Transitioning from flipping a house or two a year to managing a scalable, systematized business calls for expert insights and proven strategies. Enter Bill Allen, who shares the stage with Jay Conner on the “Raising Private Money” podcast to unlock the principles behind successful private money raising. Here’s an in-depth look at the topics discussed, aiming to revolutionize your approach to real estate investing.
Building Trust and Confidence
One of the first things Bill Allen emphasizes is the vital role of trust in raising private money. According to Allen, building a high level of trust and being authentic is foundational. He recounts the necessity of transferring trust from past roles, such as being a Navy test pilot, into new ventures like real estate. Friends, family, and professional connections are often the first to invest based on pre-existing trust.
Allen’s story is a testament to the power of integrity and reliability in establishing credibility. His advice is clear: believe in yourself first. Confidence is compelling and contagious. Potential investors won’t either if you don’t believe in your capabilities.
The Importance of Framing: Investment vs. Loan
Jay Conner and Bill Allen agree on a critical semantic shift: talking about investments rather than loans. Conner points out that when you say “loan me money,” that focuses on you, the borrower, not the investor. But when you talk about them investing, then the focus is on their benefit. This reframing not only positions you as a professional but also highlights the added value to potential investors, aligning with a servant’s heart approach.
Crafting Your Investor Matrix
Allen introduces a powerful tool he uses: the Investor Matrix. This method involves creating columns for different phases of your life, such as high school, college, and various workplaces, and listing names of people you know from each phase. Bill emphasizes rating these connections from 1 to 5 based on trust and potential financial capacity.
He elaborates that you should list out the names of people you had relationships with during those times. This exercise often jogs your memory, revealing more potential investors than you initially thought possible.
Leveraging Social Media
Using social media to tell stories and plant seeds about your projects is another tactical approach discussed. Allen mentions how he makes use of Facebook and Instagram to share anecdotes about his private lenders’ successes and how they enjoy high returns without managing property hassles. He believes that marketing is essentially storytelling, so sharing these stories online can effectively attract interest.
Soft Approaches Over Hard Pitches
Jay Conner underscores the principle that desperation has a smell to it. This echoes Allen’s advice to avoid pitching a deal too early and instead focus on planting seeds. Conversations should be natural and relational rather than transactional. For instance, when reconnecting with an old friend, you can share what you’re up to and plant a seed about investing without pitching a specific deal.
Allen provides a closing line for such conversations that removes pressure. He suggests asking if they know anyone who might be interested in these kinds of returns. This approach often leads to the person expressing interest themselves or referring you to someone else, removing the risk of outright rejection.
Diversifying Investment Opportunities
As you grow in your venture, Allen advises creating varied investment opportunities to cater to different investor needs. Whether it’s monthly payments through fix-and-flip projects or high annual returns via syndication and apartment deals, having multiple avenues ensures you can accommodate different investor preferences.
Conclusion: Learning from the Best
Raising private money takes skill, trust, and the right mindset. Bill Allen and Jay Conner provide a masterclass in not just obtaining funding but doing so in a way that builds lasting, trustworthy relationships. Whether you’re new to real estate or looking to scale your business, these insights offer a roadmap to effectively raise private money and achieve 7-figure flipping success.
In the world of real estate investing, trust is your currency, and relationships are your bank. Leverage them well, and you’ll find that private money not only accelerates your growth but also enriches your investment journey.
Stay tuned for more episodes of “Raising Private Money,” where seasoned experts like Bill Allen share transformative insights to propel your real estate investing career to new heights.
10 Discussion Questions from this Episode:
- Trust Building: Bill Allen emphasizes the importance of trust in raising private money. How does he suggest transferring trust from past successes to new ventures in real estate investing?
- Experience vs. Trust: In the episode, Bill and Jay discuss the difference between having experience and having trust when raising private money. How can new investors leverage trust when they lack experience?
- Language Use: Bill Allen prefers using the term “invest” rather than “loan” or “give” when discussing private money. Why do you think this distinction in language is important for potential investors?
- Networking Strategies: Bill mentions the process of creating an “investor matrix.” How can this method help in identifying potential private investors, and what are the steps involved?
- Social Media: Bill uses social media to subtly market his real estate opportunities. What are some potential benefits and pitfalls of using social media in this context?
- Fear of Rejection: How does Bill suggest framing conversations to avoid the fear of rejection when discussing investment opportunities with potential lenders?
- Masterminds and Mentoring: Both Bill and Jay talk about the value of surrounding oneself with like-minded individuals and mentors. How can being part of a mastermind group or having a mentor accelerate success in real estate investing?
- Long-Term Relationships vs. Immediate Pitches: Bill advises against immediately pitching deal specifics to potential lenders and instead recommends planting seeds first. What are the advantages of this long-term relationship-building approach?
- Diversifying Investment Opportunities: Bill has several different types of real estate investment opportunities he offers to investors. What are some benefits of having diverse investment offerings?
- Personal Stories and Testimonials: How important are personal stories and testimonials when trying to attract private money, according to the podcast discussion? How can new investors gather and utilize such stories effectively?
Fun facts that were revealed in the episode:
- Background Transition: Bill Allen is a retired Navy test pilot who made a significant career shift into real estate. He now runs a highly successful business called 7 Figure Flipping, which focuses on house flipping and wholesaling mentorship.
- Impressive Fundraising: Over his real estate career, Bill Allen has successfully raised more than $200,000,000 in private money. This substantial amount highlights his expertise and credibility in the field of real estate investing.
- Pickleball Enthusiast: In addition to his real estate ventures, Bill Allen has a passion for pickleball. He is even planning to build a large indoor pickleball facility next to his office, showcasing his enthusiasm for the sport and his entrepreneurial spirit.
Timestamps
00:01 Raising Private Money Without Asking For It
05:10 Trust as Key in Real Estate
07:25 Who Invests in Newcomers?
10:27 Securing Investors with Superior Returns
15:25 Support in Career Transitioning
17:00 Seek Guidance from Bill Allen
22:52 Private Lending Stories on Social Media
26:31 Conquering Fear of Rejection
29:06 Strategic Investment Inquiry Approach
32:32 Real Estate and Investment Plans
33:39 Real Estate Investment Annuities
35:00 Connect with Bill Allen: https://www.instagram.com/billallenrei
37:09 Private Money Investment Guide: https://www.JayConner.com/MoneyGuide
Connect With Jay Conner:
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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.
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The Power of Trust: Bill Allen on Raising Capital for Your Real Estate Deals
Bill Allen [00:00:00]:
Welcome to another amazing episode of Raising Private Money. I’m your host, Jay Conner, also known as the Private Money Authority. And I’m so excited that you have decided to join in here on the show today. We’re around 800 episodes right now, and we always have excellent guests. But today is different. Today’s different. Today, we have an amazing guest on the show. Here on the show, Raising Private Money, we talk about how to raise private money without ever having to ask for money.
Jay Conner [00:00:36]:
Well, listen, put your seat belt on. I hope it’s on if you’re driving in the car anyway. My guest has raised more than $200,000,000 in private money. Do you think my friend and guest could share a little bit of insight as to how you can raise private money for your real estate deals, like, super fast and easy? You better believe he can. He’s a dear friend of mine. We’re in a mastermind together. Known each other for a while, and we’ve got the same core values.
Jay Conner [00:01:08]:
It’s all about leading with a servant’s heart and making a difference and an impact in other people’s lives. And you know, when you do that, you just don’t have to worry about yourself. Well, my friend and guest today is a retired Navy test pilot and real estate professional. He’s the owner of what’s called 7 Figure Flipping, and he’s also the host of an amazing podcast, which is called 7 Figure Flipping Podcast. And that’s where he leads more of the house flipping and wholesaling mentoring, or one of the biggest house flipping and wholesaling mentoring groups in the world, literally in the world. Well, just a few years ago, I mean, talk about putting it on, putting it on high speed. Just a few years ago, he was stuck just flipping 1 or 2 houses a year, and he was doing everything himself. But in a short period, he built a systematized and automated business that now runs totally without him.
Jay Conner [00:02:09]:
His wholesaling and flipping company is doing over 60 deals a year now throughout the Southeast. And let me tell you, you are about to learn a lot and be inspired by my dear friend, Mr. Bill Allen, right after this.
Narrator [00:02:28]:
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 [00:02:55]:
Bill, I just can’t tell you how excited I am to have you here on Raising Private Money. Welcome to the show, my friend.
Bill Allen [00:03:04]:
Jay, thanks for having me. I think that’s probably the best introduction I’ve ever gotten. I’m pumped up. I’m ready to share all the secrets. So, I just want to have, like, Jay next to me at my office to be my hype man. It sounds so good. So thank you for that.
Jay Conner [00:03:19]:
Well, you are certainly welcome, Bill. But, man, when I’ve got a guest on like you, I mean, you know, I just wanna, you know, say thank you, Lord, for introducing me to Bill Allen. I mean, you are just a wonderful human being. You’re delivering such a huge impact out there into the world, and it’s just a pleasure and a blessing to be able to call you my friend. So let’s go ahead and dive in. So, listen in folks, for those of you that are tuned in here to the show, this guy right here, first of all, if you’re looking to raise private money for your real estate deals, I mean, I’m the private money authority. I mean, this guy is the authority of the private money authority, if you know what I’m talking about. Raised over $200,000,000, and he knows all about raising private money for single-family houses.
Jay Conner [00:04:04]:
He knows even more about raising money for syndication, for his multifamily and his apartment deals that he’s got going on, and transactions. So I want y’all to get ready. And then, and besides that, if you are listening in and you’re interested in being a passive investor, and you don’t want to negotiate deals and find deals and oversee deals, and you just wanna sit back and get high rates of return, safely and securely, Bill’s your guy too. I mean, he’s got investment opportunities where you can invest with him and just have, you know, totally passive experience. And let Bill and his team do all the work, and you don’t have to be out there, you know, running and grunting and just letting them do the work, and you get a higher rate of return. So whether you’re looking to raise private money or be a passive investor, Bill is the guy. 1st question, Bill, and you can answer this any way you want to because it could take an hour to answer it. And that is, how are you qualified to do what you do?
Bill Allen [00:05:10]:
Well, great question. I think it’s number 1, experience. So you know, the challenge with saying experience and giving that answer is that people without experience think that they can’t raise private money or any money or they have to save up a bunch of money to get started in real estate deals, and that’s not true either. So what I think it is is building a high level of trust and being myself. So what I mean by that is when you look back into, your history along your whole life, whether it was growing up, sports, job that you had maybe in college, there are times in your life when people come into your life, and you build high levels of trust with those people. Early on, when I didn’t have any experience in real estate, I had high levels of trust with family, with friends, and with people in my warm network who believed in me regardless of what I was gonna do. So what I did was I had to transfer my trust from the Navy and the military and my family and other people who have seen me succeed in life in different areas, transfer it to this new thing that I was gonna do called real estate. And so some of my early private money lenders were, you know, friends, family.
Bill Allen [00:06:16]:
There are people in my squadron in the military who had some money and wanted to kinda partner with me financially. I had an early partner who was a 50-50 JV partner who provided all the money, and I did all the work. We did the first 6 deals of mine together after I did a couple of my own. So it’s scaling the business. So what that did was that that gave me a level of experience in real estate, also that I can now kinda continue to build those people up. So I would say experience, but it’s trust. I think trust and being myself. Like, I don’t say certain things that other people say.
Bill Allen [00:06:48]:
I don’t dress the way that other people think I should dress. When I’m talking to a private money lender I, if you saw me in the grocery store, you saw me on my farm, you saw me at an event, you’re gonna see the same guy. And I think that continues to build trust. So in short, I think the answer to why I’m qualified to do what I do or tell the story is, number 1, I’ve raised a lot of money. I’ve helped a lot of people. I’ve helped, you know, hundreds of other people raise money. But I think I can just be myself and build a level of trust with people and figure out what they want on a consultative approach. I think we have that in common, which I like.
Jay Conner [00:07:25]:
So I want everybody to understand my question and Bill’s answer. So when I asked Bill, How are you qualified to do what you do? What I was asking him that he answered was, how are you qualified to raise all this private money? How do you go about raising private money? He just answered that. I wanna drill down a little bit, Bill. Part of your answer, you were speaking to someone who may be listening here to the new show, and maybe has never raised private money before. And I know you’ve gotten this question. I’ve gotten this question a lot of times, and you answered it, but I wanna drill down on it a little bit more because it’s such a common question that we get from newer real estate investors. The question they ask is, who in the world is gonna loan me private money or invest in my deals? And I’ve never done a deal before in my life. Who is going to do that with me? What’s your answer to that, Bill?
Bill Allen [00:08:31]:
Yeah. So you said 2 different words. You said, Who is gonna loan me the money? to and then you said Invest in my deals. So I would much rather invest in my deal versus loan me money because I feel like, you know, when I was getting started, I had my aunt. So my aunt was a couple of my dad’s brothers and sisters who were investing with me very early on when I was kinda growing my business. We were doing 2 or 3 houses at a time. And then I had this one aunt who was a little bit older. It’s my dad’s oldest sister.
Bill Allen [00:08:59]:
And she said to me, she said my family growing up, called me Billy Y. So, longer story, but my middle name is Yazvac. So I’m Billy Y. So my initial for my middle name. And she said, Billy Wise, if you need some money, I’ll loan you some money. And I had to take a step back and say, like, this isn’t charity. This is not you loaning me money. This is you investing in my opportunity.
Bill Allen [00:09:24]:
I’m making a lot of money with, you know, your brothers and sisters. They’re making a lot of money with me. And so if you wanna be involved with what I’m doing, the mission that I’m on, my goal is to help people grow their passive income, then come along with me and invest with me. But I don’t need a loan. I’m asking you if you want you wanna join me in this opportunity that I have, which is much better than the other things that you might be investing in right now. So the words matter, I think. Just be careful. Like, if you’re thinking, why would anybody loan me money? And I hear this a lot of times.
Bill Allen [00:09:56]:
Why would anyone give me money? Like, nobody’s giving you money. If I give you money, I don’t expect to get it back. I give my kids money when they ask for toys and things like that. Right? They don’t expect it back. Like, I want people to invest in opportunity. So the first thing that you have to do, even if you’re brand new, is number 1, believe in yourself. So believe in yourself that you’re confident that you can accomplish this task, this goal that you wanna do. The fact that if you bought a house to flip and you fixed it up and you sold it, that you are gonna be successful, you are gonna make money.
Bill Allen [00:10:27]:
Because if you don’t believe that, then your investors won’t believe that. So my answer to this question is that there are lots of people out there who would invest with you. If you have a better opportunity and a better vehicle than what they’re getting, if they’re not happy with where their money is, this is usually the case. The ups and downs of the stock market are driving them crazy. They don’t wanna get on this Bitcoin roller coaster and crypto and things like that. Like, where else are they gonna put their money? If it’s in a bank earning less than 1%, or maybe it’s in a money market savings account right now earning 4 and a half %, or maybe they got it in a CD doing 2 and a half percent %. Well, if you gave them 8, I bet they’d be really happy. And people that you go to when you’re getting started and don’t have a track record are people who already trust you.
Bill Allen [00:11:10]:
They trust you from the past. They’re in your world, and you transfer that trust to this new opportunity. But you gotta believe in yourself. And I think most people who say that they’re like, they’re hesitant. They’re they’re scared. It seems a little risky. And, and they don’t believe in themselves yet. Like, Jay, me, and you probably believe in them more than they believe in themselves.
Bill Allen [00:11:26]:
So believe in yourself because you’ve been successful in the past at lots of things. Transfer that success to this new thing. Find a mentor. There are a lot of things we can discuss there, but get and those people will come alongside you. And it’s an opportunity. Like, if you are going out looking for a loan, it sounds desperate and feels desperate. No one’s gonna say that.
Jay Conner [00:11:48]:
Bill, I love the reframing. I want everyone here tuning into the show. Don’t miss what Bill just said. Bill said and, of course, we know words are important. Words are not only important to who’s listening to what you say, but words are even more important based on what’s coming out of your head. Because what comes out of your mouth is a reflection, of course, of what you’re thinking about yourself. So what Bill said was, don’t talk about somebody loaning you money. They’re investing in your deals.
Jay Conner [00:12:22]:
Right? Don’t think about somebody giving you money. If you know someone’s giving you money, that’s a gift. Right? They’re investing. Now I tell you what I love about that framing of not loaning, not giving as far as words go, but investing. What I love about that, Bill, is that when you’re talking with someone else about the opportunity to invest, when we say loan me money that focuses on us, the borrower, not them. When we say give me money, the focus is on us, not them. But when we talk about them investing, then the focus is on their benefit, their return on their investment versus on us. So that way of looking at raising capital for your real estate deals puts the focus on the benefit of the investor.
Jay Conner [00:13:25]:
If we’re gonna talk about leading with a servant’s heart, then that’s how you lead with a servant’s heart. You’ve got their benefit in mind. So I want to talk for a moment about how you get, how somebody gets to have the confidence and believe in themselves if they don’t have the confidence and believing in themselves. Now one thing you said was to transfer that trust and confidence from your experience into what you are now doing, a real estate investor. Any other any other ideas come to mind? I sure have one.
Bill Allen [00:14:03]:
Yeah. There’s a couple, and I’d love to hear yours too because, I mean, I always will take Jay Connor’s wisdom all the time. The first thing that I would say is a lot of times, you have it it’s easy to think about what’s happened recently in your life, but it’s hard to look back sometimes. Like, the rearview mirror is cloudy a lot of times. So I would go back in time and just start, like, thinking about all the different places that you’ve that you’ve won, all the things that you’ve been successful at. Usually, we spend more time thinking about where we failed and, you know, what’s wrong with us than all the things that are good with us. So one thing is just to think back in time a little bit, and then I like to stack wins. So I have a, I have a stack of, like, thank you cards and notes that people have sent me and cool stuff.
Bill Allen [00:14:46]:
Like, anybody sends me anything, I have a stack of it in my office. And whenever anybody is feeling like, I’m feeling down because, I mean, somebody’s, like, crushing me on an ad that we have or said something horrible about me. I’ll just sit down and, like, read through those thank you cards just to kinda build myself back up. And so I would stack these wins from the past. So some things that you’ve done in the past that you have been successful on. Maybe it’s been a little while, and you just have to build up your confidence. The second thing I would say is to have people around you and surround yourself with people who lift you and believe in you. So that might be a mastermind or mentorship program where other people are like-minded because most of the people in your life probably don’t support you or might think that you’re crazy.
Bill Allen [00:15:25]:
They love you, but they’re like, you’re gonna you wanna leave your job to do real estate full time? Like, what are you raising money on you’re asking people for money and things like that. What what’s what’s going on? And so you gotta have people around you that believe in you, that can lift you and believe in you before you believe in yourself. I have plenty of people who come through, like military professionals, and nurses. We had some doctors. We have people that have been in a successful career for 10 or 15 or 20 years of their life, and they come into real estate and they think they’re a newbie. Like, they’re brand new. They’re not brand new. Right? They bring all their experience from life and business and their job into this new thing. The vehicle is new, but there’s so much deep experience and wisdom that comes with it that can easily be transferred to a new skill like real estate.
Bill Allen [00:16:15]:
They just need to get a little bit of experience. So bring some confidence, like, belief in yourself, and having a good hype man like Jay next to you to introduce you also helps.
Jay Conner [00:16:24]:
There you go, Bill. Well, true. I mean, you and I practice what you just preached and that is surrounding yourself with like-minded people in masterminds. You and I are in a mastermind. We’ve got a lot of people cheering us on. Masterminds allow everyone to give back. So in addition to surrounding yourselves with those types of people, I would I would add another, level to that. And that is to be laser-focused and work with an individual who has already plowed the ground and has already made 100 out of 1,000 dollars in mistakes.
Jay Conner [00:17:00]:
Hello? They know what they’re doing. So get you a coach or a mentor like Bill Allen that you can work with, particularly if you’re starting, right, on the new side that, you know, can give you the actionable steps. 1, 2, 3, 4, 5. I mean, whether you wanna do wholesaling, I mean, Bill’s himself and his team, I mean, they coach on wholesaling. They coach on flipping, and all that. I mean and then when you do that, you can leverage that relationship. So what do I mean by leverage relationship? You know, one question I get all the time is, well, even if I’ve got all the confidence and if I’ve got, you know, the belief and the trust in myself, who’s gonna loan me money if I’ve never done a deal? Right? Well, when you’re working with someone such as Bill, you can leverage that relationship and say and you can leverage and talk about, well, how you and your business partner have done x number of deals or had, you know, whatever successes. So, Bill, let’s let’s move forward here.
Jay Conner [00:18:06]:
So let’s say that this individual is, this new real estate investor has got the confidence, got the confidence, has been trained, has been coached, you know, knows what’s going on, knows what kind of offers to make, etcetera, and is looking to raise and attract capital. What are some actionable thoughts, and steps? Where do they start?
Bill Allen [00:18:35]:
Now I
Jay Conner [00:18:36]:
tell people all the time exactly what you just said. You gotta get the mindset right. You gotta own the real estate between your ears. So all that’s in place. How do you start? What are the actual steps from your experience to actually how to start attracting the capital?
Bill Allen [00:18:54]:
Yeah. There’s there’s a couple. So I’ll give you a couple of, like, tactical pieces of advice and things that I do. So, I have this thing called the investor matrix. So I build out what what I like to call this investor matrix. And kinda back to what I was talking about of going back in your past, the easiest way to do it is the just grab a sheet of paper or iPad or something like that, notes app on your phone, and what I do is I go back to all the different phases of my life. So in the very beginning, go back to, you know, when I went to high school is probably some of the earliest, but you go back to yeah. I start with family.
Bill Allen [00:19:30]:
Just put, like, a column for family. And then maybe high school. So I went to 2 different high schools. I went to a high school called Centennial High School In Maryland, I went to a high school called River Hill High School. So I’d have a different column for each of those. And then I went to Georgia Tech. I went to Georgia Tech in Atlanta. I was there for 5 years.
Bill Allen [00:19:44]:
I write Georgia Tech. And while I was there, I was in a fraternity, and I did Navy ROTC, and I played soccer. So I have relationships in all those areas. And then after that, I went to the Navy. I went to grad school up at Wright Patterson Air Force Base, so I put that. And then I went to lots of different squadrons, and then I went and I started in real estate, 7 figure flipping. So I have columns for all these different areas of my life. And then what I do inside this matrix is I start listing out the names of people that I had relationships during that time with.
Bill Allen [00:20:14]:
And so family, I can write all my family down, like, you know, close relatives and family. And then I have, inside of college, like, my soccer team. And once I start the thing is it’s it was a long time ago. It’s, like, over 20 years ago. But every time I write somebody down, I’ll remember some other name of another friend or somebody else that I had, you know, a relationship with at that time. And we may not have talked in a while. And so I build out this matrix. So I have the columns of times in my life, and then I list names.
Bill Allen [00:20:41]:
And some of these names will have 20 or 30 names down when I get done with it. And the longer that you spend on this, the better. You can build out a huge potential investor matrix this way. And then what I like to do is this is like a taken in another level, is I rate them from 1 to 5. So one would be somebody who, like, I don’t have a lot of trust with, you know, we don’t have a deep relationship, we might not still be in touch, or I already know that they’re in, like, financial distress. Specifically, I’ve talked to them recently. They don’t have they’re in financial distress, and I know it. Because there’s a lot of people that have money that you don’t know they have money.
Bill Allen [00:21:17]:
Okay? I’m just gonna put that right there. You can park it for later. Like, there’s a lot of people that have money that don’t tell you they have money. And the fives are like, I know they have money. We have a good relationship. This is gonna be an easy conversation once I start talking about it. And so then I can look at my matrix and say, where do I wanna spend the most time? In what area and what bucket? And to take it a step further, my next step is I’ll reach out to those people, and I won’t say, hey. I have a real estate deal.
Bill Allen [00:21:41]:
Do you want to invest? I just say, hey, Mike. I haven’t talked to you in a while. Just been thinking of you. Just wanted to send you a message to see what’s going on in your life. Could you give me an update? Maybe it’s an email. Maybe it’s a text message. Maybe it’s a phone call. And the law of reciprocity says they’re gonna ask me about what I’ve got going on, and I’ll say, hey.
Bill Allen [00:21:58]:
The flying is awesome. I’m having so much fun in the Navy. But what’s fun is I just started flipping houses, and I just did a project where my investor made a bunch of money. So the most fun I’m having is making other people money along with me. And I don’t say anything else. I just leave that there, and I start planting those seeds. So that’s a long-term game where you can kind of tell people about it individually or as a group, building a newsletter, putting some of those people on. Maybe put the 20 people you went to college with on an email thread together and say, say, hey.
Bill Allen [00:22:27]:
Haven’t talked to you guys in a while. This is what I got going on. Can you guys give me an update on what you got going on? And next thing you know, they’re and in there, say, I go I’m so excited to work with my private money lending partners as I start flipping houses, and then you just leave it there. And then the 2nd piece so that’s 1. That’s the investor matrix that I love to teach. I love to do that. I love to build it out. Anytime I’m doing a big deal, I keep building that out.
Bill Allen [00:22:52]:
And then the second one is social media. I love to use social media. If you follow me on Facebook or you’ve seen any of my stuff, you’ve probably heard me telling stories about previous private lenders and how they’ve made money or paid their families. You’ve probably heard me say something like my private money lending partners are just like you. Friends, family, people I went to college with, people I was within the military, just normal average people that invest passively and don’t have to deal with any of the tenants, toilets, flips, projects, problems. I might tell a story about a problem and say my money lender was in Aruba while I was dealing with this problem, things like that. And say, hey. If you ever wanna have a conversation about this, just send me a message.
Bill Allen [00:23:33]:
I don’t make an offer. I don’t put rates and terms and all that stuff. All the things that you’re not supposed to do, I just tell stories online. And that’s marketing. Marketing is telling stories. So I’m just putting it out there. And I will tell you, regardless of where you are in your money-raising career, if you’re just getting started, or you’ve raised 100 of 1,000,000 dollars, if every single person that you know doesn’t know that they can invest with you, you haven’t gone deep enough into your current network.
Jay Conner [00:24:02]:
Bill, have you ever heard anybody say that desperation’s got a smell to it? Totally. Totally. The reason I asked you that question is because I say it all the time. The reason I asked you that question is I don’t want our listeners to miss what you just shared. There’s a big takeaway. There’s a big takeaway under the surface of what you just shared. And that, and that big takeaway is, did you notice that Bill in what he just shared in his approach was very soft and he wasn’t trying to pitch a deal when he’s planting a seed? If you’re not driving a car, there’s a rider downer right there. There’s a rider downer right there.
Jay Conner [00:24:53]:
Don’t plant seeds or don’t try to plant seeds. And you’re pitching the deal for goodness’ sake. That’s why I say desperation has a smell to it. I’ve seen it time and again, new new, capital raisers for the real estate deals. They’re out pitching deals, and the people they’re talking to don’t even know what an investor or a private lender is. Right? And I know you’ve heard me talk about it, Bill. That’s why I always leave with my private lender teacher hat on. Right? And you have people say all the time.
Jay Conner [00:25:28]:
So I tell you, you know, I’m I’m afraid of rejection. And, of course, what do I say to them? How can you be rejected if you’re not asking anybody for anything? Right? So that so I love your approach, Bill, same as mine, planting seeds, and telling stories, And I love what you just said. So here is a quote from Bill Allen. If you have contacts and connections and they don’t know what you’re doing, you haven’t gone deep enough. I think I’m gonna get that printed up and frame it and put it right here in my office. That’s gonna tell you.
Bill Allen [00:26:08]:
Hey, Jay. You said something, about the softness and, and rejection. So I would say growing up, just so everybody knows, I’ll be I’ll be very direct here. I was a short kid growing up. My kids are gonna be short. I feel horrible. I have 3 boys. So being a short, boy is not the the best thing when you get to, like, high school and college and things like this.
Bill Allen [00:26:31]:
Right? Especially when you start getting interested in ladies. And so, I was always, like, afraid of rejection just throughout my life. Like, it’s a fear of mine. So I think a lot of what you’ll see, like high performance, being a test pilot, being the number one guy in the navy, like, wanting to be the best at everything that I do probably stems from that feeling, that insecurity. Right? So I have this fear of rejection. So if you have that, I have, like, the best, like, closing line for you in a conversation with people that have brought in 1,000,000 dollars for me. I know it will for you too. And you won’t feel like there’s ever a chance of rejection in this line.
Bill Allen [00:27:11]:
Okay? So if I’m having that conversation, I talk to somebody, and I send them that message and I say, let me know what you’re doing, and they ask me what I’m doing. Or I’m at a networking event, and I have a deal. Like, I have an apartment deal that that I’m gonna be raising money for here coming up. I have I gotta raise $10,000,000. So you better believe I’m gonna have to be reaching out to my warm network. I’m gonna be talking to people. I’m gonna be sending emails to my list. But in that conversation, I’m gonna tell them about the deal.
Bill Allen [00:27:36]:
I’m gonna say, hey. Maybe it’s my first flip. Let’s say it’s my first flip. Say, hey. You know what I’m excited about I have this project that I’m looking at in Spring Hill, Tennessee. That’s where I live. Spring Hill, Tennessee. It’s a 3 bedroom, 2 bathroom house, and we’re gonna flip it.
Bill Allen [00:27:53]:
We’re gonna buy it. We’re gonna fix it up, and we’re gonna sell it for a profit. And my favorite part about it is I get to bring in an investor, somebody who can bring the capital to the deal and make money without ever doing anything. They just bring the money. I’ll do all the work. I’m in a program. They’re teaching me all the ins and outs. I’m excited.
Bill Allen [00:28:12]:
The margins are really good. We’re buying it for a 150,000. I gotta put 20 grand into it, and we’re gonna sell it for 250 grand. And so, you know, I’m looking for potential private money lenders on these houses. So this is the line. If you and, you know, we’re you know, we pay an interest rate return. It’s great. If you know anybody who you think might be interested in that, Would you let me know? And if I’m talking about an apartment deal, we got this apartment.
Bill Allen [00:28:43]:
It’s 18% returns annualized year over year. And I’m talking to somebody and, you know, we’re having a conversation. I’m at maybe I’m at Thanksgiving dinner. I’m at Christmas. I’m at Easter, and I’m talking to my aunt, and I say, hey. It’s gonna be 18% returns. If you know anybody who would be interested in that kind of return, would you let me know? And so what that does is it gives them a couple of options. Right? There’s no rejection.
Bill Allen [00:29:06]:
I cannot be rejected because I didn’t say, would you be interested in investing in that deal with me? Because you put them on the spot. There’s only a yes or a no. Even if they say yes, they might not mean yes. They just might not wanna hurt your feelings. That is a very bad way to position yourself in the conversation. If you say, do you know somebody who might be interested in investing in that deal? Would you let me know? If you say that, they will 9 times out of 10, this is the answer I get. I’d be in I’d be interested in doing that. They’d be like, oh? Oh, that would be awesome.
Bill Allen [00:29:43]:
Like, I had no idea you were in a position to do that. That sounds fantastic. Well, what would you like to know about the deal? Or they might say, so that’s option 1. I’m interested, and that’s what I get, like, 9 times out of 10. They don’t feel pressure. They don’t have to say yes or no. And then the other time I usually get, oh, I do know somebody who’d be interested in that. How should I connect with you? And then sometimes it’s gone they go, oh, okay.
Bill Allen [00:30:06]:
Yeah. I’ll let you know. But either way, it for for the close where you don’t say, would you be interested? You say if you know somebody. There are all three ways, win win a win for me. There’s zero chance of a rejection. So that’s my favorite line, and to close any conversation, because I’m not a big networker. I’m not the best in-person, 1 on 1 kind of kind of guy. I like I don’t know.
Bill Allen [00:30:30]:
It’s, I’m not an extrovert. And so that has helped me a ton, and I hope it helps you.
Jay Conner [00:30:36]:
So I hope you heard what Bill just shared. And let me tell you why I can endorse and tell you what he just shared works. Because it worked for me. My very first private lender that invested $500,000 with me. My very first private lender that invested $500,000 with me. That’s exactly what I did. I told Wayne at church, I said, I need your help. When you run across somebody who’s looking for a high rate of return safely and securely and gets insane high rates of return, would you refer them to me? He and his wife became my first $500,000 private lender within 24 hours.
Jay Conner [00:31:25]:
And I didn’t have a deal attached to it. There there no desperation here. I didn’t have a have a deal attached to it. Now I put that money to work in less than 2 weeks. I bet you’re a bottom dollar on that one right there. Right? And I had 2 deals in the wings over here that I wouldn’t let my mouth tell them about because I don’t want them to sound desperate. But let me tell you, folks, what Bill just shared with you. Take it to heart.
Jay Conner [00:31:49]:
It works. Bill, what are you excited about today, and what are you passionate about? What are you working on? I just heard you’ve got this $10,000,000 raise you’re doing on a project coming up. Tell folks what you’re excited about, what you’re working on, and how they can get involved with you or learn more about it. Let’s see if they’re interested in getting involved with you.
Bill Allen [00:32:13]:
Yeah. Well, I appreciate that. I, yeah. We’re you know, the the hard part about apartment buildings is you never actually know what’s gonna happen. So once you go under due diligence, it’s a long period. And so we’re renegotiating a contract. But I was all set and ready in January to raise $10,000,000 because we have
Jay Conner [00:32:31]:
this $25,000,000 deal that we’re
Bill Allen [00:32:32]:
Buying, in, Chattanooga, Tennessee. But right now, it’s it’s kind of I’m not sure. Like, I’m ready to raise it. I’ve got, well, I got another apartment up in Michigan that we’re, again, doing the due diligence on and underwriting that I’ll probably have raised a 1,000,000 or 2 for. And then, right next door to the office building I’m in, I had a meeting this morning about it. I wanna build a pickleball facility. So I love pickleball, and, I wanna build this large indoor pickleball facility here for a business. And so there’s probably $3,000,000 to raise for that deal where, people will stay in for equity and get, you know, a fixed rate of return as well.
Bill Allen [00:33:06]:
So, exciting stuff. And then I also raise another thing that I do, I have these houses in Kentucky that we buy, we fix up, and we sell on our finance. And that’s all my apartments are usually, like, depreciation deals for people that need tax write-offs or or appreciation deals for net worth growth. And I have these deals in Kentucky that we do where it does a fixed rate of return monthly. So it brings cash flow for the people that want cash flow. And that’s usually somewhere around 8 or 9%. We have a pretty fixed business model there. So that’s you know, I have a lot of people.
Bill Allen [00:33:39]:
I call it the real estate annuity. So a lot of people, you know, want they want that annuity money, that monthly payment, and I can do that on real estate for a few years. So that’s been a lot of fun. And if you’re an advanced investor, my advice to you is if you get going and you’re raising a bunch of money, you have the skill, and people are coming to you to ask advice about what to do with their money and where to place it, are you find some a couple different places that you can put it. So what I’m capable of doing now, which is cool in my business, is anybody that comes in that’s interested in placing capital, I have an outlet for them in one of my businesses, whether it’s monthly payments, whether it’s annual with our fix and flip, whether it’s, you know, 5 years, 7-year deals, and net worth growth and depreciation with departments. So we have kind of 3 different buckets that we put the investors in. So as you grow and scale the skill of raising money and people come to me for advice, I can put them in different buckets. So I’m excited about that.
Bill Allen [00:34:30]:
I’m also excited, Jay. Like, we did a challenge teaching people how to raise money. So, like, I’m excited to like, people that are in our community, my favorite thing my favorite thing to talk about is like you. I feel like we’re we’re very alike in this. I love talking about money. Mine. Like, I could talk about it every day, anytime. I was tired before this podcast.
Bill Allen [00:34:50]:
I’m ready to run through a wall right now like the Kool-Aid guy. I love it. So those are some things that I’m excited about. The best way to get a hold of me is probably on Facebook or Instagram. So Instagram is at billallenrei, and then, I have a YouTube channel with the same same name. And then, Facebook is you know, we have 7 figure flipping and then me personally. So that’s where I spend most of my time in those two areas. So, yeah, that’s kind of how you get a hold of me.
Bill Allen [00:35:16]:
And I’m excited about helping other people learn this skill because I think it’s needed. And, Jay, you do an awesome job of that. I’m thankful for your mentorship coming on my show and my podcast to teach me a bunch of stuff and all the times we’ve talked. It just, you know, sharpens my accent and helps me too. So, that’s kind of what I’m excited about this year.
Jay Conner [00:35:34]:
Thank you so much for sharing, Bill. So listen, you’re interested in getting a nice, nice rate of return on your passive money. Bill Allen’s got a spot for you. You want monthly income, 8%, 9%, for goodness sake. You can go down to the money market and get, you know, a 3-quarter of a percent if you want to. But Bill, he’s got a program for you. And let me tell you something. As we talked about at the beginning of this show, it comes down to trust and who you’re doing business with, and there’s not another person on the planet.
Jay Conner [00:36:08]:
I’m telling you that I would trust my liquid money, as Trump says, liquid gold. You know, my investment capital, nobody else that I would than with Bill Allen. Bill, god bless you. Look forward to seeing you at one of our upcoming mastermind meetings. And listen, folks. To get in touch with Bill, all of his contact information, we’ve got right here in the show notes. So there you have it. Bill, God bless you.
Jay Conner [00:36:34]:
I look forward to seeing you soon.
Bill Allen [00:36:36]:
Thanks, Jerry. Me too. See you.
Jay Conner [00:36:37]:
Alright. There you have it. Another amazing episode of Raising Private Money. I’m so excited you decided to join us. And if you were inspired by this episode, be sure to rate, like, review, share, and follow, so you don’t miss out on the upcoming episodes. If you’re watching on YouTube, be sure and click that bell so we can now notify you of the next episode. I’m looking forward to seeing you right here on the next episode of Raising Private Money.
Narrator [00:37:09]:
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.