In a recent episode of the Raising Private Money podcast, renowned entrepreneurs Brad Sugars and Jay Conner delve into strategies and mindsets that can help individuals revolutionize their lives and businesses within 90 days. From raising private money for real estate investing to creating self-sustaining enterprises, Brad and Jay provide actionable insights that can propel entrepreneurs toward success. This blog post unpacks key themes from their discussion to help you harness their wisdom for your own ventures.Raising Private Money: The Game-Changer for Real Estate InvestorsJay Conner, famously known as the Private Money Authority, emphasizes the transformative power of raising private capital. Traditional borrowing methods can often be cumbersome and risky, but Conner offers an alternative approach through leveraging private money. This method provides real estate investors with a unique opportunity to secure funds more safely and effectively.To help investors get started, Conner offers a free guide titled "Seven Reasons Why Private Money Will Skyrocket Your Real Estate Investing Business Right Now," available at jconnor.com/moneyguide. The guide is rich with strategies and insights designed to elevate real estate businesses by tapping into the potential of private money.Building a Self-Sustaining Business: Brad Sugars' BlueprintBrad Sugars, an internationally acclaimed entrepreneur and CEO of ActionCOACH, shares his expert method for creating self-sustaining businesses. A successful business, according to Brad, operates profitably without the owner needing to be constantly involved. To achieve this, Sugars outlines a structured approach comprised of:Mastery: Developing a deep understanding of fundamental business operations.Marketing: Attracting and retaining customers through effective marketing strategies.Systemization: Creating efficient processes and automated systems to streamline operations.Team-Building: Assembling a competent and dedicated team.Scaling: Expanding the business systematically to ensure sustainable growth.Exit Strategy: Planning the business owner's departure to ensure long-term business sustainability.Brad mentioned that his new AI-powered business education platform is designed to help entrepreneurs master these elements efficiently, leveraging his robust network for rapid capital raising. His emphasis on having a reliable network underscores the importance of relationships and trust in successful business ventures.Avoiding Burnout: The Power of DelegationBoth Brad Sugars and Jay Conner highlight their personal experiences to illustrate the importance of avoiding burnout through task delegation. Jay shares his initial mistake of trying to handle everything in his business by himself, which led to severe burnout. By automating and delegating tasks to both technology and people, business owners can focus on strategic growth instead of being bogged down by day-to-day operations.Mindset: The Foundation of SuccessA substantial portion of the conversation revolves around the significance of mindset in achieving business success. According to Brad Sugars, mindset constitutes a significant part of the success equation. Both he and Jay Conner agree that having dreams and goals are crucial drivers of performance and growth. Sugars shares his formula for success, which includes:Dreams: Imagining grand visions for the future.Goals: Setting tangible targets derived from those dreams.Learning: Acquiring the necessary knowledge and skills to achieve these goals.Plans: Crafting strategic action plans.Actions: Consistently implementing the plans.Brad emphasizes the importance of setting daily goals, noting that small, consistent actions accu

In the latest episode of the Raising Private Money podcast, host Jay Conner joined forces with renowned real estate investor James Lascara to delve deep into the nuances of raising private money in real estate. The discussion shed light on a wealth of practical advice and strategies essential for both novice and seasoned investors. With James sharing his extensive knowledge from the trenches and Jay contributing his signature ethical approach, the episode is a goldmine of information. This blog post will distill the key takeaways and expand on their insights to help you fortify your real estate endeavors.The Importance of Knowing Local Business PracticesJames Lascara begins by emphasizing the critical importance of understanding business practices in different states. Whether you’re in Florida, North Carolina, or another locale, closing deals often necessitates the involvement of title companies or attorneys. These professionals help mitigate risks and ensure transactional integrity. James underscores trustworthiness verification through personal conversations and advises seeking a second opinion if something seems off. This due diligence can safeguard investors from potentially fraudulent schemes.The Power of Networking: The Elite Investor Mindset GroupNetworking plays a pivotal role in the real estate sector, a fact underscored by James's founding of the Elite Investor Mindset Group in Tampa, Florida. This mastermind group is a hub for successful professionals seeking collaborative growth and shared insights. Networking not only fosters relationships but also provides a forum for discussing opportunities and challenges in the real estate market. James leverages Instagram (@jplinvest) as his primary communication platform to connect with investors and disseminate information about ongoing investment opportunities.Risk Mitigation and Trust Building in Private Money RaisingJay Conner and James Lascara both emphasize the importance of integrity and trust when raising private money. Jay warns against sending money to lenders before closing, sharing a sobering cautionary tale of an investor who lost $40,000 to a fraudulent lender. Conducting thorough due diligence, verifying the legitimacy and history of the lender, and ensuring investments are protected by equity are steps that can save potential investors from catastrophic losses.James relates his experience with a significant personal investment mistake, where a loan wasn't backed by collateral. This has driven home the necessity for practitioners to always ensure their investments are protected. Both Jay and James advocate for an abundance mindset, believing that opportunities arise naturally when one leads with value and maintains a positive outlook.Tools and Strategies for Efficient Fund ManagementIn terms of practical tools, James mentions using Google Sheets and Excel for tracking investments. While he is exploring suitable CRM systems to streamline various business facets, he remains diligent about updating and managing private money matters. These tools aid in maintaining transparency and efficiency, pivotal for fostering trust among investors.Effective Investor Engagement and CommunicationInvestor engagement is another cornerstone of successful fund-raising. James leverages a simple one-page graphic to introduce potential investors to their initiatives and schedules follow-up calls, providing a clear and concise initial overview. Offering three ways for passive investors to engage, he tailors communication frequencies based on investor involvement. This individualized approach ensures that investors feel informed and valued.Networking is indispensable for sourcing initial investor contacts. James advises beginners to tap into their networks and seek introductions to potential investors. Jay concurs, advocating for an educational approach where invest

In the transformative realm of real estate investing, few narratives are as compelling as Ed Mathews’. From a Silicon Valley startup connoisseur to a distinguished real estate investor, Ed's journey offers a wealth of insights. In this episode of the Raising Private Money podcast, Ed Mathews shares his experiences and strategies for succeeding in multifamily property investing, along with key takeaways for both active real estate enthusiasts and passive investors.Building a Foundation: Early Influences and Initial HesitationEd Mathews’ relocation from Boston to Connecticut in 2008 was a pivotal event, driven by familial priorities. While the move brought him closer to his extended family, it also set the stage for his real estate venture. However, despite favorable market conditions from 2008 to 2011, Ed found himself paralyzed by fear and what-ifs. It wasn’t until he met Amy Rio, a determined real estate broker, that he took the plunge. Amy’s insistence led to the purchase of a 4-unit property for $99,000—a decision that Ed marks as a turning point in his real estate career.Overcoming Fear and Embracing CourageEd candidly discusses how the fear of financial commitment often holds people back from potential opportunities. He references Tony Robbins' philosophy, highlighting how decisions are often driven by either the pursuit of pleasure or the avoidance of pain. For Ed, the need to escape the conventional 40-year career path provided the necessary push. His mantra, drawn from a coach named Crystal and a friend, Chris Moore, centers on getting comfortable with discomfort—a critical element for growth and success in any endeavor.Building Trust with Lenders and InvestorsTrust forms the backbone of Ed Mathews’ strategy for raising private money, an area where he has excelled, having raised $5 million for multifamily properties. Ed stresses understanding the lenders' needs and goals, focusing on offering opportunities that align with their investment objectives. By fostering personal relationships and maintaining transparency, he has turned potential collaborations into lasting partnerships, successfully raising a million dollars in private money along the way.Transitioning from Tech to Full-Time Real EstateBefore becoming a full-time real estate investor in 2018, Ed had a rich career in Silicon Valley, amassing over 24 years of experience. The realization that his real estate income outpaced his tech salary catalyzed his full transition. Founding Clark Street Capital marked a new chapter, enabling him to focus on helping business owners and executives transition away from traditional careers through lucrative real estate investments. His background in startups and crowdfunding also positioned him to leverage unique strategies for raising capital.Strategic Fit and Abundant MindsetOne of Ed’s guiding principles is prioritizing quality investments over sheer volume. He ensures that each deal fits his clients' models, thus fostering trust and long-term satisfaction. Ed’s abundant mindset—a belief that ample opportunities exist for everyone—differentiates him in a competitive field. He is open to sharing insights and making connections, reflecting a community-driven approach that benefits all parties involved.Innovative Funding Models and New ProjectsClark Street Capital’s latest venture, a debt fund, epitomizes Ed's innovative approach. By offering loans at a 12% interest rate with upfront points, he creates a reliable cash flow stream while maintaining trust with flippers, rehabbers, and small multifamily investors. This strategy is reminiscent of selling tools during a gold rush—providing essential resources to those actively engaged in the field.Additionally, Clark Street Capital is spearheading a 100-unit affordable housing project in Central Connecticut. Amid a significant housing shortage, this

***Guest AppearanceCredits to:https://www.youtube.com/@Randy_Dyck  "The Secrets of Private Money with Jay Conner: A Real Estate Investor's Journey"https://www.youtube.com/watch?v=k3uM93KSb1g In a recent episode of the Raising Private Money podcast, Jay Conner and Randy Dyck dive into the profound and transformative journey of leveraging private money in real estate investing. This discussion lights up key strategies and valuable life lessons drawn from years of real estate experience and personal growth. This blog post will outline the podcast's rich content, providing an extensive overview for those eager to succeed in real estate investing.David's Resilience: Embracing the E+R=O FormulaLearning from Hardship: The Foundation of ResilienceDavid's story begins with a challenging upbringing in Kentucky, losing his father at a tender age. This early adversity seemed to predetermine a life of struggle for David. However, a transformative lesson came when he learned about the E+R=O formula, which stands for Event + Response = Outcome. This revelation helped David realize that while he couldn't control the events in his life, he had complete control over his responses. This lesson of owning one's response to life's events underpins the greater discussion of resilience in real estate, as echoed by Jay Conner and Randy Dyck.Jay Conner's Journey: From Bank Reliance to Private MoneyPivoting in Crisis: Facing the 2008 Market CollapseJay Conner faced a significant turning point during the 2008 financial crisis when traditional bank financing dried up. This unexpected challenge could have derailed his real estate business. Instead, Jay turned to private money—a strategy that fundamentally altered the trajectory of his success. Unlike conventional loans, private money involves borrowing from individuals with available capital under terms set by the borrower. This strategy not only revitalized Jay’s business but tripled its size, illustrating the power of resilience and adaptability.The Importance of a Supportive CommunitySurrounding Yourself with Positive InfluencesJay Conner emphasizes the notion that one's "vibration" or energy is significantly influenced by the people around them. This idea aligns with Jim Rohn's wisdom that individuals are the average of the five people they spend the most time with. By building a network of positive, like-minded individuals, investors can maintain high energy and motivation, which is crucial in navigating the ups and downs of real estate.Trust, Vulnerability, and Resilience in Real EstateBuilding the Foundations of SuccessRandy Dyck introduces a powerful analogy of trust and resilience in real estate, likening them to a house's structural components. Trust forms the foundation, hope, and vulnerability of the walls, and the resilience of the roof. Jay Conner agrees with this analogy, adding that spiritual trust also plays a pivotal role. For real estate investors, establishing a strong foundation of trust can protect against inevitable market volatility and ensure long-term success.Strategy and Mindset: Key Ingredients to Real Estate SuccessMaximizing Returns in Property InvestmentJay Conner’s real estate strategy involves precise calculations to determine the worth of an investment. Using private money, he typically offers up to 50% of a property's after-repaired value (ARV), which allows for purchasing and rehabbing properties without tapping into personal finances. For instance, for a property with an ARV of $200,000, Jay might offer $100,000 and borrow up to $150,000. This approach ensures that funds are available for unexpected expenses and repairs, emphasizin

Credits to:https://www.youtube.com/@reimastermind "Jay Conner Reveals Top Secret to Raising $2M in 90 Days!"https://www.youtube.com/watch?v=98ClNRyF20g In one of the most enlightening episodes of the "Raising Private Money with Jay Conner" podcast, Jay Conner, along with guest host Jack Hoss, delves into the intricacies of securing and leveraging private money for real estate investments. This post encapsulates the key takeaways and practical strategies shared during this conversation, focusing on mindset, preparation, security for lenders, and invaluable advice for new investors.The Essential Mindset in Private MoneyCultivating the Right MindsetJay Conner emphasizes the paramount importance of the right mindset when approaching private money. Unlike the common approach of chasing funds, Jay advocates for an educational and service-oriented mindset. By focusing on educating potential lenders about the benefits and security of private lending, investors can establish a strong foundation of trust and interest. As Jay cleverly analogizes, chasing money is like chasing a runaway puppy—desperation makes it elusive, while a measured, informative approach makes it attainable.Program Confidence and Security for LendersAn investor's confidence stems largely from their knowledge and understanding of their private lending program. Jay Conner consistently offers an interest rate of 8%, secured by real estate, providing a solid return with collateral for safety. This assurance of security, where the borrowed money is collateralized with the real estate property, serves as a significant selling point, especially for conservative investors wary of potential defaults.The Timing and Process of Raising MoneySecuring Funds Before the DealA recurring theme in Jay's advice is the necessity of pre-arranging private funds before locating a deal. This proactive approach eliminates desperation and positions investors to confidently pursue deals knowing they have the necessary financial backing. Jay presents the notion of having lenders lined up as akin to bringing a loaded gun to a knife fight—preparedness gives a competitive edge.Implementation Strategy: The Good News Phone CallOnce potential lenders are educated and express interest, Jay employs his signature "good news phone call" tactic. During this call, Jay shares vital details about the new investment opportunity, including the community location, after-repaired value, required funding, and closing date—without appearing needy or desperate. This method ensures that lenders stay engaged and excited about the opportunity without feeling pressured.Critical Advice for New InvestorsFinding a MentorFor novices in the real estate investment arena, Jay stresses the importance of mentorship. A mentor can provide guidance and share their wealth of experience, significantly reducing the learning curve and avoiding common pitfalls. Leveraging a mentor's expertise also enables new investors to gain confidence and credibility when securing funds.Resourcefulness and EducationJay's educational approach sets him apart from many industry educators who often withhold key details. His transparency and willingness to share practical information empower new investors to make informed decisions. He recommends the book "University of Success" by Og Mandino as a vital read to bolster one's mindset.Leveraging Real Estate Financing StrategiesMaximizing Returns with Creative FinancingJay elaborates on a strategic approach for buying and financing properties. By purchasing a property for $100,000 with an after-repair value allowing

***Guest AppearanceCredits to:https://www.youtube.com/@wealthjuiceofficial "Jay Conner’s Blueprint for Making $78,000 Per Deal (Using None of His Own Money)"https://www.youtube.com/watch?v=jBUNCddrdKY In a recent episode of the Raising Private Money podcast, Jay Conner joins Cory Jacobson and Ryan Bevilacqua on The Weekly Juice Podcast, where Jay shares invaluable insights on private money lending and creative financing strategies that have propelled his successful career. This post delves deeper into Jay's methodologies, illustrating how real estate investors can leverage private money and unique financing options to thrive even in challenging market conditions.The Journey to Private MoneyReal estate can be both lucrative and challenging, often requiring innovative approaches to financing. For Jay Conner, this realization came when traditional financing avenues were abruptly closed off. In 2009, his local bank cut off his line of credit with no warning, prompting him to find an alternative to keep his business afloat.Discovering Private Money and Self-Directed IRAsFortunately, Jay’s friend Jeff introduced him to the concept of private money and the power of self-directed IRAs. These tools enable investors to source funds outside conventional banking channels, essentially democratizing access to capital. Inspired, Jay researched how individuals could use retirement funds to finance real estate investments and began formulating a strategy.Establishing Trust Without DesperationOne of the key tenets of Jay’s approach is the emphasis on trust. He advises investors to avoid discussing specific deals in initial conversations with potential private lenders. Instead, he focuses on educating them about the private lending program. This approach centers on building trust and interest without appearing desperate for money.Crafting an Attractive Lending ProgramWhen explaining his lending program, Jay shares specifics like interest rates, note lengths, and emergency call options with potential lenders. Offering an 8% annual interest rate—a notable increase from the usual 3-5% local CD rates—Jay makes a compelling case for investors. The program’s clarity and attractive returns have successfully attracted 47 private lenders.Leveraging Connections and NetworkingJay’s first significant success in raising private money involved an indirect approach. A trusted acquaintance, Wayne, helped him connect with investors interested in the higher returns offered by Jay’s program. By leveraging Wayne’s extensive local network, Jay was able to secure a $250,000 investment from a somewhat skeptical potential lender. This established a pattern for Jay, wherein he treated private lenders like a bank, setting clear, upfront terms for returns.Real Estate Projects and Profit StrategyJay’s borrowing strategy also stands out as methodical and calculated. He typically borrows 75% of a property’s after-repaired value (ARV), ensuring investments are backed by solid real estate. For instance, on a property with an ARV of $200,000, Jay might borrow $150,000, ensuring a $50,000 check at purchase, less closing costs. This method ensures profits upfront and upon sale, without initial personal fund investment.Combining "Subject To" and Private Money LendingJay has mastered the use of the "subject to" strategy, allowing him to take over existing mortgages without the original lender’s consent while managing monthly payments. When combined with private money, this strategy allows Jay to finance repairs or cover back payments without using personal funds. This hybrid approach provides flexibility and liquidity,

Welcome to a deep dive into the latest episode of the Raising Private Money podcast featuring Neal Bawa, a visionary in the realm of commercial real estate. This episode uncovers the methods and philosophies that have made Neal Bawa a noteworthy figure in the industry. Sitting down with Jay Conner, Neal shares invaluable insights on how to leverage data analytics, technological advancements, and genuine brand-building to elevate your real estate investment game.Transforming Real Estate with Data-Driven InsightsNeal Bawa’s Remarkable Achievements: Neal Bawa, CEO and founder of two commercial real estate investment companies, is not your typical real estate mogul. With a background in computer science, Neal has seamlessly merged technology with traditional real estate practices. His pioneering use of real estate analytics has facilitated the acquisition and development of commercial properties across the United States. Under his leadership, these companies have raised an astounding $325 million from over 1,000 private lenders and investors, managing a portfolio boasting over 4,400 units.Neal’s commitment to education is evident. With a top-rated free real estate data analytics course on Udemy, boasting over 1,000 five-star reviews, and an expansive reach with over 10,000 participants, Neal has democratized real estate knowledge. His multifamily webinar series also attracts over 5,000 annual attendees, further solidifying his reputation as an industry thought leader.The Vision: PropTech and FinTech InnovationsNeal Bawa’s Forward-Thinking Vision: Neal envisions a future where real estate, augmented by PropTech and FinTech innovations, becomes a tradable, highly liquid asset class competitive with the stock market. This futuristic outlook isn’t just theoretical; it’s grounded in his vast experience and success. Neal believes that leveraging technology for data-driven decision-making is key to realizing this vision, enabling more informed and efficient investment decisions.Strategies for Raising Private MoneyBuilding an Authentic Brand: Neal and Jay Conner discuss the intricacies of raising private money, emphasizing the importance of building an authentic brand. Neal’s success is a testament to this approach, where genuine engagement and transparent communication trump high-pressure tactics. In a region like Silicon Valley, a data-focused, authentic brand is especially effective.Neal shares an illustrative example of how he uses newsletters to provide real estate insights. By sharing an analysis report from Local Market Monitor on social media, Neal builds his data-driven brand, attracting investors who appreciate his expertise and candor.Technological Mastery in Real Estate InvestmentLeveraging AI and Automation: Neal’s strategies go beyond traditional methods. By integrating advanced technologies like artificial intelligence and automation into business operations, Neal has created an efficient, high-functioning system. For instance, his use of ChatGPT and Perplexity aids in content creation and organization, significantly boosting productivity. Neal’s ability to manage a substantial workload with just 27-28 work hours per week, supported by four full-time executive assistants, is a testament to the power of leveraging technology.Optimizing Property ManagementGrow Capitas: The Value Add Approach: Neal Bawa’s company, Grow Capitas, is dedicated to acquiring and improving multifamily properties rather than engaging in new construction. Neal’s approach involves a comprehensive optimization strategy employing a team in the Philippines and utilizing over 600 systems and processes. This ensures high tenancy satisfaction and financial efficiency, aiming for a 97-98% occupancy rate. Neal believes in long-term projects, focusing on sustainable improvements over typical five-year periods.

In the challenging realm of real estate investing, Banjo, and Erica Camardelle have emerged as a dynamic duo. As guests on Jay Conner's popular podcast, "Raising Private Money," they shared their remarkable journey of raising $3.3 million through private money lenders. Their story is a testament to determination, innovation, and strategic networking, providing invaluable insights for both novice and seasoned investors.Struggling with Cash Flow and Early ChallengesWhen Banjo and Erica launched their business in 2018, they faced the same obstacle many entrepreneurs encountered: a lack of capital. Despite their innovative approach to creative deals, which often involved offering existing note owner financing instead of cash payments upfront, they soon found themselves constrained by financial limitations. With scarce capital, their ability to purchase new properties dwindled, leading to a temporary halt in their business activities.Additionally, the couple encountered operational challenges. The absence of robust systems and processes meant that most of their time was consumed with property rehabbing, diverting their focus from closing new deals. These initial setbacks underscored the necessity of securing a reliable source of funds to sustain and grow their venture.The Breakthrough: Learning to Raise Private MoneyA game-changer for Banjo and Erica was discovering the art of raising private money. By tapping into a network of private lenders, they managed to secure funding for their real estate transactions without relying on their own capital. Their first private lender marked a significant milestone, allowing them to navigate the market with newfound confidence and financial backing.Their strategy revolved around understanding the mutually beneficial nature of private lending. Private lenders could enjoy predictable, high rates of return, while Banjo and Erica leveraged their funds to acquire and rehab properties efficiently. This symbiotic relationship became the cornerstone of their successful business model.Private Lender Luncheons: A Networking MasterstrokeOne of the duo's most effective strategies for attracting private lenders has been hosting Private Lender Luncheons. Initially intimidating, these luncheons have now become a preferred method for Banjo and Erica to introduce their private lending program. By gathering around 25 acquaintances—including team members, friends, and family—and providing an overview rather than a pitch for specific deals, they created a low-pressure environment conducive to discussion and education.The luncheons emphasized key aspects such as protection and the benefits of partnership, making prospective lenders feel secure and valued. Attendees were given forms to express their interest levels, which Banjo and Erica later followed up on through phone calls. This non-direct approach allowed potential lenders to express interest without feeling pressured, fostering genuine connections and trust.The Impact of Networking and Community EngagementBanjo attributes a significant portion of their success to the power of networking. Regularly engaging with potential contacts in places like gyms, clubs, and social gatherings has been instrumental in building a broad base of private lenders. These interactions often began with casual conversations, evolving into educational sessions about private money lending.Addressing the educational gap, Banjo and Erica found that many of their prospective lenders (around 90-95%) were initially unaware of private lending's benefits. By positioning themselves as educators, they effectively demystified the process and attracted a diverse pool of investors.Educational Outreach and Consistent CommunicationTheir approach to private money lending is deeply rooted in education and transparent communication. Banjo and Erica focus on providing

The real estate industry is full of promise and potential, but navigating its complexities can often feel like running a never-ending race. If you're a real estate investor looking to break free from the constraints of traditional financing and maximize your profits, you're in the right place. In a recent episode of the "Raising Private Money" podcast, Jay Conner and David Richter dive deep into the transformative strategies that have not only kept them in the game but made them leaders in the field. Let's unpack their insights on raising private money and implementing Profit First principles.Raising Private Money: A Game-ChangerUnderstanding Private MoneyPrivate money refers to funds sourced from private individuals rather than traditional financial institutions like banks. This method of raising capital has become increasingly popular among real estate investors due to its flexibility, speed, and accessibility. According to Jay Conner, known as the Private Money Authority, raising private funds allows investors to operate under their own terms, becoming both the borrower and the underwriter.David Richter’s JourneyDavid Richter, an expert real estate investor and the author of "Profit First for Real Estate Investing," shares his personal experience with raising private money. His entry into real estate began with traditional financing methods. However, after realizing the limitations and high out-of-pocket expenses, Richter pivoted to private money through his networks—family, friends, and specifically, high-net-worth individuals.Effective Strategies for Raising Private MoneyNetworking Groups: One of the most effective strategies discussed was the power of networking. Richter emphasizes the importance of joining local Real Estate Investment Associations (REIAs), masterminds, and even specialized meetups like "Investor Addicts" or "Captains of the Deal" cruises. These platforms bring together lenders and investors, opening avenues for funding and collaboration.Building Credibility: Jay Conner and David Richter stress vetting potential lenders and showcasing your own credibility. Maintaining transparency and demonstrating a strong knowledge of what you plan to do with your money instills confidence, making lenders more willing to invest.Implementing Profit First: Maximizing Your EarningsThe Profit First PhilosophyThe core idea behind the Profit First methodology is deceptively simple: pay yourself first. Traditional accounting often follows the formula: Sales - Expenses = Profit. Instead, the Profit First approach flips this on its head, proposing: Sales - Profit = Expenses. This shift ensures your business not only generates revenue but also secures and grows profit from day one.Creating a Cash Flow SystemRichter's real-life expertise is underscored by his work in company finance, where he helps businesses identify and stem financial leaks. By implementing the Profit First system, businesses allocate their income into several predetermined buckets, such as:Profit Account:Ensuring a portion of every sale goes directly into profit.Owner’s Compensation:Paying yourself adequately.Taxes:Setting aside money to avoid tax season panic.Operational Expenses:Budgeting what’s left to maintain and grow the business.OPM Account:Other People's Money, which safeguards investment funds from operational expenditure.This structured cash flow system not only promotes financial health but also provides clarity, fostering better decision-making.Avoiding Common Financial PitfallsDavid Richter points out that many real estate investors fall into the trap of associating business growth solely with more deals, often neglecting the financial health of their company. The most common mistake, he su

Mortgage note investing is a compelling alternative for those seeking to diversify their investment portfolios beyond traditional property ownership. In a recent episode of "Raising Private Money," hosts Jay Conner and Dan Deppen delved into this lesser-known, yet highly lucrative, investment strategy. Dan, who has raised approximately $3 million for mortgage notes over the past year, shared his valuable insights into the world of note investing.What is Mortgage Note Investing?Mortgage note investing involves purchasing existing mortgage notes from lenders or other investors. These notes are financial instruments that promise to repay the borrowed funds with interest. Essentially, note investors step into the lender’s shoes, collecting monthly mortgage payments from borrowers. If the borrower defaults, the note investor can foreclose and take ownership of the property.The Appeal of Annoyance-Free Note InvestingOne of the most appealing aspects of note investing is the relatively hassle-free nature of the investment. Unlike traditional real estate investing, where landlords may deal with property repairs, tenant issues, and vacancies, note investors simply collect payments. This makes note investing more akin to a passive income stream, particularly when dealing with performing notes.Raising Private Money for Note InvestmentsRaising private money is a cornerstone of Dan Deppen’s investment strategy. He built his approach around an educational model, sharing his learnings and experiences with a growing audience over time. By cultivating trust and providing educational content through newsletters, podcasts, and videos, Dan has attracted private investors organically. Rather than directly asking for money, he focuses on sharing what he has learned, which naturally draws in those interested in investing.The Hypothecation StrategyOne key strategy that Dan employs is hypothecation. Hypothecation involves borrowing money to invest in a mortgage note, using the mortgage note itself as collateral for the loan. This method offers a two-tiered security system: the investor loans money to Dan, and the loan is then secured by the note. This layered security minimizes risk and makes the investment attractive to private lenders who seek high single-digit returns without active involvement.Risk Management and Investor ProtectionRisk management is integral to Deppen’s approach. Investors often worry about what happens if the borrower defaults. Deppen assures that his structure mitigates this risk effectively. If a borrower defaults, Deppen manages the foreclosure process, ensuring that his investors are not left to handle these tasks. This adds a layer of security for investors, making them more comfortable with the investment.Finding and Evaluating NotesFinding quality notes is vital, and Dan places a high value on network cultivation. Being well-connected in the industry not only provides access to exclusive deals but also strengthens trust with sellers and fellow investors. Leveraging this network, he buys notes with his funds initially and then refinances with private money, which allows for greater control over the buying process.For those new to note investing, starting with smaller, easier-to-understand deals and incrementally building confidence and expertise is recommended. This approach underlines the need for thorough due diligence and an understanding of market norms.Passive Income: An Attractive PropositionDan’s method de-emphasizes the complexity faced by traditional landlords. Investors can earn high single-digit returns passively, without worrying about property management. This philosophy of sharing knowledge instead of hard selling is appealing to investors who seek reliable returns without active participation.Getting Started in Note InvestingDan Depp