Raising Private Money with Jay Conner

In the world of real estate investing, the ability to raise and utilize private money can be transformative. Jay Conner, The Private Money Authority, engages in an enlightening conversation with Jeremy Beland, a seasoned real estate investor, about their journey in leveraging private money to build lucrative real estate portfolios. This blog post delves into the key insights and strategies discussed in their podcast episode, focusing on raising private money, educating potential lenders, and maximizing off-market deals.Understanding the Concept of Private MoneyThe Foundation of Private MoneyPrivate money refers to capital sourced from private individuals rather than traditional financial institutions. It allows real estate investors to fund their deals without the stringent requirements and red tape associated with bank loans. Jay Conner emphasizes that private money is vital for investors who want to avoid the hassle of traditional financing methods and need quick access to funds.The Misconceptions About Private LendersJeremy Beland dispels the myth that private lenders are always highly sophisticated, extremely wealthy individuals. Through his experience, Jeremy has found that private lenders are often regular people within one’s network. These individuals might have savings in retirement accounts, home equity, or other untapped financial resources that they wish to invest for higher returns.Educating and Engaging Potential Private LendersThe Importance of EducationOne of the standout points in the podcast is the emphasis on educating prospective private lenders. Jeremy recounts how he would create brochures outlining deal details, projected returns, and property pictures to inform potential lenders. Educating them not only builds trust but also demystifies the investment process, making them more comfortable and likely to invest.Utilizing Social Media to Build CredibilityBoth Jay and Jeremy highlight the power of social media in establishing credibility and attracting private lenders. By consistently sharing details of deals closed, properties under contract, and success stories, investors can demonstrate their expertise and reliability. Jeremy mentions how posting regularly about his deals helped build his reputation, leading to people reaching out to him with investment interests.Strategies for Raising Private MoneyStart with Your Existing NetworkJeremy’s advice for new investors is straightforward: begin by reaching out to contacts within your cell phone and social media network. He learned that often, individuals who seem unlikely to have investment funds might have savings or equity they are willing to invest. Not prejudging potential lenders can uncover unexpected opportunities.One-on-One Meetings and LuncheonsJay Conner shares his approach to educating potential lenders through one-on-one meetings at local cafes like Starbucks or organizing private lender luncheons. These settings provide a relaxed environment to explain the investment opportunity, answer questions, and build a personal connection.Maximizing Profits Through Off-Market DealsThe Power of Off-Market AcquisitionsJeremy Beland and his wife have thrived by mastering off-market acquisitions. These deals, not listed on the multiple listing service (MLS), often come with better negotiation opportunities and lower competition. Jay Conner and Jeremy agree that honing skills in off-market acquisition sales is pivotal for success in real estate investing.Pre-Marketing on MLS for Higher ReturnsJeremy introduces a strategy of pre-marketing deals on the MLS to maximize returns. With proper legal language and documentation, pre-marketing allows investors to attract a broader audience, potentially leading to higher sale prices. T

***Guest AppearanceCredits to:https://www.youtube.com/@FusionNotes "Raising Private Money, with Jay Conner"https://www.youtube.com/watch?v=PF4zvLVu04Q&t=4s Raising private money is a crucial step for many real estate investors looking to grow their businesses. Understanding the mindset shift needed and how to strategize effectively can make a world of difference. In this episode, we'll delve into key insights from a recent discussion between Jay Conner,  the Private Money Authority, and Dan Deppen, host of the Note Investor podcast.Adopting the Right MindsetSwitch from Asking to AttractingOne of the foremost strategies Jay Conner emphasizes is changing your mindset from asking for money to attracting it. This mental shift transforms investors from beggars to educators. By leading with a servant's heart and imparting knowledge about private money to potential lenders, investors can attract funds without ever directly asking for them. This approach not only alleviates the fear of rejection but also positions you as a valuable resource to your lenders.Building Your Private Money ProgramKnow What You’re OfferingHaving a clear, consistent program to offer potential private lenders is foundational in raising private money. Jay maintains a uniform program for all his lenders, covering interest rates, securing the funds, and the duration of the notes. This consistency helps build trust and makes the offering straightforward and attractive. Knowing exactly what you are offering allows potential lenders to clearly understand the benefits and terms, assuring them of the safety and profitability of their investment.The Power of TeachingEducating Potential LendersEducating potential lenders is crucial. Most of Jay's private lenders had never heard of private money or self-directed IRAs until he taught them. He conducts educational events and one-on-one meetings to explain how private money works and the benefits of using self-directed IRAs for investment. By taking on the role of a teacher, you can demystify the process for your lenders, showing them the promise of high returns and the security of their investments. This educational approach ensures that lenders are not just willing but eager to be part of your investment ventures.Leverage Networking GroupsExpand Your ReachNetworking groups, like Business Networking International (BNI), are potent channels for expanding your reach. These groups consist of individuals committed to helping each other grow their businesses through referrals. Leveraging these groups can amplify your message and attract more potential lenders. Regular attendance and participation in such groups can lead to valuable connections and opportunities to present your private money program in a supportive setting.Utilizing Self-Directed IRAsUnlocking Retirement FundsSelf-directed IRAs are a powerful tool for raising private money. They allow individuals to use retirement funds to invest in real estate or notes. Collaborating with companies like Directed IRA, where experts help prospective lenders set up their accounts, can significantly streamline the process. Self-directed IRAs offer a flexible and tax-efficient way for lenders to achieve high returns on their investments, thus making your program even more appealing.Maintaining and Managing RelationshipsBuilding Trust and Encouraging ReferralsTrust is paramount in maintaining relationships with private lenders. Once you've secured a lender and completed a deal, fostering that relationship can lead to valuable re

In a recent episode of the Raising Private Money podcast, Jay Conner, known as the Private Money Authority, hosted an inspiring session with Willie and Haruna Oyola. This husband and wife duo have successfully raised over $1,100,000 in private money for their real estate ventures, bypassing traditional banking routes. The conversation delved deep into their journey, their strategies, particularly buying properties subject to existing notes, and how they effectively leveraged private money to expand their portfolio.The Traditional Route vs. Private MoneyWillie and Haruna began their real estate journey in 2015 using conventional banking loans. These loans required substantial down payments and came with the stringent limitations set by banks. Eventually, they reached a point where the traditional method capped their growth potential. Discovering the world of private money through Jay Conner's podcast was a game-changer. Private lending offered flexibility and scalability, drastically different from the restrictive terms of traditional banks.The Journey to Raising Private MoneyThe Oyalas first educated themselves through Jay Conner’s resources and soon attended a live Private Money Conference. This pivotal shift allowed them to break through significant barriers in raising private funds. Haruna played a crucial role by encouraging Willie to fully commit to the process. For newcomers interested in private money, the advice is straightforward: seek education and mentorship, as these can accelerate learning and execution in the field.How to Start: Networking and the Elevator PitchA crucial piece of advice shared by Willie and Haruna is the importance of networking and having a refined elevator pitch. An elevator pitch is a concise, compelling introduction to what you do, designed to spark interest in brief interactions. They emphasized the need to create a succinct pitch and leverage networking opportunities to share your goals and attract investors. This initial step is vital for anyone looking to raise private money.Understanding Subject-To DealsOne of the strategies that Willie and Haruna have effectively combined with private money is purchasing properties ‘subject to’ the existing mortgage. This method allows investors to acquire properties without needing to secure new financing. It is particularly attractive when dealing with distressed sellers, as it provides a viable solution for them while offering favorable terms for the buyer.A Case Study: Maximizing Profit with Subject-To and Private MoneyThe Oyalas shared a compelling case study to illustrate the effectiveness of combining private money with subject-to-deals. They acquired a property with a high market value and a much lower existing mortgage at an advantageous interest rate. They supplemented this with private money to cover the seller’s arrears, make necessary repairs, and provide the seller with some additional funds.This strategic use of private funds not only alleviated the seller’s distress but also positioned Willie and Haruna to rent out the property by the room, targeting military personnel and contractors in their area. This approach ensures substantial positive cash flow, demonstrating the potential for high returns in similar deals.Conclusion: The Win-Win-Win ScenarioIn the world of real estate investing, combining private money and subject-to-deals presents a powerful avenue for growth and profitability. By educating people about private money and providing secure investment opportunities, Willie and Haruna created a win-win situation for all parties involved — the sellers, the private lenders, and themselves.For those eager to dive into real estate investing or to scale their existing operations, educating oneself, networking effectively, and leveraging innovative financing strategies could be the key to unprecede

Transitioning from flipping a house or two a year to managing a scalable, systematized business calls for expert insights and proven strategies. Enter Bill Allen, who shares the stage with Jay Conner on the "Raising Private Money" podcast to unlock the principles behind successful private money raising. Here's an in-depth look at the topics discussed, aiming to revolutionize your approach to real estate investing.Building Trust and ConfidenceOne of the first things Bill Allen emphasizes is the vital role of trust in raising private money. According to Allen, building a high level of trust and being authentic is foundational. He recounts the necessity of transferring trust from past roles, such as being a Navy test pilot, into new ventures like real estate. Friends, family, and professional connections are often the first people who will invest based on pre-existing trust.Allen’s story is a testament to the power of integrity and reliability in establishing credibility. His advice is clear: believe in yourself first. Confidence is compelling and contagious. If you don’t believe in your capabilities, potential investors won’t either.The Importance of Framing: Investment vs. LoanJay Conner and Bill Allen agree on a critical semantic shift: talking about investments rather than loans. Conner points out that when you say "loan me money," that focuses on you, the borrower, not the investor. But when you talk about them investing, then the focus is on their benefit. This reframing not only positions you as a professional but also highlights the added value to potential investors, aligning with a servant’s heart approach.Crafting Your Investor MatrixAllen introduces a powerful tool he uses: the Investor Matrix. This method involves creating columns for different phases of your life, such as high school, college, and various workplaces, and listing names of people you know from each phase. Bill emphasizes rating these connections from 1 to 5 based on trust and potential financial capacity.He elaborates that you should list out names of people you had relationships with during those times. This exercise often jogs your memory, revealing more potential investors than you initially thought possible.Leveraging Social MediaUsing social media to tell stories and plant seeds about your projects is another tactical approach discussed. Allen mentions how he makes use of Facebook and Instagram to share anecdotes about his private lenders’ successes and how they enjoy high returns without managing property hassles. He believes that marketing is essentially storytelling, so sharing these stories online can effectively attract interest.Soft Approaches Over Hard PitchesJay Conner underscores the principle that desperation has a smell to it. This echoes Allen’s advice to avoid pitching a deal too early and instead focus on planting seeds. Conversations should be natural and relational rather than transactional. For instance, when reconnecting with an old friend, you can share what you’re up to and plant a seed about investing without pitching a specific deal.Allen provides a closing line for such conversations that removes pressure. He suggests asking if they know anyone who might be interested in these kinds of returns. This approach often leads to the person expressing interest themselves or referring you to someone else, removing the risk of outright rejection.Diversifying Investment OpportunitiesAs you grow in your venture, Allen advises creating varied investment opportunities to cater to different investor needs. Whether it's monthly payments through fix-and-flip projects or high annual returns via syndication and apartment deals, having multiple avenues ensures you can accommodate different investor preferences.Conclusion: Learning from the BestRaising private money takes ski

Descriptions/Show Notes: In a recent episode of the "Raising Private Money" podcast, hosted by Jay Conner, The Private Money Authority, acclaimed financial strategist Damion Lupo shares his extraordinary journey from losing a 20 million dollar portfolio to rebuilding and growing his wealth beyond nine figures. In an enlightening conversation, Damion reveals not only the mistakes that led to his initial downfall but also the indispensable lessons that fueled his resurgence and shaped his future endeavors. Here’s an in-depth look at the crucial elements discussed during the episode.The Humbling Journey from Loss to RebirthDamion Lupo's tale is one of resilience and determination. By the age of 30, he had amassed a 20 million dollar portfolio, only to lose it in the 2008 financial crisis, ultimately finding himself 5 million dollars in debt. Reflecting on the experience, Lupo highlights the significance of surrounding oneself with people who have weathered similar storms.Isolated during this turbulent period, he battled fear and doubt, a common plight for entrepreneurs who face major setbacks. His key advice is to cultivate a network of mentors and advisors—those who have the wisdom and experience to provide sound guidance when times are tough.Mastering the Art of PerseveranceDamion’s comeback wasn’t a quick fix but a deliberate, five-year period of introspection and strategic action. He explains the importance of not succumbing to ego and pride, instead focusing on gaining truthful insights from mentors who aren't afraid to offer tough love.This crucial period was spent not just recovering financially, but also re-evaluating what truly mattered to him.The Importance of Clear Purpose Over PassionA critical insight from Lupo’s narrative is the emphasis on having a purpose. He advises focusing on a mission that transcends personal gain. According to Lupo, passion alone is fleeting and can easily falter under pressure.For him, the primary mission became freeing people from financial shackles, inspired deeply by personal experiences, including his father’s late-life financial struggles.Frametec: Revolutionizing the Housing IndustryOne tangible way Damion lives out his purpose is through Frametec. The innovative company aims to solve the housing crisis by using advanced technology to produce home components with greater efficiency and less waste. Frametec’s goals align perfectly with Lupo’s mission of creating impactful, positive change.Frametec is committed to building houses that are 10 times better, with 99% less waste. The drive to serve others through groundbreaking solutions underpins the success of Frametec and fuels its ambitious expansion plans.The 10-Year Millionaire Action PlanTo help others achieve financial freedom, Lupo created the 10-Year Millionaire Action Plan, aimed at guiding individuals to a solid financial footing without the ever-looming stress of monetary scarcity. This playbook is available through Turnkey Retirement, offering a structured path to a 10 million dollar net worth.Damion’s plan is designed to build confidence and empowerment around investing and finances, much of which stems from his own firsthand experiences and subsequent successes.Transforming Setbacks into SuccessDamion Lupo’s journey underscores the vital importance of resilience, continual learning, and serving others. By sharing his story and the strategies that propelled his comeback, he offers a roadmap for others to follow. From his innovative work with Frametec to his comprehensive action plans for financial well-being, Damion exemplifies how turning personal adversity into a mission-driven career can create lasting success for not just oneself but for society at large.Damion’s insights serve as a powerful reminder: setbacks are inevitable, but with p

In the latest episode of Raising Private Money with Jay Conner, our esteemed guest Scott Aaron, a seasoned entrepreneur and LinkedIn expert, shares his inspiring resilience journey and the transformative power of leveraging LinkedIn for business success. Scott’s story is a compelling testament to the power of mindset, community, and strategic action in overcoming life's toughest challenges.The Art of Resiliency: Scott Aaron's JourneyScott Aaron’s journey is not just about entrepreneurial success but about mastering the art of resilience. Jay Conner introduces Scott’s story, noting his initial triumph in selling his first business for a million dollars and his subsequent challenges, including facing a multimillion-dollar liability debt. Despite these setbacks, Scott never viewed them as failures but as the foundations of his comeback story.Growing up, Scott was thrust into leadership at a young age when his father, also an entrepreneur, was incarcerated. Taking over the family fitness business, Scott navigated significant personal and professional challenges. His father’s advice to be his person rather than trying to emulate someone else was pivotal in shaping Scott's resilient mindset.Key Lessons in Overcoming AdversityScott emphasizes two key lessons from his experiences. Firstly, maintaining a positive outlook and focusing on solutions rather than problems. He believes that no matter what problem someone is facing, there is likely a solution for it. This mindset helped him to constantly find solutions and move forward.Secondly, Scott highlights the importance of putting pride aside and not being afraid to ask for help. He recalls a crucial turning point when a friend’s question about his business sustainability prompted him to seek new opportunities. This openness to seeking help and learning from others was instrumental in his transition from the fitness industry to leveraging LinkedIn for professional growth.LinkedIn: From Personal Struggle to Business TriumphScott’s shift to LinkedIn began out of necessity. Realizing that his in-person fitness training model wasn’t sustainable for a fulfilling family life, he sought ways to reach his clientele online. Identifying LinkedIn as the ideal platform, he started connecting with business professionals and, within six months, matched his in-person earnings through online coaching.This success led to the realization that LinkedIn could solve a significant problem for others in his industry. Encouraged by a friend’s feedback, Scott developed a business model around teaching others his LinkedIn strategies, which has since grown into a thriving enterprise. Together with his wife, Scott now runs multiple companies, all leveraging the power of LinkedIn to enhance business growth.Tips for Leveraging LinkedIn EffectivelyScott shares valuable insights on how to maximize LinkedIn for business growth. He emphasizes the importance of optimizing your LinkedIn profile with relevant keywords, professional descriptions, and showcasing testimonials. Here are some key takeaways:Profile Optimization: Ensure your LinkedIn profile is fully optimized with keywords that your ideal client or business partner might search for. This includes a detailed headline, a comprehensive about section, and a well-presented experience section.Networking Over Selling: Focus on building relationships rather than selling. Avoid spamming potential connections with generic, sales-focused messages. Personalize your communication to build genuine connections.Social Proof: Gather and display recommendations and testimonials on your profile. These serve as powerful social proof of your expertise and credibility.Continuous Engagement: Stay active by creating valuable content, engaging with your network’s posts, and consistently connecting with new potential clients or partners.

In this insightful episode of the "Raising Private Money" podcast, host Jay Conner sits down with Michael Episcope, co-CEO of Origin Investments, to delve into the nuances of real estate investments. With over $2 billion in assets under management and a wealth of experience in both derivatives trading and real estate investment, Michael provides valuable perspectives on how to effectively manage risk and create long-term wealth in the real estate market.The Importance of Risk Management in Real EstateMichael Episcope brings a distinctive background to real estate, having begun his career as a derivatives trader. This experience laid a strong foundation for understanding risk management, a crucial element in real estate investing. In real estate, risk management involves recognizing opportunities, spreading risk, and maintaining financial prudence—such as not cross-collateralizing assets or guaranteeing debt. This approach allows investors to weather downturns, ensuring long-term sustainability.Lessons from the Global Financial CrisisThe 2007-2009 financial crisis was a defining period for many investors, including Michael. He emphasizes the importance of learning from past mistakes to guide current and future investment strategies. Key lessons include avoiding over-leveraging and maintaining cash flow. Michael also touches on the strategic advantage of implementing a barbell strategy—balancing risk with a mix of debt and equity investments during uncertain times.The Crystal Ball: Predicting Market TrendsForecasting the real estate market can be challenging, but Michael shares optimistic views about upcoming trends. He anticipates a recovery in the multifamily sector driven by reduced construction in recent years and pent-up housing demand. This is supported by the work of Multilytics, a team of data scientists who predict above-market rent growth in the second half of 2025. He stresses the importance of adjusting strategies according to market conditions, highlighting how Origin Investments tactically shifts its focus between debt and equity depending on the cycle.Origin Investments' Focus and StrategyOrigin Investments specializes in multifamily properties—a choice rooted in the sector's strong, risk-adjusted returns and inherent demand. The firm exclusively targets this asset class, leveraging deep expertise to drive value. Origin invests through a combination of funds and individual deals, offering a diverse portfolio designed to maximize both tax efficiency and long-term growth. This multi-faceted approach allows the firm to navigate market cycles adeptly while capitalizing on emerging opportunities.Common Pitfalls for New InvestorsOne common pitfall for new investors is focusing too heavily on potential returns without adequately considering risk or the manager's track record. Instead, priority should be given to finding experienced managers with conservative underwriting standards who have demonstrated the ability to protect and grow capital through various market cycles.Maximizing Tax Efficiency for Long-Term WealthA significant advantage of real estate investment lies in its tax efficiencies. Michael discusses how Origin Investments transitioned from a buy-fix-sell model to a buy-fix-hold strategy to leverage these benefits fully. This approach not only maximizes tax advantages but also ensures consistent cash flow and asset appreciation over time, aligning with the broader goal of sustainable wealth accumulation.ConclusionNavigating the dynamic landscape of real estate investment requires a nuanced understanding of risk, market cycles, and strategic alignment. Michael Episcope's insights underscore the importance of these elements in achieving long-term success. For those looking to explore passive investment opportunities further, Origin Investments offers a comprehensi

In the latest episode of Raising Private Money, Jay Conner and Crystal Baker divulge the secrets behind a lucrative real estate investment deal. From innovative acquisition methods to strategic exit strategies, this episode is a treasure trove for both new and seasoned investors.The Power of Referrals in Real EstateAcquiring Properties Through ReferralsOne of the standout techniques discussed in the episode is the power of obtaining deals through referrals. Crystal, for example, secured her deal via a referral from a previous seller. This method not only fosters trust but also tends to result in more favorable negotiation terms. Jay Conner emphasizes the importance of asking for referrals explicitly when closing a deal, as it can open doors to new opportunities.A Token of AppreciationAnother golden nugget from Crystal's approach is rewarding referrers with substantial thank-you gifts. She shares how she transitioned from gift baskets to $350 Amazon gift cards, which, in turn, incentivizes more referrals. As Jay comments, a well-appreciated referrer can become a continuous source of potential deals, making this investment well worth it.Negotiating the Right Purchase PriceUnderstanding the Maximum Allowable Offer (MAO)Crystal provides key insights into negotiating the purchase price effectively. At the heart of this strategy lies the Maximum Allowable Offer (MAO) formula, an essential tool for any real estate investor. MAO = After Repair Value (ARV) x 70% - Repair Costs.By factoring in repair costs and future appreciation, investors can arrive at a sound purchase price that ensures profitability. As Crystal explains, adjusting for additional room (Murphy's Law) further safeguards against unforeseen expenses.Crystal's Real-Life ExampleIn her example, the property's ARV was estimated at $200,000, with $18,000 in repairs. Applying the MAO formula, she calculated the offer to be $110,000. However, through strategic negotiation and justifying potential work needed, she secured the property for $96,000, well below her initial offer, ensuring a favorable deal.Leveraging "Work for Equity" as an Exit StrategyWhat is "Work for Equity"?One of the most innovative strategies discussed is the "Work for Equity" model. This approach involves selling the property on a rent-to-own basis, where the buyer earns credit towards the purchase price by completing specific repairs and improvements on the property. This method is particularly effective for buyers with lower pre-approval amounts, who are looking to invest sweat equity into their future home.Implementation and BenefitsCoach Crystal meticulously outlines how she implements this model. By offering a detailed scope of work with timelines, she ensures that the tenant-buyer maintains progress and upholds the contract's terms. This arrangement not only reduces initial rehab costs for Crystal but also incentivizes the buyer to invest in their new home, creating a win-win scenario. According to Crystal, properties sold on a lease-to-own basis typically demand a higher price, compensating for the terms extended.Pricing Strategy and Future AppreciationCalculating the Selling PriceCrystal's strategy of pricing properties higher on a work-for-equity deal is another critical takeaway. She shares how she marks up the sale price by 10% to 15%, accounting for potential market appreciation over the lease period. For instance, an ARV of $200,000 was leveraged to sell the property at $235,000, ensuring future appreciation and securing a safety net against market fluctuations.Ensuring Collaboration and ComplianceAn essential aspect of this approach is the collaborative effort between th

In the latest episode of Raising Private Money, Jay Conner dives into the inspiring story of Jonathan and Cara Broyles, a dynamic duo in the world of real estate investment. From starting their journey in 2021 to closing high-value deals, Jonathan and Cara have shown the power of strategic planning, persistence, and the importance of nurturing relationships with private lenders. This episode highlights their recent property acquisition and the lessons they learned along the way.Securing the Deal: 143 Royalty DriveJonathan and Cara's most recent endeavor revolves around a property located at 143 Royalty Drive. The property, after undergoing necessary repairs and renovations, boasts an impressive After Repair Value (ARV) of $550,000. However, reaching this point was no small feat.Assessing the Property:The house, previously occupied by an owner and 80 Siberian husky dogs, was in dire need of cosmetic repairs. Recognizing the potential in the property, Jonathan and Cara estimated a generous $100,000 for the rehab, including a contingency fund for unexpected expenses—a strategy they call "Murphy," named after Murphy's Law that suggests if something can go wrong, it likely will.Negotiating Purchase Price:Initially listed by a wholesaler for $367,000, Jonathan and Cara knew their maximum allowable offer based on their rehab estimates would be $310,000. Despite the significant gap between their offer and the asking price, they stuck to their numbers, a testament to their disciplined approach to real estate investment. The wholesaler initially countered with $330,000, but eventually, Jonathan and Cara's persistence paid off—their $310,000 offer was accepted.Lesson Learned:Stick to your evaluated numbers and don't let emotions sway your decisions. By adhering to their calculations, Jonathan and Cara secured the property at a price that allowed for a profitable investment.The Power of Private LendingA vital piece of Jonathan and Cara's strategy involves leveraging private lenders to fund their property acquisitions and renovations. This approach minimizes the need for traditional loans, accelerates the buying process, and often provides more favorable terms.Expanding Their Network:For the 143 Royalty Drive property, Jonathan and Cara initially anticipated using $250,000 from a new private lender. However, this transaction took an exciting turn—the lender expressed interest in funding the entire deal, boosting his investment to $410,000. This unexpected increase emphasized a crucial point in private lending: private lenders often have more funds available than they initially disclose.Key Point:Always present opportunities to your private lenders confidently. They may have more capital ready to deploy once they see a promising investment.Interest Rates and Returns:For this particular deal, the private lender agreed to an 8% interest rate on the $410,000 loan. Over the projected six-month rehabilitation period, this translates to approximately $16,000 in interest—a reasonable return for the lender while still allowing Jonathan and Cara to achieve their target profit margins.Working with Realtors: A Smart InvestmentAnother pillar of Jonathan and Cara's strategy is their partnership with a reliable realtor. Although paying realtor fees can seem daunting—30,000 in this case on a $550,000 sale—the benefits far outweigh the costs.Benefits of a Professional Realtor:Realtors handle the legwork, both pre-and post-renovation, helping to price the property appropriately and sell it quickly.They ensure the property reaches a wide audience, increasing the chances of a top-dollar sale.Advice to Investors:

Beki and Kelly Cassels’ journey in the real estate investment world is both inspiring and educational. Within a short span of two and a half years, they have gone from being brand-new investors to successfully executing significant deals. Jay Conner, their mentor, plays an instrumental role in their success by providing them with the knowledge and financial resources required to thrive in the competitive market of real estate.In the latest episode of Raising Private Money, Beki and Kelly shared the details of their latest deal, providing in-depth insights about their journey, the acquisition process, repairs, and the unexpected challenges they faced. Here is a breakdown of how they transformed a problematic property into a profitable investment.Identifying and Securing the DealFinding the PropertyBeki and Kelly's latest project, located at 2332 East 10th in New Mexico, was identified through a referral from a neighbor. The property was notorious in the area for being the “problem house.” The landlord, tired of dealing with tenant issues, was looking to sell. This was a classic case of a “tired landlord” and represented a perfect opportunity for the Cassels.Understanding the Market ValueThe after-repair value (ARV) of the property was initially assessed at $230,000 by their knowledgeable realtor. This valuation was crucial as it provided a baseline for determining the potential profitability of the deal. However, due to market dynamics, they planned to list the property at a higher value of $280,000, significantly increasing their potential return on investment.Repairs and Unexpected ChallengesEstimating and Executing RepairsThe initial repair estimate for the house was $110,000, but they wisely set aside an additional $10,000 for unforeseen issues, following the well-known Murphy’s Law. True to form, challenges did arise, particularly with the gas lines and HVAC system, necessitating a complete overhaul. This thorough rehabilitation included gutting the house down to the studs and installing new electrical wiring, plumbing, and insulation.Detailed Repair BudgetTheir strategy involved getting a contractor's rough estimate before making an offer on the property. While the detailed estimate came in after the property was purchased, it closely matched their projections. By diligently working with professionals and being prepared for surprises, Beki and Kelly ensured the project stayed within budget.Financing and Profit CalculationSecuring FundingOne of the standout aspects of this deal was the financing structure. Beki and Kelly borrowed $172,500 through multiple private lenders at an interest rate of 10%. The funds were wired directly to the closing agent's trust account, covering the $43,000 purchase price and leaving them with $130,000 upfront for repairs and other costs.Calculating Net ProfitAfter accounting for the $120,000 spent on repairs, realtor fees, carrying costs, and other expenses, Beki and Kelly calculated a net profit of $88,200 from this deal. They also paid a 6% realtor fee amounting to $16,800 and anticipated their private lender interest to be around $9,000 over six months. Such meticulous financial planning ensured that they could maximize their returns even with significant upfront and carrying costs.Key Takeaways and Lessons LearnedNetworking and ReferralsOne of the central lessons Beki and Kelly highlighted was the power of networking. By maintaining good relationships with neighbors and service providers, and by making their capabilities known, they secured this valuable deal. They also emphasized the importance of appreciating referral sources; rewarding their neighbor with $1,000 was not only good pract