On this episode of Raising Private Money, we are joined by Amber & Glenn Schworm. They are experienced real estate investors who have successfully flipped over 1000 houses worth over $100 million, 583 of which were done with private money. They want to help others create wealth through real estate investing by teaching them their proven “Find, Fund, Fix, Flip, and Hold” strategy.
Although Amber & Glenn started their career in real estate out of necessity, they managed to build careers through hands-on experience and a desire for a better life for themselves. They come on the show with the knowledge they’ve accumulated, ready to share it with all of us. Tune in!
Key Takeaways:
- Glen & Amber’s first deals, and their first time raising private money.
- Initially turning to private money because of the banking system’s failure.
- What is a portfolio line of credit?
- Borrowing against life insurance policies for private money.
- Helping potential lenders understand how to access their funds to encourage them to become private lenders.
- What are self-directed IRAs, and why are they important?
- Private lenders often always have more than they tell you.
- Glen & Amber’s favorite method for raising private money.
Check out my book: 7 Reasons Why Private Money Will Skyrocket Your Real Estate Business and Help You Build Incredible Wealth!
Get it here for FREE: www.jayconner.com/moneyguide
Connect with Glen & Amber
Website with links to their book, TV show, podcast, and all their platforms: www.glenandamber.com
Timestamps:
0:01 – Raising Private Money with Jay Conner
1:00 – Today’s Guests: Glen & Amber Schworm
4:28 – Flipping Houses Using The Bank and Its Problems
5:45 – The Best Thing About Coincidences
9:50 – The Greatest Decision You Need To Make
10:38 – The Home Equity Line Of Credit Strategy
12:35 – Leveraging Your Asset
14:08 – Whole Life Insurance Policy Strategy
16:00 – Jay’s Free Money Guide: https://www.JayConner.com/MoneyGuide
16:54 – Self-Directed IRA, Private Money, and Earnings Tax-Free
20:42 – https://www.QuestTrust.com
23:20 – How To Start A Conversation With A Potential Private Lender
26:36 – The Private Money Academy Conference
28:18 – How To Grow Your Investors’ Base
32:03 – The Best Method For Raising Private Money
35:00 – Connect With Glen & Amber Schworm: https://www.GlennAndAmber.com
How Amber and Glenn Flipped 583 Houses Using Private Money
Glenn Schworm (00:00):
It’s a little boring cause it’s steady, but it’s always steady. I said it’s not the up and down ride. And you don’t have to worry about losing everything cause it’s backed by real estate. So if you, if you know anybody, by all means, send ’em my way. Right. I don’t ask, I always just ask for, that’s, that’s my, my technique. I ask them. And if you know anybody, let us know. Usually, it covers.
Amber Schworm (00:21):
I think it’s interesting too, and I mean, I’m sure your portfolio is the same way of, of those kinda lenders, but with us, these are not like multimillionaire people. They’re, they’re, they’re not conglomerates. They’re, they’re just normal
Glenn Schworm (00:33):
Saltier
Amber Schworm (00:33):
Yeah, saltier people that live in everyday America that you would not necessarily know even have any money socked away at all. But they, but they, they, those are the ones that like that steady Eddie, you know, consistent income that they get from, from investing with a real estate investor.
Narrator (00:52):
If you are a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal and the right place on raising private money, we’ll speak with new end seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner (01:30):
Imagine what you will feel like having all the private money you would ever want for your real estate deals. Well, my guests today have flipped 583 houses using private money. And I’m not talking about hard money or hard money brokers. I am talking about private money. My guests today are Glenn and Amber Swarm. Glenn and Amber are about to share with you how private money absolutely transformed their real estate investing business. They’re also about to reveal where and how they find all these private money lenders. If you want private money for your deals. Don’t miss a second of this episode. Let’s dive in right now. And today I’m so excited to have some very dear friends of mine and Carol Joyce. We’re in mastermind groups together and wow, have they got the experience to share with you on raising a bunch of private money, how they’ve gone about it?
Jay Conner (02:28):
In addition to all that, they have already flipped over 1000 houses with complete success and they valued it over 100 million in counting. So let me tell you something. They know a thing or two you reckon about real estate investing. Now they started their career in real estate, really out of sheer desperation. They had like over $80,000 in credit card debt. Maybe you can relate to that. Hope not. Anyway, they had a lot of credit card debt and they needed to make a lot of money, like really fast to get out from under that huge burden that was like keeping them awake every night. So what did they do in 2007? They flipped their first house. They made $17,000 on that first one. Then they went to their second house and then that one, they doubled, they profited $33,000 in 33 days. So they knew that they were onto something.
Jay Conner (03:29):
So as I said, they’ve now flipped over 1000 houses. Private money has been a big part of their success. They didn’t have really any formal education in real estate investing, but their knowledge comes from hands-on doing it day in and doing, you know, day in and day out. Real-life experiences. Well, what some people call the school of hard knocks and a strong desire for a better life for themselves and their families. So, you know what? They kick to the curb, the nine-to-five. They’re making their own rules. They’re setting their own schedule, and they are enjoying wealth and freedom. And guess what? By listening to my good guests today, you’ll be on your road to enjoying the same kind of wealth and freedom that they do. And so I want to welcome to the show, my good friends Glenn and Amber Swarm. Glenn and Amber, welcome to this show. My first question to y’all is, you know, the first flip you did 17,000 profit, the second flip, you did 33,000 profit. Did private money have anything to do with those deals or were those different kinds of deals?
Glenn Schworm (04:41):
No, you know, we started in, oh, we bought our first rental on oh three and we started flipping houses in oh seven. Feels like forever ago. And we used a bank for the first. No, cause we’d get money pretty easily back then. And then we used credit cards to do the renovation and then we did our first two houses that way. Right? And we thought we had the formula figured out. Then we got in trouble. Cause all of a sudden 2008 comes and the bank and the broker that I knew said, Hey Glen, I don’t have that program anymore for you. I said, well, you can get it from me. We’re friends. He goes, dude, I can’t get it from me. He said those programs are gone. And the problem was, we had how many two houses under contract right then. And we didn’t know how we were gonna buy ’em.
Glen Schworm (05:25):
Yeah. We were under contract, had deposited, and they pulled the money out and these were good deals. And we’re like, and we had good credit. Well, we were screwed. You know, money wasn’t really a thing back then besides Guido the killer pimp figure out. Like, I didn’t know. I didn’t know what to do about those deals. And it, it was about that time. So hit the funny story, Jay. I dunno if I ever told you this, but I wanna make sure I tell you that your voice is very distinct. And when I first met you, I’m like, wait a minute, wait a minute. I’ve heard that voice before and I heard it. I don’t know where I got it, but I had a CD from some other guru and you were a speaker and somehow your name wasn’t on it. Like I didn’t hear, there was no way to contact you.
Glen Schworm (06:13):
It wasn’t like social media was big back then, right? So it wasn’t so easy just to Google you and find it. It wasn’t, it wasn’t really a thing. Have you ever heard this voice and you talked all about how you were raising private money and how you put together this lender packet and all this stuff? And I’m like, what the heck of an idea? And so not knowing anything about even how to reach you, we figured it out. It was hard. It took, it was hard to figure it out. Like, I so wish I just had a formula from it. That would’ve been easier.
Amber Schworm (06:39):
You were an inspiration. You were not even knowing it.
Glenn Schworm (06:41):
Yeah. It took us a long time to do it on our own. But you were an inspiration to figure it out. And we’ve, we found, you know, in our first lender, we actually had her use her home equity.
Amber Schworm (06:50):
Yeah. She was the girlfriend that I went to the gym with. And you know, we’re like, who do we know that has money? And the funny thing is, there’s money all around a printer. We really, being honest and, and even people that you don’t think have money might have some money somewhere. Yeah. But she had some equity in our house and Glen’s like, you know, we’ve got a pretty nice house there and you guys have put a lot of sweat equity into it. Do you, do you think you have any, you know, you get a home equity? Well, long story short, she a home equity loan. At the time she was paying three or 4%, I forget the exact numbers, but three or 4%. And at that time, money was a little more expensive. So we were paying 14%. So she was making 10% on money that wasn’t even hers, to begin with. She put her kids through private school education. She’s still an investor to this day,
Glenn Schworm (07:35):
15 years later.
Amber Schworm (07:36):
Yeah. On money that wasn’t even hers.
Glenn Schworm (07:38):
That one launching pad Jay took us from, we started using that formula, not just home equity, but other people’s stuff. We started to figure it all out. It took, it took a long time to figure out a lot of things. I know you teach now that I wish I, I wish I could just wish I could, had made my life a lot simpler. And, we raised about 5 million in private funds that we use that to this data to flip our house. We don’t use our own money hardly ever.
Amber Schworm (08:03):
And then another one of the houses that we bought really early on, it was probably one of our first five deals, Ricky’s house or the house on the rig. We’re at the closing table and the people that we bought the house on were making 60, 70 grand on the sale of the house. So we’re sitting there at the closing table and I said, Hey, what are you gonna do with that profit <laugh>? So they ended up being one of our private investors with that money. And then they’ve since turned over all of their IRA, they’re running a self-directed ira and they’re, they’re all invested with us too. So we’ve investors, investors for
Glenn Schworm (08:34):
So long, long answer. But yeah, that’s how we got started.
Jay Conner (08:39):
Well, let me comment on, I mean, you just, y’all just shed a lot of shared a lot of nuggets right there in a very short period of time. Yeah. And let me unpack some of what you just said because what you just said is really, really important. First, of all, that’s pretty cool that you knew me before you knew who I was. Yeah. But <laugh>. Yeah. Cool. So anyway, that, that’s, that’s, that’s pretty neat. But your whole story out of desperation of you thought you had, you thought you still had your relationship with your bank for your deals and you didn’t. The same thing happened to me in January 2009. Same story. I had been borrowing money from the same bank, from my real estate deals from 2003 to 2009. I’d never heard of private money. I didn’t know anything about that.
Jay Conner (09:29):
And I called up my banker and I’d already put the earnest money down on two houses. I thought I had my line of credit, just like you thought you had your line of credit. And then I had a wake-up call when I picked up the phone and called him and found out that all that was going well, you know, the global financial crisis was going on and it’s like the spigot turned off overnight. But you know, you experienced the same thing I experienced. And that is you had the decision to make. And that was, were you just gonna roll over and quit and just throw up your hands? Or were you going to continue to keep your shoulder to the wheel and look for a better and quicker way to fund your deals? That puts you in the driver’s seat. And this world of private money, as you’ve experienced and I’ve experienced, does just that.
Jay Conner (10:19):
It puts you in the driver’s seat. You set the rules. You know, when you were borrowing money from the banks and I was borrowing money from the banks, the banks made the rules. And of course, we make the rules, now we set the interest rate, you know, the frequency of payments and et cetera. Now another thing that I wanna really bring out and bring to the forefront is what y’all just shared, and you just talked, you just talked about how one of your friends or connections or whatever had a home equity line or got an equity line of credit and then they pulled down on that and funded your deal with their equity line of credit. And that’s what’s interesting about that is I just fi I just finished presenting a webinar teaching people where they can actually get access to funds to be a private lender.
Jay Conner(11:14):
And that strategy right there that you talked about is one that I just talked about on a webinar that I just finished about an hour ago. And what’s so cool about that equity line of credit strategy where an individual, and of course, you know, we’re talking about private money, we’re not talking about hard money or hard money brokers. We’re talking about doing business with individuals. And what’s so cool about that strategy is that when someone, when a private lender, an individual goes and gets this equity line of credit and then loans it out to us real estate investors, then that is called an infinite rate of return. And the reason, the reason it’s called an infinite rate of return to the private lender is that you can’t calculate the rate of return that you’re earning on money that you’re not, it’s not your money that you’re loaning out. Right? It’s like they’re loaning out the bank’s money, making money on the bank’s money. So it’s like, you know, they’re, and the spread like, you know, it’s like who owns the biggest buildings downtown in the cities? The banks. The banks. The banks do the same thing. Yeah. The bank ain’t loaning out their money.
Glenn Schworm (12:22):
Right. Very true.
Jay Conner (12:25):
The banks loaning out, you know, all of us people that’s put money into the bank and they pay us nothing, right? And they loan the money out. So same thing. And you know, since you brought this strategy up, I want to share that there are at least two other strategies that are very similar to the equity line of credit. And it’s called leveraging an asset that you have. So, you know, a private lender can go get money from an equity line of credit. They can also as, and I’m curious to know Amber and Glenn if you have any private lenders, have you had any private lenders use the arbitrage strategy called getting a portfolio loan set up? Whereas they have stocks. Now, I’m not talking about retirement funds in the stocks, I’m talking about just they’re invested in stocks and they like their stocks. They don’t wanna get rid of their stocks for mutual funds, but they can leverage that asset by opening up a portfolio line of credit, not margin, I’m not talking about borrowing on margin, but getting a portfolio line of credit. They can keep their stocks and you know, when a portfolio line of credit people can set up a line of credit up to 50% of the value of their stock brokerage account, borrow that money just like an equity line Leonard, dr. Real estate investors in the pocket, the spread. Have you had any private lenders do that?
Glenn Schworm (13:51):
You know, I don’t think so. I think early on we had one, one of our investors who’s with us now, who was all in self-directed ira. I feel like early on he, we talked about that, but he never did that. So no, not a strategy we used, but that’s a great idea.
Jay Conner (14:06):
Yeah. There’s another one that’s also an arbitrage. And this is more popular. So I haven’t had any, I had any of my private lenders do this, but I’m starting now to bring it up in conversation as helping them think as to where they can get investment capital. And that is whole life insurance policies. Sure, sure. You know have you talked, talk about how that strategy works?
Glenn Schworm (14:30):
So we, we have not done that. But certainly, the same thing, if you have a cash value built up in the whole life policy, you can borrow against that. Right? And I don’t know the exact percentage of how much you can borrow against, but you can borrow against that. And again, you know, there’s some, there’s something powerful about making money on money that’s not yours. Right. Overcharging that it’s a powerful strategy wherever, you know, and that’s, that’s again, that’s not something we’ve actually used with our lenders. But I think, I think in today’s day and age, you bring up some this white, this is why you, the private authority, right? You bring up ideas on how to help people in the, we, we, hey, I let that self, I, what’s that? Educate them. And once they understood, wait, I can give you money, I can wait. That’s, that’s in stocks I go, it won’t be anymore. Really. So, you know, once we educate them, then they can convert those phones. Just like you’re saying. You can find, you know, the more ways you have, the more tools in your bag, the easier get the job done. Right?
Jay Conner (15:26):
Absolutely. Well, I want us to, I want you, I want you and Amber to drill down on why it is important to know what self-directed IRA companies are and why it’s so important to be able to have a conversation with a potential private lender about how they can use their retirement funds. But before you answer that question and, and teach from experience about the value of self-directed IRAs,
Jay Conner (16:00):
Let’s give away a gift right now. I’m so excited about this recent private money guide that I’ve finished writing. It’s called The Seven Reasons Why Private Money will Skyrocket Your Real Estate Business and Help you build incredible wealth. Listen, if you want to fund your deals without relying on banks and hard money lenders and such, you want to download this guide for free. This will get you on the fast track to private money and getting more money than you can use to actually invest in your deals. Download this private money guide for free at www.JayConner.com/MoneyGuide. Download it for free, and get on the fast track to private money. So Amber and Glenn, talk to us about self-directed IRAs. What in the world is that? Why is it important to know about it? And then how do you work with your private lenders and self-directed IRAs?
Glenn Schworm (17:08):
So self-directed IRA is just what it says, right? It’s a way that you can take normally when you people have an IRA or if they perform averse to an IRA or whatever, if they have any kinda an ira, they have money in there that’s this growing tax-deferred or tax-free. If it’s a Roth, it’s different. Don’t dive into that, that rabbit hole. But traditionally, people have always expected that money goes into the stock market in some way, shape, or form. Well, that doesn’t have to be the case. Once you educate people so they can go through a third-party fiduciary company, there are several of them. There are a few good ones, other ones I d know. So there are a few equity addresses. One, that we’ve used over the years and a couple of others. But these companies, these fiduciary companies, will set up the account for your investor and they’ll keep them compliant with the IRS.
Glenn Schworm (17:59):
Cause the IRS isn’t like you messing around with your retirement funds, but they’re allowing you to grow tax to tax-free. They don’t like you messing around with that unless they have a few guidelines. And a few guidelines are who you can lend to without going down. Again, too much detail. There are certain people you can lend to in the family, you can lend on the family tree, you can lend this way, but not this way, or something like that. So there are a few things you can do, but there are structures around that. But these companies keep you compliant so that way they help you the right paper to keep your compliance. So the IRS leaves you alone and they’re okay with you using that cause they don’t want you just to have your retirement money and do it Now as a self-directed ira, you don’t have to put it just in real estate.
Glenn Schworm (18:39):
You can invest in restaurants, you can invest in whatever you want. Actually. There are a lot of things you can invest the money in, in non-secured and secured assets. Whatever. You can even put it back in stock. If you want to control the, control the flow of it yourself, you can do that yourself, inside yourself, director ira. But those companies will keep you compliant. And to the third part of your question, Jay, you said why is it important to educate. Well, that’s early on. That’s what we did. We, our, our very first investor, I’m sorry, the first investor was the real was Janie with the home. Then we had the investor that had, he was in the stock market and he had 800, 850 or 80,000 stock market. And when the market crashed in oh eight, he lost half of it. And he happened to get one of my packets that I heard from this guy who had an accident just like you and me, I put this packet together and I sent it to a bunch of friends.
Glenn Schworm(19:35):
He called me and said, what is this thing you’re doing? I didn’t talk to him in 10 or not, not 10 years, two or three years. And I said, well listen, I, you know, I’m doing real estate, blah, blah blah. So my money’s all tied up, tied up in the market and it’s all in my ira. And I said, huh, I did some research, and I found out I can put that in a self-directed ira. So through research, I found out how to help ’em do that. And then now we help our investors do that. So I help self-directed ira, there’s some paperwork they have to do. We help ’em with that. And actually, it’s pretty simple. Some, some complicated, some simple, but that’s it. And now instead of us paying the investor their money and their interest back, it goes into their self-directed ira. And that’s what that is. So that’s how that whole program works. And it’s important to educate them because again, just like you said, the more you educate people on how they can use, how people say to you, well, I don’t have any money to invest. I don’t have any money to invest. Well, do you have an ira? Well yeah, that’s invested. Yeah, but do you wanna earn more? Well what, yeah, like Amber said, do you, do you have home equity? Once we educate them, they’re like, oh, oh, people dunno what they dunno. Right? So,
Jay Conner (20:41):
Well, and, I’m so glad you shared that. I mean, here’s the actionable item. Well, before I give the actionable item to our listeners, lemme just share this. So right now, Carol Joy and I have about eight and a half million dollars in private money deployed and invested in a bunch of different house projects. Got a bunch of flips going on right now. Here’s the, and I don’t share that number to brag, I share that number to give a fact. So we have 44 private lenders, and eight and a half million dollars is the total amount. And guess what, over half, over 50% of that money that’s invested in our deals came from and is coming from individuals who have moved their money over to a self-directed IRA company and are now loaning that money to us on our deals. And the money that they’re earning is either tax-deferred or tax-free.
Jay Conner (21:47):
In fact, we’ve got one private lender of those 44 that earned in just one year $65,000 tax-free. And that’s because he had a Roth IRA in his self-credited ira. So the actionable item, now that you know why it’s so important, the AAL item is that if you want to attract a lot of private money, then you need to establish a relationship with a self-directed IRA company. My favorite company today is Quest Trust outta Houston, Texas. They have phenomenal service. All my private lenders that are using their retirement funds now have their accounts at Quest. And when I have a deal for funding and Quest Trust, actually the website is quest trust.com. When when I have a deal that exceeded funding, then what happens is one of my private lenders, if they’re using their retirement money and they have their account at Quest Trust, quest Trust funds my deal in three business days, three business days.
Jay Conner (23:01):
And that’s so important because you’ll get more offers accepted when you can actually close quicker, right? So that’s why it’s so important to have that relationship established. So, you know, speaking of self-directed IRAs, I’m gonna share with you Amber, and Glen, one of my favorite ways to start a conversation. So I’m gonna ask you this question in just a second. Well, I want you to answer it in just a minute. The question is, how do you start a conversation with a potential private lender that you know is in your warm mortgage, you got some kind of, you know, association with how do you start that conversation? I’m gonna share first how I started. Yeah. And then I want to hear how you, you start it. Sure. I love, I love questions, right? And of course, the person that’s asking the question is controlling the conversation.
Jay Conner (23:53):
As long as the person you’re asking actually gives an answer, right? So my favorite way to start a conversation with a potential private lender, and they don’t even know they’re a potential private lender, and I don’t either. I’m just loving talking and teaching. My favorite question is, and I love questions that start with, did you know, did you know, or I’m already piquing curiosity when I said, did you know? So I’ll just weave into the conversation. I’ll say, by the way, did you know there’s a way people can make unlimited money per year tax-free? And then I shut up. And of course, they don’t know anybody unless, unless they know about this world already, they don’t know there’s a way to make unlimited money per year tax-free. Of course, they say no. And I say, well, have you ever heard about self-directed IRAs and there’s a 99.9% chance they’re gonna say no, they never heard about self-IRAs. And then I’ll start teaching with my teacher hat on what self-directed IRAs are, how it works and et cetera. How do you all like to start conversations with someone about private money?
Glenn Schworm (25:03):
Usually, I’m in a conversation about their investment, right? So where, where are they currently invested? I’m kinda just having a conversation. I’ll just say, where do you guys have your money at? Where, and what are you investing in? Like Amber and I are all in real estate. What do you, where are you in? And typically most people come back and say, I’m the stock market. I’ve retired, whatever it’s current, it’s active or not active. 401K changed that over to self. So if, if they say I have some IRAs, I’ll say I enjoy that ride. What do you mean? I said, well you like the ride of the up and down, and the not really great. Just so you know, I, you know, I if you’re open to it all, but I know you make a percent guarantee investing with someone like us. It’s a little boring cause it’s steady, but it’s always steady. I said it’s not an up-and-down ride and you don’t have to worry about losing everything cause it’s backed by real estate. So if you, if you know anybody, by all means, send ’em my way. I don’t ask them, I always just ask for That, that’s my technique. I ask them. And if you know anybody, let us know.
Amber Schworm (26:06):
It’s interesting too, and I mean I’m sure your portfolio is the same way of, of those kinda lenders, but with us, these are not like multimillionaire people. They’re, they’re not conglomerates. They’re just normal. Yeah. In everyday America that you would not necessarily know even have any money sock away at all. They, but they, they, those are the ones that like that steady Eddie, you know, consistent income that they get from, from investing with a real estate investor.
Jay Conner (26:37):
My experience is the same. I mean I do have one private lender that has right at a million dollars with us. So that one private lender accounts for one-eighth. Yes. Of all of our private money. We have another private lender that’s got about 650,000 with us. But you know, I got a lot of private lenders that have 50,000. Right? 30,000, 200,000. And like you say, these are everyday people. You know, at my live event, which is now titled the Private Money Academy conference, one of the sessions I have at the live event is I’ll have a panel of about 10 to 12 private lenders that Carol Joy and I use that live right here in the local area. And so we’ll have ’em up there on stage and I’ll interview them and I’ll ask them questions such as you ever heard of private money before I told you about it?
Jay Conner (27:38):
Of course, the answer’s always no. Have you ever heard of self-directed IRAs before we talk to you about it? Of course, the answer’s always no. And I asked the audience in attendance to make notes of commonality. You know, what are some trends that these private lenders have in common and some things that they always notate? We talk about it on the next morning at the event. They always say, well they never knew about private money until you taught ’em. They never knew about self-directed IRAs until you taught ’em. And thirdly, they’re all regular people just walking around like us
Glenn Schworm (28:13):
Right? Yeah.
Glenn Schworm (28:16):
Circle back for one second. One thing that I learned using the, using the self-directed IRAs, most people, unless they’re over, what is this 72 or whatever, whatever age they have to start taking withdrawals. Most people obviously they’re not, they that you can grow your own private lender base by growing, your investor base. So, you know, our investors start with 440,000 and now have about a million dollars with us here. 15 years later. He’s made, take some distributions, but we’ve been able to grow our own base by making interest, and paying it back. Now he has more to lend to us next time. Cause it’s a self-directed IRA and he wants to lend it back to us. So when you create your own, you know, through growing and growing your business and growing their money, you grow. Money always works too. Yeah, that always works too.
Jay Conner (29:05):
Based on what you just said, Glenn, I’ve got a friend whose name is Ray and he started a little while back with us as, a private lender just using his retirement account. He worked in civil service for years, he’s retired. And he had his retirement money in an annuity and over a seven-year period earned 3%, not 3% per year, 3% over the seven years. So we go to church together and he came to him and he says, Jay, what in the world can I do with this money? I said it’s simple. Invest with me and you won’t earn 3% over seven years. You’ll earn 8% every year. Well here’s to your point, he started at $80,000. He now has in his retirement account over $200,000 based on the interest that he accrues and earns. Of course, we structure a lot of our deals where there are no monthly payments.
Jay Conner (30:06):
I mean, what real estate investor wouldn’t love to buy a house, bring none of your own money to the closing table, bring home a big check and make no monthly payments at all? And then when you sell it to cash out, pay your private lender back the principal amount and you know, along with, with the interest that they earn. But yeah, like you say, it’s like they start out at a, at a certain level it grows. You have more private money at your disposal. And there’s one thing I’ve learned, let me ask you a question. When you have a new private lender starting with u2, do they always have more than they tell you?
Glenn Schworm (30:48):
They usually keep their, yeah, let’s, this is a good friend or family. They keep their cards pretty close to their chest. And so they’re testing this out. They’re testing. We, we’ve often, in the early days, just we’ve, we have we haven’t had to raise money. Well, we actually have new ones this past year. But we, we will tell them to test our test on deal hundred, 200 grand, whatever it might be. You know, test us out, see if you like us. If I know they have more, just test us out. Let, let, let us earn it. If you like the way this whole process feels, then we’ll go on simple that keeps it real. Ok. Cause at the time I probably only need, I only need money for one deal, probably <laugh>. So that’s usually all I need. Right? They give you a million bucks. It’s hard to just deploy a million if you’re trying to buy four or five houses, it’s difficult to deploy that at any one given time. So it’s better to Well,
Jay Conner (31:37):
And you know, I know you all experience the same thing I did, and anyone that does private money the way I do it and the way you all do it, you’re gonna run into a problem pretty quickly. And that is you’re gonna have more money at your disposal than you can put to work. But you know what, that’s a pretty good problem. I’d rather have too much money ready to go than not enough. What’d you say, Amber?
Glenn Schworm (31:59):
Not a bad problem to have.
Jay Conner (32:00):
No, not a bad problem. So I know our listeners want to stay in touch with you, but, and I think you got a new book out. You got an amazing podcast that I absolutely love. I want people to learn about your podcast so they can follow you. I want ’em to learn about your new book, but before you plug ’em into the book and the podcast and all that. One more question. What is your all’s favorite? And there are many, but what you’re all’s favorite methods for raising private money?
Glenn Schworm (32:32):
So I would say, our favorite method and what we teach our students too is really what you taught us. Our favorite method when we started, and we haven’t done this for a while, we started by just sending out to our existing just people that I knew and I just saw a packet and I, and I don’t ask them for money, I say, if you know anybody, we pay a referral fee. If you know anybody that might be looking out and we have a packed portfolio kinda shows what we’ve done, that kinda stuff. Now it’s just being who we are. I think just being who we are and being out there and being successful. You attract money. I have a, I have a guy that I’m gonna be taking a couple of hundred grand off his hands here next week. Matter of fact, we, saw a new show that came out called The Big Flipping Break, A new show that’s, that’s airing.
Glenn Schworm (33:14):
And he was on, he was my, my personal trainer back seven years ago. And every once in a while there’d be a text here and there, but we really haven’t stayed in touch. And he reached out. His exact words were, you know, ’cause he spent a year training with me. So he knew he was in my home, he knew me. He said, you know, I got a hundred grand sitting on the sidelines. Anybody that I trust that money, it’s you, you tell about, you know, you lender who you, who you are and, and letting people know what you do. If you’re a real estate investor, if you don’t tell anybody what you do and you’re not looking for money, then you’ll never raise any.
Amber Schworm (33:46):
But also having integrity and operating, absolutely operating with integrity and, and having that good reputation of always taking care of our investors. Been
Glenn Schworm (33:53):
A really, absolutely.
Amber Schworm (33:55):
But I think like for new people, especially like right now we have come to us, we don’t really have to ask for it too much anymore. But for new people, one of the keys for us, in the beginning, was taking that side door approach, like Glen was saying, because it takes the pressure off of just, Hey, you know, can I borrow money from you? Or Hey, do you have any money? Yeah, it’s, Hey, who do you know of here, here’s what I’ve got going on and I know you have a great circle of friends. Who do you know of that, that might be interested in something like this? And taking that side door approach was, was really helpful
Glenn Schworm (34:24):
For sure.
Jay Conner (34:26):
You know what I had the same experience and that was my very first private lender. I attorney him, mine needed his help to refer people to me. And the next day he had $250,000.
Glenn Schworm (34:39):
Yeah, yeah. My first guy called me and said, well, what about me? I said, and, I didn’t give it to you right away. I said, I dunno, what about you? You know,
Jay Conner (34:49):
Oh, mercy. Well, look, I mean you all, I could talk with you all day about our favorite subject, but I know you’re needing to jump and head to another appointment. So please share right now your new book, and the podcast how can people follow you? Because I know they want to hear more.
Amber Schworm (35:06):
Yeah, we do have a lot going on. So the best way to find us is just to go to Glen and amber com and that has links to our, our book, our TV show, our podcast, all of our social media platforms, our workshop, I mean, you name it, it’s on that website, so Glen and amber.com.
Glenn Schworm (35:22):
Yeah, we’d love to connect.
Jay Conner (35:23):
So let’s spell that out. Let’s spell that out for me. So that’s www.GlennAndAmber.com. And that’ll get you all plugged in. Go ahead, Glen. You were saying something?
Glenn Schworm (35:40):
No, that was it. Just I, wherever she said, I’m good.
Jay Conner (35:45):
That’s awesome. Thank you. Thank you so much for joining me in Raising Private Money.
Glenn Schworm (35:50):
Thanks for having us and thanks for doing what you do, man. You inspired us 15 years ago, 16 years ago. You didn’t even know it. I didn’t even know who you were until I heard your voice and went, huh, that sounds familiar. Yeah, I remember that voice all those years. So thank you, my friend. Thanks
Amber Schworm (36:04):
So much, Jay. It’s always a pleasure talking to you.
Jay Conner (36:06):
Awesome. God bless y’all, I love you. That’s from me and Carol Joy, and look forward to seeing you soon at another Mastermind meeting
Glenn Schworm (36:13):
You too, see you soon.
Jay Conner (36:14):
All right. There you have it, my friend. I’m Jay Conner, The Private Money Authority wishing you all the best. And guess what? Just like you just heard from Glenn and Amber, I need your help. How do I need your help? I need you to share this show. If you’ve found it valuable, show this show with at least one friend that can make a difference. If you’re watching or listening on iTunes, there are three dots in the upper right-hand corner right there. Be sure to follow so you don’t miss out. And if you are watching on YouTube or any of our other video channels, be sure to subscribe. Click that bell on YouTube so you don’t miss out on any of the upcoming shows. And so we’re looking forward to seeing you right here on the next Raising Private Money.
