***Guest Appearance
Credits to:
https://www.youtube.com/@AlexPardo
“How to Raise Private Money Without Asking for It”
https://www.youtube.com/watch?v=_wTrV0XW52k
In the latest episode of the Raising Private Money podcast, Alex Pardo and Jay Conner delve into the complexities of raising private money for real estate investments. A key takeaway from their conversation is the importance of securing investments with a mortgage or deed of trust. This not only ensures the protection of investments but also adds additional layers of security by incorporating elements such as naming the investor on the insurance policy and maintaining a conservative loan-to-value ratio. The foundation of these secure investments is built on trust, something Jay emphasizes by creating a “trust bridge” through referrals.
The Crucial Role of Trust
Trust is an essential element in securing private money, as highlighted by both Jay and Alex. Many of Jay’s lenders are referrals, which fosters an inherent level of trust. Rather than relying on traditional credibility packages, Jay emphasizes the development of strong, transparent relationships to build and sustain trust with lenders. This approach underlines the importance of personal connections in the world of private lending.
Diversifying with Self-Storage Investments
Alex introduces the concept of investing in self-storage facilities as an alternative to the traditional single-family home market. He enumerates the benefits of self-storage investments, which include automation, recession resistance, and the absence of tenant management issues. For investors looking to diversify their portfolios and reduce traditional property management headaches, self-storage offers an attractive avenue.
Educational Approach: Transforming Conversations into Investment Opportunities
One of the insights shared by Jay is his approach to seeking private money—not as asking for funds but as presenting opportunities. This shift in mindset reduces the pressure on both the investor and the potential lender. Educating potential lenders about private money and high-return options helps engage them in a non-confrontational manner. Jay encourages initiating conversations with “Did you know” questions to spark interest and introduce concepts like self-directed IRAs, thereby making the idea of private lending more accessible and less intimidating.
Jay Conner’s 7-Day Private Money Challenge
For those interested in mastering the art of raising private money, Jay introduces his 7-day private money challenge. This program includes concise instructional videos aimed at educating investors on effective fundraising techniques. Originally priced at $197, the challenge is now available for just $17, making it highly accessible. Alex endorses this challenge, urging listeners to take advantage of this valuable resource to enhance their investment strategies.
Capital Abundance Post-COVID: A Proactive Approach
In light of the substantial amount of cash available in the market post-COVID—approximately $31 trillion—Jay emphasizes the importance of securing funding before pursuing deals. He critiques the commonly held belief that “the money will show up” once a deal is under contract. Instead, he advocates for a proactive approach, advising investors to secure capital ahead of time to avoid financial stress and uncertainty.
Building Success Through Education and Networking
A crucial aspect of Jay’s success involves educating and networking. By informing his network—including church members and club associates—about private money, Jay has built a significant pool of private lenders. He partners with a self-directed IRA company to facilitate the transfer of retirement funds and uses a specific script to present investment opportunities in a non-pressuring manner. This approach avoids desperation and helps maintain trustworthy relationships with lenders.
Final Thoughts: Embracing Financial Freedom
The strategies shared by Jay Conner and Alex Pardo in this episode provide a comprehensive guide for investors seeking to raise private money for real estate. The focus on trust, education, and proactive funding underscores the need for solid relationships and effective opportunity presentation. By adopting these strategies, investors can navigate the complexities of real estate investment with enhanced confidence and financial security.
Additional Resources and Support
Listeners are encouraged to explore further resources on Flip Empire’s show notes page, which includes tools and insights aimed at business growth. Alex also offers bonuses for those who use his affiliate link to try recommended resources. For personalized support, listeners can contact Alex via email. A free guide on private money is also available at jconnor.com/moneyguide, providing valuable insights for those looking to secure private funds.
Embarking on the journey to financial freedom involves adopting proven strategies and unlocking the potential of private money in real estate investments. By following the insights shared in this podcast episode, investors can strengthen their financial foundations and explore new investment opportunities with confidence.
10 Discussion Questions from this Episode:
- Understanding Security Measures: How important do you think securing investments with mortgages or deeds of trust is in real estate investing, as emphasized by Jay Conner? What additional layers of protection would you consider essential?
- Creating Trust: Jay Conner and Alex Pardo emphasize the significance of trust in real estate transactions. How can new investors build trust with potential lenders if they lack an established network?
- Exploring Self-Storage: Alex Pardo promotes self-storage as a viable real estate strategy. What are the advantages and disadvantages of investing in self-storage compared to single-family homes?
- Credibility Packages: Jay Conner debates the necessity of a credibility package, relying instead on referrals and relationships. Do you think a credibility package is necessary for all investors, or can trust and referrals suffice? Why?
- Marketing and Education: Jay Conner suggests presenting opportunities rather than asking for money directly. How can investors effectively educate their network about private lending opportunities without coming across as salesy?
- Abundance of Capital: Post-COVID, Jay mentions the availability of substantial amounts of cash in the market. What strategies can investors adopt to tap into this abundance of capital efficiently?
- Private Money Challenge: Jay Conner’s 7-day private money challenge is presented as a valuable resource for raising private money. How beneficial do you think such short, intensive courses can be for real estate investors?
- Mindset in Real Estate: Jay Conner discusses the importance of having the right mindset or “owning the real estate between your ears.” How do you think mindset influences success in real estate investing, and what practices can boost a positive mindset?
- Term Setting in Private Money: Jay Conner emphasizes the advantage of setting terms in private money deals, such as offering an 8% return. What considerations should investors make when setting terms for private lenders?
- Educating on Self-Directed IRAs: Jay highlights the role of self-directed IRAs in tapping into retirement funds for real estate investments. How would you go about educating a potential lender on the benefits of using a self-directed IRA for private lending?
Fun facts that were revealed in the episode:
- Self-Storage Appeal: Alex promotes self-storage investments as not only recession-resistant but also automated, meaning less hassle with tenant management.
- Creative Approach: Jay uses a unique “great news phone call” script to present private lending opportunities to potential investors, steering clear of directly asking for money.
- Significant Discount: Jay’s course on raising private money, originally priced at $197, is now available for just $17, offering a valuable resource at a fraction of the cost.
Timestamps
00:01 Jay’s system simplifies raising money for entrepreneurs.
08:14 Don’t seek money when urgently needed; proactively secure.
10:20 Confidence and control enable favorable lending terms.
15:02 Using self-directed IRAs for unlimited, tax-free income?
16:33 Connect investors with self-directed IRA opportunities.
21:54 Build trust, repay on time, and gain referrals.
23:12 Private lenders invest based on personal relationships.
27:50 Focus on presenting opportunities, not selling deals.
32:22 Learn to raise money; build relationships, and act.
Connect With Jay Conner:
Private Money Academy Conference:
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book: Where to Get The Money Now?
It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
#RealEstate #RealEstateInvesting #RealEstateInvestingForBeginners #Foreclosures #FlippingHouses #PrivateMoney #RaisingPrivateMoney #JayConner
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcast:
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https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
No More Bank Hassles: Jay Conner on Raising Private Money Easily
Narrator [00:00:01]:
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 [00:00:28]:
What’s our question for that’ll lead to private money? Are you investing in anything these days? You’re either gonna tell me yes or no or whatever. But let me tell you what I’m doing. You can talk about your real estate investing, and then you can talk about how your private lenders, there’s a seed you just dropped, how your private lenders are getting high rates of return from these lucrative real estate deals that you put together.
Narrator [00:00:50]:
You’re listening to Flip Empire, the show committed to helping real estate entrepreneurs who wanna build their empires without sacrificing their lives. Your success and freedom start now with your host, Alex Pardo.
Alex Pardo [00:01:06]:
Private money. Private money. Private money. That is exactly what we’re gonna be talking about on today’s podcast episode number 761 with my good friend, Jay Connor, who is one of the nation’s top experts, guys when it comes to raising private money. And on today’s podcast, Jay’s gonna walk you through his where to get the money now system. And here’s the best part about Jay’s system. He teaches you how to do it in a way in which you’re never asking for money. You’re presenting opportunities.
Alex Pardo [00:01:35]:
And it’s just such a simple step-by-step process to go out there and raise money, regardless if you’re just getting started, if you’re a seasoned pro and you’ve done 100, if not 1000 of deals, Jay’s system works. And what’s interesting is that entrepreneurs oftentimes create solutions out of problems. And way back in the day when Jay needed a reliable funding source, the bank he was working with essentially cut him off, and it really kind of, like, hamstrung his ability to go out and do deals. And that’s one of the things that I truly believe is that when you have access to private money, not only does it give you more confidence to be able to do as many deals as you can handle, but it’s one of the most valuable skill sets you can have, is building relationships, understanding how to communicate with private lenders, structuring deals. It just opens up so many more doors and opportunities, to be able to do any type of deal you want, whether it’s single-family, whether it’s self-storage or any asset class in between. So I’m excited to introduce you to my friend, Jay Connor. I believe this is gonna be his 2nd time on the podcast. He’s a quality, quality individual.
Alex Pardo [00:02:41]:
He’s got a heart to to serve and to give and to share all the wisdom, knowledge, and resources that he’s acquired, over the last 20-plus years. Jay’s just a stud, and, I think you’re gonna enjoy this episode. But before we dive into it, I’ve had, people reach out to me wanting to ask questions, and being curious about self-storage, and I am extremely bullish on the self-storage asset class. It’s something I wish I had discovered years years ago. And now that I’ve been in it for almost 4 years and now I’m I’m having the opportunity to coach people, to get them their first storage facility within the next 6 to 12 months. I wanna go ahead and extend an invite to you. Head over to www.storagewins.com.
Alex Pardo [00:03:25]:
Just take a minute and, submit some information so that we can connect on a call, I can kinda share with you more about how that might benefit you based on, adding storage and that particular, asset class to what you’re already doing or possibly even building a bridge over from residential into storage, especially if you’re tired of dealing with toilets and tenants and all the craziness that goes on with the single-family residential world. So, guys, with that being said, I’m excited to introduce you to Jay Conner.
Alex Pardo [00:03:57]:
What is going on, my friends? Guys, I am super pumped to have my friend, mister Jay Conner, the only join me on the podcast. I want to say this is the second, possibly the third time Jay’s been on. He’s, he’s a dear friend of mine that I met at a High-Level Mastermind, several years ago. And you guys know the feeling when you connect with somebody and you just, like it’s just there’s just an instant vibe. Like, it’s kinda hard to be around Jay, not smile, not feel good. Just such a positive energetic individual and somebody who, aside from just being an outstanding human being, has a tremendous amount of wealth and knowledge when it comes to real estate in general and entrepreneurship. And Jay is an expert when it comes to raising private money. And, guys, what we’re gonna specifically be talking about on this podcast is how to raise private money without even asking for money.
Alex Pardo [00:04:49]:
Right? So some of you that is the hook right there. Right? Some of you might be thinking, how in the world do I raise capital for my real estate deals without ever asking for money? Right? And there’s the secret sauce that Jay is gonna reveal and talk about. So with that being said, Jay, brother, any introduction I give you is not gonna be justice, but, it’s great to see you. It’s great to have you on the Flip Empire Show.
Jay Conner [00:05:12]:
Alex, thank you so much for inviting me to come join you here on the show. My, Lance, I’m so excited and passionate to talk about private money because that one strategy of attracting funding for your real estate deals without ever asking for money, that one strategy has had the biggest impact on mine and Carol Joy’s, real estate investing ever since we started back in 2003.
Alex Pardo [00:05:37]:
Yeah. 2003, man. So you are you are a veteran. You are an OG of the game, as they say, and, and you’re 100% right. You and I were talking before the show, and I said, you know, private money, Jay, is one of those skill sets that can make or break a business. If you have access to capital and you know how to raise money specifically without having to ask for it and getting that weird feeling, right, getting awkward and uncomfortable, which I hear people talk about all the time, then you’re never gonna starve. Right? You’re never gonna go broke because you always have capital to do deals. And I can tell you with experience, if you’re a wholesaler, fix and flip investor, maybe you’re a commercial real estate investor, when you negotiate and you genuinely know that you have capital behind you, right, and you’re not, like, pretending.
Alex Pardo [00:06:21]:
Right? You’re not using, like, a buyer’s fund or something like that. You just operate with so much more confidence. And I don’t know you can if you can relate to that or have experienced that, but at least that’s been my feeling.
Jay Conner [00:06:31]:
Oh, absolutely. I mean, having access to the capital think about it. How much more confident is someone gonna be in making offers on deals when they’ve got the money burning a hole in their pocket ready to go? And, Alex, I tell you, I’m gonna take a little risk right now. I’m gonna take a little risk. There is, there’s a teaching. There’s a phrase that I have heard, people on the platform are teaching new real estate investors how to get into this business. And I think I think you’re going to agree with me, but I’m gonna take the risk.
Alex Pardo [00:07:05]:
Okay.
Jay Conner [00:07:06]:
This teaching, this phrase drives me crazy. I wanna throw up every time I hear it, and here’s the phrase. They say, oh, just get the deal under contract. The money will show up. Have you ever heard that? Have you ever heard that?
Alex Pardo [00:07:23]:
Yep. Yep. I get it. And, you know, it’s interesting because I know why people say that, but I can tell you that, you know, there’s a saying that a mentor of mine shared with me, Jay, years ago that’s always stuck with me, is dig your well before you’re thirsty.
Jay Conner [00:07:38]:
And I think
Alex Pardo [00:07:39]:
That that is gonna be in alignment with, I think, where you’re gonna take us next.
Jay Conner [00:07:43]:
Absolutely. I mean, you know, I mean, for goodness sake. I just don’t wanna put a get a property under contract, and I have no idea where the funding is coming from. Now if you’re a wholesaler and you’ve got a long buyers list, you know you don’t know exactly where the money’s coming from. But there’s your well. Right? You were well first. You got your contacts. But if you’re staying in the deal and you don’t know where the funding’s coming from, I mean, that’s like sort of nerve-racking and, you know, sort of got things back.
Jay Conner [00:08:14]:
But, you know, the worst time to be looking for money, private money for your real estate deals is when you need it for a deal. Right? And we’re gonna dive into, you know, how we go about this without ever having to ask for money. But, you know, the old way the traditional way to borrow money from the it’s what I did for the 1st 6 years that we were in business from 2003 until January 2009. All I knew to do, Alex, was going to the local bank, get on my hands and knees, put my hands underneath my chin, beg, plead, persuade, you know, lift my skirt so the banker could look at my assets and pull my credit score and all that stuff. But, you know, that’s one of the first things I had to get straight and turn around 180 degrees in this world of private money. There are no applications. There’s no application you’re already approved. The underwriting we are the underwriter.
Jay Conner [00:09:12]:
We underwrite our deals. We make the rules. We set the interest rate. It’s nonnegotiable. And people ask me a lot, well, how do I get started raising private money? Well, it’s hard to own real estate until you own the real estate between your ears. Mhmm. And that’s what you gotta get straight first is that you’re not asking, you’re not applying, you’re offering an opportunity is what you’re doing.
Alex Pardo [00:09:37]:
That’s it. Be before I kind of have you, like, elaborate on that, if I had a value bomb like, like, what do they call it in the radio world? Like, one of those drops. When you said it’s hard to own real estate without first owning the real estate between your ears. So, Jay, I’ve been in this business for 20 years and have interviewed a lot of people. I’ve never heard anybody say that, and that is an awesome one-liner that, brother, I’m gonna steal from you. I will give you credit.
Alex Pardo [00:10:03]:
But I don’t know where you heard that. I’ll give you.
Alex Pardo [00:10:04]:
The credit, but that’s awesome. As far as owning real estate without first owning the real estate between your ears. Amazing.
Jay Conner [00:10:11]:
Love it. Well and, you know, what do we mean by that? What we mean by that is having the right mindset.
Alex Pardo [00:10:19]:
Yes.
Jay Conner [00:10:20]:
Having the right mindset. And, yes, confidence is part of that. Nobody’s gonna loan you money, on a on a deal unless you’re confident about it. Right? And so, you know, when I say that it turns 180 degrees, I set the interest rate. So I’ve been paying my private lenders 8% ever since 2009. I still pay them 8% with no origination fees. And, you know, one question I get in recent times, Alex, is they’ll say, Jay, how in the world are you still paying your private lenders 8% when mortgage rates, interest rates have gone out the ceiling? How in the world are you still able to do that? And I said, well, there are 2 answers to that. Number 1, remember, I make the rules.
Jay Conner [00:11:05]:
We make the rules. We set it. Number 2, you can go down to First Citizens Bank here on Bridges Street in Morehead City, and you can get a certificate of deposit for 4%, 4 and a half percent. It was 5%. 4 a half well, 8% is still a whole lot better than 4 a half percent. So, again, that’s just an example of how we make the rules by setting the interest rate that we’re offering.
Alex Pardo [00:11:31]:
Yeah. Yeah. No. I love it. Well, I think a good jumping-off point for this conversation because private money, my belief, Jay, and I don’t know if you would agree or disagree, is that people tend to overcomplicate it. And I think a good starting point is what you said a couple of minutes ago. You said something along the lines of and I’m paraphrasing, but we are we’re never asking for money. We are providing and we’re presenting an opportunity.
Alex Pardo [00:11:55]:
Why don’t we start there? Like, you talked about the importance of having the right mindset. I think everybody listening and watching the show understands that. Let’s let’s get beyond that point and trust that people have the right mindset about money and that people understand that they are now presenting an opportunity. How do we go about initially broaching the subject, planting a seed, and creating and invoking some intriguing curiosity about this opportunity?
Jay Conner [00:12:21]:
Sure. So here’s part of the mindset that you wanna have straight. This is all about leading with a servant’s heart and educating people. So when I was cut off from the banks back in January 2009, I had to find a fund for my deals. I learned about private money. I put the program together that I was going to teach people initially in my connections. So what did I do, Alex? I put on my private money teacher hat. Right? And I just started going about teaching people in my connections and network, people I go to church with.
Jay Conner [00:12:59]:
Right? Mhmm. People in the Rotary Club, and people at Business Networking International. And I just started sharing with them what private money is and how they can earn high rates of return safely and securely. Here’s a big part of the secret sauce. One mistake that you would not want to make if you were listening to this show, you don’t wanna be talking about private money to someone in your connections and talk about a deal you’ve got under contract in that same initial conversation because you’re automatically sounding desperate without even trying to sound desperate. Here’s another rider downer for you, Alex. Desperation has a smell to it.
Alex Pardo [00:13:44]:
And it’s not a good smell.
Jay Conner [00:13:45]:
It’s not a good smell. It’s a stinky, nasty smell. And so, you know, another another, thing that I hear from, particularly real estate investors who have not raised capital before, the way we’re talking about, and that is they say, Jay, how do I get over the fear of rejection? Well, let me ask a question in response to that question. How can you be rejected if you’re not asking anybody for anything? You’re educating them. You can’t be rejected. Right? So so we so here here’s another part of the secret sauce. We’re gonna separate the conversations between teaching, having your teacher hat on, between teaching and you wanna start with your connections first.
Jay Conner [00:14:29]:
Between teaching people what private money is, the program that you have, and how they can earn high rates of returns safely and securely. You’re not borrowing unsecured funds, and then having a deal for them to fund. So we’re first just gonna teach. Well, what you know, I love starter questions or starter you know, how do you start conversations with someone just in your network? Maybe you’re having coffee. Maybe you’re out for lunch after church or whatever. I love the questions you know questions.
Jay Conner [00:15:02]:
Did you know the questions? And so here’s one of my favorite did you know questions. I mean, Alex, you know, let’s just say that we’re out having lunch or whatever. I say, Alex, by the way, did you know there’s a way ordinary people, just like you and me, can earn unlimited money per year tax-free? Well, most people are not gonna know the answer to that question as to how they can do that. Right. Well, when they say no, well, my next follow-up question is, have you ever heard of self-directed IRAs? In all probability, they’ve never heard about that. So now you can talk about what’s a self-directed IRA and how people can use their retirement funds to be a private lender. Right? So that’s just one of my favorite, you know, starter questions. You know, what’s another starter, a question that’ll lead to private money? I say, Alex, by the way, are you investing in anything these days?
Jay Conner [00:15:57]:
And you’re either gonna tell me yes or no, whatever. And then I’m gonna say, well, let me tell you what you know, let me tell you what I’m doing. Right? You can talk about your real estate investing, and then you can talk about how your private lenders, there’s a seed you just dropped, how your private lenders are getting high rates of return from these lucrative real estate deals that you put together. So you you teach first. I mean, I put on private lender events. Like, I’ve I’ve hosted luncheons before. I’ve raised $969,000 at just one private lender luncheon, not for a deal or not for deals. Right? Just a pledge.
Jay Conner [00:16:33]:
So once they tell you, man, I like the program, or if they’ve got retirement funds and they’re, you know, not happy with the returns they’re getting, well, have a relationship with a self-directed IRA company that you can introduce them to, and they can transfer their funds over. So once they’ve told you what they got to work with I mean, you don’t even have to ask them. You know? What do you I mean, they’re gonna tell you. Right? They’re gonna tell you automatically without you even asking. So they tell you how much they got to work with. Now here’s another part of the secret sauce. When you’ve got a deal for them to fund so in my world, it’s single-family houses.
Jay Conner [00:17:11]:
Right? You can raise private money for commercial projects. Most of the time, that’s syndication, which is another conversation. Everything I do in single-family houses is what we call one-offs.
Alex Pardo [00:17:21]:
That’s right.
Jay Conner [00:17:22]:
One-offs. Like, you got a single-family house, and you got 1 or maybe 2 private lenders that are funding that deal. When you’re doing one-offs and each private lender has their promissory note or deed of trust, you’re not in, you’re not in the world of the SEC. Right? So no worries with the SEC. So when you’ve got a deal with them to fund, you wanna call them up. So, Alex, let me say you’re one of my private lenders, and let’s say that you have told me that you got $150,000 to work with, and it’s just investment capital. It’s not retirement funds.
Alex Pardo [00:17:55]:
Yeah. Let’s real quick here.
Jay Conner [00:17:57]:
Yeah. So when you say you’ve got that 150,000, here’s exactly what I say to you. I say, Alex, I will put your money to work for you just as soon as possible. So a week or two goes by. I call up Alex. You answer the phone. We have a little chit-chat, and then I give you the script. Here’s the script.
Jay Conner [00:18:17]:
I’m gonna give you the exact script of exactly what I say to my private lender when I’ve got a deal for them to fund. Answer the phone or chit-chat. I call this script, the great news phone call.
Alex Pardo [00:18:29]:
Okay.
Jay Conner [00:18:30]:
The great news phone call. So Alex answers the phone, chit-chat. How’s it going? Alex, I have got great news for you. I can now put your money to work. I’ve got a house under contract in Newport with an after-repaired value of $200,000. The funding requirements match up to exactly what you told me you have, which is 150,000. Closing is going to be next Thursday, so you’ll need to wire your funds to my real estate attorney’s trust account by next Wednesday. I’m gonna have my attorney email you the wiring instructions.
Jay Conner [00:19:04]:
That’s the end of that piece of the conversation. Notice the most stupid question I can ask Alex is, do you want to fund the deal? Well, of course, Alex wants to fund the deal. He’s been waiting for the good news phone call. Right? And so, that’s it. You know? Funds are wired. Now let me just give you another example. So I got a text from one of my private lenders. I’m pulling up my phone right now.
Jay Conner [00:19:30]:
I got a text from one of my private lenders recently, and let me just read to you what he says to me. He says he says, hey, Jay. I hope things are going well. We’re still planning on coming to visit you and Carol Joy, in early August. Just wanted to touch base with you to let you know I currently have 120,000 retirement funds available and ready to invest. See you soon. So got that text, and so I texted him back. And here’s exactly what I say.
Jay Conner [00:20:05]:
I say, hey, and, his first name. We sure enjoyed visiting with you all last week. I’m ready to put your funds to work. If it’s alright with you, let’s just do an easy 120,000, for easy figuring. My office manager will communicate with the self-rated IRA company. We’ll communicate with you and get you to sign the direction of investment. We’ll be closing next Tuesday. He text back.
Jay Conner [00:20:33]:
Perfect. Thanks. Had a great time seeing you. That made that sense. I mean, that’s all I mean, it’s just very you sort of indicated a little something a few minutes ago, Alex. One mistake that I see new funds new real estate investors or people that are new to raising capital, the mistake they make is they talk too much.
Alex Pardo [00:20:52]:
That’s right.
Jay Conner [00:20:53]:
They talk too much. It’s like and you’re and you’re and you’re talking too much because maybe you’re nervous or you feel like you’re having to talk them into the deal or sell the deal. There look. There’s no selling of the deal, and here’s why. You taught them the program first.
Alex Pardo [00:21:08]:
That’s right.
Jay Conner [00:21:09]:
They know what your maximum loan-to-value is, which for me is 75% of the after-repaired value. I didn’t say 75% of the purchase price. 75% of the after repaired value. That’s why I always bring home a check when I buy. Who wants to get paid to buy houses? Right? So they already know the program. Well, I’m not going to text or call my private lender and have a deal for them to fund unless it matches the criteria of the program that I already taught them. Correct. And so, you know, with this lender, with this little text right here that I just read you, I didn’t tell him where the house is located.
Jay Conner [00:21:47]:
I didn’t tell him what the afterprepared value was. After you do a deal or 2, all they wanna know is how much and when you need it.
Alex Pardo [00:21:54]:
That’s right. And, you know, Jay, and I know that you’ll back me up on this. Here’s my experience with raising private money. When you do what you say you’re gonna do, you pay them on time based on whatever the terms are, whether it’s monthly or whether it’s upon the payoff. Like, oftentimes, they want that money back into another deal, and or they’re gonna tell their friends and family. Right? And it’s like so doing this business, doing it right, building relationships, again, continuing to, like, just build, that trust, that that reciprocity, it’s going to, like, manifest itself in the future, and it’s like a snowball effect. And then this lender will tell this lender, before you know it, like, you have a lot of money at your fingertips. And, again, it just gives you so much confidence to be able to do deals.
Alex Pardo [00:22:39]:
And this podcast isn’t gonna be about the market and, like, what’s gonna happen in 2025 in the future, but I’m telling you, it is so important to have access to capital. Now is the time that you guys need to be, like, following Jay’s system step by step. Here’s the beauty of what you just shared. You said it best. It’s not selling you, presenting an opportunity. It’s just a conversation. All you’re doing is, like, putting on your teacher hat. You’re educating them on the process, and then a week to a month later when you have a deal, you’re presenting the opportunity again.
Alex Pardo [00:23:11]:
That’s it.
Jay Conner [00:23:12]:
That’s it. And, you know, here’s what’s interesting. So Carol Joy and I, we’ve got 47 private lenders. And you know what? Not one of them had ever heard of private money or private lending until I put on my teacher hat. None of them had ever heard of self-directed IRAs. And by the way, establishing a relationship with a self-directed IRA company is so important because if you don’t have that in place that you can introduce a new potential private lender to, you’re gonna miss out on over half the funding out there. And I mean these private lenders are not investing in your deals. These private lenders are investing in you.
Jay Conner [00:23:57]:
That’s what they’re doing. That’s right. They’re in now, of course, the mortgage or deed of trust is very important. They know them they know that their investment or their loan to you is secure. I’m gonna name them on the insurance policy as a mortgagee. Give them another layer. You know? I’m gonna do a conservative loan to value. I’m looking after these people because they don’t know.
Jay Conner [00:24:18]:
Yeah. They don’t they don’t know, you know, what needs to be done to to look after them. But, you said it. Trust trust is at the top of the list.
Alex Pardo [00:24:27]:
Yeah. I love it, Jay. Hey there. Stop. I promise to get you back to the show, but let me ask you a couple of questions. Are you happy with the money that you’re making in your real estate business? Are you generating any cash flow? Are you building wealth? Do you feel like you’re making progress, or are you just constantly chasing deals and going after the next transaction and the next transaction? Well, I can tell you from personal experience that there’s an easier way, and it’s not with single-family homes. I believe that self-storage is the best asset class in real estate, hands down, because we’re not dealing with tenants or toilets. There’s automation.
Alex Pardo [00:25:00]:
It’s a recession-resistant asset class, and it’s a business that has the benefits of real estate. If what you’re ultimately after is cash flow, building wealth, and time freedom, I wanna invite you to just take a few minutes to apply. Go to www.storagewins.com where you can learn more about our storage wins coaching program. I can help you generate cash flow from your first storage facility within the next 6 to 12 months without needing to use your money or even needing any experience. So head over to www.storagewins.com. And if we like what you have to say, we’ll schedule a call, and I look forward to connecting with you. Now back to the show. Quick question.
Alex Pardo [00:25:38]:
Do you you of the school of thought that people should build a credibility package or something that shows case studies of deals? Or are you saying, hey? Don’t even worry about that at this stage. Just build relationships, plant seeds, educate, and teach people what you do, but maybe don’t even worry about having a, quote, unquote, credibility package, or anything to be able to show them or send them.
Jay Conner [00:26:01]:
Yeah. So I’m I don’t even know what a credibility pack is. I never had one. There you go. But I don’t I don’t wanna give them a flipping answer. Let’s unpack that a little bit. I think you may need a credibility kit of, you know, case studies or deals you’ve done. Maybe for people that don’t know you all that well the the relationship is not, you know, cemented and hasn’t been there for a while.
Jay Conner [00:26:29]:
You know? However, I’ve got a lot of private lenders. I’ve never met them. They’ve all they’ve been referred to me by existing private lenders. All of our business has taken place, you know, over the telephone. Yeah. I call that a trust bridge trust bridge. So when I have a referral coming to me from a new private lender, then what’s happening is the relationship that I have with the current lender, that relationship is the bridge of trust. That then allows me to cross that bridge and do business with that new private lender.
Jay Conner [00:27:07]:
Yeah. They’re not trusting me. They’re trusting the person they know and, you know, the story or the experience that they have shared with them. Right.
Alex Pardo [00:27:16]:
That’s right. Look. Jay, I think this podcast and, really any podcast where there’s an interview happening is an example of a bridge of trust or a transfer of trust. Right? Like, I have a relationship with the audience that I’ve built over the last 8 years, and I have a relationship with you. By having you on the show, having you teach the audience, like, inherently, there’s a transfer of trust. Right? It’s it’s no different, and I just wanted to kind of use that as an illustration. So I think one of the biggest takeaways that I’m hoping people draw from this particular episode is to have the right mindset. Keep it simple.
Alex Pardo [00:27:50]:
Don’t overtalk and try to sell the deal because you’re not selling the deal. You’re presenting an opportunity. If people walk away with just that mindset, I think it could unlock a lot of potential and opportunity for them as it relates to raising private capital. Because, Jay, I’ve talked to so many investors, I’m sure you have as well, that they get intimidated by the process. They get butterflies in their stomach. They might wait until they have a deal, then try to sell the deal, and then they’re they feel like they’re pressed for time because they don’t have the money they need to close the deal. Well, to your point and what I mentioned earlier, you gotta, like, dig the well before you’re thirsty, and you do that by just putting on the teacher hat, walking them through the process, and not pitching a deal. Like, I love that you said don’t hitch the deal wagon to the pitch of the private money, which is not even gonna pitch.
Alex Pardo [00:28:39]:
It’s just you’re teaching them about it. Right?
Jay Conner [00:28:41]:
That’s right. That’s right. It’s so keep that and look. When you separate those conversations, it takes all the pressure off. There’s there’s there’s no pressure on the potential private lender. There’s no pressure on you. And let me tell you why there’s no pressure on you as the operator. There’s more money out there than we can use.
Jay Conner [00:29:01]:
I promise you. Before COVID before COVID in 2020, there was $18,000,000,000,000 in cash in the United States that was just sitting on the sidelines. Here, this side of COVID, 31,000,000,000,000 in cash just sitting on the sidelines. And so there’s always gonna be deals. There’s always gonna be deals. Get your money get your money lined up first, ready to go, and then you’re not gonna miss out on a deal for not having the funding. I have not missed out on a deal since 2009 when I started making the rules.
Alex Pardo [00:29:35]:
Yeah. I love it. Jay, I’m gonna pop up on the screen for anybody watching this. Guys, Jay, and I’ll let him kinda speak to it, but he’s hosting a private money challenge. So, Jay, you wanna take a minute or 2 and just kinda, like, invite people, share with them what you have going on with this challenge?
Jay Conner [00:29:51]:
Absolutely. I’m so excited about it. So what I did, was I just finished recording it. It’s the 7-day private money challenge. And so I’ve recorded 7 videos. So when you enroll in the challenge, you get the first one right away. You don’t have to you don’t have to wait. But each video is only 15 to 20 minutes long, and it breaks down private money just like we’ve started here on this show.
Jay Conner [00:30:17]:
And it’ll get you started on raising private money when you enroll in the private money challenge. You’ll immediately be in your email inbox, you’ll receive the first video. And then the next morning for the next 6 days at 9 AM EST, you’ll receive each subsequent video. And I promise you, you’re gonna have a lot of fun engaging with me in these videos. I give you a little bit of homework assignment. One of the videos I do is I calculate I have you calculate with me exactly how much private money you need to raise. Mhmm. Because I learned along the line.
Jay Conner [00:30:51]:
You know, I teach people how to raise private money, but they’ll say, well, how much do I need? Well, we back into it, and you calculate, well, how much private money you need to get started. So here’s all you do. Go to jayconner.com.jayconner.com. And right there on the landing page at the main, website, there’s a little blue button, and it says join the challenge. So you just click on that little blue button, join the challenge, and boom. There you are. You’re inside. We have a lot of fun, and you’re gonna raise private money.
Alex Pardo [00:31:22]:
Yeah. I love it. Guys, again, I endorse Jay. I’ve I’ve known him for several years. Just, again, most importantly, just such a quality dude, just a good person, and he knows what he’s talking about. He’s been doing this since 2003. Again, I was a very high-level mastermind, one of the top real estate investors in the country for 3, to 4 years. And when it came to private money, people came to Jay.
Alex Pardo [00:31:47]:
Right? They asked him questions, and the way he teaches this, the way he presents it is you don’t have to ask for money. You’re just sharing. Right? And that’s that’s the cool thing about it, is that you can take the pressure off. It doesn’t have to be an intimidating or overly complicated process. So I encourage you guys to join the challenge. Head over to jconnor.com. And, and, Jay, this is 100% free. Right?
Jay Conner [00:32:09]:
It’s normally $197, but since I just launched it, I’ve opened it up for only $17. So 17 is $7.17 for, 7 days 7 days, or 7 videos.
Alex Pardo [00:32:22]:
Brother brother, that is in my brain, that is free. $17 to learn how to raise private money is, that’s that’s crazy. That’s unbelievable. So, guys, absolutely encourage you guys to check it out. And by the way, as kind of like a, and just off the cuff bonus, if you guys have any questions about private money, reach out to me. I’m I’m happy to to assist you. I think you’re gonna get all the knowledge and resources through Jay’s course, but it’s all about relationships. Right? Continue to go out there, build relationships, plant seeds with people, present opportunities, and dig your well before you’re thirsty.
Alex Pardo [00:32:56]:
And, and, again, don’t don’t overcomplicate this. So, Jay, man, I love what you’re doing, brother. Thank you for all the knowledge and the resources. Thank you for opening up and sharing. This podcast, which was 100% free, if people just implemented what you taught them here, it’s gonna unlock the opportunity to raise a lot of money and, by the way, help a lot of people who are earning less than a percent. If they’re lucky and it’s in a high-yield savings account, they might be getting 3, or 4%. You could easily double that for them, and it’s secured by the real estate. So it’s a win-win all the way around.
Alex Pardo [00:33:28]:
So, Jay, I appreciate you, my brother. Thank you for all that you do, man. I’m super grateful for our relationship. And, guys, thank you for supporting the show. Make sure that you are subscribed to the Flip Empire show so every single Monday morning, you’re notified when new shows get released. And the biggest way you can thank us is by going out and taking action. Implement what Jay has taught you here. Pick up the phone, have a conversation, and, and present opportunities.
Alex Pardo [00:33:57]:
That’s what it’s about. Thank you so much, guys. Have a great one.
Alex Pardo [00:34:01]:
Alright, my friend. I hope you enjoyed that Flip Empire episode and got a lot of value out of it. Make sure to check the show notes page for any resources that were mentioned. And speaking of resources, honestly, I don’t think I’ve done the best job of sharing with you my top curated, highly recommended tools and resources that I use in my business or have used in my business. In some cases, these are affiliate relationships with people that I highly trust and respect. I know these tools and resources can help you and your business.
Alex Pardo [00:34:28]:
To the next level. And as
Alex Pardo [00:34:30]:
An ethical bribe, if you decide to, try out one of these resources using my link, I will go ahead and send you an unadvertised bonus. I’ll send you something of high value. All you gotta do is shoot me an email, at alex@flipempire.com. Go ahead and let me know that you, tried out this resource, however, I can help you get started with that. Chances are that I know it very, very well and currently use it or have used it. So make sure to check that out. Flipempire.comforward/resources. And if I can be of help or service to you in any way, just shoot me an email, at alex@flipempire.com, and I will do anything I can for you.
Alex Pardo [00:35:06]:
Have an amazing day, and I’ll catch you on the next show.
Narrator [00:35:22]:
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.