In the ever-evolving world of real estate investment, flexibility and innovation often pave the way to success. One such innovative strategy that has gained traction among savvy investors is the "subject to" method. This approach allows investors to acquire properties by taking over existing mortgages, offering a unique blend of flexibility, speed, and opportunity. In this blog post, we delve into the insights shared by real estate expert William Tingle, as he discusses the nuances of creative financing in his conversation with Jay Conner.What is a "Subject To" Deal?A "subject to" deal is a real estate transaction where the buyer takes over the seller's existing mortgage without formally assuming the loan. In this arrangement, the mortgage remains in the seller's name, but the purchaser takes ownership of the property and continues making the payments. This strategy often bypasses the traditional financing process, offering an intriguing solution for both buyers and sellers facing unique situations.The Mechanics Behind the StrategyWilliam Tingle, an experienced investor who has completed over 500 subject-to transactions, emphasizes the simplicity and legal foundation of this approach. These deals hinge on understanding and navigating the due-on-sale clause, a standard component of mortgages since the 1980s. This clause gives lenders the option to demand full repayment if the property is sold. However, as Tingle highlights, this option is rarely exercised as long as the payments are made on time and the loan remains in good standing.The genius lies in the practicality — investors keep the payments current, ensuring the lender rarely has a reason to call the loan due. This method allows investors like Tingle to acquire properties even when traditional financing would be cumbersome or slow.Why Sellers Opt for "Subject To" DealsOne might wonder why a seller would agree to leave their mortgage in someone else's hands. Tingle clears up the misconception that only desperate sellers or those in financial distress consider this route. Many sellers choose the "subject to" method for its speed and convenience. Individuals facing relocation for personal or medical reasons might opt out of the lengthy selling process to avoid holding two mortgages. Others may have unique circumstances, like preserving their credit while avoiding foreclosure, that make this an appealing solution.The Role of Private MoneyCombining subject-to strategies with private money amplifies the financial flexibility available to investors. Jay Conner points out that creative financing doesn't end with taking over mortgages; it can extend to raising private money for property improvements or bridging the gap between acquisition and resale. This approach unlocks additional avenues for generating cash flow and leveraging opportunities in real estate markets.Building Trust in Creative FinancingTrust and transparency form the backbone of successful subject-to transactions. William Tingle underscores the importance of clear communication with sellers. By providing reassurance through testimonials and being upfront about potential risks, investors mitigate apprehensions and lay a solid foundation for collaboration. Tingle's business thrives on its track record and positioning as a reliable problem-solver, helping people navigate the complex landscape of real estate with confidence.The Bottom LineCreative financing, particularly through subject-to deals, offers an innovative path in real estate investing. For those equipped with the knowledge and creativity to harness this strategy, it can lead to lucrative opportunities and significant cash flow. William Tingle and Jay Conner's discussion highlights the potential within this method, encouraging investors to think outside the conventional realm and explore the advantages of creative financing

When investors think of diversifying their portfolios, the immediate thought often veers towards stocks and bonds. However, as markets evolve and become increasingly volatile, alternative investment strategies are gaining traction among savvy investors. The podcast episode featuring Thomas McPherson, led by Jay Conner, provides valuable insights into how real estate and private lending can serve as powerful tools for financial growth and stability.The Value of Private MoneyOne of the key themes discussed in the episode is the role of private money in real estate investments. Unlike institutional financing, which can be laden with complex processes and stringent requirements, private money offers flexibility and a more personal touch. Tomas McPherson emphasizes the advantages of using private funds, which often result in uncorrelated returns compared to traditional stock investments. This aspect of diversification is crucial, especially in uncertain economic times.Lukrom I Fund: A Case StudyTomas McPherson outlines the workings of the Lukrom I Fund, a private money loan fund dedicated to real estate investors. The fund is heralded for its conservative approach, aiming for consistent and reliable monthly income. With a Loan-to-Value (LTV) ratio of 52%, the fund provides a layer of safety for investors, safeguarding their interests unless the market experiences severe declines exceeding 65%.Investors in the Lukrom I Fund can expect returns between 7% to 10%, which, while modest, are stable and less prone to market fluctuations. The fund’s "first loss commitment," where owners absorb losses up to $5 million, further underscores the alignment of interests between fund managers and investors.Expanding Horizons: Aggressive Lending and Opportunity ZonesBeyond the Lukrom I Fund, Thomas McPherson introduces the concept of more aggressive investment vehicles, such as the soon-to-launch Lukrom Mending Fund. These funds offer higher pay rates but also carry increased risk, suitable for investors with an appetite for bolder endeavors.Moreover, opportunity zone projects are highlighted as significant undertakings for long-term wealth accumulation. Thomas McPherson’s involvement in over $100 million worth of these projects showcases the potential of strategic real estate investments. Opportunity zones provide tax benefits and encourage investments in economically distressed communities, aligning financial gain with community development.Building Trust and ConfidenceAnother intriguing discussion in the episode revolves around the psychological aspects of investing. Thomas McPherson recounts his challenging trek—a metaphor for the investment journey—emphasizing the importance of self-belief and validation from supportive networks. His advice of "gathering positive affirmation" and engaging in personal interactions rather than relying solely on digital tools resonates deeply in a world brimming with virtual connections.Educating Investors: A Shared GoalJay Conner’s approach to attracting private lenders through education, rather than solicitation, was another focal point. By teaching prospects about private lending and the nuances of self-directed IRAs, investors are empowered with knowledge that shapes their financial journeys.Both Thomas McPherson and Jay Conner stress the importance of relationships based on trust. Personal connections, whether established through investor dinners, unique networking strategies, or shared interests, form the backbone of successful investing. This emphasis on relationship-building is integral to sustaining long-term partnerships.Conclusion: Embrace the New Era of InvestingThe insights shared by Thomas McPherson and Jay Conner are not just about embracing alternative investments but also about reshaping how we think of risk, trust, and community involvement in our

In the ever-evolving world of real estate, striking a perfect balance between strategy and innovation is crucial. For many aspiring investors, the question often is, "How do I start and build a successful portfolio?" Look no further than Ryan Chaw’s proven approach, which emphasizes student housing, automation, and smart property management.From Pharmacy to Real Estate MogulRyan Chaw’s transition from a full-time pharmacist to a successful real estate investor is both extraordinary and inspiring. By leveraging a "room hacking system," he managed to multiply his rental income and accumulate significant wealth by the age of 28. At 31, Ryan retired from his pharmacy career, choosing instead to live off his rental income. His journey underlines the potential of real estate investment as a means to achieve financial freedom.The Power of Room HackingCore to Ryan’s strategy is the concept of renting out single-family homes by the room, a model that significantly increases rental income as compared to leasing an entire property. For instance, by renting bedrooms individually at rates like $700 each, he maximizes earnings, often tripling the income compared to traditional rentals. His properties consistently generate substantial monthly cash flow even after mortgage and operational expenses, showcasing the financial viability of this model.Automated Tenant ManagementRyan’s system relies heavily on automation and virtual assistance to streamline tenant management. By employing virtual assistants in the Philippines, he efficiently manages marketing, customer service, and day-to-day operations. This international team helps cut costs while ensuring smooth property management.Ryan's approach includes using automated platforms like Avail to list properties across various housing sites, coupled with Google Apps Script to manage lead responses automatically. He's also able to scrutinize and select quality tenants using his PRIME method, thus ensuring stability and reducing tenant turnover.Focused Strategy in Diverse MarketsRyan’s success spans across various cities, from Sacramento and Stockton in California to Huntsville, Alabama, and Cleveland, Ohio. His focus primarily targets students in graduate programs, ensuring a reliable tenant base that seeks affordable yet quality housing. By avoiding distressed property purchases and instead acquiring properties at market value, Ryan's model distinguishes itself from traditional real estate strategies.Renting by the Room: A Community ApproachWhile some might view room sharing as unconventional, Ryan finds that many students prefer this co-living model as it tends to be more affordable than campus housing or apartments. By maintaining shared common areas and ensuring amenities like furnishings are provided, these properties become attractive options for students. Moreover, local "boots on the ground" and incentivized students also assist in property tours and maintenance, creating a community-driven management approach.Achieving Real Estate Success for New InvestorsRyan is a strong advocate for new investors starting as soon as possible. His blueprint suggests that with the right number of properties—typically around 4-5—an investor can replace their traditional job income over 5-8 years, achieving financial freedom. Properties under his model yield between $1,500 and $4,000 in monthly net cash flow, enabling investors to build a sustainability-focused portfolio.Resources and SupportFor those eager to dive into real estate, Ryan offers a free PDF guide on his website, which outlines how to get started. Jay Conner, a host who collaborates with Ryan, also provides valuable resources for understanding the role of private money in real estate deals.Ryan’s journey and system demonstrate that success in real estate isn’t merely about owning pr

In the rapidly evolving world of real estate, having the right mindset often sets apart the successful investors from the rest. Gino Barbaro, a seasoned real estate investor and author, sheds light on this pivotal concept in a recent podcast episode of Raising Private Money with Jay Conner. The discussion underscores not only the significance of mindset but also the art of attracting private money in a field often dominated by skepticism and fear.From Scarcity to Abundance: A Mindset TransformationGino Barbaro opens up about his early life, shaped by immigrant parents whose scarcity mindset dictated their relationship with money. This foundational outlook sowed seeds of fear and limiting beliefs, turning money into a source of anxiety rather than empowerment. However, Gino’s journey into real estate catalyzed a profound shift. He learned that success wasn't about chasing money but creating value.One of the defining moments in Gino’s career was realizing profit is merely the fuel for his ventures, not the endpoint. By treating profit as a facilitator rather than a goal, he found joy and freedom in raising capital, redefining his relationship with money from one of scarcity to abundance.Attracting Capital: The Art of Storytelling and RelationshipsJay Conner and Gino Barbaro share strategies for raising private money, emphasizing the narrative and relational aspects. In Gino’s experience, multifamily investing requires more than understanding business mechanics (buying, financing, managing). It demands creating a compelling story about the investment and the investor’s journey. Investors are more inclined to invest in people they trust, making personal conversations and genuine connections essential.Jay Conner supports this approach, highlighting that he has never aggressively pitched deals. Instead, he adopts an educational stance, nurturing relationships with potential lenders by focusing on value and service.Confidence Through Knowledge and PartnershipConfidence is another cornerstone of successful capital raising. Gino advises newcomers to bolster their confidence through rigorous study and real-world practice, often by partnering with seasoned investors. His transformation from an Italian restaurant owner to a full-time multifamily investor stands as a testament to the power of self-reinvention.During a pivotal negotiation, Gino embraced a new identity, shedding the "pizza guy" label and adopting that of a real estate investor. This change in self-identification provided clarity and motivation, demonstrating that confidence often emanates from how one sees oneself.Community, Relationships, and Continuous LearningBoth Conner and Barbaro stress the importance of community and relationships in building a successful real estate career. Isolation can stifle growth, whereas engaging with a community can enhance learning and confidence. For Gino, partnerships with individuals who share his values, like his business partner Jake and his wife Julia, have been instrumental in his success.Moreover, Gino’s educational approach reminds us that learning is an investment. Whether through formal education or hands-on experience, continuous learning equips investors with the tools needed to navigate the complexities of real estate.Creating a Legacy of Value: The Happy Money ParadigmGino’s new book, "Happy Money, Happy Family, Happy Legacy," delves into the intricate relationship between money and real estate. It challenges readers to consider not only financial legacies but also values-driven ones. By understanding why we pursue real estate, we align our financial goals with our intrinsic values, creating a more fulfilling pursuit.In conclusion, the path to success in real estate investing is paved with self-awareness, relational intelligence, and a commitment to continuous learning. By redefining our

***Guest AppearanceCredits to:https://www.youtube.com/@larryshakman "The Real Estate Radio Show | Jay Conner | The Private Money Authority"https://www.youtube.com/watch?v=PdyWho_RwPg&t=244s In the world of real estate investing, access to funding is crucial. Jay Conner, a seasoned expert in private money lending, brings a wealth of knowledge to those looking to elevate their investing game. On a recent episode of the Raising Private Money podcast, Jay Conners joins Larry Shakman on the Real Estate Radio Show, and shares how private money transforms the landscape for investors and why it could be a game-changer for those looking to enter the market without depending on traditional bank loans.The Concept of Private MoneyPrivate money in real estate revolves around securing funds from individual investors rather than institutional lenders like banks. Jay explains that this approach provides unparalleled flexibility. As a borrower, you can set the terms and conditions, including interest rates, loan periods, and the loan-to-value ratio. This power dynamic shift is significant compared to the traditional loan process, where banks dictate terms.Why Choose Private Money?Jay outlines several strategic advantages of using private money:Control Over Terms: As the borrower, you establish the rules—eliminating the tedious approval processes and credit checks typically required by banks.Fast Access to Funds: Investors can close deals quickly, often within seven days, making their offers more competitive in fast-moving markets.Unlimited Potential: Because there is no limit to the number of private lenders you can work with, there's also no cap on the amount you can borrow. This provides a pathway to scaling your investment portfolio more aggressively.Building Relationships with LendersJay emphasizes the importance of cultivating relationships with potential lenders, often within one's personal or professional network. Many individuals are not aware of the benefits of shifting their investments from traditional savings to real estate through self-directed IRAs or liquid capital. By educating them, investors open up new avenues for funding. Jay shares an anecdote about raising over $2 million in less than 90 days just by teaching his network about private lending.Finding Motivated SellersUnderstanding where to find deals is as crucial as having the funds to purchase them. Jay discussed how he connects with motivated sellers, focusing on for-sale-by-owners (FSBOs) and properties not listed on the traditional market. He leverages Google pay-per-lead vendors, ensuring that potential sellers reach out to him, creating warmer and more fruitful conversations. This proactive approach not only saves time but also enhances negotiation power by making investors a welcome guest rather than an unsolicited cold caller.Structuring Deals for Maximum ProfitJay outlines a threefold strategy for maximizing profits on deals:Buying Right: Use private money to purchase at a discount and always aim to buy a property at 50% or below the after-repaired value.Efficient Selling: Whether flipping or opting for a rent-to-own agreement, the goal is to secure a substantial return on investment quickly.Receiving Multiple Checks: Jay's method ensures investors receive payments at different stages—when buying, holding, and selling. This flow of funds supports the cash flow and adds to the profitability of each transaction.ConclusionJay Conner's insights on private money reveal a blueprint for real estate success that goes beyond traditional financing methods. By tapping into private money and strategically appr

In a captivating discussion, Jay Conner, a renowned expert in private money lending, chats with Jerry Scarlato, host of The Good Wolf Project. They unravel the key differences between private and hard money lending, demystifying financing for real estate investors. Jay shares his personal journey, emphasizing the importance of authentic relationships with lenders and the empowerment that comes from taking responsibility for outcomes. Listeners will gain insights into the transformative power of mastermind groups and a resilient mindset in navigating the investment landscape.

Brian Davis, co-founder of Spark Rental, shares his expertise in real estate investing and strategies for generating passive income. He introduces the concept of co-investing, making real estate accessible to middle-class investors through a unique investment club with just a $5 minimum. Brian debunks the myth that high returns come with high risks, explaining asymmetric returns. He also emphasizes intentional lifestyle design and financial independence, discussing the benefits of living overseas and forming mastermind groups for investment support.

In a recent episode of the Raising Private Money podcast, Jay Conner delves into the inspiring journey of Jonathan Broyles, a real estate investor from Lexington, Kentucky, who, along with his wife Cara, has been making waves in the industry since attending Jay's live private money conference in February 2022. With a remarkable track record of closing 17 deals and raising nearly $2,000,000 in private funding, Jonathan shares valuable tips and insights on how to leverage private money for real estate ventures.Understanding Private Money in Real EstatePrivate money is a powerful tool for real estate investors looking to bypass traditional banking methods. Unlike loans from banks or hard money lenders, private lending involves securing funds from individuals who act in the capacity of a bank, offering investors flexibility, speed, and fewer restrictions on their transactions.Jonathan, in his discussion with Jay, highlights the simplicity and efficiency of using private money. The traditional bank processes are often slow and laden with bureaucracies, which can be a hindrance for investors needing to move quickly on a property. Private lenders provide a smooth, straightforward financing process, allowing investors like Jonathan to close deals efficiently and with confidence.The Role of Private LendersPrivate lenders are typically everyday individuals dissatisfied with the returns from traditional investments such as CDs, money markets, or volatile stock markets. By investing in real estate through private lending, they secure a consistent and often higher rate of return, backed by the real estate itself.Jonathan emphasizes the importance of building relationships with these lenders. For him and Cara, the goal is to offer financial opportunities that benefit the lenders, creating a win-win situation. They source funds from savings accounts, money markets, and retirement accounts, transforming these into lucrative investments for their private lenders.Real-Life Impact: A Case StudyJonathan shares a compelling story of one of their private lenders, a widow who was previously earning a meager $750 annually from her money market investments. By shifting her funds to a private lending structure with Jonathan and Cara, her annual earnings skyrocketed to over $12,000. Such impactful changes illustrate the profound difference private money can make not only for investors but also for the lenders themselves.Benefits for InvestorsJonathan explains how private money offers several advantages over traditional financing for real estate investors. Firstly, it provides unparalleled speed, an essential aspect when competing for properties, especially those requiring quick solutions. Secondly, there are no limitations on the number of ongoing deals, offering investors the flexibility to expand and diversify their portfolios.Furthermore, using private money allows Jonathan and Cara to adhere strictly to financial safety measures for their investors. They ensure deals are never over-leveraged, maintaining a robust equity cushion and securing investments with mortgages similar to banks.A $1,250,000 Deal: A WalkthroughOne of Jonathan’s most compelling examples is a current deal with an after-repaired value of $1,250,000. He explains their meticulous process: starting with finding the property through a reputable wholesaler, assessing the extent of necessary repairs, and calculating precise offer limits based on potential returns and costs.Even when the wholesaler’s asking price was significantly higher, Jonathan and Cara’s disciplined approach, sticking to their formulated offer based on realistic repair estimates and conservative valuations, paid off. The wholesaler eventually agreed to their terms, demonstrating the power of adhering to solid financial principles.Final ThoughtsJonathan Broyles' j

*** Guest AppearanceCredits to:https://www.youtube.com/@TheCREAMrealestate "How to raise private money without asking for money"https://www.youtube.com/watch?v=a58toe2v0oo Raising private money is often shrouded in misconception and apprehension. The intriguing podcast episode featuring Jay Conner, a seasoned expert in the field, hosted by Dave Payerchin and RJ Pepino, dismantles these barriers. Let’s delve into the wisdom shared on the transformative power of mindset, strategic approaches to capital raising, and the pivotal role of education in dominating the real estate market.Mastering Mindset for SuccessJay Conner begins the conversation with an essential reality check – that the journey to successfully raising private money starts with owning the “real estate between your ears”. This metaphor encapsulates the fundamental idea that confidence, trust, credibility, and reliability are the cornerstones of exciting investment interest in potential partners. Jay stresses that one must exude these qualities from within to attract private lenders.Central to this is the mindset transformation from viewing oneself as a supplicant, dependent on the whims of traditional banking avenues, to adopting a posture of partnership and opportunity sharing. As Jay reveals, “The power is in the questions.” Asking who within your network can assist with your funding needs opens the door to new possibilities – a strategy that proved invaluable when traditional banks turned down their requests in 2009.The Educator’s EdgeInnovation often comes through the simplest shifts in approach, and this podcast shines a light on the importance of education in raising private capital. RJ Pepino encapsulates this with the poignant statement, “He who educates the market dominates the market.” Jay echoes this sentiment by emphasizing how crucial it is to become a private money teacher, rather than a salesperson.By leading with a servant’s heart, an investor can subtly but powerfully distinguish themselves as experts and stewards of opportunity, sparking interest in potential partners. Jay Conner has entirely reframed conversations with private lenders by first educating them about the potential of private money, often before even bringing up a specific deal. This signature move removes the “stink” of desperation, instead focusing on the abundant possibilities available to investors and private lenders alike.Key Strategies for Private Money SuccessJay articulates a vital strategy in capital raising: keeping investment discussions and deal presentations separately. This step is crucial in ensuring that discussions about opportunities remain educational, rather than transactional. By segregating these conversations, an investor positions themselves as a partner offering valuable knowledge, thus alleviating pressure and creating a natural entry point for later deal-specific discussions.Moreover, he highlights the benefits of flexibility through tools such as self-directed IRAs, which many potential lenders are unfamiliar with. By leveraging these tools, investors can offer novel ways for partners to gain substantial returns, guided through each step by the investor's knowledge and experience.Mindset and Success: The Symphony of GrowthThroughout the episode, Dave Payerchin and RJ Pepino passionately align with Jay Conner’s vision, reminding listeners that mindset is not just about how one views the world, but also how one positions oneself within it. By exercising gratitude and positivity, even seasoned investors can further their growth and prosperity. "Focus on what you are sowing and let what you reap take care of itself," is a powerful mantra of this mindset.

***Guest AppearanceCredit to:https://www.youtube.com/@BryceMatheson "Raising Private Money Without Begging or Selling – with Jay Conner"https://www.youtube.com/watch?v=q5CLJHif2RsWhen it comes to real estate investment, securing funding is often the most daunting aspect of closing a deal. Jay Conner, a seasoned expert in private lending, offers invaluable insights for both budding and veteran investors. As discussed in a recent podcast hosted by Bryce Matheson, Jay breaks down the art of leveraging private money to fuel real estate ventures. Here's a comprehensive look at the strategies and insights shared by Jay Conner during the podcast episode.Understanding Private Money LendingPrivate money lending involves securing funds from individuals rather than traditional financial institutions. Jay emphasizes the significant role private money has played in transforming his real estate business, especially when traditional funding routes, like bank loans, become unavailable. For Jay, the journey into private money began out of necessity. In 2009, when his reliable line of credit was abruptly closed, he turned to private money following the advice of a fellow investor friend. This pivotal move not only sustained his business but enabled it to thrive.The Mindset of a Private Money TeacherOne key takeaway from Jay's approach is the mindset shift required to succeed in private money lending. He advises that instead of viewing oneself as desperate or in need of begging, one should adopt the role of a teacher. Jay emphasizes educating potential private lenders—ordinary people who might not even realize the potential of their idle funds—about the benefits and mechanics of private lending. This educational approach not only builds rapport but also establishes trust, which is crucial in this domain.Navigating the Private Money LandscapeJay shares a strategic method for managing and attracting private lenders without appearing desperate: separating the conversation about the lending program from the deals themselves. This involves first educating potential lenders about the attractive interest rates and security features of real estate investment, based on sound loan-to-value ratios. Only once they express interest does he present them with actual deals. This tactic keeps the process professional and positions the investor as someone offering an opportunity, rather than seeking a favor.Building and Expanding Your NetworkFor those concerned about a limited network, Jay suggests building connections through organizations like Business Networking International (BNI), which facilitates leads and introductions within professional circles. Additionally, Jay underlines the importance of using one’s existing community connections, like church groups or local clubs, to identify potential lenders who are seeking better returns on their investments.Structuring Deals and Ensuring ComplianceIn his podcast discussion, Jay mentions the importance of structuring deals appropriately to remain compliant with SEC regulations, especially when involving multiple lenders per deal. By focusing on single-family home investments, he avoids complications with syndication and pooling, offering each lender a direct loan secured by a deed of trust. This approach not only offers peace of mind to the lenders but also simplifies the entire lending process.Rates, Terms, and TransparencyDespite market fluctuations, Jay Conner has maintained consistent interest rates—8% for first position and 10% for junior positions—since 2009. His transparent method of outlining lender benefits and security measures contributes to building a reliable investor network. Offering features like a 90-day call option for