In the latest episode of the Raising Private Money podcast, Jay Conner welcomes guest Randal McLeaird, a seasoned real estate expert with over 14 years of experience in the San Antonio, Texas market. This episode explores the intricacies of crowdfunding, raising private money, and the opportunities available within the single-family housing market.
Introduction to Crowdfunding and Private Money
Raising Private Money: A Game-Changer
Jay Conner, renowned for his expertise in raising private money, effortlessly introduces both novice and seasoned investors to strategies that can transform their real estate businesses. Don’t forget to visit https://www.JayConner.com/MoneyGuide to download a complimentary guide that highlights seven ways private money can elevate your investing ventures.
Understanding Crowdfunding
Randal McLeaird delves into the concept of crowdfunding, explaining its potential to democratize real estate investment. With crowdfunding, investors of all sizes, including non-accredited ones, can participate in real estate projects, with a collective annual raise capped at $5 million. Crowdfunding platforms like Invone allow both accredited and smaller investors to contribute to large-scale projects while complying with SEC guidelines.
Crowdfunding vs. Traditional Investments
The Mechanics of Crowdfunding for Real Estate
Randal elucidates the practical aspects of leveraging crowdfunding for real estate investments. For example, a 506(c) raise permits advertisements and marketing to accredited investors, facilitating substantial capital influx. On the other hand, a CF raise opens the door for smaller investors, promoting inclusivity and broader participation.
Comparing Returns: Crowdfunding vs. Traditional Investments
Investors eyeing alternatives to traditional CDs or 401(k) plans might find Randal’s offering compelling. Crowdfunding deals provide a 7% return on investments starting from $10,000, which is disbursed quarterly, akin to interest-only loans. For more substantial investments, $150,000 and above, the returns can go up to 10%, providing robust opportunities for high yields compared to conventional investment vehicles.
Randal McLeaird’s Real Estate Ventures
Local Expertise in San Antonio
Randal McLeaird shares insights from his extensive experience in San Antonio, discussing how his familiarity with the market’s nuances has been instrumental in his success. Having managed over 500 transactions, Randal’s deep-rooted knowledge and hands-on approach ensure meticulous oversight and efficient property management.
Current Crowdfunding Projects
A spotlight on Randal’s current initiative, the Ramp Capital Fund, reveals how strategic property acquisitions and renovations culminate in high returns for investors. For example, a property recently acquired for $105,000, with $20,000 in renovation costs, is projected to sell for around $215,000, showcasing the lucrative potential of well-chosen investments.
Marketing Strategies and Investor Outreach
Expanding the Investor Base
Randal emphasizes the importance of diverse marketing strategies to attract investors. By attending local meetups, reconnecting with past contacts, and leveraging platforms like podcasts, he effectively casts a wider net to secure capital for his projects. His approach underscores the need for continuous engagement and visibility in the real estate community.
Advantages of a Crowdfunding Fund
Beyond just sourcing funds, crowdfunding offers the benefit of streamlined capital channels. Randal explains how this method simplifies the funding process, avoiding the repetitive task of soliciting investors for individual properties. This allows for continuous investment without idle periods, maximizing efficiency and project turnover.
Future Prospects and Market Outlook
Projections for Market Growth
As political climates and economic conditions evolve, both Jay and Randal speculate on anticipated mortgage rate reductions, which could spur further growth in the housing market. Randal remains optimistic about opportunities in single-family housing in San Antonio, citing reduced competition and a strong demand for homes.
Scaling Up: Aiming for Full Deployment by 2025
Looking ahead, Randal aims to deploy the Ramp Capital Fund fully by 2025, targeting the acquisition of 25 properties. His strategic shift back to single-family projects, driven by better performance metrics, aligns with his expertise and market acumen.
Accessible Investment Opportunities
One of the highlights of Randal’s approach is the lower minimum investment requirement for crowdfunding participation. By setting a $10,000 threshold, he makes real estate investing accessible to a broader pool of investors compared to the typical $50,000 entry point in other opportunities.
Conclusion
Jay Conner’s engaging discussion with Randal McLeaird offers valuable insights into the dynamic world of real estate investing. From the nuances of crowdfunding to strategic market operations, listeners are equipped with actionable knowledge to navigate and thrive in the real estate landscape. Be sure to check out the free guide available at https://www.JayConner.com/MoneyGuide and explore Randal’s investment opportunities at https://www.RidgeLineIG.com.
Stay tuned for more episodes packed with expert advice and transformational strategies in real estate!
10 Discussion Questions from this Episode:
- How does Randal McLeaird describe the benefits of crowdfunding compared to traditional real estate investment methods?
- What are the primary differences between a 506(c) raise and a CF raise in the context of real estate crowdfunding?
- Why does Randal McLeaird believe that crowdfunding simplifies the process of raising capital for real estate investments?
- Discuss the return on investment offered through Randal McLeaird’s Ramp Capital Fund. How does it compare to traditional financial products like CDs or 401(k) plans?
- Randal mentioned that he is managing properties in San Antonio, Texas. What advantages does he find in investing in this particular market?
- What are the key motivations behind Randal shifting his focus from multifamily investments back to single-family projects?
- How does Randal’s experience of living overseas in Australia and working with a real estate attorney in the U.S. influence his current real estate strategies?
- What role does the crowdfunding platform Invone play in Randal McLeaird’s investment strategy, and how does it facilitate investor participation?
- What are the expected outcomes and timelines for Randal’s fund to acquire and manage 25 properties, as mentioned in the episode?
- Reflect on Jay Conner’s humorous remark about Randal’s resemblance to Elon Musk. How does this light-hearted moment contribute to the overall tone and engagement within the podcast episode?
Fun facts that were revealed in the episode:
- Randal McLeaird has been active in the San Antonio real estate market for 14 years and has seen over 500 transactions.
- The crowdfunding platform he uses, Ridgeline IG, offers a compelling 7% return on $10,000 investments and even higher returns for larger amounts.
- Jay Conner humorously likened Randal to Elon Musk during the episode.
Timestamps:
00:01 Raising Private Money Without Asking For It
03:39 Lent money, lived abroad, pursued U.S. real estate.
08:25 Focus on flipping properties; simplified business approach.
10:51 Crowdfunding enables small investors to learn to invest.
12:49 Crowdfund: Invest in multiple assets over time.
16:52 7% return with quarterly payouts, interest-only.
20:25 Investment offers 7% to 10% annual returns.
24:34 Raising capital once simplifies repeated fundraising efforts.
27:49 The San Antonio market is strong; opportunities for buyers.
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Real Estate Investment Simplified: Using Crowdfunding and Private Money with Randal McLeaird
Jay Conner [00:00:00]:
Welcome to another amazing episode of Raising Private Money. I’m Jay Conner, your host, also known as the Private Money Authority. And I’m so excited to have my guest on today’s show because he is an expert in crowdfunding. We’re gonna talk about crowdfunding, what it is, and how to use it to raise capital. We’re also gonna talk about why my guest chose crowdfunding as his preferred platform to raise capital. He’s got a lot of experience. He has overseen over 500 transactions. Now he started, going into multifamily back in 2020, But there’s a reason that he chose to back off from multifamily and stay in single-family houses, which of course is my preferred investing, vehicle anyway.
Jay Conner [00:00:51]:
He’s raised over at least $5,000,000 in private money, so he’s very qualified to talk about private money. And his crystal ball, what does his crystal ball say? Well, we’re gonna see what he thinks is on the horizon, right around the corner, and coming up in the next year. In just a moment, you’re gonna meet my special guest, Randal McLeard, right after this.
Narrator [00:01:17]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:01:45]:
Well, hello, Randal, and welcome to the show.
Randal McLeaird [00:01:48]:
Jay, great to see you. I am, happy to be here. I know you have a ton of great guests on your show, so I’m honored to be part of that.
Jay Conner [00:01:55]:
Yes. You’re you’re in the 8 100, Randal. We’ve got quite we got quite a few 100 episodes here on raising private money. Started the show about 8 years ago, and we’re glad to have you on. And I’m so excited to talk with you today about, your expertise, one of your expertise, and that being crowdfunding. But before we get into it, I just wanna remind everybody, this is the show. This is the podcast where we’re talking about raising private money without ever having to ask for money. At least that’s the way I go about it.
Jay Conner [00:02:25]:
And, so we’re gonna have fun talking about private money and crowdfunding. Before we get into that though, Randal, tell us your background and how it is and what you went through to get to where you are today.
Randal McLeaird [00:02:38]:
Alright. Well, again, thanks for having me on, Jay. It’s it’s it’s an honor to be here again. I just looked at it in Notepad, and I have a bunch of notes from when you were on my show just a couple of days ago. And so, again, I was looking through and, like, oh, I gotta do this and do that. So, again, thanks for jumping on my show. How I got started was that in, 2004, I graduated college. A buddy of mine who I went to high school with, had already been out of school or never went to college, had the same birthday as me, and I ended up getting a job for him, working for him right out of college.
Randal McLeaird [00:03:12]:
And, it kinda clued me into a few things about schooling and all all kinds of different things. But one of the things that I got out of it was real estate, and that was because he had his own mortgage company. And he had toys. He had, you know, multiple condos. He had all kinds of stuff. And it was out in Myrtle Beach, South Carolina. And, it was an eye-opening experience for me going to work for somebody who hadn’t gone to college, right, after just finishing my 4-year degree. So that’s the start.
Randal McLeaird [00:03:39]:
I was doing loans, doing mortgages, you know, the ninja loans for everybody back then. So I saw a lot of transactions back in in that time frame. Went and lived overseas for 3 years. I was in Australia living there, running some company, doing some things, and having a good time over there, but I always wanted to get into real estate. And so in 2008, I came back to the United States and was trying to decide, you know, it was a pretty tough time to be getting into real estate in the United States, arguably from somebody who hadn’t been doing it. But it turned out to be the best time to get back. And so when I got back, I was trying to decide, you know, the market’s not so great right now. Should I get, go back to law school, or get a law degree? And so I went to, a few Ria meetups, met a real estate attorney, and ended up talking to him and said, hey.
Randal McLeaird [00:04:28]:
Can I come work for you for a little while just because I wanna learn the law side of real estate and understand if that’s something that I actually wanna be involved in or not? And went and took some classes at the local, university as well just to, again, see if I wanted to get back into the university system and go back and get a law degree. But, anyway, in the process of working for this attorney, I was going out to see a ton of houses, looking at a bunch of properties because he was a real estate attorney, and so he gave me his access to, the MLS. And I got out to see all these properties. Ended up getting a deal because I was his closer. I was a fee attorney closer. And I got a deal from another investor who came. I was doing the closing for him, and he ended up backing out of that deal at the closing table. Just called in and said, hey.
Randal McLeaird [00:05:15]:
I can’t close this deal. I’m I’m you know, my money’s set up on something else. The seller was already there sitting at the table. And, you know, I was looking at her. He had it under contract for $15,000. I think I had, like, 12,000 to my name at the time. And I said, look, I got $10. Do you want it? I’ll give it to you right now.
Randal McLeaird [00:05:32]:
And so we changed the docs. The attorney changed everything around. I bought it set unseen. I’d never seen this house. And, and that was the first deal that I ever bought in San Antonio. That same seller later sold me the lot across the street and that lot I bought for $1,000 and ended up, owner-financing that lot with $1,000 down. And then I had a note for $2,000. And so that’s that’s the start of my owner financing strategy that carries me through today.
Randal McLeaird [00:06:03]:
You know, I created a bunch of notes back in the day, and still have some of those, that was the start. That was 2009, give or take when I first started buying properties here in San Antonio.
Jay Conner [00:06:12]:
Are you glad you bought that $10,000 house?
Randal McLeaird [00:06:15]:
For sure. For sure. Scared the scared me when I when I first drove up to that property. At the time, you know, I tell the story. It’s just funny. It was I was in a tiny little Suzuki white car like me, the little guy driving to this property. Didn’t know anything about the east side of San Antonio at the time. And what I’m pulling up to the property, the entrance of the neighborhood was bail bonds, bail bonds, bail bonds, and, like, all these burnt down houses.
Randal McLeaird [00:06:41]:
And all these guys are just kinda sitting on the stoops, just looking around. Nothing to do. It’s 2,008, 2009. A lot of people had just torched their houses to try to stop making mortgage payments on them. Like, this is so I thought I bought a foundation. Luckily, there was a house there, but when I opened the door, there was a massive hole in the ceiling. I was like, alright. I know how to fix this.
Randal McLeaird [00:07:02]:
Luckily, I can swing a hammer and do my thing. So, anyway, I ended up just flipping that. I paid 10 for it, and I sold it. Sold the paper. Didn’t do anything, any work or anything. I sold it for $15,000. I was like, okay. It works.
Randal McLeaird [00:07:15]:
Let’s go.
Jay Conner [00:07:17]:
So what what’s the summary of the past 14 years since that since you bought that house?
Randal McLeaird [00:07:23]:
So we ramped up. I mean, I was buying and creating notes, and I’ve done transactions just like that over and over and over again. So at one point, we’re doing 50 transactions a year and flipping houses, wholesaling houses, buying dirt, selling dirt, rezoning properties, getting properties entitled, you know, and then got into the I heard your intro. Got into the multifamily space and the ramp-up from 18 to 23 in the multifamily space. I mean, properties were just going gangbusters in pricing. And so I didn’t buy anything, myself. I partnered with some people and bought some things in those deals. I’m happy to talk about them, but they have not performed as well as any of my single family or any of my other investments that I’m I’m in full control of.
Randal McLeaird [00:08:08]:
And so that’s that’s what got me to say, look. I’m just gonna I’m just gonna keep working on this, single-family side of things right now.
Jay Conner [00:08:17]:
So in the single-family house business, are you flipping? Are you wholesaling? Are you holding? Or all the above? What are you doing?
Randal McLeaird [00:08:25]:
Yeah. All the above. Mostly flip right now just because anything that I hold is gonna be a note. The process again, when you’re going direct to seller and you have a full machine that you’re going and spending all this money, I mean, you and I talked about this, and you gave me some information and some help on look. If you wanna go direct, here are a few better sources that you can use. And so, again, I appreciate that. But I changed my whole business model from having acquisitions, lead management, you know, acquisitions, and then, everything in-house to where it’s I can just look on a few websites, talk to the wholesaler directly, buy direct from them, and then I can send my crew out there and they can flip it. So that’s been the process for the last couple of years just because it’s it’s relatively low maintenance on my end.
Randal McLeaird [00:09:11]:
Doesn’t take a ton of time out of my day to to manage that process. And I have the capital so that I then I can go do that. Does that answer your question?
Jay Conner [00:09:20]:
Yeah. Yeah. So you just mentioned the word capital. And so since this is the show titled Raising Private Money, let’s talk about raising capital. So you have experience, expertise, and crowdfunding. You know, that word, crowdfunding, is sort of a misnomer. You know, you hear it. It’s sort of a buzzword out there.
Jay Conner [00:09:43]:
But people have different definitions of what is crowdfunding, how you go about raising capital when you’re doing crowd. So give us your definition, Randal. What is crowdfunding?
Randal McLeaird [00:09:57]:
Well, the way that we are using it is to raise money from people that we may or may not know, which is the reason crowdfunding exists. You can put it onto a platform. So I have you have to have your capital, raised through a platform kind of like InBone, which is who we use. Your offering is listed there, and then anybody, whether they know you or not, can invest in you in your deals. And we used that because it casts a wider net for people who can invest. There’s no minimum investment typically unless the op the operator or the offering stipulates that there is. And so we stipulated a $10,000 minimum offering. We came to this because in the apartment space, in the multifamily space, there are a lot of syndicators, and the minimum investment is 25 to 50.
Randal McLeaird [00:10:51]:
They ended up going to a 100 on some offerings. We felt like it wasn’t allowing smaller investors to invest and learn and understand the process of what it’s like to invest alongside other people to get the benefit of their capital being put to work without having to do the work themselves. And that’s why I like the crowdfund system. You don’t have to be accredited, meaning you don’t have to have a high net worth. You don’t have to be earning excessive amounts of money. You can still invest in these deals understand real estate get to learn real estate and work with an operator like myself who has a ton of experience without having to go out and source the deal yourself, swing the hammer, and and try to buy and sell property over and over again. You get the benefit of somebody like me doing that.
Jay Conner [00:11:39]:
Right. As with pretty much any private lending opportunity, you know, it’s a great way to be passively involved in real estate. I’ve got 47 private lenders right now, individuals. And everything we do is what’s called a one-off, meaning we have a single-family house, and then we may have a private lender or maybe a couple of private lenders that are, you know, that are funding that deal. So you mentioned a platform a couple of minutes ago that you used, I guess it’s on the Internet, for your crowdfunding raise. What was the name of that platform, and how does it work?
Randal McLeaird [00:12:18]:
Invown
Randal McLeaird [00:12:22]:
Levi Brackman and his team put that together. Lavey’s a great guy. So, yeah, certainly. On my podcast, I think it’s 154, episode 154. I go through and talk to him in-depth about his platform and what it is. So, as you mentioned, it’s a one-off what you are doing. So traditionally in a single family, you can go and borrow money from an individual or they can lend you money and be the 1st lien on that property, and they’re on that deal.
Randal McLeaird [00:12:49]:
What a crowdfund is, it’s more like a fund where you can buy multiple assets with the capital that you have raised, deploy that capital, and it’s at work. And so the investor is in the deal for 3 to 5 years, and then we exit all of those notes and sell them out. So on your deal, you might set them up to where they’re, your your private lenders involved for 5 years, 10 years, or or 6 months. Depends on the the strategy that you’re implementing and using. For ours, we’re creating and we’re we’re either creating notes. So we’re selling homes on owner finance, and our fund is the one that owns that property. And so I can walk through I I’ll break down the whole how we do it and, like, how you get paid back. But, the major difference is with a crowdfund, you are along for the ride, and you have a lot of different assets that your capital is being used to purchase rather than a one-off where it’s like your money is for 123 Main Street only, if that makes sense.
Jay Conner [00:13:51]:
Right. Right. So they invest in your fund, and the money that you use in the fund is used on multiple projects. Right? So when a private lender invests in the fund, since their money is being used across, you know, different properties, different assets, then there’s not like there’s not like a note, like, they’re investing in the fund. There’s not a mortgage. There’s not a deed of trust. So, is the way you do crowdfunding, is it regulated by the SEC?
Randal McLeaird [00:14:33]:
It is. Yeah. Alright. So how
Jay Conner [00:14:35]:
Does that work? What do you have to do with the SEC for crowdfunding?
Randal McLeaird [00:14:38]:
We had to file a Form C with the SEC. Again, you cannot you can’t raise capital through regulation CF on your own. You have to have a platform that hosts it, and that’s where Envone comes into play. And so if you go to their website, Envone, you can invest in, like, bourbon barrel investing, which was some wild investment. You can invest in a startup company that may be working on x, y, and z. So traditionally, crowdfunding has been used in the startup space. Hey. I have a widget.
Randal McLeaird [00:15:09]:
I want to sell this widget, but I need, you know, $100,000 to get it off the ground and launch it. And, I need to raise money from, you know, everybody that wants to donate $5. Right? That’s that’s traditionally how many people have used crowdfunding. It turned into a real estate opportunity because there is a minimum or maximum annual raise of $5,000,000. And so what people had started doing in the multifamily space, they would go out and they would do a 506 c raise, which is credit investors only, but you can advertise. You can market for a large portion of the capital stack that was required to buy a $20, $40,000,000 property. But then to open it up to other investors who were maybe smaller investors who were non-accredited, they would couple it with a CF raise and you could raise to $5,000,000 from smaller investors. And so, you know, taking it for the use that that we have, which is we wanna raise $5,000,000.
Randal McLeaird [00:16:14]:
We wanna deploy that into 25 to 30 properties, and we’re gonna create notes around around those. It’s a it’s a it’s a great vehicle for what we are trying to use it for just because we don’t need to raise more than 5,000,000 in any given year, to be able to buy the number of properties that we wanna buy.
Jay Conner [00:16:31]:
That makes sense. So comparing and contrasting your crowdfunding opportunity, why do your investors why do they like it? Why why do they get interested? Why do they decide to invest in your crowdfunding opportunity, say, perhaps, other than something else?
Randal McLeaird [00:16:52]:
Well, I mean, if you compare it to a CD or if you compare it to a traditional, 4 zero one k return profile, we’re offering a 7% return on a $10,000 investment. I mean, there are not many opportunities like that, and it’s a monthly sorry. It’s a quarterly payout. And it starts the day your capital is deployed. It starts so, it’s it’s like a loan, but it’s like an interest-only loan. Your principal is not getting paid down, so you’re gonna earn that every year that you have that money deployed. And so when you look at being in a 1st lien position where you’re getting your principal interest tax, your principal and interest payments, you’re getting your principal balance reduced over time. And again, if you’re the lender, you’re the investor in that deal, then you have to deploy that capital somewhere else again.
Randal McLeaird [00:17:43]:
So your money is not necessarily always at work in any given year. So if I have $100,000 to invest and I put it towards a deal, if it gets paid back in 6 months and then it sits there idle for another 4 months, then it gets deployed. And that’s a total of 6 months that it was deployed in any given year. And so I’m not earning a true, you know, 10% or whatever that number is. And so for us, in in this scenario, it is okay. We have your capital. It’s deployed. We have 123 Main Street plus 15 other properties that your money is being used to purchase.
Randal McLeaird [00:18:19]:
Those houses are paying us a mortgage every single month, and you’re getting your interest every single month or every single quarter until we sell the entire package of notes.
Jay Conner [00:18:29]:
So it’s like, it’s like an individual putting money in a certificate of deposit in the local bank, except you’re making a lot they’re making a lot more money. Instead of 3%, 4%, whatever it is, they’re they’re making 7%. So when you put this opportunity out there on the platform and by the way, I’m sure we’ve got a lot of listeners to this episode that are interested in learning more about how to get involved, how to get these high rates of return. So in case anybody’s gotta jump off early, I want you to go ahead and share right now, Randal, how people can learn more about your crowdfunding opportunity. And I think you’ve got a new project coming up that you’re doing a raise for as well. Right?
Randal McLeaird [00:19:13]:
We’re we currently have the crowdfund open yet. It’s it’s, if you go to www.ridgelineig.com. Yeah. It’s right there on the screen. On the offerings tab, there’s the Ramp Capital Fund, and you can go straight through and read about the investment opportunity. And, yes, we are raising for that right now. We just closed one of our first properties in that in that fund. And to to run through how that works and how that how how this whole thing works, We buy property.
Randal McLeaird [00:19:45]:
So I bought this property for, I think, $105,000 We’re going to put 20,000 into it. So we’re selling it for 125 and we’re going to sell the property for right at 20215. So we should have a note to our end buyer for 200. And we only invested $135,130,000 in this deal. And so that spread, we’re charging 8 to 10% interest to our end buyer and we’re paying out up to 10% interest to our investors. And so we’re collecting the delta, the spread in between. You collect your money throughout the whole hold process. And then when we sell and exit, you get your return on capital plus all the cash flow that you received throughout the whole period.
Randal McLeaird [00:20:25]:
So that’s the that’s the mechanism and that’s the strategy, and that’s how well protected the capital is in that deal. Because if we’re in the property for only $135,000 and it’s worth 200,000 on the note, that’s a huge delta that we’ve got for any fluctuations. Should we have to foreclose, take the property back, or do anything like that? So again, that’s that’s the mechanism for how the payments are made. And to clarify, I just said 10%. So if you invest a minimum of $10,000 up to 25,000, you get a 7% return on your money annualized. Right? That’s an annual return. If you invest up to 150,000 or more anything above $150,000 is a 10% return on your money. So it’s just like, again, a CD.
Randal McLeaird [00:21:08]:
If you invest more, then you get a certain type of return. So, the the properties that we buy, most of them hover in the 125 to 150 range. And so a single investor could be putting their capital to work immediately on an individual property that we buy and earning up to 10% on their money annually on an interest-only style. It’s not a loan. It’s an investment, but, you can think of it as a loan.
Jay Conner [00:21:36]:
Again, the website, to learn more about Randal’s opportunity for you to invest in is www.ridgelineig.com. That’s spelled www.ridge, line, line, .com. And, Randal, where are the properties that your company is investing in?
Randal McLeaird [00:22:00]:
Everything will be in San Antonio, Texas.
Jay Conner [00:22:02]:
Okay. So right there in your market, and so all the properties are there that, you can drive by. Your team can drive by. You don’t need boots on the ground in another state. It’s all right there where you keep your eye on it.
Randal McLeaird [00:22:14]:
Correct. Yeah. It’s it’s where we’ve been buying for the last 14 years. Yeah.
Jay Conner [00:22:19]:
Right. Well, you know the market like the back of your hand. So, how many properties have you got going right now simultaneously out there?
Randal McLeaird [00:22:27]:
Yeah. Right now, we’ve got probably 5 going.
Jay Conner [00:22:30]:
Okay. Cool. Cool.
Randal McLeaird [00:22:32]:
Some some in the wrap-up stage and some are finally getting listed and some, you know, permits getting approved, that sort of thing.
Jay Conner [00:22:38]:
Sure. And, again, you are now doing a capital raise for a new raise that you have going on. So, again, if you’re listening to this show, you definitely wanna check out that opportunity there with Randal at ridgelineig.com. So other than people listening to my podcast, Randal, how do people hear about this opportunity? How do they get to your website? How do they find out about it?
Randal McLeaird [00:23:05]:
How am I how am I marketing currently? Is that the question? So, multiple different ways. They’re going going to local meetups. That’s 1. You know, reaching out to my contacts who have lent me money in the past. That’s another. And just having the conversation on a podcast just like this. I mean, I’m out talking about it. We had created this this, the fund, and it took a minute to get it up and running.
Randal McLeaird [00:23:31]:
And so now that it’s up and running, I’m out doing the podcast circuit talking to guys like you and, reaching out to your amazing audience and talking to people who are looking for a great opportunity to invest alongside somebody like me.
Jay Conner [00:23:43]:
I assume when you said it took a minute to get it done, you’re using the new definition of a minute and not the old definition of a minute.
Randal McLeaird [00:23:50]:
Yes. It was not a minute. It’s my first time trying it and doing it. It was and that’s why Lavey, again, his team, I can’t plug them enough. They stuck with us and helped us through, you know, a million questions that we had about how this works, how to do this, how to do that, their contacts, their attorneys, and everybody else on their team. Solid solid guys.
Jay Conner [00:24:12]:
Right. Right. Well, it is fascinating. So I think I know the answer to this question, but I’m gonna ask it anyway. Why did you choose, crowdfunding versus once, you know, a private lender or a couple of private lenders, you know, funding a single-family house?
Randal McLeaird [00:24:34]:
Again, doing this over a long period, if I could do the paperwork once, which is what we did setting up a crowdfund, and be able to raise the capital once, then that is the ideal scenario. It’s just one of those things where when you have to go back constantly and ask for capital, ask for capital, ask for capital, you do it you do it all the time. So you could answer that better than I do. But, it always turns into a reselling or a new conversation about why this one property makes the most sense. I feel like my track record speaks for itself when I’ve gone and done 100 of 100 transactions. Right? And so if the first deal out of the 25 properties we’re going to buy is the same as the 25th property, then going and asking for the capital over and over again, it just seems like it’s, you know, it’s an added level of work that, doesn’t necessarily need to happen. If the investors are happy, everybody’s getting their interest paid, then, again, if we can do it once and raise the capital and be able to go out and deploy that capital, that’s one reason. The other reason is, again, once you have invested, then your money is at work.
Randal McLeaird [00:25:51]:
Your money is not sitting idle for 6 months of the year. It’s it’s always going to be earning interest throughout that entire year, throughout the the hold period that we’ve got. And again, to reiterate this, it’s a 3 to 5-year hold. If you wanna get out, you can get out. We just have to replace your capital with some other capital. It’s it’s it’s, so that’s those are the two main reasons why.
Jay Conner [00:26:11]:
Yeah. Well, and the third reason I was thinking of, like, the minimum that I have that a private lender or an individual can get involved, with my opportunities is $50,000, and that’s not because I’m gonna use 50,000 to purchase a property. I’m gonna I can use 50,000 for rehabbing and renovating a property, but not purchase. But with your opportunity, someone can start as small as $10,000. So that just opens up a whole other world to you with a lot of other investors that would like or not able to start, you know, with much more than 10,000 or so.
Randal McLeaird [00:26:47]:
Yeah. Or or just want to try it. You know, it’s one of those things. There are deals that I have invested in with operators, and, you know, I said, look. I just wanna test you out. Let’s just check it out, and see how it is. And then, you know, over time, they prove themselves, they show themselves, then I invest more money, invest more money. So it solves both of those both of those things.
Jay Conner [00:27:11]:
Perfect. Perfect. Well, Randal, we’re about ready to wrap up this episode. Anything else that you would like to share with the audience, about Ridgeline IG or anything else?
Randal McLeaird [00:27:21]:
I mean, we’re excited for 2025 and looking forward to the new year that’s coming up. Again, I am raising the money right now. We’re we’re deep into that, and we’re sourcing properties right now and, looking forward to, you know, deploying and buying 25 properties this next year and having the fund fully deployed and and up and running and paying out solid returns.
Jay Conner [00:27:43]:
Well, before I let you go, what does your crystal ball say in the upcoming year? What do you see?
Randal McLeaird [00:27:49]:
I was wondering if you’re gonna ask because, you know, I asked you I asked you on mine. Again, on the single-family front in San Antonio, Texas, I feel like the market is strong. You know, there’s there. I’ve been buying through the heavy down cycle in 2,008, 9. And back then, we were buying properties for $20,000, $10,000. It’s not that right now, but there are deals to be had. There are a lot of investors who have slowed down or gotten out of the market, and that leaves more opportunities for guys like me who are still buying to go out and buy more properties at better deals and lower prices. So I’m excited for the local market that that we’re in.
Randal McLeaird [00:28:32]:
As far as, you know, the entire nation goes, like, not not gonna not gonna sit here and rub the crystal ball too hard and give you any kind of, detailed report because I just don’t think that it’d be worth the 2 seconds it would take for me to explain it. You know? But in San Antonio, it’s looking good. I’m excited for San Antonio 2025.
Jay Conner [00:28:55]:
I read I did read just this morning. A, an article came out this morning, and they had surveyed I can’t remember how many people they surveyed. It was quite a few. But, anyway, over 70% of Americans believe, they could be wrong, believe that the upcoming year mortgage rates are gonna come down. We’re gonna see mortgage rates coming down. I’m in the I’m in the over 70%. I believe we’re gonna see mortgage rates coming down, particularly with, you know, the new administration that’s coming in in, January. But, anyway, that’s my crystal ball
Randal McLeaird [00:29:34]:
For this. Again, if Elon gets in, don’t bet against Elon. You know? He’s, I feel like the Doge is gonna bring a lot of positive to everything. So yeah.
Jay Conner [00:29:47]:
By the way, has anybody ever told you you look like Elon?
Randal McLeaird [00:29:51]:
No. I have not gotten that. No. I have not.
Jay Conner [00:29:54]:
You’re a younger you’re a younger version of Elon.
Randal McLeaird [00:29:56]:
That’s a compliment. So yeah. No. But I’ll put that on my Facebook page now. Jay said.
Jay Conner [00:30:02]:
That’s right. Jay Conner said. Yeah. Oh, mercy. Randal, thank you so much for joining me here on Raising Private Money.
Randal McLeaird [00:30:09]:
Jay, appreciate you having me on. Have a great day.
Jay Conner [00:30:11]:
God bless you, my friend. Well, there you have it, another amazing episode of Raising Private Money. I’m Jay Conner, your host. Thank you so much for joining us, and I appreciate your rating and reviewing the show. That way I can keep having more amazing guests like Randal that you just saw and heard from. I look forward to seeing you right here on the next episode of Raising Private Money with Jay Conner.
Narrator [00:30:40]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to https://www.JayConner.com/MoneyGuide. That’s https://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 https://www.JayConner.com/MoneyGuide to get your free guide. We’ll see you next time on raising private money with Jay Conner.