Raising Private Money with Jay Conner

***Guest AppearanceCredits to:https://www.youtube.com/@FromAdversity2AbundancePodcast "Desperation Has a Smell: The Psychology of Raising Private Money with Jay Conner"https://www.youtube.com/watch?v=s3AcMDgutqM In this episode of Raising Private Money with Jay Conner, Jay reflects on the challenges and pivotal moments that have shaped his real estate journey. From navigating a banking crisis to leveraging private money, Jay's story is rich with practical advice and inspiration for real estate entrepreneurs.The Crisis That Sparked ChangeIn 2009, Jay Conner, a seasoned real estate investor in North Carolina, was blindsided by an unexpected setback. After placing nonrefundable earnest money on several properties, his bank abruptly closed his line of credit without notice. Puzzled and concerned, Jay approached his banker, only to discover that the global financial crisis had severely impacted credit lines. This moment of adversity led Jay to ask a crucial question: "Who can help me with this problem?"Discovering Private MoneyWith guidance from his friend Jeff Blankenship, Jay explored the realm of private money and private lending. Jeff introduced him to the concept of using self-directed IRAs for private lending, which allows individuals to lend money while enjoying potential tax advantages. Motivated, Jay educated himself and his network about these new funding avenues, emphasizing the benefits they offered.Jay adopted an educational approach rather than a direct ask for money. He taught his network how they could earn high returns safely and securely by participating in his lending program. Jay's program featured attractive terms, such as an 8% simple interest rate and a 90-day call option, designed to appeal to potential private lenders.Shift in Mindset: Control and ConfidenceEntering the world of private money marked a significant shift in Jay's perspective. Unlike traditional bank loans, where the banks set all the terms, private money allowed Jay to dictate the conditions. This newfound control provided him with the confidence to proceed, knowing that he could secure and use $8.5 million in private money without directly asking anyone for it.Ethical Practices in Real EstateEthics play a pivotal role in Jay's business practices. He critiques certain controversial methods in real estate, such as securing large nonrefundable deposits from tenants in rent-to-own agreements without assisting them in obtaining a mortgage. Knowing that less than 5% of these tenants end up owning the homes, Jay advocates for helping tenants improve their credit and working closely with credit repair companies to increase their chances of homeownership.Securing Trust: The Wayne StoryIn an illustrative anecdote, Jay recounted how he secured his first private money commitment. During a Wednesday night Bible study, he approached a well-connected community member named Wayne, asking for his help rather than money. Jay outlined his business model and the high returns he was generating, sparking Wayne's interest. Wayne initially committed $250,000, which later grew to $500,000.Strategic Lead GenerationGiven today's market conditions, where inventory in the MLS is low, Jay highlights the importance of direct-to-seller channels. Through Google leads, direct mail, outbound calling, and Facebook ads, Jay sustains a steady pipeline of seller leads, allowing his business to adapt to the evolving real estate landscape.Adapting and ThrivingJay reflected on a notable case study involving the acquisition of an oceanfront condominium. He purchased the property for $425,000, completed minimal renovations costing $11,000, and sold it within fi

In a recent episode of the Raising Private Money podcast with Jay Conner, guest Keshav Kolur shared his invaluable expertise on the intricate landscape of investments. This blog post delves into some key takeaways from their conversation, offering practical advice on smart investment strategies.Investment Advice from Keshav KolurDon't Invest More Than You Can Afford to LoseOne of the fundamental pieces of advice from Keshav Kolur is to only invest what you can afford to lose. This principle might seem straightforward, but it’s often overlooked by enthusiastic investors. Maintaining a reserve for unforeseen expenses is crucial in preventing financial distress in the face of market volatility.Diversification is KeyKolur emphasizes diversification across various asset classes and real estate markets. By spreading investments, the risk is mitigated. For example, rather than placing all funds in one sector, it is wiser to allocate capital into different sectors like apartments, industrial warehouses, private lending, and even oil and gas. This strategy provides a buffer against downturns in any single market.Understanding Current Market TrendsTech Stocks' Influence on the Stock MarketTech stocks, often referred to as the "big seven," are becoming increasingly influential in driving the growth of the stock market. This concentration can be both an opportunity and a risk, highlighting the importance of balancing portfolios.Real Estate Market DynamicsCurrently, the real estate market is experiencing certain stress points, such as foreclosures due to loan payment failures and an increased supply. Despite the rising interest rates, housing prices have remained steady. This paradoxical scenario suggests an underlying demand that savvy investors can capitalize on.Keshav Kolur’s Company: Clive CapitalPersonalized and Transparent InvestingKeshav Kolur founded Clive Capital with the vision of providing personalized investment opportunities that ensure higher returns and tax benefits. By investing directly into LLCs, investors benefit from direct tax deductions and expenses, creating a more profitable and transparent relationship compared to traditional corporate investments.Higher Projected Returns and Lower OverheadsClive Capital’s streamlined operations mean less overhead, promising higher returns on investment. Clients enjoy direct engagement with managers, receiving regular updates on performance, and fostering trust and transparency.Keshav Kolur's Journey and Clive Capital's MissionFrom Engineering to Real Estate InvestingIn just a few years, Kolur transitioned from a mechanical engineer to a significant player in real estate, catalyzed by influential readings such as "Rich Dad Poor Dad." His journey underscores the importance of education and adaptability in investment ventures.Building a Diversified PortfolioEstablished in January 2022, Clive Capital focuses on helping investors achieve financial freedom through diversification. Managing over 1,000 apartments and developing more than 500 single-family homes, their commitment to building generational wealth is evident.Raising Private Money: Strategies and Best PracticesLeveraging Personal NetworksKolur’s method of raising private money highlights the power of personal networks. By tapping into connections within his tech industry network, along with friends and family, he underscores the value of mutual success and trust in investment partnerships.Initial Conversations with Potential InvestorsIn his approach, Kolur conducts 30-minute introductory calls to understand potential investors' backgrounds, experiences, and financial goals. This personalized assessment ensures that the inv

*** Guest AppearanceCredits to:https://www.youtube.com/@Keystone.Private.Capital "Revolutionize Your Investing: Jay Conner on Leveraging Private Money in Real Estate"https://www.youtube.com/watch?v=ivHYcpky90YIn an enlightening episode of the Raising Private Money podcast, Jay Conner, a seasoned real estate investor, joined Angel Gonzalez on Taking the Leap Into Commercial Real Estate Podcast and shared his transformative journey from relying on traditional banking systems to embracing private money lending. This shift not only revolutionized his investment strategies but also paved the way for a more lucrative and less stressful approach to real estate investing.Jay Conner's Background and Early JourneyJay Conner embarked on his real estate investment journey in 2003, focusing primarily on single-family houses in a small market in Eastern North Carolina. With approximately 40,000 people in his market, Jay successfully made an average profit of $82,000 on 2-3 deals every month. Initially, he relied heavily on local banks for funding, which was a conventional approach but came with its own set of limitations. The Turning Point in 2009January 2009 marked a significant turning point for Jay. The global financial crisis prompted his primary banking partner, BB&T, to close his line of credit. This unforeseen setback could have been catastrophic. However, it led Jay to discover an alternative financing strategy through private money lending, introduced to him by his friend Jeff Blankenship. This discovery was a game-changer.Understanding Private MoneyPrivate money involves individuals using their investment capital or retirement funds to finance real estate deals. Unlike hard money, which is institutional and comes with stringent conditions, private money is more flexible and borrower-friendly. Jay emphasizes that private money lending allows borrowers to set the terms and conditions, making it a more appealing and less cumbersome option compared to traditional financial institutions.Strategies for Attracting Private MoneyJay's strategy for attracting private money was rooted in education rather than solicitation. He invested time in educating his community about private money and the benefits of self-directed IRAs. By leading with a servant's heart and offering valuable knowledge rather than directly asking for money, Jay successfully attracted $2,150,000 in the first 90 days. Today, he manages $8,500,000 in private funds from 47 lenders.The Importance of Having Funds ReadyOne critical lesson Jay imparted was the importance of having funds lined up before securing deals. Contrary to the advice of some "gurus" who suggest finding a deal first and expecting the money to follow, Conner advocates for securing the money upfront. This allows for confident and swift offers, giving investors an edge in competitive markets.Case Study: Quick Flip SuccessIn a riveting case study, Jay shared an experience where he initially accepted an offer too hastily. Subsequently, he received a better all-cash offer of $628,000 with no contingencies and a quick closing date for a property he bought for $425,000. This deal underscores the flexibility and speed that private money lending affords, enabling investors to capitalize on lucrative opportunities without the delays typical of institutional funding.Launch of the 7 Day Private Money ChallengeTo help others achieve similar success, Jay launched the "7 Day Private Money Challenge." This initiative includes seven days of video training on raising private money, released daily. The challenge aims to empower participan

In the latest episode of the Raising Private Money podcast, Jay Conner interviews real estate veteran Chris Prefontaine. With over 30 years of experience and having raised over $5 million in private money, Chris shares invaluable insights into successfully navigating the challenging landscape of real estate. The conversation revolves around creative financing techniques, the 3 payday system, and the intricacies of structuring and selling properties. This blog post delves deeper into these topics to provide actionable tips for both novice and seasoned investors.The Birth of Creative Financing After 2008Chris Prefontaine initially started his career in single-family real estate. However, the 2008 financial crash prompted a shift in his approach. Moving away from traditional financing involving banks and heavy cash investments, Chris adopted a strategy that combined private money with creative financing techniques. These include owner financing, lease purchase, and "subject to" deals. This pivot allowed him to maximize his real estate deals while minimizing personal financial risk.Attracting Private MoneyChris first tapped into the private money market by approaching professionals he trusted—his attorney and accountant. By demonstrating the advantages of earning a 7 to 8% return on investment through his 3 payday model, he gained their confidence and subsequent referrals. Trust plays a crucial role in this process; as Jay Conner points out, investors are ultimately investing in the individual, not just the opportunity.Understanding the 3 Payday SystemOne of Chris's hallmark strategies is the 3 payday system, designed to create continuous income streams. This method ensures profits at different stages of the deal: principal payments, cash flow, and markup when selling on terms.Breakdown of the 3 PaydaysDay 1: Upfront Payment- Earned at the outset of the deal, often during acquisition.Continuing Cash Flow- Monthly income generated from lease payments or seller financing arrangements.Final Lump Sum- Realized at the end of the term, either through selling the property or final payment from the buyer.This approach contrasts sharply with traditional real estate models such as wholesaling and flipping, which are mostly transactional and offer income only upon the sale of each property.Buying Real Estate on TermsChris emphasizes three primary rules when buying and selling real estate on terms: avoiding banks, requiring little to no money down, and creating 3 paydays.Types of Creative FinancingOwner Financing- The seller acts as the bank, accepting monthly payments directly toward the principal.Subject To Existing Loan- Acquiring a property subject to its existing mortgage while maintaining the original loan terms.Lease Purchase- Lease agreements that provide the option to purchase at a future date, are often facilitated with little initial investment.Benefits for SellersSellers may agree to these creative terms for various reasons. Some are looking to solve financial problems or achieve goals that the conventional market cannot fulfill. For example, sellers with free and clear properties may be willing to accept monthly payments in return for a higher total payout over time.Marketing and Selling PropertiesRather than relying on traditional multiple listing services (MLS), Chris uses a specialized company called Prosperity for marketing real estate deals. By focusing on direct referrals and automated processes, he can negotiate favorable terms with sellers and ensure a higher rate of return.Identifying Ideal ProspectsOne effective strategy for finding properties ideal for terms is targeting expired MLS listings. Approximately one-third of these listings are

Welcome to the exciting realm of real estate investing, where innovative strategies and relationship-building define success. In the recent Raising Private Money podcast, Nathan Payne shares his secret to thriving in the competitive landscape of real estate wholesaling. Whether you're new to the industry or looking to refine your strategies, this episode offers invaluable insights.Nathan Payne's Journey: From Door-to-Door Sales to Real EstateJay Conner introduces Nathan Payne as a seasoned investor who has successfully raised approximately $300,000 in private money. Nathan's career began in door-to-door sales for DISH Network, where he quickly became one of the top salesmen. His persistence, diligence, and deal-closing abilities seamlessly transitioned into his real estate venture.Nathan's early days involved knocking on countless doors, cold-calling potential customers, and maintaining a rigorous work ethic. These foundational experiences equipped him with the unique skills necessary to excel in real estate investing.What is Payneless Flipping?Nathan Payne's unique approach to real estate investing is encapsulated in his concept of "Payneless flipping." This system leverages buyers to make offers directly to sellers, eliminating the tedious negotiations that often lead to deal cancellations. This method ensures a smoother and more efficient transaction process, making it ideal for new wholesalers looking to secure their first deals without extensive marketing budgets.Essential Tools and StrategiesEmbarking on a successful wholesaling journey requires the right tools and a well-thought-out strategy. Nathan highlights several invaluable tips and resources: Leveraging SoftwareTwo key software tools, Privy and batch leads, play a crucial role in determining market viability for wholesaling. These tools provide insights into areas ripe for investment, helping investors understand market dynamics and identify lucrative opportunities.Using Private MoneyPrivate money can significantly enhance the ability to scale a wholesale business. From transactional funding to negotiating better terms, private money enables investors to optimize their deals and increase profitability. Nathan underscores the importance of raising private money, starting with reaching out to one's circle to explain potential investment opportunities.Driving for DollarsA hands-on approach like driving for dollars involves physically identifying distressed properties in specific neighborhoods. This method highlights potential sellers who may be more inclined to sell, offering a personalized touch that mass marketing often lacks.Building Transparent and Honest RelationshipsOne of Nathan's standout strategies is his transparent and honest sales process. By fostering strong relationships with both sellers and buyers, Nathan creates a dependable and trustworthy network. This approach not only facilitates smoother transactions but also establishes a reputation for reliability and integrity.Personalized OutreachRather than casting a wide net, Nathan emphasizes focusing on specific lists such as pre-foreclosures and probates. This targeted approach, combined with consistent outreach through calling, texting, and door knocking, ensures that wholesalers connect with motivated sellers who are more likely to close deals. Tackling Challenges and Setting Realistic ExpectationsNew wholesalers often falter due to unrealistic expectations about the time required to see results. Nathan advises maintaining diligence and consistency, with the realistic expectation of securing a deal within the first 90 days. His coaching company, Investor Thrive, offers resources like a free deal analysis calculator through the Payneless Flipping Facebook group to assist new investor

Raising private money without the need to ask for it directly is a skill that not many possess. However, Chris Linger, a seasoned real estate investor and accredited investor, has mastered this art. As a general partner in nine apartment syndications, encompassing over 1,750 apartments valued at $270M, Chris has a wealth of knowledge to share. In a recent enlightening conversation with Jay Conner on the Raising Private Money" podcast, Chris detailed his journey and provided invaluable insights into real estate investing, raising private funds, and scaling one's business.From Humble Beginnings to Investing PowerhouseLike many successful investors, Chris Linger began his venture into real estate with modest beginnings. While serving in the military, he faced a dilemma that many in the armed forces encounter—frequent relocations. Chris’s journey began in Pensacola, Florida, where he was unable to sell his home during a move in 2007. This necessitated renting out the property, unknowingly planting the seeds of his future real estate empire.The Power of PartnershipChris attributes much of his accelerated growth in real estate to his partnership with his wife Maricela. When they met in 2017, they discovered a mutual interest and synergy in real estate investing. By pooling their resources, Chris and Maricela began purchasing properties, starting with small quadplexes and gradually scaling up. This partnership was not just limited to pooling financial resources but extended to strategic decision-making and support, allowing them to take more calculated risks and bigger steps toward their goals.The Shift to Raising Private MoneyTheir foray into raising private money began out of necessity when a lucrative opportunity arose unexpectedly. With funds tied up in another project, Chris and Maricela turned to individuals who had shown interest in investing with them. Instead of approaching institutional lenders—which could be time-consuming—they offered their potential investors short-term loans to fund their project. This approach not only sped up the process but also laid the foundation for future private money-raising endeavors.The Benefits of Private MoneyOne of the significant advantages of private money, as highlighted by Chris, is speed. Real estate transactions, especially those involving wholesalers, often require swift action. Private money allows for rapid closings, enabling investors to seize time-sensitive opportunities. Chris also pointed out the value of teaching potential investors about private money, including the use of self-directed IRAs for tax-advantaged returns—an approach that aligns well with Jay Conner’s philosophy of educating rather than pitching.Scaling Up: Beyond One-on-One ConversationsTo scale beyond one-on-one interactions and raise over $20 million in less than four years, Chris leveraged various platforms. Networking at events, attending webinars, participating in podcasts, and maintaining a strong social media presence played significant roles. By consistently sharing their successes and educational content, Chris and Maricela built credibility and attracted a larger pool of investors.Lessons Learned and Avoiding PitfallsThrough their journey, Chris and Maricela have learned valuable lessons, some from costly mistakes. One major lesson was the importance of maintaining control of investment opportunities. While initially partnering with others for asset management, they realized the importance of direct oversight to ensure optimal property management and investment performance. Additionally, as lenders themselves, they learned to structure longer-term notes with interest rate increases to mitigate the opportunity costs of tying up capital for extended periods.Diversifying Through Business CoachingBeyond real estate, Chris and Maricela are elite business coac

Transitioning from a stable career to entrepreneurship often comes with its challenges. Brandon Cobb, who was once a medical device sales representative, experienced a significant career setback that propelled him into the world of real estate investing. Today, he manages a $22 million portfolio focused on affordable housing and has raised over $15 million in private money. In this episode of Raising Privat Money Podcast, Brandon Cobb shares his inspirational journey, strategies for success, and lessons learned along the way.From Medical Sales to Real EstateBrandon Cobb’s transition into real estate was far from smooth sailing. After being unexpectedly fired from his job in medical device sales, Cobb faced a series of failed online business ventures. However, he found his footing in real estate investing, initially focusing on fixes and flips. Drawing from a diverse set of experiences, Cobb pivoted into new construction, identifying a lucrative niche by addressing the affordable housing crisis.Mastering the Art of Raising Private MoneyOne of the key elements behind Cobb's success has been his ability to raise private money. Instead of directly soliciting funds for deals—a strategy that can often appear desperate—Cobb recommends engaging potential investors by seeking their feedback and gauging their interest. Both Cobb and host Jay Conner emphasize the importance of appearing confident rather than desperate when raising private money. Cobb's innovative approach involved negotiating with investors for fixed and flip projects at a 10% annual interest rate with no monthly payments. This method alleviated the financial burden of hard money loans, characterized by high upfront fees and interest rates, thereby allowing for more sustainable growth.Syndication: A Path to Scalable GrowthTransitioning from debt positions to equity through syndication was a pivotal strategy for Cobb. Syndication, likened to crowdfunding, involves multiple investors pooling their resources to fund larger projects. This not only increases the available capital but also allows investors to become partners in deals, thus sharing higher returns. Through this method, Cobb expanded his funds from $6 million to $15 million, opening up opportunities for larger-scale projects.Strategizing for Success in Real EstateCobb’s company, HBG Capital, specializes in entry-level housing in Nashville, Tennessee, a market with high demand for affordable homes. They have developed a multi-faceted approach that includes owning land outright with investors, contracting with national home builders, and building homes both to sell and to rent. This variety of exit strategies ensures stability and profitability, even in fluctuating markets.Personal Insights and LifestyleBeyond the numbers and strategies, Cobb also shares personal insights into his journey. Real estate investing has afforded him the ability to travel frequently, taking six weeks off per year to explore new places. Particularly meaningful are his annual trips with his mother and a sibling trip to historic locations with his retired history teacher sister. These experiences underscore the personal fulfillment that can accompany financial success.Learning from Mistakes and Moving ForwardCobb’s journey from flipping houses to new construction highlights the importance of learning from mistakes and adapting strategies accordingly. Tracking key performance indicators helped him recognize the saturation in the fix and flip market, prompting a shift to new construction which offered higher profits with less competition.Both Cobb and Conner agree on the significance of continuous learning and adaptation in the evolving landscape of real estate investing. Leveraging private money and shifting from a hard money-dependent model has been crucial for Cobb’s business scalability.

*** Guest AppearanceCredits to:https://www.youtube.com/@gatheringthekings "Private Money Tips in 2024: Secret Framework"https://www.youtube.com/watch?v=CLUARp0bf6Q  In a recent episode of the Raising Private Money podcast, Chaz Wolfe and Jay Conner delve into the world of private lending, offering invaluable advice for real estate entrepreneurs on how to navigate financing without traditional banks. This conversation highlights essential principles, from developing the right mindset to leveraging networks such as Business Networking International (BNI), which can transform the way you approach your real estate ventures. Here’s a comprehensive look at the key insights from this enlightening episode.The Formula for Success: E + R = OJay Conner introduces a powerful concept that challenges conventional thinking: E + R = O (event + response = outcome). This principle dictates that while events in our lives are often outside our control, our responses to those events are key to shaping our outcomes. Jay recounts a personal story where his funding line was abruptly cut off by the bank during the 2009 financial crisis. Instead of succumbing to despair, he chose to seek alternative funding solutions. This proactive response led him to discover private money and self-directed IRAs, which played a pivotal role in his continued success in real estate.Mastering the Mindset of Abundance and ServiceOne of the major takeaways from the episode is the importance of adopting an abundance mindset and focusing on service. Chaz Wolfe applauds Jay Conner's emphasis on these aspects, noting how they can transform the approach to private lending and real estate. Jay underscores that having an abundance mindset—believing there’s plenty of money for good deals—can significantly impact how one interacts with potential lenders. He stresses serving others, reassuring lenders about the safety and high returns on their investments. Unpacking the Three Tips for Private Money SuccessJay Conner outlines three fundamental tips for utilizing private money effectively:1. Serve and Secure the Right Mindset: Approach private money with a mindset of service, not desperation. Educate lenders about the benefits and security of their investment without pitching specific deals upfront.2. Establish Control and Make Your Own Rules: Unlike traditional mortgage applications with stringent requirements, private lending allows you to set the terms and create win-win scenarios.3. Recognize the Benefits of Private Money: Understand that private money offers limitless availability, no credit checks, quick closings, and fewer fees compared to hard money options.Leveraging Networks for Private LendingNetworking is a crucial element in private lending. Jay Conner highlights the role of Business Networking International (BNI) and self-directed IRA companies in expanding one's network of potential lenders. By engaging in these networks, real estate entrepreneurs can present their investment opportunities to individuals already familiar with and confident in the program.Chaz Wolfe reinforces this idea, noting how BNI's structured framework facilitates meaningful connections which can lead to securing private funds.The Art of Making a Good OfferJay Conner also discusses the importance of making a compelling offer to mitigate risks and close deals quickly. He introduces a formula for determining the maximum allowable offer, which ensures offers are both attractive to sellers and secure for investors.He emphasizes the urgency in real estate deals, suggesting that “time kills deals.” Therefore, presenting a strong

*** Guest AppearanceCredits to:https://www.youtube.com/@TheBigPictureBlueprint "Raising Private Money with Jay Conner"https://www.youtube.com/watch?v=oYvFywuPL88 In the ever-evolving world of real estate investment, securing funding can often be the make-or-break factor for success. Between complex financing options and stringent lending requirements, many investors find themselves in search of alternatives that offer more flexibility and potential for profit. This blog post delves into the insightful discussion between Jay Conner, Dan Haberkost, and Mason McDonald revealing the significant advantages of utilizing private money over traditional hard money lenders. Follow along as we explore the strategies to effectively raise private money, the benefits it provides, and how you can leverage these insights to maximize your real estate deals.What is Private Money?Private money involves raising capital from individual investors rather than institutions or traditional lenders. Jay Conner, a seasoned real estate investor, explains that he has successfully secured private money for his deals since 2009, paying his private lenders an annual percentage rate (APR) of 8%. Unlike traditional lenders, private money lenders offer more flexible terms and often provide 100% of the purchase price and rehab money, based on the property’s after-repaired value.Why Choose Private Money Over Hard Money?**No Hidden Costs:** Private money comes without the extra-associated costs that are common with hard money lenders. This includes origination fees, extension fees, junk fees, or appraisal costs.**Flexibility in Terms:** Private lenders typically do not require strict credit score checks, making it easier for investors to secure the necessary funds.**Lower Interest Rates:** While hard money lenders may charge interest rates upward of 15%, private money has a more appealing 8% rate. These savings can significantly impact the overall profitability of a real estate deal.**Faster Access to Funds:** Jay emphasizes the importance of having quick and straightforward access to capital, allowing investors to seize opportunities promptly. Private lenders can often expedite the funding process compared to traditional banks.How to Secure Private Money**Building Relationships:** One of the pivotal strategies Jay Conner highlights is the importance of personal relationships. He suggests targeting your existing network—church members, rotary club peers, and business network groups—educating them about private lending and self-directed IRAs.**Transparency and Trust:** Proving your performance to new private lenders is crucial. Jay suggests using their funds first to demonstrate successful deal execution, thereby building trust and credibility.**Leveraging Personal Networks:** Jay shares an anecdote about a conversation at church that led to onboarding retired school teachers as private lenders. It’s a reminder to capitalize on the potential within your immediate circle, where you might find people looking to invest their funds more effectively.Raising Private Money Strategically**The 7-Day Private Money Challenge:** Jay underscores the importance of structured learning and highlights the 7-Day Private Money Challenge—a master class designed to teach realistic methods to raise $500,000 in private money. This training is interactive, easy to follow, and helps investors understand the nuances of securing private funding.**Quantifying Your Needs:** Being clear about how much private money you require for your deals is essential. Jay outlines an exercis

In a recent episode of the "Raising Private Money" podcast, Jay Conner explores the fascinating world of real estate investments with special guest Ray Hightower. The episode sheds light on Ray's journey of raising over $3,000,000 in private money for commercial real estate deals. This blog post will delve into the takeaway points from their discussion, focusing on Ray’s transition from the tech industry to real estate, his preferred asset class, and his effective methods for attracting private investors.From Technology to Real EstateRay Hightower's entry into real estate is both motivating and informative. His career began in the dynamic field of technology, where he held a degree in computer science and gained extensive experience working for Fortune 500 companies. He eventually founded and managed his technology company for over two decades. Upon achieving significant success, he sold his tech company and transitioned into multifamily real estate.This career switch was driven by the potential for equity building and the unique advantages offered by real estate investments, including capital preservation, intrinsic land value, insurance protection, and steady cash flow from rent payments.Why Multifamily Properties?When asked about his choice of asset class, Ray prefers multifamily properties, particularly those in the 50 to 150-unit range. He appreciates various asset classes including single-family and retail spaces, although office properties pose challenges due to the shift towards remote work. Multifamily properties, however, are a more stable investment because people always need housing.Focusing on properties with 50 to 150 units allows Ray to ensure professional management without facing direct competition from large private equity firms. This approach enables effective property management while pursuing valuable deals that larger entities might overlook.Structuring Deals with Private MoneyA critical part of the episode highlights how Ray structures his deals using private money. His approach involves limited partners (LPs) and general partners (GPs) within limited liability corporations (LLCs). Ray employs a 70%-30% ownership split between LPs and GPs.Private investors are primarily looking for excellent stewardship of their investments, and Ray’s meticulous oversight ensures their money is managed carefully. He compares the investor's journey to a scouting trip, emphasizing how crucial it is to ensure safety and improvement in property investments.Attracting Private Money: Trust and MethodologyThe discussion then moves to how important trust is in attracting private money. Jay highlights that private lenders often invest in the operator rather than the deal itself. Ray builds on this idea by outlining a four-step method he learned from his mentor, Hunter Thompson: attract, educate, nurture, and close.**1. Attract:** Initial attention is garnered toward investment opportunities through effective networking, an online presence, and valuable content distribution.**2. Educate:** Comprehensive information about the investment process and potential returns is provided to build credibility. Education enhances not only the learner's knowledge but also boosts the educator’s standing.**3. Nurture:** Developing strong relationships is essential. Continually adding value through education, connections, events, and podcasts builds trust, showing potential investors that their interests and finances are genuinely taken care of.**4. Close:** If the steps of attraction, education, and nurturing are executed with a giving spirit, the final investment commitment often follows naturally, without direct solicitation.The Power of Mindset in Building PartnershipsTowards the end of the episode, the conversation shifts to the importance of mindset in busines