Raising Private Money with Jay Conner Private Money Success: $155,140 Profit in Just 5 Weeks with Jay Conner
When Jay Conner talks about making $155,140 in just five weeks using private money, he isn't spinning tall tales. Instead, he's sharing the transformative power of private money in real estate investing. Let's dive into the methods and strategies Jay employed to turn an ordinary deal into a goldmine.
Finding the Perfect Deal: Leveraging Technology and Understanding Motivations
To strike gold in real estate, you need to find the right deal. Jay’s success began with pinpointing a motivated seller. He used Google ads to attract these sellers and stressed the importance of immediate follow-up in capturing potential opportunities.
In this particular instance, Jay came across an oceanfront condominium located at 855 Salter Path Road, Colony by the Sea. The seller's motivations were clear: inheritance issues and impending foreclosure. Understanding these motivations allowed Jay to negotiate more effectively.
With a realtor’s help, Jay discovered the property's after-repaired value (ARV) was $600,000, while the seller asked for $425,000. This immediate gap presented a lucrative opportunity. Jay also found renovation costs to be relatively low at just $11,000 – making this deal even more enticing.
Breaking Down the Numbers: Understanding the Financial Landscape
Jay's approach to financing this deal was through private money. Here’s a breakdown of the financials:
- **Purchase Price:** $425,000
- **Renovation Cost:** $11,000
- **Realtor Fee:** $31,400
Using his strategy, Jay borrowed $450,000 in private money, ensuring he had $25,000 excess cash at closing – preparing him for any unexpected expenses and enhancing his liquidity. Jay’s golden rule is borrowing a maximum of 75% of the ARV, which, in this case, was sound due to the property’s valuation.
The Sale: Effective Marketing and Quick Actions
Jay employed effective marketing strategies to elevate the property's appeal. Utilizing professional media including music videos and pictures, he implemented a 'coming soon' campaign to generate buzz and demand. The results were impressive. Though the initial offer came in at $615,000, a subsequent offer of $628,000 came through, which Jay gladly accepted.
Within just two weeks of listing, Jay closed the sale at $628,000. Such quick actions and strategic marketing not only led to a profitable transaction but also underscored the importance of agility in real estate.
Profit Calculation: Detailed Insights
When the dust settled, Jay’s meticulous planning culminated in a substantial profit. Out of a closing sale price of $628,000, we subtract the:
- **Purchase Price:** $425,000
- **Renovation Cost:** $11,000
- **Realtor Fee:** $31,400
Leaving Jay with a net profit of $155,140 – a testament to the power of private money and effective real estate strategies.
Key Takeaways for Aspiring Investors
Jay Conner distilled his experience into five crucial takeaways for budding investors:
- **Consistent Advertising:**
Continuously running ads ensures a steady stream of potential deals.
- **Readiness of Private Money:**
Having funds readily available allows for quick, decisive actions.
- **Maintain Relationships:**
Good relationships with a real estate attorney, realtor, and general contractor are indispensable.
- **Effective Marketing:**
High-quality media and 'coming soon' strategies can significantly influence buyer interest and property value.
- **Education Through Challenges:** Participating in training programs, such as Jay’s 7-day private money challenge (available at https://www.PrivateMoneyChallenge.com), can provide invaluable insights into attracting private money