In today’s episode, host Jay Connor is joined by two incredible real estate moguls – Richard Canfield and Jayson Lowe. During this talk, they will delve into real estate investing, presenting a unique approach to building wealth without relying solely on traditional banks. They explore the possibilities of leveraging alternative funding sources, including private lending and creative financing strategies, to unlock the full potential of real estate investments.
Whether you’re a seasoned investor or just starting, this episode serves as a beacon of financial freedom through real estate, inspiring listeners to take charge of their financial destinies.
Key Takeaways:
- The funding is the number one reason that holds people back from doing real estate deals.
- The biggest opportunities come when the biggest problems show up.
- There will always be big deals, so get your funding lined up first.
- Three categories to find your money lenders.
- Red flags in private money lending and how to protect yourself as an investor.
- Nobody’s going to lend you money unless you believe in yourself.
- To become a really good lender, be a BAD one.
Resources:
Check out my book: Where To Get The Money Now: How and Where to Get Money for Your Real Estate Deals Without Relying on Tradition (or Hard Money) Lenders
Get it here for FREE: https://www.jayconner.com/book
Sign up for the Private Money Academy and get 4-weeks free: https://jay-conner.mykajabi.com/offers/AMM4hCPW/checkout
Sign up for the Private Money Academy Conference: https://www.JaysLiveEvent.com
Money Guide:
www.jayconner.com/moneyguide
Timestamps:
02:54 – Private Money: Borrowed From Individuals, Not Institutions.
06:19 – Jay’s Free Private Money Guide: https://www.JayConner.com/MoneyGuide
12:03 – More Money Printed, Higher Inflation, Attract Private Lenders.
17:37 – Private Lending: Protect Yourself, Choose Wisely, Beware Of Scams.
23:33 – Confidence Is Critical For Real Estate Success.
28:34 – Teach Program, Get Private Lenders, Make Money.
34:19 – Equal Opportunity Borrowers. Same Program, Same System.
39:33 – Serve Others, Not Just Focus On Money.
Wealth Without Wall Street – Real Estate Investing Minus the Bank With Jay Conner, Richard Canfield & Jayson Lowe
Jay Conner [00:00:00]:
And so when I learned about private money, in this world, we make our own rules. We set the interest rate. We set the term. There’s no application process says. There’s no approval process. Your credit score has got nothing to do with it, and we tripled our business in the 1st year. So I know from over the years, getting the money for your deals is the number one thing that holds you up.
Richard Canfield [00:00:25]:
Well, our guest today started in real estate investing and Like many of us, he did it all the way, all the wrong way. And this is a common thing that happens with real estate investors. You know, he kinda felt like he was taken to the slaughterhouse. But he had to come up with all the big down payments. He had to pay the loan origination fees, and most importantly, he had to play by everyone else’s rules. Now I know our listeners aren’t big fans of that. He hated it. He felt like he was owned by the bank. He was out of control. He was stressed out. Then he realized that he needed to combine all the best aspects of the research that he had done and create a system. He refined that into a formula. And that formula when he first tested it on the very first individually tested it with, he raised $250,000 in private money. It blew him away just how easy it was. Within a few short months, he had raised private money for real estate deals,
Jay Conner [00:01:11]:
2,150,000.
Richard Canfield [00:01:13]:
That is EPIC. And we are so excited to have Jay Conner with us today, the private money authority. Jay, what a wonderful story. You’ve been in real estate a long, long time. You’ve got so much value to give to our listeners, not just, you know, for those who are real estate investors or interested in real estate investing, but just around the understanding of how you can go about raising private capital for the things you need to get implemented, whether you’re a business owner or what have you. So welcome to the program, and we’re so grateful to have you.
Jay Conner [00:01:42]:
Richard, Jason, thank you so much for inviting me along to talk about what I’m most passionate about. And that’s private money. I mean, private money has had more of an impact on mine and my wife, Carol Joyce Business, for the past 20 years and I can’t wait to share how fast you can get it and how easy it is to attract. Do you know what’s so funny? I’ve never asked anybody for money. I got 8 and half $1,000,000 of private money to fund my bills. I’ve never asked anybody for money. I’ve never pitched a deal can you believe? And they ask me all the time. Well, how in the world do you get your deals funded? I can’t wait to talk about it. Well, and for our listeners, you know,
Jayson Lowe [00:02:22]:
We can start with the basics in terms of, like, what is private money. Like, is it money that just stays in the house with the curtains drawn saying? I don’t wanna talk to anybody. private.
Jay Conner [00:02:33]:
I’m not public. I’m private money.
Jayson Lowe [00:02:36]:
But so what What is private money? Now anyone in the real estate investment realm, will have either heard that term used or maybe had some exposure to it, but at a, you know, at a at a you and me level, a simple level, what is private money?
Jay Conner [00:02:54]:
Yeah. So private money is money that is borrowed from a human being, from human beings. We’re talking about doing business with individuals just like you and me. So we’re not so it’s it’s even easier to understand why private money is not. So private money is not institutional money. Private money is not any kind of bank. Private money is not a hard money lender. Now I’ve got many friends all across the nation and in Canada that are hard money lenders. Most of the time a hard money lender is a broker and what the hard money lender or broker does is go out and raise private money from those individuals to invest into their hard money lending fund, and then the hard money lender loans that out to us real estate investors, but In this world of private money, we’re doing business directly with the individuals, so a private money lender is an individual who loans their money from either their investment capital and or their retirement funds and or retirement funds to us, the real estate investors. So there it’s a one-on-one transaction from us, the borrower, the real estate under manure, and the private lender or private lenders. ,
Jayson Lowe [00:04:12]:
And it’s from what we’ve been, you know, hearing even within our network and community there’s a lot of capital out there that is looking for really high-caliber opportunities.
Jay Conner [00:04:25]:
And that’s it you’re so right, Jason. And here’s the exact stacks. Before COVID, there was now I’m just talking in the US. I’m not talking about Canada because I don’t know the Canadian statistics, but I can tell you the US statistics. Before COVID, there was $18,000,000,000,000 in cash just in retirement accounts. I’m not talking about people’s just liquid capital. But there’s 3rd there was $18,000,000,000,000 in cash sitting in people’s retirement accounts wanting to loan money private money to real estate investors. Right now, on this side of COVID, $31,000,000,000,000 in cash is sitting on the sidelines available, and here’s the deal. The people, the individuals don’t know what to do with their money, So it’s us, the real estate investor, and entrepreneurs, it’s our ethical and moral obligation to relieve them of that problem of not knowing what to do with their money, to where they can get a high rate of return safely and securely.
Jayson Lowe [00:05:28]:
Excellent. And this is a great time to share what you were, expressing to us at the beginning of the program before we started recording, you mentioned that you wanted to be able to provide, listeners and viewers with an opportunity to download, a complimentary copy, which, again, we’re so grateful for. Thank you sincerely. And that’s what we love about the guests that come on our show. Yeah. They’re always giving. And, so we thank you sincerely for that, and we’re gonna put a link in to download a copy of this ebook that is undoubtedly gonna be chalked full of value Jay’s holding that up on the screen right now. Why private money will skyrocket your real estate business and help you build incredible wealth? free download it, read it.
Jay Conner [00:06:19]:
I promise you, you’re going to get, a world of value from And so yeah. And, Jason, the URL link is simple so that your, listeners and audience, and viewers can download this private money guide to get on the fast track. You simply go to www.JayConner.com/MoneyGuide and I’m an e r, not an o r. What inspired me to write the book was, first of all, I just think all of us are created to give back. and my journey and my wife’s journey through our real estate investing business. We’ve been full-time in single-family houses. We’ve done commercial deals as well, 9 since 2003. And the 1st 6 years, Jason, that we were investing in single-family houses, I relied on the local banks. I relied on mortgage companies. That’s all I knew to do. And then something happened unexpectedly and it was the biggest blessing in the skies that I’ve ever had since being in this business. And what was that something that happened that ended up being a blessing in disguise? Believe it or not, we still have handphones or handsets and cords attached to telephones here in Eastern North Carolina. people don’t even know what that is. But anyway, I remembered like it was yesterday in January 2009. I called up my banker. His name was Steve. I had done a ton of deals with my banker for 6 years, and I learned very quickly in that conversation that my lines of credit have been closed. And I had 2 deals under contract with profits of over $100,000, and now no way to fund my deals. I knew I had to find a better and quicker way to fund my real estate deal. So I learned about private money. So in less than, you know, 90 days, I’ve raised over 2,000,000. So what inspired me to write this? I know from experience, It is the money. It’s the funding. That’s the number one source in addition to knowing how to find the deals, but it’s the number one reason that holds people back from doing real estate deals is the money. Do you know? And so when I learned about private money, in this world, we make our own rules. We set the interest rate. We set the term. There’s no application process. There’s no approval process. Your credit score has got nothing to do with it. and we triple our business in the 1st year. So I know from over the years, getting the money for your deals is the number one thing that holds you up. And, you know, we make a big impact here in local Eastern North Carolina. We’ve rehabbed over 475 houses. We’ve, you know, helped people with problems with buying houses. but I knew that I could make a much bigger impact by writing this guide for people that can download it all over the US and Canada and even elsewhere. So what’s my reason? My reason is now a part of my life. I’m sixty-two years old now, and a part of my life where significance and impact are more important than money and anything else.
Richard Canfield [00:09:37]:
Well, that’s one of the reasons why we have you on the program, Jay. That’s us, that’s our MO around here. So we’re big fans of that and how people show up and how we like to show up for our listeners, for our clients. And so, you know, a lot of synergies there. What I love about what you share about your story is that that moment in time is something that would cripple, you know, if there was a doppelganger of Jay receiving that, you know, having that same phone call with the banker, And he just, you know, hung up the thing. He’s like, oh, what am I gonna do? I’m going to let that $100,000 of profits disappear. And I guess I’m out of the real estate business now because it just got too hard. So there’s a whole another track of a story that could have been, but that didn’t happen because you chose the path of opportunity and you went to work to figure it out. And that’s a unique signifying thing, and I think our listeners should take heed of it. Opportunity shows up for you and usually, the biggest opportunities are when the biggest problems show up, whether it’s your problem or someone else’s problem. Once you can overcome and solve that problem, now you’re on the other side, and that’s when, you know, you know, the sun shines very, very bright by doing that. So I appreciate that story. The second thing that captured me, and I love what you said that that time frame of 2009, is the reason those credit lines froze. That was a that that happened pretty much across the board at a lot of the major banks all across the United States. It had to do with the act math of the financial crisis and the bailout situation and the property values were declining from an overinflated scenario. it was this there was this kind of whole, like, ebb and flow trickle effect that impacted you on your deals in an uncharacteristic unsuspecting way, if I’m being so bold to say it that way. And you weren’t the only one impacted. thou hundreds of thousands of people were impacted that way. And so we find ourselves in an interesting situation where, you know, we’re we’re hearing some interesting stories about banking you know, collapses and buyouts and things happening presently at the time of this recording. And so there’s a little bit of that similar fear taking place again here, both in Canada and the United States. So I’m curious as you look at the opportunity for building the skill set of raising private money today, even in comparison to before COVID, what would you say about its value and its importance now given the current economic climate? Given the current economic climate, as there’s there’s more liquid capital on the street.
Jay Conner [00:12:03]:
And when I say on the street, I mean in people’s back pockets in their checkbooks. There’s more liquid capital. Now, regardless of your political affiliation, here are the facts. there’s been more money printed in the basement of the White House in the current administration than ever before. So when you’ve got all that mean, that’s been that’s contributed, of course, to the inflation, you know, a situation that we have. You got all this money. Well, the flip side benefit of that is you got all this money and people are looking for a place to put it. So how does that tie into your question? How do I raise money? I’ve never asked anybody for money. Well, what I do is I put on my teacher hat. You know, the traditional way of borrowing money is you go to the bank or the mortgage lender or the hard money lender and you get on your hands and knees and you put your hands underneath your chin, you go Please fund my deal. Please fund my deal. Right? Or I’m gonna die if you don’t fund my deal. Right? By the way, I know y’all have heard it. I digress here for a second. I know y’all have heard it, but for goodness sake, I’m sick and tired of the gurus out there saying Oh, just get the deal on the contract. The money will show up. Have you heard that before? And I wanna go where is the money gonna show up? Is it like gonna rain out of a cloud? I can tell you why that stuff and that junk is taught. The reason that junk is tired of getting the deal under contract, the money will show up is because somebody’s selling a course on how to find a deal. That’s why they’re saying that. So that’s why I say get the money lined up first. There’s always gonna be deals. Always gonna be deals. So get your funding line up front. Now I’ll get back on course. So back to that traditional way of raising, I mean, borrowing money, as you go to the bank and you beg, Right? So in this world, there’s no begging. There’s no chasing. There’s no selling. There’s no persuading. Instead of asking for a mortgage, we are offering a mortgage. Right? So I teach people. That’s how I started. I started when I had those 2 deals on the card, by the way, I closed both of those deals. That’s awesome. private money. Right? And so I teach people There are 3 categories of where you find these private lenders. People you got some amount of association with or on your cell phone, email, or social media. And then, I teach providers to expand their warm market. You know, your network is equivalent and correlates to your network. And then there are existing private lenders. We’ll talk about how to find them if the show allows time. Anyway, I started teaching people what my private lending program was without trying to pitch a deal. I started teaching the opportunity. So I put my program together, right? What’s the interest rate I’m gonna pay? A straight 8%. No origination fees. I’m gonna pay 8%. you know, I’m gonna give you I’m gonna back that note. I’m not gonna borrow unsecured funds. You know, what’s the like? So I started teaching the program. It’ll take 20 minutes to teach the program that I’ve put together to people that you’ve got some kind of relationship. And then by the end of that, I promise you If they’ve got investment capital and or retirement funds, they’re gonna be saying, well, what do I do? Just write you a check? no. They don’t write you a check because we’re gonna back that note with the real estate so they only wire funds either from their retirement account or their liquid investment capital directly to my real estate attorney or closing agent, then we close. So how do we attract it? Teach? Put on the teacher hat What are you doing you’re serving? You see, in this world of private money, there’s no rejection. You cannot be rejected if you’re not asking for the money. Right. I’m going to deal. Right? So I’m teaching how they can get high rates of return to safety and security. They said, wow. I wanna do this or If they want to use their retirement funds, I’ll introduce them to myself to ready the IRA representative that I refer all my private lenders to. They’re all set up to go And then when it’s time for them to fund a deal, I never pitch a deal. How in the world do I do them? Do I do that? I call them up and say, I got great news. I tell them 4 things. I said I got a house over here in Newport, North Carolina, but that after a repair value of 200,000, the funding required 150,000. I know they got it. They already told me. And I’m closing next Friday, so you gotta wire your funds next Thursday. I’m gonna have my real estate attorney email you the wiring instructions. Do you notice I didn’t say do you want to fund the deal? That’s the most stupid question the word I could ever ask. Of course, they want to fund the deal. They’re waiting for the phone call because they told me, and particularly if I introduced them to the self-directed IRA company, they’ve They’ve transferred their money over to the separate IRA company. They’re not earning any money until they put it to work. They’re counting on me to put their money to work. So you see what’s the first step in being successful and attracting private money? You gotta own the real estate between your ears before you can own the real estate out there. It’s the mindset of chasing, not begging. I’m teaching.
Jayson Lowe [00:17:14]:
Here we go. I got the money lined up. Alright. Let’s get the deals funded. And what do you see some of the common mistakes that people make, you know, when they first kind of, you know, forge their way into lending their capital, you know, how often have you seen people, you know, make mistakes in that space?
Jay Conner [00:17:37]:
So from the standpoint of the private lender, from the standpoint of the private lender, number 1, if you’re interested in being a private lender, And, I mean, this money got is written for the real estate investor that wants to borrow private money and teach private money. On the other hand, if you wanna be a private lender and loan your money out, Number 1, don’t ever loan money out unsecured. Yeah. Nope. No promissory notes. Yeah. I mean, you know, I mean, you can. It’s legal. Right? But for goodness’ sake, you’re recourse is a piece of paper. Yep. It’s your recourse. Right? So, secondly, who are you doing business with? Right? I mean, how well do you know this person? I mean, the operator, the guy or the gal running the show really from the standpoint of a private lender, you’re not investing in that piece of real estate. You’re investing in that person. right, that is really what you’re doing. Right? So where’s your level of trust? Where’s your level of confidence? Right? you know, I mean, I mean, pretty much, I’m not gonna be, and I’m a private lender myself. Right? I mean, private lending’s beautiful. I mean, it’s passive. I don’t have to go find a deal. I don’t have to negotiate a deal. I don’t have to rehab a house. You know, I just sit back and watch the money get printed. But who am I gonna do business with? I’m gonna do business with, first of all, how well do I know them? I mean, I’m not gonna take a phone call or an email from somebody that I don’t know, and they’ve picked me a deal, and I’m gonna invest in it. I don’t care how lucrative it looks. Right? Because I’m not investing in that real estate. I’m investing in that person and their knowledge, and they know what’s going on. Now here’s another red flag on the other side of the coin. Big red flag for you real estate investors, whether you’re brand new or seasoned or whatever. let me tell you one of the biggest scams out there on the internet right now. Private money scam. And here’s the private money scam. you get an email or it shows up in your whatever, your news feed or whatever, and here is a person, an individual, not an institution, private lender, you know, here’s max, you know, max money saying whatever his name is, and he’s offering you money at only 3%. Well, there’s a red flag right there. Who’s gonna loan you money at 3%? in today’s economy? Right? So he’s gonna loan you money at some ridiculously low rate, and here he’s gonna say no appraisals, no this, no that, no that, I’ll fund your deal in 3 days, blah blah blah blah blah blah, and here’s the catch. You just gotta send me a $1500 application fee and I can get you all set up within about 48 hours. Okay. You send that 1500 bucks. MoneyMax Sam is gone. Yeah. So, but, so, but here’s how you know. You never, as a real estate investor borrower, you never, never. Did I say never? As a borrower, send money to a lender before closing. You never send them any money before closing. There’s no application fee and all that mess. Right? So, I mean, my way I mean, my land the way I do private money when I close on a deal, I never take any of my own money down payment money to close in table anyway. I always bring a check back home. I’m not taking money to the closing table. I’m and how do I do that? because I borrow more than I need, right, because there’s a lot of equity in these discounted houses that we buy. But while we’re talking about red flags and how to protect yourself, private lender, you’re investing in that person, the borrower. Don’t you pay no, you know, junk application fee upfront before you go to closing?
Richard Canfield [00:21:41]:
Those are going to be great. And it’s a user who uses your lawyer. Make sure it goes through, you know, it goes through the proper channels, you know, and don’t drive over to some guy’s house and leave a check on the door and say, here you go. Here’s to fund that deal you told me all about.
Jay Conner [00:21:54]:
Exactly.
Richard Canfield [00:21:56]:
Yeah. I’m glad to hear your commentary on things like the promissory notes. I mean, you know, when a real estate market starts getting hot and things are happening, be everyone who wants to get in on the deal, whatever the deal is. And then that’s what you start to see happen. I’ve even heard of a lot of even real estate coaches who are then doing deals with people that they’re coaching, but they’re doing the deals raising private money from students using promissory notes, not even securing the title. And if you’re coaching someone to be successful in real estate and you’re not even coaching them to take security on the deal that you’re you’re helping them get involved with. I mean, that to me is a pretty big red flag. Do you reckon? Well, I love it. One of the things I’m really curious about is you know, you mentioned, you know, again, seasoned investors versus the newer investors just because we have so many listeners on our program. Some people who are just getting excited about getting into real you know, if if you’re new, maybe you’ve got 1 or 2 or 3 doors, you’re kind of at that state and you’re looking to grow. Maybe you started you’ve tapped out your current banking relationship. you already had that call with Steve, and Steve’s like, I can’t get you any more money. And you’re looking at moving into the private money space. You know, what would you say about helping that person have the confidence maybe or the or may maybe they’re because they’re still new in the game, maybe they don’t have enough years under their belt of experience. What kind of tips and tricks would you give them to help them get with what they need so they can start having those teaching conversations appropriately so that, again, they’re not chasing, not asking for capital but they’re setting themselves up in the best position so that the capital will begin to flow.
Jay Conner [00:23:33]:
Richard, I love your question. because there’s one word in your question that is critical. The words you said were confidence. So first of all, nobody’s gonna loan you money for your real estate deal unless you believe in yourself and your deal and your private lending program to start with. I mean, you gotta believe what’s going on here. You gotta be passionate. Right? You gotta be passionate about what you got going on. Look, Pete, people are attracted to passion. Right? People are attracted to people that know what they’re talking about. So you better know what you’re con you’re talking about. Well, how are you gonna know what you’re talking about? You need to know your private lending program, which is a duplicate mine that you teach other people, you need to know your program inside and out like you can just talk about it in your sleep. Right? Now I’ve got a beautiful PowerPoint that if you can read works. Right? And it takes, like, 20 minutes to go through it, and it teaches the private lending program. But if you’re eating fried chicken and pork barbecue and coleslaw at Smithfield’s barbecue chicken joint after church on a Sunday, you ain’t gonna have your PowerPoint and your laptop on the fried chicken table. Right? So you need to be able to have like just this nice little casual fluid conversation about what you do. You know, I love Did you know questions. I love Did you know questions. It’s a great conversation starter about private money. For example, here’s one of my favorite degenerative questions. So, Jason, you look like you would enjoy fried chicken. I’m not sure, but anyway, let’s say you and I are hanging out there at Smithfield’s fried chicken, and we’re eating alone, and I say Jason, and let’s say you don’t know Harley. I mean, you know, I invest in real estate or whatever, but you don’t know how I fund my deals. Right? So we’re, you know, we’re right there, you know, chomping on a chicken leg and, you know, we’re talking about what was gonna happen this coming week. And then I say, Jason, Did you know there’s a way that people can earn unlimited money per year tax-free? And of course, you’re not gonna know the answer to that question because where in the world can you go and earn money, unlimited money, tax-free? And, of course, you, I’m gonna say, what? How do you earn tax-free money? Well, my next, did you know a question as I say, I mean, my next question, I say, well, You know, have you ever heard of self-directed IRAs? And of course, you haven’t. 99% of the people who are voting never heard of us ever. I say and I’ll say, well, and now here I go. I mean, here now I’ve got the door open. I opened the door. You stepped in, and now I ain’t safe. Well, you know, self-directed IRAs are a great vehicle that hardly anybody knows about, financial advisors don’t know about it, because there are no commissions in it. If you have got retirement funds, you can transfer them over. And if you’ve transferred over, you got a Roth IRA You can be a private lender and invest in real estate and earn unlimited money per year with no tax effect. No penalties. No nothing. And so we talk about self-drug low rates. You know, digit the digit no questions. So back to the question, A brand new real estate investor hasn’t raised any private money. Number 1, get you thinking straight. You’re not asking. You’re not begging. You’re not chasing. You’re teaching. Right? And I’m talking about your warm-up. We haven’t talked about existing private lenders. You don’t teach existing private lenders anything because they already know what a private lender is. Right? You ain’t gonna You ain’t teaching an existing private lender or your private lending program because they’re already doing it. Right? So you teach people in your warm market. teach them your program. And, but, gah, hey, look here now. Don’t make this mistake. Don’t be teaching your private your your your potential private lender, your program. And in the same conversation, talk about the house you got at 411 Chatham Street, that’s under contract that you need funded. You’re already begging and sounding desperate, and you didn’t even mean to, because I told you not to sound desperate. Well, you’re already desperate because you combine the conversation of the program, and now you got this deal in the contract. So we separate. How do you think I learned all this stuff? because I screwed it up to start with. It’s how I learned it. You have this deployable shirt on, but I bet you in your closet, there’s a School of hard knocks shirt that you probably have as well. It’s a so Richard,
Jayson Lowe [00:28:15]:
One of our late mentors said this was years ago. He said, do know do you know how you become a good lender? And we said, no. How do you becomea perfectd lender? He said, be a bad one. Exactly.
Jay Conner [00:28:34]:
That’s right. That’s right. That’s a good one. So I don’t know how we got off on that, but anyway, we separate the conversations of teaching the program and then, you know, they tell us how much they got, Is it retirement funds? Do we need to introduce them to the company that we recommend using as your directed IRA? You know, 3rd party custody? Anyway, they got their money lined up to go. I know how much they got, and then I call them up, and I do that little script that I did a few minutes ago, and say I got great news. I can now put your money to work. And I’m not asking them, do they want to fund this deal. I mean, you know, it’s like It’s just a natural progression. I taught you what private money is. You love it. You’re all excited. You wanna get going. Right? By the way, they always have more than they tell you. I got a private lender by the name of Terry That’s all the name I’m gonna give because I know how you are. Right? So I have this private lender, and Terry has been loaning me money for quite a while. and that’s all she had. That’s all she had until Tuesday of this week. Lowing the hole. Here’s another $250,000. How fast can you put it to work? Well, I put it to work today and I brought home a check for $50,000 because we always bring them a check when we buy. Who wants to get paid to buy houses? Right? So anyway, that’s back to that confidence thing. Know the program. You’re teaching. You’re not asking. You’re not begging. But light back to the fried chicken story. It’s got to be a conversation. Right? And look, it doesn’t take long to get this down. there are only 14 talking points, and all of them are short, right? Yep. That you just talk through the talking points and, you know, there you go. Well, well Well, and by the way, I’m sorry. This comes to mind. And again, here’s the deal. I hear this all the time. I know you all heard it. I hear this all the time. New real estate investor says Jay Conner. Who in the world is gonna loan me money, I’ve never done a deal before in my life. Right? Well, here’s the end. and here’s a rider downer as we say here in North Carolina. If you don’t pay them, the property does. Now, they don’t want the property back. They don’t want the property. That’s why they’re a private lender. But you see, we don’t borrow more than 75% of the repaired value. I didn’t say 75 percent of the purchase price. And by the way, all that’s in the money guide for the download. But since we only borrow 75 percent of the after-repaired value, then, you know, if you screw up and you’re going to, you’re gonna screw up. I mean, I’ve done 4 75 rehabs and they never come in on budget. So that’s why the magic is not in estimating repairs. The magic is in the offer that you do on the house, but I digress. But, you know, if that deal goes sideways, then your private lender has got a ton of equity. Right? We got what we call a 25% equity cushion to where if the house needed to be liquidated, then your private lender can be made whole. That’s back to looking after your private owner. But let me also comment on what I just said. And that is if you’ve never done a deal before, Then for goodness sake, don’t do it by yourself. Right? I don’t care how many books you’ve read. I don’t care how many seminars you’ve been to. You better have a mentor or a coach or a seasoned investor in your local market that will work with you on that deal. Hey, look, Here’s the deal. You gonna pay for your education one way or the other, and you do not want to pay to go to a seminar that you do not intend on going to. Trust me.
Richard Canfield [00:32:36]:
Yeah. We’ve we I’m pretty sure Jason and I could both put our hands up in regards to, the seminars that we’ve We’ve paid for unintentionally, on our time frame. And, you know, what I love about this is that as people are listening to this episode that goes live, obviously, You might wanna consider getting some stock in the fried chicken establishments that you know. Anyone who’s a listener that owns a fried chicken establishment could send the checks to Wealth Health Bay Street. so we were happy to support your business in that endeavor. but, you know, as you’re talking about that, I could picture that conversation happening, by the way, down in Eugene’s fry, fried chicken down in Alabama. Yeah. Which is amazing. We love that place. Shout out to Eugene. So, you know, what’s cool about this? Something that you centered on. You said several times. It’s something that would be similar language to what we use when we talk about how we help people in our process. but you emphasize the program. And I think to expand on that, I’m gonna give you what I interpret as it runs through Richard’s brain filter, and I’m gonna shoot it back out And you just tell me if I’m on base or not, Jay. The program is a set of guidelines and steps about how you go about doing your deal so that the deals themselves when it comes to the raising of capital are systemized. They are similar or systemized. In other words, you know, you know, real estate deal a and real estate deal b don’t have different lending rules and lending this and lending that. So you’ve got everything systemized, whether it’s the repayment, how the repayments work, the time frame of the loan, how long capital’s tied up for, how you’re gonna go about delivering ongoing cash flow payments, all of that’s part of the systematic aspect that’s built into the program. Am I on track?
Jay Conner [00:34:19]:
I wish I could’ve said it that clearly. yes. Yes. Your filter gave me beautiful 9a half PH Water. That was great. So yes. That’s that’s it. Right on. I mean, because, and here’s an example of what you just said. I got Ray over here as a private lender. And then over there, I got Terry who I mentioned as a private lender. guess what? raise program with me is the same as Terry’s program. Right? I don’t negotiate, man, I’ve heard this for goodness’ sake. I don’t negotiate on the rate that I’m gonna pay I am an equal opportunity borrower. Okay? That was a writer’s downer. I never thought of that in 20 years. So right now, there’s an equal opportunity borrower, meaning everybody’s got the same opportunity. And that way, I mean, people talk, right? And by the way, when you start attracting private money, which you will very quickly, I got students all the time getting at least $500,000 in private money in less than 30 days from just starting to implement. But the thing of it is number 1, they already have more than they always have more than they tell you, and they refer other private lenders. new private lenders to you. Right? But the deal of it is, yes, everybody’s treated the same. The only thing different is 2 things. The only thing different is 2 things between private lenders. Number 1 is the interest rate I pay. So the interest rate is either 8% or 10%. So I pay 8% to private lenders that are loaning money and their mortgage or deed of trust is in 1st position. Right? because you can have multiple private lenders secured by the same piece of property. So a junior lean position or a second position or second mortgage I use smaller amounts of money, such as $50,000, 40,000 for rehab money. Right? Well, I’ll pay 10%. So it’s either 8% or 10%, and that’s just depending on the position. The program didn’t change. The system didn’t change. It was what position the note was in. And the only other thing that changes from one lender to the other is how often are they paid. And guess what? They get to pick. They get to choose how often they’re paid. I mean, I’ll have if I’m doing a fix and flip and I’m only gonna be using the money for 6 to 9 months, I’ll say, well, you’re gonna earn the same money, whether I write you a check every month, or we just let the interest accrue, and I just write you one big interest check, you know, at the end of the deal, But I’ve got some private lenders that are elderly, and they need the monthly income. I mean, they invest I got 1 private lender and got $1,000,000. investment capital, $1,000,000, and he and his wife are retired school teachers. Right? Well, guess what? They’re living off of the $1,000,000 invested with me. They’re living off of that along with their social security and a little bit of teacher retirement. But let me tell you what, they are living the drain, having a $1,000,000 with me because, you know, they’re getting those high rates of return. So anyway, Yes. Same program, same system. Everybody’s treated equally. Love it. Yeah. Very clear. Rich.
Richard Canfield [00:37:46]:
I, I wanna thank you, for coming on the program, Jay.
Jay Conner [00:37:50]:
It’s not over, is it? It’s not already over, is it?
Richard Canfield [00:37:54]:
Time flies. You mentioned the more going out for fried chicken after. Yeah. Fried chicken. I thought it was going on that now. When when you said you know, everything’s the same for each diva, I heard in the back of my head, one of our mentors, the late Arnelson Nash saying, say me, say me. Exactly said, I thought he would describe it. And, so, you know, well, how’s the deal for that guy? Oh, samey, samey, right? And I and the nice thing about this is that that language is very simple. It is comical, and it gets people to connect with what you’re doing. And so, again, those are that’s just one thing that we learned from one mentor just in how we exercise verbiage and communication And when you’re talking about the ability to communicate and teach these deals, that’s some of the skill set, and the learning that you’re gonna be doing as you go out there and do it. if you don’t have the conversation, you’re not gonna learn squat. So you gotta start having those conversations, I think, is a key takeaway. And and make sure to get a copy of, Dave’s download there. Again, we’re gonna put the link down in the show notes. What our final question for you is Jay, and I really wanna just, you know, have you open up on this a little bit You know, although you showed up today without a cape on, you are wearing an unemployable shirt, which is just almost as cool. And so you may not, you know, you know, show up to your podcast studio every day and think, I’m a superhero today, but every time that someone downloads your ebook, every time that someone reads, your other book, where to get the money now. Anytime that someone does those things, you’re showing up as a hero for them in their world because you’re teaching them a way to create more freedom in their life and to share a bigger impact. So our question for you is who do you most wanna be a hero to?
Jay Conner [00:39:33]:
I want to be a hero to a person that wants to serve and give back. This game and it’s not a game. It’s a business. But this business in real estate investing It’s not first about the money. And I’ll tell you why it’s not first about the money. Every time I’ve been involved, in an opportunity or a business, and my primary focus or my only focus was making money I failed miserably. I failed so miserably. I never got off the ground. I never got it launched. Right? Because when it’s only focused on the money, who are you focusing on? You’re focusing on yourself. when you’re only focusing on the money. This business is not primarily about money. This business is a people business. And for goodness sake, there are so many people to serve. And when you put serve first out there, You ain’t got to worry about yourself. If you’ve got a smart business plan, of course, you gotta have a smart business plan, right, for it to work. But when your focus is on the other person, everything else falls into place. Who am I talking about? Well, we ain’t buying anything these days in the multiple listing service. from realtors to lay nothing in there. We’re buying all of our deals and we have since this side of COVID from for sale by owners. Those are people. Those are real people, and those real people have got problems, or they wouldn’t be responding to your marketing, that you can offer a solution. Right? It’s about understanding where are they coming from. I mean, they wouldn’t be reaching out to you unless there was some kind of distress going on, you know, most of the time. So you’re there to help these people. That’s right. For example, I was talking to I wasn’t my acquisitions was talking to a seller A couple of weeks ago at 123 Paradise Circle where their house is located, and she was talking to him and come to find out just lost her spouse. The spouse had just died. They got financial stress coming on But for other reasons, they can’t move out of the house until August. So they said, but we can’t sell to August. I said, yeah, we can. Do you wanna sell now and still stay in your house for free with no rent for the next few months? So we fixed the problem by understanding what the problem was. Right? This is a people business. Private lenders. Right? They’re looking for a safe place to put their money. Those are real people that you better be looking after and taking care of. Right? And then there are all the other people that you work with. You know, your contractors, your assistance, you know, and so who am I looking to make an impact with and to serve somebody interested in the other person first? I was riding down the road the other day with a dear friend of mine. We’ve been going to church together. for over 20 years. But right down the road, he says, Jay, I’m confused. I said, what are you confused about, Neil? He said, when is enough? I said, I think I know what you mean by that question, but tell me what you mean. He says, well, How do you reconcile the scripture in the Bible that says when the apostle Paul says, to be content? I said, oh, Now I understand the question. I said Neil, enough is never enough when it’s not about you.
Jayson Lowe [00:43:06]:
So well said, Jay. Thank you. Love it. Great. And to to all of our viewers watching the episode on, YouTube’s Playlist just showed up. Thanks to our amazing editing team whom we give all the credit to in every episode. And make sure you click that next video. Continue that journey of learning. that’s really what this is all about. And we can’t thank Jay enough for being with us, and, we’ll certainly, definitely have them back, and have an expanded conversation on fried chicken. And, we can talk about some of the points in the book while we’re eating. We might even raise some private money to buy a chicken joint. And so, Jay, thank you sincerely, and to all our viewers and listeners make the rest of your week outstanding. This was fantastic. Thanks, Jay Thank you.