle (00:56):
Yeah. Jay, what’s up?
Jay Conner (00:58):
Hey, man. it’s not often I get to look at you through the backside of your steering wheels <laugh>. So it’s, it’s nice to see you. so y’all banjo and his wife Erica we started working together I guess it was two years ago, October 2020, I believe it was. And banjo, you were full-time working for the railroad. How long was your commute each way?
Eric Camardelle (01:27):
An hour and 36 minutes.
Jay Conner (01:29):
So you commuted in the morning, an hour and 36 minutes to go to work for the railroad, then you’d come home in the evening, an hour and 36 minutes. And so when we started working together, you were full-time railroad. How many hours a week were you working, not including the commute? Was it a 40-hour deal?
Eric Camardelle (01:46):
Yep, it was about a 40-hour deal. So I’d wake up at three 30 in the morning and I’d end up getting home around four 30 most of the
Jay Conner (01:55):
Time. Yeah. So, you know, we started working together. actually, you were working with me and crystal and Chaffey and you and your wife Erica immediately became platinum and Mastermind members. But the point of what I’m wanting to ask you, first of all, within that first year, I know you all raised a crazy amount of private money. You did, a lot of, you know, deals. how much private money have y’all raised so far to date?
Eric Camardelle (02:29):
Erica might have the number on that one. I believe it’s 1.2 or 1.3 million.
Jay Conner (02:33):
Okay, so over a million dollars. You’ve done a ton of deals, you got a lot of equity. So that’s your background. Let’s come back to Marvin’s challenge. How in the world did you drive? An hour over an hour and a half? Spent over three hours a day, on the highway working full-time at the railroad by the wave. Everybody since that time, banjos already retired from the railroad. Quit the day job full-time, real estate investing all the way. Oh, there’s Erica. Hey Erica, I’m sorry. I didn’t know you were with us. You’re just about, so unmute Erica. say hello to everybody.
Erica Camardelle (03:10):
Hey, y’all.
Jay Conner (03:11):
How much private money have you raised, and how much equity and profits have y’all got since we started working together?
Erica Camardelle (03:17):
I think it’s 1.2 million for private lending. I’m not sure about profit and enough equity. It’s, it’s up there,
Jay Conner (03:24):
It’s high enough that you lost count. So I’m glad you’re here. Erica, thank you for being here. So banjo, how did you and Erica find the time to do this thing, work in the full-time job at the railroad?
Eric Camardelle (03:40):
So, Chaffey hit the nail on the head. It’s all about priorities. And what really helped me was I worked a desk job and anytime I was able to do what I’m doing now, kind of multitasking, I’m driving and I’m listening to the PMA, right? So I’d be at work, I’d be on accountability calls, I would be on the platinum calls. I’d have one earpiece in and I’d be doing my desk work. otherwise, if, if I might miss one, which I didn’t do often, but I got an hour and a half drive, I could just listen to the recording on an hour and a half drive. Constantly making private money are priority. I remember I heard a guy once say, what you think about when you wake up and before you brush your teeth or as you’re brushing your teeth in the morning, is who’s gonna be my next private lender today?
Eric Camardelle (04:34):
And that’s literally, you know, how it was. And I, the main thing that helped me though was that a dedicated, a certain amount of time for a certain amount of days every single week, whether it be on certain days or every day or whatever it was, be very, very specific about it. And, and I, what, for me, it was at least two hours per day on the business in the beginning. So I don’t care what was going on, I was gonna disappear from my life and concentrate 100% and focus 100% of my concentration on the business for at least two hours a day. And that worked really, really well, though.
Jay Conner (05:14):
Well, you said a very powerful word a moment a second ago, and that was the word focus. And you know, you were very intentional as Crystal said, and you made the time for it. Erica, your thoughts on this topic?
Erica Camardelle (05:30):
well, for the question, my, I guess my question is, he is busy doing what <laugh>. Cause if he’s too busy, you can’t be too busy to raise private money because if you’re busy with other people, that’s the perfect time to raise private money.
Jay Conner (05:53):
Banjo, Erica, or whoever wants to jump in on this, let me read it to you. I’ll read it nice and slow so you can digest what Rios is saying. She says, hi, Jay. First of all, I want you to know that you and your wife Carol Joy, are very inspiring. Thank you, Rios, and I promise to get involved as soon as I can. et cetera, et cetera. Here’s my response to your question. I am a loner and I don’t know where to begin to find this private money. A few people I do know are hard-working and are barely making ends meet. I don’t want the sound so gloomy, but that’s pretty much where I’m at. I do know that I need to get outta my own way because I need to start making dollars asap for my own well-being, but I just don’t have any dollars to get started with right now.
Jay Conner (06:47):
What do I do? She first, crystal, second man, Erica third, if any comments on this? So when I unpack what Rios is saying to summarize what she said, she’s saying that she thinks she’s got no warm market. So y’all can define what the warm market is. She, she’s saying she doesn’t have a warm market. and since she doesn’t have a warm market, or at least she thinks, she thinks she does not have a warm market what do you do about someone that thinks they don’t have much of a warm market, and where can she, so what it comes down to is where can she find private lenders, Chad,
Chaffee Thanh-Nguyen (07:34):
About who you know, it’s about who they know. And so you might not know a lot of people that have mo money, and when you approach them as, as, as Jay says in his book, it’s do you or anybody you know have investment funds not doing what they want it to do? And so it’s, it’s a lot of times when you start talking about private money, a lot of the people that you’re talking to might not have anything. You might be correct and you never know who they might know. They might have an aunt, they might have an uncle, they might know somebody else that has money sitting around that they can make that introduction to you. And so that’s important because you gotta understand that when you want something to happen, you have to tell everybody you know about it in order for it to happen.
Chaffee Thanh-Nguyen (08:19):
And the more people you tell, the more likely it’s gonna happen. And so there’s a story about this gentleman that wants to meet Ellen DeGeneres. Ellen DeGeneres was like his idol, his, like, he wanted to meet her and he had no idea how to meet her. And so everywhere he went and he was just like, you know, it’s my dream to meet Ellen. I’m gonna meet Ellen one day, I’m gonna make it happen. I don’t know how. I’m just gonna make it happen. And so he went around and told everybody, I’m gonna meet Ellen DeGeneres. I don’t know how it’s just gonna happen. I’m, I’m gonna figure it out. And six months later, everybody he knew and everybody he didn’t know heard about him wanting to meet Ellen DeGeneres, right? And he attended, he was invited to this dinner party and there were eight people there.
Chaffee Thanh-Nguyen (09:02):
And so he goes on again six months later, just like, it’s my dream. I love Ellen so much, I wanna meet her. Well, it turns out one of those people at that dinner was the producer of Ellen’s show. And you know what he did? Well, he introduced that guy to Ellen DeGeneres as one of her biggest fans. And so that never would’ve happened if he would not have just said, I’m gonna do this. I’m gonna meet her somehow some way and tell everybody in the world about it. And so when it comes to private money, when you’re using Jay’s system and offering help and, and offering people an opportunity to raise more money, the more people you tell, the more chances that it’s gonna happen. That somebody’s gonna wanna give you money to invest with because that’s a benefit to them as well.
Jay Conner (09:49):
Vicky Rios believes she does not have much of a market and does not know what to do.
Crystal Baker (09:56):
Absolutely. So so I always hate going second cuz you know, 50% of your answer at the bare minimum is already gone. But thank you. Anyway, so I’ll add my layer. And that is one, I’m an introvert by nature, so I am not somebody that wants to be out and talking to everybody and that kind of thing. So one of the ways that you teach to raise private money is to create a new warm market, right? And so I was really resistant to that cause I don’t love that idea, but you do, you just, as Chaffee said, you create who you are, you determine who that is based on what you think. So I made up my mind that I was gonna be a great networker and I’m a great networker. That’s what I do. I get out, I network, and I build a whole other market.
Crystal Baker (10:54):
So that works for every aspect of this business. But certainly in the private money world, getting out, communicating, and talking to those people, you now do have an entire warm market right there. And it’s a completely different group of people. And once again, to echo what Chappy said, you, one of the things that we try to teach people our students like day one is not pre-screen people. I don’t care what you think, I don’t care what you think, you know, I don’t care what you do know, there are still pieces that you don’t know. Forget about it. So you don’t pre-screen people. So right off the get-go, tell every single person that you can plant seeds. You just, have to get the word out and then figure out where that’s gonna land. I had people in the beginning that didn’t have any money, but they actually inherited money three years later and came back to me and said, Hey, remember that thing you were talking about?
Crystal Baker (11:48):
Can you help me now? Duh. I mean, if I had, if I had gone to the mindset of like, well, my people don’t have money, those poor people wouldn’t have had that opportunity. And the people that you really are closest to, if you really indeed have a very small warm market, need to know about this. Because when they’re in a position where they could do something, you want to help those people. So tell everyone, talk often, connect and create a different vision of who you are and what it is you do. You’re a private money teacher,
Jay Conner (12:32):
Eric and Erica. something that I want you to share that will actually shed light on not having a warm market to talk to people about private money. So you all have conducted multiple private lender luncheons within the last two years. My, and so like after you’ve had one, two, or three private lender luncheons, it’s like everybody, you know, you’ve invited a private lender luncheons and they’re either coming or they’re not coming by the way, folks at a private lender luncheon, you’re teaching the private lending program, right? We’re gonna go over all that in detail of the live event. So you’re teaching the private lending program at the private lender luncheon. So, but Eric and Erica, you’re still doing private lender luncheons, like whatever, every three months, whatever it is. Yeah, you’ve exhausted your original warm market list. So here’s another way to answer this question. I don’t have a warm market. Well, you all do have a warm market, but you’ve exhausted your warm market. How do you still get people coming to a private lender luncheon after you’ve exhausted your warm market list?
Erica Camardelle (13:44):
Yep. So we have a private lender luncheon Tuesday, and I had to tell Eric to chill out with how many people he is inviting because, he has met so many new people in the past three months, for me. So to kind of backtrack and answer her question a little bit as well I’m an introvert crystal, so it’s hard to go third, okay? So I’m an introvert <laugh> and I had horrible self-confidence when I started this program. And so for me, it was really hard to just speak to people about anything, much less about private lending. So I started off with just talking to friends and family, and then it kind of graduated to people at church, people that I knew a little bit better. And now I’m talking to people who are walking in the grocery store like we’re talking to everyone. Eric is in some rotary clubs and things like that.
Eric Camardelle (14:40):
So I would say to, I mean, I’m not an introvert and I guess Erica kind of leaned on her war market me to be the person that’s gonna go out and talk to people. But I would say, I, I think this would work for an introvert, tap into your servant’s heart, and you, what you have is a product that you have to believe in. So first believe in what we have. Our private lending program is phenomenal, especially right now. I have the, my, my latest private lender is head over heels for this program. She’s telling everybody about it. She can’t believe it. I’ve doubled her interest. She was, she had some money in I don’t even know what it was, but she was making about 4%. Now she’s making 10% and she’s absolutely ecstatic about it. And so as time, it’s, it’s hard.
Eric Camardelle (15:30):
In the beginning, I remember it hard, it was hard to understand how beneficial it was for everybody else because it’s so beneficial for the real estate investor as well. But I promise you, if you believe in your program, then you can lead with a servant’s heart and it’s kind of like your moral obligation to help these people out. And so that would help you overcome, your, your timidness and stuff like that. And then I’ll, and I’ll, and I’ll end with a story. So I was, we, we do martial arts and I was behind the alley in the back door and we were just hanging out with the kids and I heard somebody dump trash in the trash can on the other side of the fence. It was a big dumpster. And I heard a big crash. And I went, Hey. And they hit yelled back and they put peak peeked their head around the fence and they, they, what’s going on?
Eric Camardelle (16:19):
I said, nothing much, man. So my thinking was, somebody’s throwing trash in the dumpster, they must own one of these companies around here. So I’m gonna go get chatted up with them. Sure enough, he and his wife own the company across the street. Guess what? He and his wife, I called him, and I invited him to the private lender luncheon at that point. But he, they’re coming October 4th, they’re gonna be in Poplarville at my private lender luncheon and he’s super excited when I got on my phone. So talk to anybody and everybody at every chance you get.
Jay Conner (16:46):
So the Merle that story folks are if you ain’t got no warm market, go to the trash dumpster behind your office, wait for people to dump the trash, start a conversation, invite ’em to your private lender luncheon, and they’ll be your next $500,000 private lender. Eric and Erica, you get the PMA golf clap for that story right there. Thank you for sharing. I tell you what folks, here are some amazing nuggets in these stories, amazing nuggets
Jay Conner (17:30):
All. Let’s move on to the next one. Michael Canus, I apologize if I’m pronouncing the last name right. Michael sent in and he says, the most confusing thing to me about private money and what’s holding me back is how to find the perspective lenders in your sphere of influence. So how to identify? So here’s the question. How do I identify the top people in my warm market, my sphere of influence that I want to talk to? And how do I present the private lending program to them? How do I teach them about the private lending program? so we’ll reverse the order. Eric and Erica, you get to go first then Crystal, then Chaffee again. How do you identify the people in your warm market that you want to talk to first? And how do you present the private lending program, Eric and Eric?
Eric Camardelle (18:31):
So I wouldn’t I really couldn’t decide on quote-unquote who to talk to first, honestly, because that kind of does what Crystal said not to do, which is screen the people that you wanna talk to. Like, ah, they probably don’t have money. Ah, they’re not gonna be open to this stuff. It doesn’t matter. Write down a list of anybody and everybody, you know, Erica has another, another thing she did too that worked really well. But for me it was like, I mean, of course, the program helped to the particular list to help you just think about all these people, you know, your doctors, your car salesman, your real estate agent that helped you buy your house. I mean, just anybody, everybody that you have. And then you get out there and you ask them basically if they have any investment capital or retirement funds that are not making ’em a high rate of return. And if, if so, then they might wanna listen to what you have to say. Cuz you got some, some awesome, you know, awesome thing for ’em to, to take advantage of. And so Erica and I did that in the beginning and we just called, I, I called and called and called, and then I’ll let you tell ’em what you did.
Erica Camardelle (19:36):
Yeah. so for me, I chose to do the indirect method. Jay gives us a script, to use. And so what I did is I just contacted people on Facebook and we literally went alphabetical order. So we didn’t screen anybody out. And chances are you’re gonna like see people on that list. Oh yeah, I could talk to them. Oh yeah, I could talk to them. So you might as well not waste your time trying to screen anybody and just talk to
Eric Camardelle (20:02):
Everyone. And so as far as presenting the private lender program, you’re not doing that unless they ask. So I have one time outta all of my private lenders and all of my potential private lenders one time said all my program. And it’s just simply because they asked how about turning off his light when we were when I sat down with him too when I sat down with him to initially just kind of present the idea. it kind of went like this, Hey, it was a guy in the gym that I go to and I saw him sitting there. He brings his daughter all the time. I sat next to him and say, Hey man, I really admire your dedication and your discipline to be able to bring your daughter here week after week, day after day. I’ve seen you here every day.
Eric Camardelle (20:45):
And that’s the kind of person that I would like, you know, wouldn’t mind having in my business. I don’t know if you know or not, but I and Erica do real estate and we have you know, I told him the whole thing about the high rates of return and all that good stuff. And he was interested, well, right off the bat he goes, oh, well what kind of rates are you giving? Well, I’m not gonna like tap the breaks and be, well, you gotta find out at the private lender luncheon. So we sat there for about 30 minutes and I just told him the whole program, but he was the only one it ever happened with everybody else. They’re, they’re interested in it. And then they wanna either listen to the, you know, you use the tools, the 16-minute cd or the webinar or get invited to the private lender luncheon at that point. And that’s when you present the, or sometimes they’ll one on one-on-one. They won’t have time at that point in time when, when we’re on the phone and we’ll set up a one-on-one go meet at a coffee shop or something, go through the whole thing.
Jay Conner (21:34):
Crystal, how do you identify who to talk to and how do you present the program? And Chaffee I will be giving you another question from another PMA member. So Crystal will wrap us up on this question.
Crystal Baker (21:47):
Yep. so, you know, obviously I’m gonna be the person that’s gonna say, don’t free screen, cuz that’s what I teach, teach every one of our students all the time. so, but I would, I would caveat that by saying think of every single person that you know, no matter what, put ’em down. You then have the opportunity, you can screen through it and organize them based on how you want to use the tools to share with them. So leverage the tools. Jake gives you all the tools pardon me. So starting off with a CD or an mp3. So I used to send out five every day leveraging time, right? So I had zippo time, but boy, I could send out five quick emails every day before I left that house. and so I did, I would send out the MP3 version of the CD recording that Jay creates for all of his students.
Crystal Baker (22:37):
And then, just do, a quick, you know, touch with people. And of course, we have tons of other avenues to do that. Now that’s, you know, it’s been years, but, you know, so we can do that on Facebook. We can reach out and make connections that way through Messenger, et cetera. So, you know, leverage your time and leverage your opportunities and connect with people where, you know, meet people where they wanna be met. so you know, you’re gonna have people that are gonna be in your phone that you just don’t talk to, but maybe you text them or maybe you people that you work with that you don’t go meet up with them and have coffee regularly, but you certainly email ’em enough times every day. So meet people where they want to be met. leverage your opportunity and your time and connect with everybody that you can.
Crystal Baker (23:20):
And if you’re gonna do any sort of screening, then I would really just make it around, Hey, who are the people that would make the most sense to invite to my private lender luncheon? Clearly, they’re not gonna be people that live in, you know, two states away. So you can screen through and invite those people and or are they people you network with regularly? Great. They’re gonna be great people to invite. Who do I wanna invite to a webinar? Somebody who does live two states away, who is not gonna be in my immediate network? So you can screen that way and look for opportunities, but overall, every, everybody you can and look for all the opportunities and really leverage the tools that Jay provides for you.
Jay Conner (24:03):
So Ernesto sends me quite an email here, but here’s the summary of his question. Chay is my private lenders to be involved in the deal-making or negotiation of buying a property? So should my private lenders be involved in the negotiation and buying of a property or do we just present them the deal and let them decide if they want to fund it?
Chaffee Thanh-Nguyen (24:33):
The answer is neither
Jay Conner (24:36):
Thank you very much. But tell them why.
Chaffee Thanh-Nguyen (24:41):
That’s right. So first and foremost, you are not looking for a partner. You are not looking for somebody to be a part of this deal and to ask a bunch of questions and divert your attention. You are the expert, you are the real estate professional. And so you want, most of your private lenders are usually busy professionals or people that have lives that are too busy to worry about anything except Gar, not guaranteed secured, my apologies, secured and collateralized rates of return. And so they’re busy living their lives and so they don’t need to know what’s going on or the real estate deals, they just need to know that you’re gonna pay them on time and their money is safe and secure. And so those are the kind of individuals you’re looking for. Like busy, you know, maybe it’s, it’s an attorney that’s working 60 hours a week, maybe a physical therapist like Crystal was that’s working 80 hours a week and they know that they have money sitting around that wants to earn a high rate of return. Those are the people that you want to really be your private lenders because they’re so busy that they’re entrusting you with their money and you doing what you need to do to pay them those higher rates of return. So secondly, what was the second question again? Jay?
Jay Conner (25:59):
Well, yeah, the second question is, or should I just present them? There you go. A deal and let them decide and boy, I got a comment on that, but you go Chaffee
Chaffee Thanh-Nguyen (26:12):
So, I’ll be real quick. And as you always say, Jay, get the money first, right? You don’t wanna be presenting any kind of deal to anybody. You want to be offering an opportunity for them to get higher rates of return on their money. And when you have a deal and you present it to people, now you’re coming across as somebody that needs something because now you need money in order to do this deal. And that’s not what you’re all about. You’re about offering an opportunity to help people get higher rates of return versus coming across as, I got a deal now I need some money, will you help me? Right? That’s a whole different mentality. It’s a whole different vibe. The energy that comes across you, is again, you are offering an opportunity. And so never present deals talk in generals and offer an opportunity.
Jay Conner (26:58):
Exactly Chaffee. So listen to everybody right now, do not miss this. Do not miss this. As Chaffee just said, this is 180 degrees on borrowing private money from the way you do it traditionally from the bank, traditionally from the bank. If you’re walking into Mr. Or Mrs. Banker to get a mortgage, to borrow money for real estate, you’re walking in traditionally, you sit in front of their desk, you get down on your hands, on your knees and you put your hands underneath your chin and you say, please miss Banker, please miss Banker, would you please fund my deal? Please. In this world, none of that happens. For example, listen, I’ve never asked anybody for money for a deal. I’ve never asked anybody for money. And people say, well Jay, how do you have eight and a half million dollars in private money that you moved from project to project?
Jay Conner (28:06):
And here’s the way it works. I teach my new potential private lenders, people I know in me, I haven’t met a private lender at the trash dump yet, but I look forward to that day. I teach people what Private Money and private lending are at the end of that teaching, which takes about 20 or 25 minutes on teaching the prime program. They then, I mean they’re chasing me. They want to get involved and listen, I don’t have a deal that I am presenting or pitching. I’ve never pitched, I never pitched a deal in my life. So they learn the private program, and they tell me how much they have to invest. Is its investment capital, is it retirement funds, is it both? Do I need to introduce them to the self-directed IRA rep at Quest? They’ve got the money ready to go and they’re biting at the bit like a horse wanting to get out of the gate and loan money.
Jay Conner (29:07):
So now I know how much they’ve got. Now, what happens next? I then have a deal. It might be in two days, three days, two weeks, or three weeks. I have a deal for them to fund. I do not pitch the deal to them. What do I do? Here’s exactly what I do. Don’t miss this. I pick up the phone, I call them, here’s the exact script. I say, let’s say Alan is my private lender. Alan has told me how much money he’s got to invest. I know how much he’s got. I call up Alan. I say, Alan, I’ve got great news for you. I can now put your money to work. I have a house in Newport with an after repaired value of $200,000. The funding required. I didn’t say needed, I said required. The funding required for this deal is $150,000.
Jay Conner (30:01):
I know Alan’s got 150,000. He already told me the fund requires $150,000. Closing is next Thursday. So I need you to have your funds wired to my real estate attorney by next Wednesday. You notice in that script, I did not ask Alan if he wanted to do the deal. That would be the most stupid question in the world I could ever ask Alan. I know he wants to do the deal. He’s been waiting for me to call him to put his money to work. That’s why I start out my script by saying, Hey Alan, I got great news. I can now put your money to work. I tell him where the house is located, the township, not the physical address. He could care less about the after repaired value, the funding required, and when he needs to have his funds wired to my closing agent. End of conversation, right? And Alan does what he is told to do because he’s been waiting. Do you see how I did not call up Alan, get down on one knee, bow my head in prayer and beg him to fund my deal? That’s not the way it works. I am serving Alan and it’s a win-win scenario. And I’m not asking whether Alan wants to do the deal because I know how much money he is got. I’m telling him the deal that fits the private lending program and Alan wires his funds.