Dave Dubeau is a seasoned real estate investor and CEO of Results Enterprises Inc. He helps real estate entrepreneurs scale their portfolios by attracting investors and JV partners. Dave is the creator of the Money Partner Formula process, which enables investors to raise six figures (or more) in six weeks (or less) by attracting the right investors.
Dave has been investing in real estate since 2003 and has helped thousands of real estate entrepreneurs worldwide. He is also a passive investor, best-selling author, and sought-after speaker. Dave has been featured on some of the largest real estate shows on the internet and has shared the stage with industry titans such as Robert Kiyosaki, George Foreman, and Arlene Dickinson.
Dave’s knowledge and experience can help you extract the best tips and strategies to get the money you need, whether you’re a new or seasoned investor. So tune in to this episode of Raising Private Money!
Key Takeaways:
- The significant benefits of private money lending over traditional lending
- Private money puts you more in control of your business
- Why use private lenders instead of your own cash
- The Money Partner Formula
- When dealing with private money, put the money first before your need.
- Most of the money you’re going to attract and raise is going to come over time.
- The importance of mindset when attracting money
- Set realistic expectations for your private lenders
- Build a relationship with your private lenders beyond just asking for money
- Having your lenders sign “an expression of interest” as an unofficial yet concrete document of a deal
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
Sign up for the Private Money Academy and get 4-weeks free: https://jay-conner.mykajabi.com/offers/AMM4hCPW/checkout
Connect with Dave:
Website: www.moneypartnerformula.com
Podcast: www.daveinterviewsyou.com
Timestamps:
0:01 – Raising Private Money with Jay Conner
0:48 – Today’s Guest: Dave Dubeau
3:06 – How Dave Dubeau Got Started In Using Private Money
4:38 – Private Money vs. Hard Money
6:48 – Private Money Puts You In Control Of Your Real Estate Business
10:35 – The Money Partner Formula
16:00 – The Money Comes First
17:55 – The Money Is In The Follow-Up
21:32 – Attracting Private Money: It’s All About The Mindset
27:02 -Offering Realistic Deals
30:06 – What Is An Expression Of Interest?
32:53 – Connect With Dave Dubeau: https://www.MoneyPartnerFormula.com
33:33 – Check out Dave’s Podcast: https://www.DaveInterviewsYou.com
How To Scale With Private Money with Dave Dubeau
[00:00:00] Dave Dubeau:
I definitely agree with Jay Conner that money always comes first.
[00:00:02] Narrator:
If you are a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal then your and 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.
[00:00:46] Jay Conner:
My guest today on raising private money has raised several million dollars in private money for his own business, and in addition to that, he has raised over 300 million for his clients. In addition, my guest does is he helps real estate entrepreneurs to scale their portfolios by attracting and showing them how to attract private lenders and investors and their capital instead of chasing after it, just like me.
[00:01:17] Jay Conner:
It’s all about attracting and no chasing well, he created what’s called the Money Partner Formula process. That raises six figures or more in six weeks or less by getting the right private lenders and investors to come to you. He’s the CEO and founder of Results Enterprises Incorporated the Money Partner Formula, which offers a proven strategy to help his clients find their ideal investors and quickly raise the capital they need to grow their real estate portfolios like super.
[00:01:53] Jay Conner:
When he started investing in the very same year that I did back in 2003, he’s been helping thousands of real estate entrepreneurs from around the world, and he’s been featured on some of the largest real estate shows on the internet. He’s shared the stage with big names like Robert Kiyosaki and George Foreman, Ted Thomas, and Brian Tracy, just to name a few.
[00:02:15] Jay Conner:
The Money Partner Formula team does only one thing, and that is to help real estate investors raise capital. You’re going to meet my friend and my guest, Dave Dubeau right after this.
[00:02:35] Jay Conner:
Like you, Dave I started full-time investing in real estate back in 2003. During my first six years, I relied on the local banks, and mortgage companies to fund my deals. And then I lost my lines of credit and learned about private money. That’s how I got moved into private money. Did you start out using private money in 2003 or did you have something happen in your business?
[00:03:02] Jay Conner:
How did you get started in private money?
[00:03:04] Dave Dubeau:
Jay, I was not as smart as you are back in 2003. So I saw one of those late-night infomercials. Do you remember those? Oh yes, you too. You too can get rich in real estate with little or no money down. And in 2003, Jay, that’s exactly what I had. Little or better said, no money for down payments.
[00:03:25] Dave Dubeau:
It was funny. I’d been living overseas for over a dozen years in Latin America. Had a business, had a family the whole bit down there, and then I moved everybody back to Canada. So I went from Costa Rica to the frozen hinterlands of Canada and had to start all over again from scratch. So that’s when I got into real.
[00:03:45] Dave Dubeau:
Low money, no money down type deals doing creative real estate investing. And that’s what I did for several years. Then I took a little bit of a break from active real estate investing and joined forces with an up-and-coming real estate guru up here. Helped him market his companies, grow them, and didn’t get right back into it in about until about 2010.
[00:04:07] Dave Dubeau:
And that’s when I started, looking at raising capital. So it was a rocky road to get started with.
[00:04:14] Jay Conner:
I understand now. You mentioned creative deals I never heard of the subject of buying a house subject to the existing node or seller financing or anything like that. Actually, until 2009 when I actually started learning about private money myself.
[00:04:30] Jay Conner:
What are the big benefits in your experience and opinion, Dave, in using private money versus just, using the local bank or other funding sources or maybe even hard money lenders?
[00:04:42] Dave Dubeau:
Quite often we use both actually, Jay, so when we’re talking about private money, quite often for me in my situation when I first got started, It wasn’t so much to finance the whole property, it was to come up for the, with the money and the credit to, to put in the down payment, the closing costs, the property transfer taxes, any renovations and that kind of stuff.
[00:05:06] Dave Dubeau:
So the actual cash involved to do the deal. That’s how we were looking at it, was how to raise that money for the down payment, and then we would be able to get more traditional financing. 70, 80% of the value of the property is from the bank. So that’s how I got started with that.
[00:05:23] Dave Dubeau:
And I was bringing on what we would call joint venture partners. So they would actually bring the money to the table for the down payment, et cetera, and they would also bring their credit to the table so we could qualify for that traditional. Typically cheaper kind of financing through the banks and together we would do a deal I’d bring the deal to the table.
[00:05:44] Dave Dubeau:
I’d bring the skillset, I would bring the power team. They’d bring the money, they’d bring the credit, and we’d share the profits.
[00:05:53] Jay Conner:
So what you’re doing is you’re doing a combination of three different kinds, or two or three different kinds of funding. For that one deal to happen.
[00:06:04] Jay Conner:
Traditional, more traditional lending or maybe hard money lending, hard money broker combines private monies. And of course, you and I understand the same definition of a private lender that’s an individual, like a human being that is coming to the table even either as a joint venture partner or as coming as.
[00:06:25] Jay Conner:
A private lender. So that’s interesting how you, you bring all that together. So when you’re doing these types of deals with private lenders Yep. Do you feel like that puts real estate investors more in control of their destiny and their business?
[00:06:43] Dave Dubeau:
Oh, hey man, you and I are drinking from the same Kool-Aid there.
[00:06:47] Dave Dubeau:
That’s for sure. Yeah, that’s what it’s all about, Jay. There. As I learned early on, there’s only so much you can do under your own financial steam. Sooner or later, bam, you hit that wall. You run outta cash, you run outta credit. So you got two choices there. You can stay stuck. You can wait years and years to save up the money and the credit for the next deal.
[00:07:08] Dave Dubeau:
Or you can take the shortcut and that is finding private lenders like you teach people so well, how. Yeah.
[00:07:16] Jay Conner:
One question that I get every now and then from some people, particularly students that might be attending an event or whatever, they’ll say, J I’m confused about something. They’ll say, I understand using private money when you’re like starting out and you’re short on cash yourself, but Jay, you’ve made a lot of money in real.
[00:07:39] Jay Conner:
Why are you still using private lenders? Why are you not using your own cash for your deals? And so if you were asked that question, Dave, would you probably have been asked that question before?
[00:07:52] Dave Dubeau:
What would your answer be? The first answer to me is I’m not as rich as Jay Conner. The pockets might not be as deep, but the bottom line it’s you.
[00:08:02] Dave Dubeau:
Mr. Trump is a billionaire. Mr. Trump still raises tons of money for his real estate deals when he was actively doing deals. It’s the same idea. It’s massive leverage. Plus it really, it does Two things in my mind, and let me know if you agree with this, Jake. And by bringing on private lenders, it allows you to scale faster, go bigger, and do bigger deals.
[00:08:25] Dave Dubeau:
Most people do run outta cash and credit. To scale up eventually. And, but even if you do have the cash and credit, by bringing on private lenders, you are able to do a larger volume of deals, start getting into different kinds of deals, bigger deals, different markets, and you’re able to lower your risk and at the same time, you’re able to share the wealth with other people.
[00:08:48] Dave Dubeau:
Quite often my experience has been with a lot of the private lenders that we’re working with. Cannot or will not do the kind of real estate deals we’re doing on their own. They either don’t have the interest, they don’t have the time, or they don’t have the knowledge, whatever it is, we’re bringing something to the table that is extremely valuable for them.
[00:09:08] Dave Dubeau:
So it really is a win-win situation all around.
[00:09:13] Jay Conner:
I agree a hundred percent because my answer is pretty much exactly what you just said. I don’t want my own personal money buried in 25 projects that I’ve got going on. My cash is going to run out sooner or later if I keep adding on more projects and more projects.
[00:09:32] Jay Conner:
But with private money, as you said, the money never runs out. There’s no limit to the number of private lenders we can have doing business with us. There’s no limit to the amount of private money that we can be using. I, if somebody’s gonna do a flip and all they’re gonna do is one flip and they’ve got the cash, and you’re gonna be in and out in six or nine months, then that’s not a bad use of your money.
[00:09:55] Jay Conner:
But if you’re gonna scale your business, you’re gonna need to be using private money and investors and et cetera. Like we’re talking about. So one thing you talk about Dave, is you talk about having a way, the money partner formula, I believe is what you call it. And you talk about a way that there really is a very realistic way for someone that’s perhaps never raised or attracted private money to get six figures in six weeks.
[00:10:25] Jay Conner:
So can you give us the 30,000-foot view of what that looks like?
[00:10:30] Dave Dubeau:
For sure it’s gonna be more like a 60,000-foot view, but that’s okay. So bottom line is I firmly believe that all of us have somewhere between one and 3 million worth of capital available to us within our existing network of contacts. What am I talking about here?
[00:10:50] Dave Dubeau:
I’m talking about your friends, your family members, your coworkers, your business associates, people you know from church or civic organizations, rotary, lions, whatever that is. People you know from your sports clubs, you’ve got that preexisting relationship with these folks. People you know from RIAs, right?
[00:11:08] Dave Dubeau:
They know you, you know them. That is the fastest, easiest, and safest route to the capital that I’m aware of. So the first thing is part of this whole Money Partner formula. It’s pretty simple. We got three phases and three steps per phase. So the. Phase is what we call the foundation and that is let’s create a target group of these ideal investors, people we already have that preexisting relationship with, and let’s focus all of our energy on them first.
[00:11:38] Dave Dubeau:
Cause that’s where the easy money is. So that’s the first part. In the second part, let’s create a way to communicate with them. We do that by having an online presence, a website, and an investor-focused website. Third thing is, let’s make sure we got something in. To show them. When some, when somebody puts up their hand and says, Hey, I’m interested in your deals.
[00:11:57] Dave Dubeau:
You need to be able to walk them through a simple explanation of how you work. So I know, Jay you’re a master at this, at creating pitch decks. We call ours our million-dollar investor presentation. Same idea. So that’s the foundation. We need those three pieces in place. After that, we’ve got the launch phase.
[00:12:14] Dave Dubeau:
That’s the time to get the ball rolling, and it’s really important. The first part of the launch phase is what we call the warmup. That is instead of charging in like a bull in a China shop, like dumb Dave did back in the day when I said, Hey, it’s Dave. I got deals, have you got dough? And all I succeeded in was turning off a lot of people.
[00:12:33] Dave Dubeau:
What we wanna do instead, Jay is we wanna reconnect with people on that list first on more of a personal level. And then set the stage for that real estate conversation, that investing conversation. So we call this the warmup campaign. There’s a way we can automate that. It’s just three simple little emails that go out on Monday, Wednesday, Friday, and ding ding.
[00:12:52] Dave Dubeau:
That does all the heavy lifting for you. All right, so we’ve got that. That’s the first part of our launch phase. The second part is we wanna get a bunch of practice runs with our Spanky new investor present. Under our belt. So we got what I call my ninja our meeting strategy. And this is a way for you to get 15 to 20 meetings booked liquidity split, get those all done within a week or two, and get that first six figures of capital really rolling that way.
[00:13:20] Dave Dubeau:
And at the same time, as part of this whole launch, we’re gonna start the marketing. And I call this constant consistent edutaining. Communication and Mr. J Conner is an absolute master of that. And the goal of this whole marketing thing is for that to do the heavy lifting for us, right? So the goal of the marketing is to create curiosity to show people that we’re active and get them interested in what we’re doing.
[00:13:44] Dave Dubeau:
We’re not trying to sell specific deals, we’re just trying to get them to put up their hand and say, Hey. I’m interested. Tell me more. So that’s the launch phase. We’ve got the warming people up, and we’ve got the booking of a whole bunch of meetings right off the get-go. And then also starting that constant consistent edutaining communication.
[00:14:01] Dave Dubeau:
And then the final phase is what I call the leveraging phase. And when we’re doing that, we are starting off by going, instead of just doing 1 0 1 presentations, let’s start leveraging that, doing group presentations via webinars. So doing a webinar every three or four. We promote to our entire list, and instead of doing onesie twosies, we’re getting ten, fifteen, twenty people on the call at the same time and doing a group presentation, and then it’s keeping the ball rolling with the marketing, keeping that marketing going out there because it’s pretty simple to raise six figures fairly quickly.
[00:14:35] Dave Dubeau:
But the lion’s share, the capital that’s available to you is gonna come to you over time. So we wanna make sure that we’re staying top of mind. Front and center with our investor prospects. And then last but not least, is what I call capital credibility. We wanna be seen as an authority, as an expert in the eyes of our prospective investors, right?
[00:14:55] Dave Dubeau:
Because Jay I think I’ve heard you say this, in order for somebody, a private lender to loan you their money, they need to know you. They need to like you, and they need to trust you with that money that they’re lending you. So that’s that credibility is all about creating that.
[00:15:10] Jay Conner: What I love about the way that you approach this is it is step by step and particularly someone that’s never attracted or raised private money.
[00:15:20] Jay Conner:
That’s what they want. That’s what we want. We want, what do I do first? What do I do second? What do I do third? Another thing that I love about your process, just like mine, is we totally separate the conversation. Teaching somebody in your warm market, what private money is teaching them our program, how does it work?
[00:15:42] Jay Conner:
And we separate having a deal for them to fund One of the biggest mistakes real estate investors make, including myself when I started out, me Too, was talking about my private lending program and talking about a deal. And Dave, you and I have talked about this before. The worst time to be raising private money is when you got a deal that needs funding.
[00:16:09] Jay Conner:
And I love it how you s just like myself, you separate the conversation of, okay, here’s the program they tell us they’re in. Here’s how much they got to work with. Do they need to be introduced to my self-directed IRA company that I recommend if they’ve got retirement funds? So that’s why I practice just like you and preach that money comes first.
[00:16:36] Dave Dubeau:
That’s right. The chicken and the egg. And we both learned that the hard way. I remember, you know I lost a deal cuz even though it was really good. I was scrambling. I had this deal on the go. I hadn’t done any of this stuff. That’s why I came up with the process and the bottom line was it doesn’t matter how good the deal is.
[00:16:53] Dave Dubeau:
If you desperately need that money, that desperation oozes out every pour in your body and it repels. The other person creeps them out. It’s like a gentleman I follow says, needy is creepy and it definitely is.
[00:17:09] Jay Conner:
So that’s a right or downer right there. Needy is creepy.
[00:17:11] Dave Dubeau:
Needy is creepy.
[00:17:13] Jay Conner:
Another thing that you just said what you said in essence was it’s gonna be easy to attract and raise a few hundred thousand dollars, pretty very quickly. But, getting into the millions, which I recommend people get because a few hundred thousand dollars, particularly if you’re in California, you might do one deal.
[00:17:36] Dave Dubeau:
In California and most of us in Canada, it’s about the same thing. Yeah. Prices are crazy.
[00:17:41] Jay Conner:
And so what you just said a few minutes ago was most of the money you’re going to attract and. It’s going to come over time, and that’s exactly what I say all the time. The money is in the follow-up, the money’s in the follow-up, and you probably have actually got an automated follow-up system that keeps nurturing those potential private lenders.
[00:18:06] Dave Dubeau:
We do. And I call that constant, consistent edutaining. Communication because I, really wanna know your opinion about this, Jay. I see so many people when it comes to their marketing. It’s like they’re pitching deals and they’re sending out spreadsheets and its charts and graphs and numbers and all this kind of stuff.
[00:18:24] Dave Dubeau:
And they only communicate with their list when they got a deal on the go. And then other than that, it’s like crickets, right? It’s like one of those old westerns with the tumbleweeds going down the street kind of thing. Big mistake. You need to. On top of mind with your prospective investors, because here’s my philosophy, if somebody’s gonna invest a hundred grand with you, they need to know that you’re a reliable person.
[00:18:50] Dave Dubeau:
They can count on that. That’s pretty top and center. So if all they’re hearing from you is this sporadic communication, every time you need money, that’s not gonna position you very well. On the other hand, if every single week at. You’re showing up in their inbox and their email with something that’s a little bit educational, not overboard, a little bit educational, hopefully, a little bit entertaining, maybe not as entertaining as you and your lovely wife singing and playing the piano.
[00:19:19] Dave Dubeau:
I love that, Jay. That idea, injecting some personality into the whole thing, it’s not just dry, it’s not just real estate. Cuz at the end of the day, Jay, I think, yeah, I think you and I talked about this at the end of the. Really here’s what your private lender’s investing in. They’re investing in you.
[00:19:37] Dave Dubeau:
They really are. They’re investing in you. The deal is just the security for that investment. Let me know what your thoughts are on that, Jay.
[00:19:45] Jay Conner:
Oh, absolutely. At my events, I will have a dozen or so of our private lenders come and I’ll bring ’em up on stage and I’ll interview ’em and I will ask them.
[00:19:56] Jay Conner:
One of the questions I ask ’em is how important. Is that mortgage or deed of trust, that collateralize, the deal? And they say it is important. That is important. But they invariably all the time say, what’s most important is, I trust you. Yeah, I trust you. And so regardless of the security and how collateralized that note is, No one’s going to invest with you in, at least in my experience and opinion, unless that trust factor I say all the time, this world of private money there’s a five utter word that begins with a great big capital T that really plays into the success of this.
[00:20:37] Jay Conner:
I’m really curious, Dave, how important do you think the mindset is, excuse me. How important do you think a person’s mindset is? Excuse me, in attracting money, and if it is, what kind of mindset do they need?
[00:20:54] Dave Dubeau:
Jake’s mindset is everything and the kind of mindset I think people need to have is they gotta have a few different mindsets.
[00:21:03] Dave Dubeau:
So one mindset is they should be open to trying something different than they’ve done before. So if you don’t have. Experience working with private lenders. If you haven’t done this before, it’s gonna be a new thing. It’s gonna require you to do different things than you’ve done in the past. And then the other mindset I think we really need to keep top is that it’s gotta be a win-win.
[00:21:26] Dave Dubeau:
Like we have to be legitimately looking out for our investor partners. We have to put theirs. Ahead of ours are at least at the same level as ours. That’s the only way you can have true long-term success. And I, I don’t wanna go all biblical on people and all that kind of thing, but it really is, it, it’s all about, treating other people as you would like to be treated.
[00:21:50] Dave Dubeau:
Respecting the fact that they have worked long and hard to save up or create this money that they’re investing with you in your deals, you need to be good. Of that money. So the mindset you need to have is that the other thing is that, I talk a lot about working with friends and family members to get started.
[00:22:11] Dave Dubeau:
So sometimes people get, get going with that, but they’re very loosey-goosey about it. So they go in with a spit in a handshake. And that’s a big mistake for lots of reasons, right? But bottom line is, here’s the best recommendation I have for you. Even if you’re working with yours. Your adult child, your best friend from high school, you are working with somebody you know very well as a joint venture partner, as an investor.
[00:22:34] Dave Dubeau:
Work with them as if they were a complete stranger. Do the deal with them as if they were an accredited investor. So if you were working with an accredited investor, They would number one, wanna make sure that they’ve got independent legal advice about the deal. Number two, they wanna make sure that you’ve got the right paperwork set up and their lawyers checking that over.
[00:22:57] Dave Dubeau:
Number three, they wanna make sure that you’ve got, very clear reporting that you’re reporting to them on a, whatever that looks like, quarterly annual basis, whatever, that you’ve agreed upon. Number four, they’re gonna wanna make sure that they got clarity on how they’re getting.
[00:23:12] Dave Dubeau:
What that looks like? So if you’re sharing cash flow on a deal, how are you paying them? Is it gonna be every month automatically deposited in their account? Is it gonna be quarterly? Is it gonna be annually? And make sure you do it. So you need to, even if you’re working with a friend or a family member, be professional about it and that’s gonna set you in really good stead for working more with more investors.
[00:23:35] Jay Conner:
I’m so glad you said that, Dave, because, for that very reason, I always invite my mother. My 88-year-old mother looks mighty good in her Corvette, I might say. But I always, my mother’s one of my private lenders. Yeah. And I always invite her to my private money events for this one reason.
[00:23:59] Jay Conner:
And that is to make the point that you just made. And that is, even though she’s my mother, she gets the same security, she gets the same protection as any other of our private lenders, for example. On every note that we do, she still gets additional trust. Most people call it a mortgage, but here, in North Carolina, it’s a data trust.
[00:24:22] Jay Conner:
So, we collateralized the note for her, just like any other private lender deal,. She’s named on the mortgage on the insurance policy as the mortgage. So she’s protected there. That the one reason we do that is that in case we have any insurance filings on that property the private lender’s name is named on that check.
[00:24:44] Jay Conner:
They gotta sign off on that check. And another point you made Dave, is that you’ve just got to be serving your private lenders. What triggers in my mind when you said that was, all these private lenders that we have, they never heard of private money before. You taught ’em about it.
[00:25:04] Jay Conner:
They never heard of self-directed IRAs. They are looking to us as the expert and telling them what the, telling them what you recommend they do. For example, one really big moral obligation is Moral and ethical. And ethical is when I teach someone about self-directed IRAs and they establish a self-directed IRA account at a third-party custodian.
[00:25:36] Jay Conner:
Without money sitting there, they’re not making any money. Until we put that money to work for them. So when I have a new private lender, particularly one that has established a retirement account based on my recommendation, they’re going to the top of the list, to put that money to work. Do you agree with all that?
[00:25:54] Dave Dubeau:
Oh, for sure. Definitely. And it’s all about setting realistic expectations. This was one of the mistakes I made early on in my capital raising career. Jay was showing people. My home run deals as case studies cuz I was so proud of these things, right? So I wanted to show ’em off. But then one of two things happened quite often it would actually scare people off cuz the numbers were just outside of their comfort level, outside of their context.
[00:26:22] Dave Dubeau:
Because all they’d done was invest in mutual funds at, two or 3% a year. And here we’re showing 23% annualized ROI and all this kind of, And they can’t get their heads around it, so they think that’s too good to be true, that Dubeau guy must be full of it. Or perhaps even worse, that set up that level of expectation, and I’m showing them my home run deals, and then what’s the chance I’m gonna get a home run every time?
[00:26:47] Dave Dubeau:
Here’s what the chance is. Zero. Zero chance. That’s gonna happen every single time. So hard earned experience. Nowadays, what I do and what I always encourage our clients to do, Let’s just show a plain vanilla type deal. Things that we can definitely attain, and then let’s do our best to exceed that, because then you’re gonna look like a rockstar, then you’re gonna look like a hero.
[00:27:11] Dave Dubeau:
Then they’re gonna reinvest with you. They’re gonna give you testimonials, they’re gonna give you referrals. It’s just a beautiful way to do business.
[00:27:20] Jay Conner:
Another thing you said a couple of minutes ago, and I love it. If the only time that your investors and private lenders hear from you is when you need money.
[00:27:30] Jay Conner:
That’s just not like setting yourself up in a very good light. Case in point, just yesterday, I personally took about two hours and I called. A good number of our private lenders for just one reason. I called ’em up and I told ’em that I’m updating my private lender spreadsheet as to how much, how many funds, or how much in funding they have available that they would like to invest and just wanna update the sheet.
[00:28:02] Jay Conner:
So I wanna ask him for any money. Of course, I never asked for money anyway, but anyway, I wasn’t asking for any money. I just wanna update my private lender, spread. And invariably, almost every one of ’em said do you have a particular deal in mind right now? Is there a particular dollar amount that you’re looking for on a deal right now?
[00:28:22] Jay Conner:
And I said, no, Nope. No particular deal. No particular dollar amount. Just checking in with you to see how you’re doing, and if you’ve got available funds that you want me to put to work for you as soon as I can, I’ll let you know when I’ve got a. And about 80% of them had more.
[00:28:37] Dave Dubeau:
Here’s what I love about what you just said there, Jay.
[00:28:41] Dave Dubeau:
Cause this is our goal for our clients. And you are in a perfect position. This you’re aware, everybody should be aspiring to be with their investors. And you’ve got what I call, you’ve got your investor ducks in a row. You’ve got that core group of investors lined up waiting in the wings to jump on your next.
[00:29:03] Dave Dubeau:
So unlike everybody else, that’s out there spamming their deals to everybody they know you don’t need to do that. You’ve already got, who your next investors for your next deal are already before you’ve got that deal. So it gets back to that which comes first. The money of the deal, the money comes first, right?
[00:29:21] Dave Dubeau:
And if you’ve got, no, you’re, you’ve been doing this for years. You’re at a much higher level than most. But again, you guys, if you could have, depending on what kind of deals you’re doing, if you could have two or three or four or five people lined up and what I do, you’ve got a spreadsheet that’s smart, c r m, whatever it is.
[00:29:39] Dave Dubeau:
What I like to do, I’d love to know what you do there, Jay, is I love to get my investors to sign off on an expression of interest, right? It’s not legally binding, but I tell you what if somebody signs off on a document, I, Joe Schmo, am ready, willing, and able to invest the sum of up to $100,000 with Mr. Jay Conner for a real estate deal sometime within the fiscal year of 2023. The chances of that, of Joe coming up with that a hundred grand when you are looking for it rise exponentially versus Joe just saying, Hey, Jay, yeah, I got a hundred grand. Let me know when you got a deal. Would you agree with that, Jay?
[00:30:16] Jay Conner:
I love it, and I love I’ve never heard the terminology. Expression of interest, an expression of interest that’s so soft. Not in your face. Yeah. But it’s still, yet in writing a communication tool, it’s on a real estate deal, a letter of intent. It’s exactly the same thing.
[00:30:35] Dave Dubeau:
Yeah, exactly the same thing. And here’s the cool thing. We just, with technology and the covid and all this kind of stuff, nowadays you can do this on Zoom. You can do it’s low-tech, but it works, man. Cause here’s the ideal thing. You actually wanna get them to sign off on this thing, so it works really well.
[00:30:53] Dave Dubeau:
If you’re face to face with somebody, you can just whip one of these sheets out, fill in the blanks for them, and just have them sign it. You sign it, you take a picture, you, it’s not legally binding anyhow. You don’t need the original. But what you can do is on Zoom, just share your screen, type in their stuff, fill it in there, and then they can sign it using theirs.
[00:31:14] Dave Dubeau:
It’s gonna look like they’re a three-year-old trying to print kind of thing. But that’s okay. And it just really, indelibly gets that done. So take a screenshot of that. You send them a copy, you keep a copy, and you’re off to the races.
[00:31:29] Jay Conner:
I love it. Dave,, in the introduction I talked about how you were the creator and founder of Money Partner Formula.
[00:31:38] Jay Conner:
And yes, there it is. Right behind you. Money Partner Formula. So I know people want to continue this conversation with you on raising private money and how you do it. So how can my listeners and audience connect with you?
[00:31:56] Dave Dubeau:
There are two ways, Jay. One is they can go to my website, which is www.MoneyPartnerFormula.com there, they can poke around and check out everything that we’re up to. And Jay, can I offer something a little bit different for your listeners? I just, I wanna be respectful and make sure it’s okay with you because Sure. You’ve, I’ve been on your podcast, you’ve been on, I’ve got a couple of podcasts now cuz I’m a glutton for punishment.
[00:32:22] Dave Dubeau:
But in one of my podcasts, I’m switching gears and instead of just interviewing gurus, I really. Interviewing what I call everyday people who are investing in real estate. So would it be all right if I invited some of your viewers to be guests on my podcast, Jay?, do I have your permission?
[00:32:42] Jay Conner:
Sure absolutely. I’m sure they would be honored.
[00:32:43] Dave Dubeau:
Oh, I would love that. Cuz I know you’ve got movers and shakers who are doing stuff and I’d love to interview them. So be interested in that. You guys, you can go to Dave interviews u.com. Interviews you.com. You can check it out. You can apply. You can pick a day at a time, and I’d love to have you on my show.
[00:33:05] Jay Conner:
That’s wonderful. Dave, thank you so much for taking the time to join me here on the show.
[00:33:10] Dave Dubeau:
Thank you, Mr. Conner. Always a pleasure.
[00:33:12] Jay Conner:
All right, you got it. There you have it, another episode of Raising Private Money. I’m Jay Conner, The Private Money Authority, and I need your help. I need your help in sharing this episode with your connections, so please share, and subscribe. If you are listening on iTunes, be sure to follow the same on Spotify and if you happen to be watching on YouTube, be sure and click that bell so you don’t miss out on any of the upcoming amazing episodes of Raising Private Money. I’m wishing you all the best.
[00:33:46] Jay Conner:
Here’s to taking your business to the next level by attracting a lot of private money, and I’ll see you right here on the next episode of Raising Private Money.
[00:33:56] Narrator:
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.