Raising Private Money with Jay Conner cover image

Raising Private Money with Jay Conner

Latest episodes

undefined
Apr 11, 2024 • 29min

Building Wealth Through Real Estate: Expert Advice from Alex Capozzolo and Jay Conner

In the ever-evolving world of real estate, investors are constantly seeking new avenues for funding and innovative ways to attract sellers and buyers. The Raising Private Money podcast invites industry professionals like Alex Capozzolo to share their insights, providing a treasure trove of knowledge for anyone looking to succeed in the competitive real estate market.Encouraging Entrepreneurial BeginningsAlex Capozzolo's journey into real estate investment began with a pivotal moment of inspiration upon reading 'Rich Dad Poor Dad' at 22. This eye-opening experience set him and his business partner on a path to explore opportunities in real estate investing. Their close-knit partnership, stemming from a friendship since kindergarten, is a testament to the importance of strong alliances in business ventures. The duo's initial plunge into real estate saw them securing a triplex in Philly, which still stands as their best cash-flowing property. Through the podcast, Alex emphasizes the significance of raising money before hunting for deals—a strategy that has undoubtedly paved the way for their success.Uplifting Through Private LendingAlex and his partner have finessed the art of raising private capital. They believe in preempting doubts potential investors might harbor by preparing detailed presentations that not only cover the basics of a hypothetical deal but also delve into local economic trends and future forecasts. This approach highlights the critical role of meticulous preparation and honest communication in securing funds.One particularly compelling aspect of their method is the consideration of worst-case scenarios. They communicate openly with lenders about options for repayment, showing that protecting their lenders' investments is a top priority. Here, Alex shares a powerful insight: providing potential lenders with a mortgage or a deed of trust boosts confidence since it offers tangible security against their loan, reinforcing the investor-lender relationship.The Digital Frontier: SEO and PPC in Real EstateIn a candid discussion with Jay Conner, Alex conveys the intricacies of real estate lead generation. While pay-per-click advertising and purchasing leads have been part of their strategy, they now predominantly rely on search engine optimization (SEO) to attract leads organically. Alex's particular expertise in SEO has helped them rank at the top in Google searches for relevant real estate keywords—a significant feat that drives their current lead acquisition.Alex mentioned an important shift in their business model, moving away from paid leads and pay-per-click campaigns toward mastering the art of SEO. As a result, they now enjoy the lion's share of their leads from organic search results.Final Wisdom for New InvestorsFor those embarking on their real estate journey, Alex imparts a nugget of wisdom: capitalizing on personal strengths, recognizing limitations, and engaging in strategic networking are instrumental in cultivating a thriving venture. Understanding what energizes you and partnering with others to cover areas beyond your expertise can accelerate progress and lead to fruitful collaborations.The discussion in this podcast episode with Alex Capozzolo offers a deep dive into the possibilities of real estate investment. By embracing the power of private lending and exploiting the potential of modern marketing tactics like SEO, Capozzolo and his business partner demonstrate that innovative approaches can significantly impact the industry.Maximizing Networking in Real Estate: "Figure out what you're good at and what you enjoy within maybe a business or a real estate strategy that you're trying to do, and then identify also where your weaknesses are or what you're missing to get you to x y z goal. Spell all that out in your head and then network intentionally to try and fi
undefined
Apr 8, 2024 • 29min

How I Turned a Credit Crisis Into a $2M Private Money Empire in Just 90 Days

Are you ready to unlock the keys to real estate success? Today,  Jay Conner, The Private Money Authority joins Jake Wiley on The Limited Partner Podcast and is here to help you transform the way you think about property investment. Jay Conner's story begins with a crisis that became a catalyst for change. After unexpectedly losing his line of credit, Jay was propelled into the world of Private Money and private lending. His response was remarkable; he raised over $2 million within 90 days, pivoting from conventional banking to building a network of private investors. This turn of events not only salvaged his immediate transactions but also tripled his business by tapping into the surge of foreclosures that marked the period.Adapting to Market ShiftsJake Wiley and Jay Conner delve into the importance of flexibility in the face of market fluctuations. They've seen the financial landscape oscillate between periods of abundant financing and its stark absence. Their experiences underscore the need to adapt swiftly to shifting circumstances, whether it's by seeking alternative funding sources or embracing new investment opportunities that arise in times of upheaval.Private Money: A Double-Edged SwordWhile Private Money became the vehicle for growth for Jake and Jay, they discuss its intricacies with caution. They highlight the relationships with private investors, emphasizing the necessity for clear communication and robust legal protections to safeguard all parties involved. Establishing conservative loan-to-value ratios is part of their conservative approach, providing some security against unpredictable markets.The Role of EducationThroughout the episode, the importance of educating potential investors is evident. Jay Conner in particular evangelizes spreading awareness about self-directed IRAs and the concept of private lending. By equipping people with knowledge on how to invest their retirement funds into real estate securely, he has expanded his investment potential while providing valuable returns to his lenders.Preparing for the FutureAs the world once again enters a period of economic uncertainty, both hosts share insights on protective measures and smart investing tactics. They address the complexity of different real estate investments, from single-family homes to commercial properties, and the varying degrees of risk and management they entail.Conclusion: Empowering Investment DecisionsIn a world where economic tides can turn overnight, the episode focuses on the resilience of strategic, well-informed real estate investing. Wiley's invitation to the audience to contribute and learn from their shared knowledge extends the opportunity for growth and success to anyone willing to adapt, learn, and invest wisely.Real Estate Investment Safety: "If you are a real estate investor, borrowing the funds, always give the private lender a mortgage or deed of trust, that mortgage or deed of trust will protect them. That's the only legal recourse that they've got when they've been investing." - Jay Conner10 Lessons Covered on This Episode:1. "Credit Crisis": Even with a strong credit score, lenders can revoke credit lines without notice, triggering a need for alternative funding.2. "Private Lending": Introduction to private money lending as a powerful alternative to traditional bank loans for real estate deals.3. "Quick Capital": Successfully raising over $2 million in private funds within 90 days showcases the potential of private lending networks.4. "Investor Care": Diligence in handling investor money is crucial for trust and success in real estate investing.5. "Leverage Time": Utilize the expertise and time of
undefined
Apr 4, 2024 • 50min

From Teacher to Dealmaker: How I Built a Network of 47 Passionate Private Lenders

Investing in real estate can be an avenue toward financial freedom, yet many find it challenging to break the barrier of funding to initiate or scale their endeavors. Enter the world of Private Money -- a realm where opportunities abound for those who understand its dynamics. Jay Conner, an acclaimed real estate investor, and national speaker, sheds light on this topic as he joins Keith Borie on The Wealth Flow Podcast.Jay, who excels in raising capital independently, brings insights into his transition from traditional bank loans to Private Money during the 2009 financial crisis. His story serves as a testament to the empowering nature of self-directed funding.Adopting the Right MindsetThe cornerstone of success in private financing, according to Jay, is mindset. 'You can't own real estate until you own the real estate between your ears,' he advises, emphasizing the importance of confidence and education in the field. For many real estate investors, the mental shift from seeking loans to offering secure, profitable opportunities to private lenders is a game-changer.The Private Money BlueprintIn a refreshing departure from bank loans' stringent criteria, Private Money flips the script. Investors craft their lending programs, dictating mutually beneficial terms. Interested individuals can achieve high returns with security, by tapping into investment capital or retirement funds via self-directed IRAs. This approach not only democratizes real estate investment but also fosters passive income streams for lenders.Education and Networking: Building Your Investor PoolEducation is paramount in expanding one's pool of private lenders. Jay practices this by conducting luncheons and informational sessions, casting himself in the role of a teacher rather than a deal-pitcher. This strategy has enabled him to develop a network of 47 private lenders, each previously unaware of the potential of Private Money.The Mastermind Approach to Real Estate InvestmentJay Conner advocates for joining mastermind groups and seeking mentorship as essential steps toward mastering real estate investment. The collective wisdom and support from experienced members can significantly shorten the learning curve and increase the probability of success.Commendation for 'The Go-Giver'Additionally, Jay looks to literature for inspiration, recommending “The Go-Giver” as an impactful book that resonates with his philosophy on providing value and building relationships in business.Harnessing the Power of Self-Directed IRAsOne of Jay's key strategies involves leveraging self-directed IRA companies for real estate deals. QuestTrust, a company based in Houston, Texas, earns praise for exceptional customer service and quick deal funding. Through teaching others about the use of self-directed IRAs for investment, Conner fosters a cycle of education and empowerment.A Formula for Ongoing SuccessJay's system does not rest solely on initial education, but on nurturing long-term relationships with private lenders. This involves protecting their interests with agreements that ensure flexibility and security, like loan modifications and collateral substitutions. Such considerations cement trust and underline the imperative of looking after one's investors.In the quest to harness Private Money for real estate investments, this episode provides vital cues for navigating the process successfully. Whether you're an up-and-coming investor or seasoned in the field, considering private funding as part of your investment strategy may well be the pivot toward accelerated wealth and financial autonomy. With wisdom from industry experts like Jay Conner, stepping into the realm of rea
undefined
Apr 1, 2024 • 56min

Why Educating Investors is the Key to Unlocking Private Funding to Fund Your Deals

Welcome to another insightful episode of Raising Private Money With Jay Conner!Today,  Jay Conner, The Private Money Authority joins Mike and Ligia Deaton on the Cashflow Fight Club Podcast where Jay shares his wealth of experience on how to flip houses using other people's money!Starting Out: A Lesson in EducationJay Conner didn't begin his journey in real estate investment following the beaten path. Coming from a background in manufactured housing, Jay initially bypassed formal education in the industry, a decision that would cost him dearly. He stressed the value of proper education and mentorship. Aspiring investors should learn from his story; the price of entering the real estate market unprepared can be unforgiving.Attracting Private Lenders: The Power of RelationshipsOne of Jay's crucial steps to success was raising private capital, especially when traditional bank lending became a bottleneck. He emphasizes the importance of assembling a list of potential private lenders from personal contacts, including retirees and community influencers. The goal is to educate, not to solicit directly, which he beautifully illustrates through his innovative approach to hosting private luncheon events.Structuring the Deal: A Conservative ApproachJay walks us through the mechanics of structuring a real estate deal, advocating for never borrowing more than 75% of the after-repaired value of a property. This conservative approach ensures an equity cushion for the lenders, mitigating risk and solidifying trust. He further explains the role of self-directed IRAs in funding and the significance of consistent seller leads for a robust real estate business.Beyond the Money: Teamwork and Market DominanceOperating in a small North Carolina market, Jay discusses his strategy to dominate rather than diversify. He champions the use of proprietary software for lead management and process automation. By building a reliable team and perfecting delegation, Jay has developed a seven-figure net business requiring less than 10 hours of his time each week.Ensuring Sustainability: A Focus on Investor RelationsJay Conner doesn't just find private lenders; he maintains and grows relationships with them. Reinvestment of profits from his clients bolsters the sustainability of his operation, positioning his business model as a dependable alternative to the volatile cryptocurrency market.Securing the Future: Educating and Protecting InvestorsMike Deaton recognizes the shared path in educating potential investors, highlighting the time and effort it takes to bring them into the fold. Jay accentuates the educational aspect of his private lender luncheons, with a clear focus on informing, not asking for money.Real estate investment is as much about relationships and education as it is about the numbers. Jay Conner's experience in flipping houses using other people's money offers a blueprint for success that relies on trust, conservative funding strategies, and constant learning. Whether you're a budding investor or a seasoned veteran, the insights from this episode are invaluable. Stay subscribed for more content that will help you up your game in the competitive world of real estate investing.Real Estate Investment Protection: "I'm giving you all the protection just like a bank. So, if you borrow money from the bank and get a mortgage, the bank's name is the mortgagee. You, as the private lender, you're named as the mortgagee on the insurance policy." - Jay Conner10 Questions Answered From This Episode:1. How did Jay Conner's upbringing and family involvement in the home-flipping business shape his approach to real estate investing?2. Can you discuss the formula from Jack Canfield that influenced Jay Conner's positive mindset and how it can be ap
undefined
Mar 28, 2024 • 32min

How This One Marketing Tactic Helps Real Estate Investors Capture Motivated Sellers

In today’s rapidly digitalizing world, the power of content marketing combined with direct response methods is redefining how real estate investors can attract more leads and thrive. This blog post explores the key insights from the insightful conversation on the Scott Paton Podcast episode featuring Jay Conner and Josh Culler.**Understanding the Marketing Mix**Jay Conner starts by emphasizing the necessity for real estate investors to grasp their numbers, particularly cost per lead and conversion. Investors must measure the ROI of marketing campaigns such as direct mail, outbound calling, and Facebook ads. However, Josh Culler introduces a pivotal strategy - content marketing, which contrary to direct response marketing, isn't about hunting for leads but fishing for them with valuable content that attracts motivated leads proactively seeking a solution.**Content Marketing: A Magnet for Motivated Leads**Content marketing serves as a beacon for highly motivated leads. When a potential seller is motivated, typically in the wee hours, frustrated, or seeking answers, they turn to Google. If your content resonates with their query, it enhances your credibility and chances of conversion. As Josh articulates, the smart mix of content marketing and advertising amplifies success in real estate marketing.**Video Marketing: The Art of Simplicity and Relevance**Josh’s approach to video marketing is refreshingly simplistic. Focus on the message rather than the production, using tools readily at your disposal, like your smartphone. By answering common questions from your target demographic and nurturing relationships with valuable content, you can position yourself as a go-to resource. Moreover, repurposing video content for SEO amplifies the reach and effectiveness of your digital marketing footprint.**Delegating to Professionals: Scaling Your Marketing Efforts**Delegation is a recurrent theme. Josh underscores the importance of entrusting marketing tasks to professionals who specialize in making your life simpler. With services like video content editing, strategy sessions, and marketing plans, experts can handle the heavy lifting, ensuring investors focus on what they do best—investing in real estate.**Discovering Your Marketing Superpower**The conversation culminates with a personal touch, where Josh reveals his superpower — understanding human behavior and problem-solving. This philosophical admission speaks volumes about the values driving his strategies: a relentless pursuit of 'why' and a focus on forming genuine connections.As affirmed by Jay towards the episode’s close, integrating both direct response and content marketing is paramount. It is not about replacing one with the other but using both synchronously to be found by your ideal client. The synergy between the two creates a comprehensive marketing system poised to attract, educate, and convert leads into loyal clients.Dive deeper into content marketing and give your real estate business a competitive edge. Visit Josh Culler's website at www.cullermedia.com  for more insights and assistance in marketing your real estate venture.“ When Motivated Sellers Are Looking For Deals You Better Be Ready To Capture That Lead, That’s Where Content Marketing Serves You Well.” - Josh Culler10 Lessons Learned From This Episode:'Cost Metrics': Knowing your cost per lead and conversion is crucial for effective social media marketing in real estate.'Hunting vs. Fishing': Direct response is like hunting for leads; content marketing is more like setting bait for hungry, motivated leads.'Motivation Matters': Content marketing should target motivated leads, providing solutions they seek&
undefined
Mar 25, 2024 • 41min

The Unconventional Coaching Secrets That Catapulted This Investor's Mindset (and Portfolio)

In this path-breaking episode of 'Raising Private Money,' our host Jay Conner, also known as the Private Money Authority, delves into the crucible of real estate investing, not just as a transactional business, but as a pursuit of purpose. With our distinguished guest, Sam Wegert—a martial artist turned savvy real estate investor—this conversation leaps beyond the borders of ordinary real estate discourse, exploring how a martial arts mindset can help investors not only navigate, but conquer, the world of real estate.Rise to Distraction Challenges: The Devil's Favorite ToolSam kick-starts the conversation unveiling a riveting discussion on how distraction represents the devil’s favorite tool, used to lure us away from our true aspirations. In our increasingly fragmented world brimming with instant gratification, Sam drives home the critical need for long-term thinking and unwavering focus on one's ultimate goals. The notion of 'thinking in decades' emerges as an antidote to the endemic short-termism plaguing many ambitious endeavors.Teamwork and Growth: Pillars of Scaling ExcellenceThe journey of scaling his business, Sam reflects, was propelled by the wisdom of not treading the path alone. He attributes his acceleration to the bedrock of an amazing team, echoing the sentiment that collective efforts eclipse individual attempts. Sam speaks of growth through problems and targeting win-win opportunities for stakeholders as the linchpin of his real estate philosophy.Co-Living Investment: A Strategic FutureSam shares his sharp strategic acumen, revealing his transition from short-term rentals to co-living spaces, a decision borne of foresight into the growth potential in the upcoming years. His articulation on positioning his portfolio in anticipation of market movements underscores the requisite forward-looking mindset in real estate.Black Belt Mindset: A Real Estate VirtueThe conversation takes an enlightening turn towards the black belt mindset—a philosophy culled from martial arts that symbolizes resilience and a strength-oriented approach to setbacks. Both Jay and Sam extend this analogy to real estate, illustrating it as essential for maintaining discipline and focus amid tumultuous situations.Coaching and Mindset: Indispensable Real Estate ToolsJay chimes in with his personal experience on the transformational impact of coaching in his real estate journey, ushering in the idea that the right mindset and guidance are sine qua nons for success. Sam discusses the transformative scope of 'Uplevel Martial Arts' and how the deployment of a hybrid training model, inspired by megachurch streaming, has bolstered the learning experience.Conclusion: Breaking Through the NormsIn closing, Sam’s narrative—woven with insights on focus, the role of a black belt mindset in real estate, and the potent influence of quick action over perfect action—leaves listeners with actionable strategies to shatter their barriers. The episode clinches with a call to arms: to subscribe, follow, but most importantly, to embody the values and principles shared, ensuring that each investor steers their real estate voyage with the precision and poise of a martial master.Aiming High and Embracing Failure: "Falling short is somewhat normal as a human being, but we need to reach for the stars. We need to aim further through the goal.” - Sam Wegert10 Lessons Learned From This Episode:"Distraction Dangers": Understanding how distractions can sabotage your real estate dreams and hinder living your life purpose."Black Belt Focus": The analogy of martial arts focuses on real estate, emphasizing disciplined attention to goals for success."Teamwork Triumph": Leveraging a great team is crucial for scaling your business quickly rather than
undefined
Mar 21, 2024 • 25min

The Insider's Guide to Generating Massive Profits with Self-Storage and Mobile Homes

Ever wondered how to invest in mobile home parks and self-storage facilities without using your own money?Today, on the Raising Private Money podcast we welcomed Gabe Petersen, founder of the great Northwest Home Buyers and Kaizen Properties, to discuss the secrets of investing in mobile home parks and self-storage facilities. The conversation highlighted the numerous opportunities and benefits associated with these real estate ventures and provided valuable insights for both seasoned investors and those looking to dip their toes in the industry.Understanding Gabe Petersen's Journey and ExpertiseGabe Petersen, a seasoned real estate investor and host of the Real Estate Investing Club podcast and YouTube show, provided an overview of his journey in the real estate industry. Petersen transitioned from working in a Fortune 500 company to entering the real estate market, initially venturing into flips and wholesales before gravitating towards commercial real estate, particularly focusing on self-storage and mobile home parks.The Appeal of Mobile Home Parks and Self-Storage FacilitiesPetersen articulated the appeal of these real estate assets, emphasizing their recession-resistant nature and the diverse range of opportunities they offer. He highlighted how these property classes allow for various business models, presenting investors with the flexibility to add value, raise the property's value, and generate substantial returns.Business Model and Investment StrategyPetersen delved into his business model, emphasizing the importance of identifying properties with significant upside potential. He articulated his preference for assets that require improvements, such as wear and tear on buildings, opportunities for expansion, or underutilized management that led to decreased occupancy. Additionally, he discussed his criteria for deciding whether to hold or sell a property, detailing the factors, including cash flow, investor involvement, and management efficiency, that influence his decision-making process.Keys to Success in Real Estate InvestingAs a successful real estate investor, Petersen highlighted his resilience and determination as vital components of his success. His philosophy centers on perseverance and the ability to overcome challenges, emphasizing the need to remain steadfast when facing obstacles and setbacks in the industry. His advice is essential for aspiring investors who are navigating the competitive real estate landscape.Strategies for Getting Started in Mobile Home Parks and Self-StorageFor individuals interested in entering the mobile home parks and self-storage arena, Petersen recommended seeking out experienced partners for joint ventures. Additionally, he encouraged prospective investors to leverage online resources, including podcasts, YouTube channels, and Facebook groups, to enhance their knowledge and understanding of these real estate asset classes.Leveraging Private Money in Real Estate VenturesPetersen acknowledged the pivotal role of private money in real estate investments, highlighting its utility in diverse ventures, including flips and property acquisitions. His endorsement of private money underscores the flexibility and potential it offers, providing investors with access to essential funding for their real estate projects.Conclusion: Embracing Opportunities in Real EstateIn conclusion, Gabe Petersen's insights and expertise shed light on the dynamic and lucrative opportunities inherent in mobile home parks and self-storage investments. His journey, investment strategies, and advice serve as a source of inspiration and guidance for individuals seeking to embark on their real estate ventures. Embracing Petersen's wisdom and harnessing the wealth of resources available can empower aspiring investors to navigate the real estat
undefined
Mar 18, 2024 • 34min

The Faith-Driven Business Secrets Fueling One Investor's Explosive Rise to 300+ Deals Per Year

Welcome to the Raising Private Money Podcast, where we explore the nexus of real estate, personal growth, and finding your purpose. Today we have a truly insightful episode lined up for you. We're joined by a special guest, Brett Snodgrass, CEO and founder of Simple Wholesaling in Indianapolis. Brett is not only an expert in wholesaling and creative financing with an impressive track record of over 300 deals last year, but he's also a man driven by his faith, committed to his family, and passionate about helping others achieve their goals while honoring the kingdom of God.Real Estate Wholesaling: The Quick Nickel StrategyBrett Snodgrass, the CEO and founder of Simple Wholesaling in Indianapolis, emphasizes the appeal of wholesaling, which allows for quick and repeated transactions. Unlike traditional real estate processes, wholesalers get properties under contract and then assign or sell that contract to investors. It's about the pursuit of quick, efficient deals, without the heavy lifting of extensive renovations, a strategy that aligns with Brett's preference for the 'quick nickel rather than the slow dime.'Achieving High-Volume SuccessBrett's transition to wholesaling 5-6 years ago led to the formation of a successful team, which completed over 300 deals last year, yielding a gross of $23 million. Their approach leverages multiple exit strategies, from assigning contracts to selling properties directly to end-users with minimal rehabilitation. By gauging market conditions and buyer availability, Brett's team maximizes their opportunities, even in a tight real estate market.The Importance of Market AdaptationOne key to sustained success in real estate is adaptability. Brett underscores the necessity of being conservative and vigilant, as market conditions are dynamic. His team's strategic decisions are grounded in a comprehensive understanding that it's crucial to prepare for potential downturns by staying cognizant of the need to pivot when the market dictates.Family and Faith Over FortuneBeyond financial achievements, Brett stresses the importance of balancing personal life with professional demands. Prioritizing family, marriage, and faith, he advocates for moments of reflection where entrepreneurs assess their sacrifices. It's not just about building financial wealth but creating a life that's rich in relationships and meaningful experiences.Staying Present: The Precious PresentIn conversation with host Jay Conner, Brett Snodgrass and Jay agree on the difficulty of maintaining presence amidst life's distractions. They both endorse the concept of 'precious present,' a mindset that cherishes being fully engaged and present in the moment. As shared during the podcast, this philosophy is encapsulated in the book 'The Precious Present,' advocating a focused presence as the ultimate gift one can offer.In conclusion, success in real estate with Brett Snodgrass isn't just measured by the number of deals or dollars but by the ability to maintain a fulfilling personal life alongside a thriving business. This holistic approach to success encompasses wealth-building, adaptability, and steadfast attention to what truly matters - faith, family, and being fully present in each moment.“ I am passionate about successful people who give more importance to significance than success” - Brett SnodgrassTen Lessons Learned from this Episode:1. "Private Funding": Jay Conner's book offers insights on securing non-traditional real estate deal funding.2. "Teamwork Triumph": Brett Snodgrass highlights the success of building a team in real estate to increase deal flow.3. "Faith Foundation": Brett emphasizes integrating faith and business, influencing entrepreneurship with spiritual values
undefined
Mar 14, 2024 • 34min

Invest Like a Bank: Jay Conner's Secrets to Securing Higher Returns Through Single-Family Homes

Private Money isn't asking, it’s offering the opportunity. In Jay's Private Money world, you're the bank. Protected and privileged. And the secret sauce? Self-directed IRAs for tax-smart moves!In today’s episode of Raising Private Money, Jay joins Jeremy Dyers’ The Freedom Point Real Estate Podcast where he unravels the motivating force that fuels his impressive track record, including steering over $118,000,000 in transactions. Alongside his wife, Carol Joy, Jay spearheads a coaching program that orbits around the power of private funding, a revelation that will redefine your investment strategy.Private Money: The Unconventional TeacherEmphasizing education over solicitation, Jay Conner champions teaching people about private lending. By sharing knowledge with associates from various spheres of his life, he has not only facilitated high-return avenues for them but also profoundly impacted their retirement years. Jay's approach demystifies the private money program, encouraging a seamless tax-free transition of retirement funds into fruitful investments.Building Blocks for New InvestorsUnderstanding the plight of investors in the context of the global crisis of 2009, Jay Conner advocates for investment strategies that are resilient and adaptable. His experience during this tumultuous time led him to harness private funds, underlining the importance of seeking solutions and growth during periods of difficulty. For new investors, Jay's insights provide clarity on structuring investments and the inherent protection mechanisms akin to traditional banking systems.Single-Family Investments: A Banking PerspectiveIn the single-family home investment paradigm, Jay Conner describes investors as 'the bank'—lending money secured against real estate with terms highly favorable when compared to traditional banking products. This secured method, he says, not only yields higher returns but also maintains a conservative loan-to-value ratio, ensuring a buffer to protect the investor's capital.Private Lending vs. Syndication: A Comparative GlimpseJay Conner's explanation of the stark contrasts between single-family investments and multifamily syndications sheds light for passive investors on the distinction between the two. While the former involves a direct lending process secured by individual properties, the latter pools investor funding into a larger fund managed in collaboration with an SEC attorney.Securing the Investor's InterestThe podcast delves into the safeguards inherent in private lending, such as inclusion in insurance and title policies, which Jay Conner emphasizes as critical to secure investors' interests similar to any institutional lender. Innovatively, these protective measures provide a clear perspective on risk management in private real estate deals.Future Prospects and Tax ImplicationsTackling the question of plans, Jay Conner discusses how a self-directed IRA facilitates tax-advantaged growth for investors, though private lenders might miss out on certain benefits like tax depreciation. Nonetheless, a self-directed IRA remains a powerful tool enabling investors to direct their retirement funds into real estate without incurring taxes or penalties.The conversation with Jay Conner and Jeremy Dyer not only illuminates the rich potential within the real estate market but also offers invaluable wisdom for both seasoned and aspiring investors. Unlocking the secrets to lucrative investments, Jay's journey inspires many to consider private lending as a pivotal step towards financial liberty.Mastermind Mentorship in Real Estate Investing: "Nothing else gives me more, makes me more happy, and gives me more joy than m
undefined
Mar 11, 2024 • 31min

The Surprising Land Investing Strategy Fueling This Young Investors Journey to Real Estate Riches

Ever wonder why landowners don't list their properties themselves? Dan Haberkost & Jay Conner reflect on this, affirming one lesson: Never second-guess people's choices. There's profit in understanding different perspectives.In the world of real estate investing, having access to capital is as crucial as identifying the right property. Jay Conner, an authority on private lending, recently shared invaluable insights on his podcast, 'Raising Private Money,' featuring an interview with Dan Haberkost, who has raised over $2 million in private funds and left his traditional job by the age of 23 to pursue real estate investing full time.The Genesis of a Real Estate MogulAt 16, Dan Haberkost was already managing a farm and rental properties, dealing with tenant issues, and learning the harsh realities of running older real estate. This early foray into property management taught him the types of real estate he didn't want to own. By 21, he purchased his first duplex and soon relocated to Colorado to expand his portfolio, quickly realizing the significance of having financial backing for investing.Front Range Land: A Model of ArbitrageDan Haberkost detailed his venture, Front Range Land, which focuses on buying land at a discount and then reselling it, mostly through direct marketing efforts. He emphasized the distinction between his active business, which is not investing per se but a means to an end—an arbitrage business aimed at generating funds for further investment into his preferred buy-and-hold asset classes.Understanding the Investor MindsetDan Haberkost advises new investors against short-term thinking. Plans like hosting a real estate group might not pay off immediately, but they establish credibility and authority, attracting long-term business connections. He stresses maintaining a solid reputation and ensuring lenders are always made whole, even if it results in personal loss.Raising Private Money: A Balancing ActWhile Sean advocates securing deals before having all the funds lined up, given the abundance of investment-ready cash, Jay Conner takes a more cautious approach, advising to secure funds first. Both agree that educating potential lenders on Private Money and self-directed IRAs is paramount, stressing that teaching and leading with a servant's heart can build trust and open funding pathways.Land Investing: Inefficiency Equals OpportunityInvesting in land can be more efficient due to its market inefficiency. Unlike residential properties or multifamily units, land is often mispriced and not well understood, allowing for profitable arbitrage opportunities. Dan Haberkost uses direct marketing to reach landowners, capitalizing on their apathy rather than distress, and selling the property for a profit on the multiple listing service.Looking ahead, Dan Haberkost and his partner have launched GroundUp Partners, offering capital for land deals in response to limited lending options for this asset class. They're now raising funds to grow this endeavor, showcasing Dant's keen insight into realizing where the demand lies and fulfilling it to shape his real estate future.Investing in Long-Term Success: "It's always hard to make the investments into something like hosting a real estate group, whether it's time or money, ... but down the road, you're gonna be really glad you did them." - Dan HaberkostVisit https://www.JayConner.com  for more information on Private Money benefits in real estate, and keep an eye out for future enlightening episodes from Jay Conner, dedicated to helping real estate investors climb to new heights through strategic private funding.Questions discussed in this episode:What specific types of land does Dan focus on for simple subdivision, and how does the resale process work&

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner