Raising Private Money with Jay Conner

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 Estate

Jay 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 Strategies

Embarking on a successful wholesaling journey requires the right tools and a well-thought-out strategy. Nathan highlights several invaluable tips and resources:

Leveraging Software

Two 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 Money

Private 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 Dollars

A 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 Relationships

One 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 Outreach

Rather 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 Expectations

New 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 Powerhouse

Like 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 Partnership

Chris 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 Money

Their 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 Money

One 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 Conversations

To 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 Pitfalls

Through 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 Coaching

Beyond 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 Estate

Brandon 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 Money

One 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 Growth

Transitioning 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 Estate

Cobb’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 Lifestyle

Beyond 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 Forward

Cobb’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 Appearance

Credits 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 = O

Jay 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 Service

One 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 Success

Jay 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 Lending

Networking 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 Offer

Jay 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 Appearance

Credits 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 Estate

Ray 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 Money

A 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 Methodology

The 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 Partnerships

Towards the end of the episode, the conversation shifts to the importance of mindset in busines

When Jay Conner talks about making $155,140 in just five weeks using private money, he isn't spinning tall tales. Instead, he's sharing the transformative power of private money in real estate investing. Let's dive into the methods and strategies Jay employed to turn an ordinary deal into a goldmine.

Finding the Perfect Deal: Leveraging Technology and Understanding Motivations

To strike gold in real estate, you need to find the right deal. Jay’s success began with pinpointing a motivated seller. He used Google ads to attract these sellers and stressed the importance of immediate follow-up in capturing potential opportunities. 

In this particular instance, Jay came across an oceanfront condominium located at 855 Salter Path Road, Colony by the Sea. The seller's motivations were clear: inheritance issues and impending foreclosure. Understanding these motivations allowed Jay to negotiate more effectively.

With a realtor’s help, Jay discovered the property's after-repaired value (ARV) was $600,000, while the seller asked for $425,000. This immediate gap presented a lucrative opportunity. Jay also found renovation costs to be relatively low at just $11,000 – making this deal even more enticing.

Breaking Down the Numbers: Understanding the Financial Landscape

Jay's approach to financing this deal was through private money. Here’s a breakdown of the financials: 

1.  **Purchase Price:** $425,000
2.  **Renovation Cost:** $11,000
3.  **Realtor Fee:** $31,400

Using his strategy, Jay borrowed $450,000 in private money, ensuring he had $25,000 excess cash at closing – preparing him for any unexpected expenses and enhancing his liquidity. Jay’s golden rule is borrowing a maximum of 75% of the ARV, which, in this case, was sound due to the property’s valuation.

The Sale: Effective Marketing and Quick Actions

Jay employed effective marketing strategies to elevate the property's appeal. Utilizing professional media including music videos and pictures, he implemented a 'coming soon' campaign to generate buzz and demand. The results were impressive. Though the initial offer came in at $615,000, a subsequent offer of $628,000 came through, which Jay gladly accepted.

Within just two weeks of listing, Jay closed the sale at $628,000. Such quick actions and strategic marketing not only led to a profitable transaction but also underscored the importance of agility in real estate.

Profit Calculation: Detailed Insights

When the dust settled, Jay’s meticulous planning culminated in a substantial profit. Out of a closing sale price of $628,000, we subtract the:

1.  **Purchase Price:** $425,000
2.  **Renovation Cost:** $11,000
3.  **Realtor Fee:** $31,400

Leaving Jay with a net profit of $155,140 – a testament to the power of private money and effective real estate strategies.

Key Takeaways for Aspiring Investors

Jay Conner distilled his experience into five crucial takeaways for budding investors:

1.  **Consistent Advertising:** 

Continuously running ads ensures a steady stream of potential deals.

1.  **Readiness of Private Money:** 

Having funds readily available allows for quick, decisive actions.

1.  **Maintain Relationships:** 

Good relationships with a real estate attorney, realtor, and general contractor are indispensable.

1.  **Effective Marketing:** 

High-quality media and 'coming soon' strategies can significantly influence buyer interest and property value.

1.  **Education Through Challenges:** Participating in training programs, such as Jay’s 7-day private money challenge (available at https://www.PrivateMoneyChallenge.com), can provide invaluable insights into attracting private money

In this episode of the Raising Private Money podcast, we delve into an inspiring journey of financial transformation with Mike Deaton. Mike and his wife, Ligia, found success in a niche part of the real estate market—flipping vacant land. Mik shares their story, educating listeners on how they raised over $1,000,000 in private money and crafted a life they desired.

A Nagging Dissatisfaction with Corporate Life

Mike Deaton was once deeply entrenched in the corporate world, relying heavily on his job for income, supplemented only by modest investments in the stock market. Like many professionals, Mike faced the stark reality of job loss, which propelled him into a period of introspection. Despite contemplating a return to corporate life, he couldn't shake a persistent feeling of dissatisfaction, urging him to explore alternative income streams.

Inspiration from "Rich Dad Poor Dad

The influential book "Rich Dad Poor Dad" catalyzed Mike and Ligia's venture into land flipping. Inspired by the success stories depicted in the book, they invested in their education by attending a boot camp focused on flipping dirt. Armed with newfound knowledge and a 12-month timeframe with a defined budget, they embarked on their land-flipping journey.

The Mechanics of Land Flipping

Land flipping, also known as "flipping dirt," involves purchasing vacant land below market value and reselling it at a profit. Mike and Ligia primarily focus on properties with acreage, leveraging owner financing to facilitate more accessible transactions. They employ a strategic approach to locating potential sellers, utilizing list service providers to gather data on property owners. A particular focus is placed on out-of-state owners, who are often more willing to negotiate.

Raising Capital for Real Estate Ventures

Raising over $1,000,000 in private money is no small feat. Both Jay Conner and Mike Deaton emphasize the critical role of education and trust-building in this process. They highlight the importance of personal contacts and networking, attending events and clubs to educate individuals about passive investment opportunities in real estate.

Jay Conner shares his approach to simplifying real estate financing language and hosting networking events to attract potential investors. Both speakers stressed the necessity of confidence and caution against appearing desperate, which can deter potential investors.

From the Corporate World to Real Estate Success

Mike and Ligia's transition from the corporate sphere to successful real estate entrepreneurs wasn't instantaneous. They started by purchasing properties through direct mail campaigns, offering specific purchase amounts like $6,500 or $3,200, with the initial funding coming from their company's cash flow. For larger deals, they explored options such as institutional and private funding.

Finding Buyers and Building on Success

Selling the properties is another critical aspect of their venture. Mike utilizes a combination of social media platforms, paid listing sites, and an email list of interested buyers to secure sales. Their land-flipping success has paved the way for further real estate endeavors, such as raising funds for multifamily syndications.

The Power of Coaching and Mentorship

Understanding the complexities of the real estate market, Mike offers coaching services through flippingdirt.us. This initiative is designed to provide support and guidance on various strategies within the land-flipping business, helping aspiring entrepreneurs kickstart their real estate careers.

Advice for Aspiring Entrepreneurs

Mike's advice to those aspiring to break into real estate or any entrepreneurial venture is straightforward: take action. He emphasizes the importance of starting, even when conditions aren’t perfect. Waiting for the "right" moment can often lead to

In the ever-evolving world of real estate investing, understanding how to effectively raise and leverage private money can make or break your success. In a recent episode of Raising Private Money, Jay Conner, an authority on private lending, sat down with Dale Wills, a real estate investor who has successfully raised over $100 million in private capital. Their discussion illuminated key strategies, and nuances between investing in single-family versus multi-family properties, and even explored ways to maximize your IRA for real estate investments.

The Jargon of Private Money: Making the Rules

Investing in real estate with private money is fundamentally different from traditional bank financing. Jay Conner initiated the conversation by stressing the importance of realizing that in the private capital realm, investors make the rules. Unlike conventional banking, where terms are rigid and largely non-negotiable, private money lending offers an open playground to set interest rates and define terms that best suit your investment needs.

Dale Wills highlighted that this shift in mindset is crucial. Many novice investors might initially feel intimidated by this newfound control and might be tempted to relinquish autonomy back to the lender. However, Dale emphasized that belief in one's value proposition is vital. Standing firm and trusting in your offering can significantly boost confidence and, in turn, attract more private lenders.

Single-Family vs. Multi-Family Investments: Core Differences

One of the standout segments of the podcast was the discussion around the differences between investing in single-family homes versus multi-family apartments. Dale Wills, who specializes in single-family projects, provided some fascinating insights. While multi-family units offer value, they sometimes remain under-utilized due to evolving living conditions, such as consolidated households.

Dale’s focus on single-family homes, particularly entry-level, first-time buyer products, aligns well with current market dynamics. Even in economic downturns, the demand for these affordable housing options remains steadfast. Second or third-time homebuyers might hold off on purchasing during uncertain times, but first-time buyers typically continue to enter the market. This resilience makes the entry-level housing market a strategic focus.

Boosting Wealth with IRAs: A Hidden Gem

For many investors, leveraging retirement funds can be a game-changer. Jay Conner noted that a significant portion of his private lenders utilize their IRAs to invest, seeking better returns than traditional retirement accounts provide. Dale Wills backed this by highlighting Centra’s partnership with Equity Trust, a platform that facilitates the efficient transfer and investment of IRA funds into real estate.

Dale shared that transferring IRA funds for investment is straightforward and can offer significantly better returns compared to traditional investments like stocks or money markets. Real estate investments provide tangible assets that investors can see and feel, which is a considerable advantage over digital or paper assets which can sometimes feel intangible.

Helping First-Time Homebuyers

Another significant point of discussion was the various ways Centra helps first-time homebuyers. In today's challenging economic climate, making homes affordable without compromising quality is paramount. Centra's approach includes allowing employees to buy houses at cost, thereby helping them build personal wealth. 

Centra focuses heavily on entry-level housing, ensuring it is affordable while maintaining high standards. They also facilitate access to programs like USDA loans, which offer down payment assistance and interest-rate buy-downs. This multi-faceted approach makes homes more accessible and bridges the housing gap for both first-time homebuyers and empty nesters looking to do

In the realm of real estate investing, one of the most daunting challenges is securing the necessary capital to launch and sustain projects. During a candid discussion on the "Raising Private Money" podcast, host Jay Conner invited real estate powerhouse Maura McGraw to share her journey in raising private funds and scaling her business.

The Early Days: Learning the Hard Way

Maura McGraw's introduction to real estate investing in 2018 was nothing short of a trial by fire. Driven by a hands-off mentorship approach from her father, Maura found herself managing a ground-up build in Birmingham, Alabama, with almost no prior experience. It was a monumental task for a newcomer and resulted in a $30,000 loss. However, it also provided invaluable lessons that would lay the groundwork for her future success.

Raising Private Money: The Initial Hurdles

In the subsequent years, Maura faced the perennial issue that many new investors encountered—banks were unwilling to finance her projects due to her limited track record. Determined to push forward, Maura turned to private money, guided by the belief that a good deal would attract the necessary funds.

Her journey to secure private funding was fraught with challenges. For two crucial real estate flips following her initial project, Maura had to navigate a whirlwind of networking and presentations. Meeting after meeting resulted in rejections until she finally secured funding through a connection facilitated by her general contractor. This breakthrough relationship with private lender Aziz Shannara became the cornerstone of her future investments and business expansions.

The Concept of the Trust Bridge

One significant takeaway from Maura's story is the idea of the "trust bridge," a concept emphasized by Jay Conner. The trust bridge leverages existing relationships to establish credibility with prospective investors. In Maura's case, her general contractor served as her trust bridge, vouching for her capabilities and solidifying trust between Maura and Aziz. Jay also shared a similar experience from his own career, accentuating the importance of leveraging relationships and building trust in the world of private money.

The Challenges of Rapid Growth: Scaling Property Management

Maura's story also serves as a cautionary tale about the challenges of rapid business growth. After founding a property management company in 2019, the venture experienced meteoric growth, managing over 600 properties within three years. This pace, while impressive, also introduced significant operational challenges requiring frequent halts and strategic overhauls to manage the increasing load effectively.

Maura and her team learned the hard way the necessity of scaling intentionally. By adopting more selective criteria for new clients and properties, they were able to maintain service quality and business viability. Maura’s experience underlines the importance of aligning growth with operational capacity, thus preventing overextension.

Building a Strong Team: Key to Sustainable Success

One of the pillars of Maura's sustained success in real estate is her robust team. With seven key players, including her partner Aziz serving as CFO, Maura has established a well-rounded structure encompassing general management, construction, bookkeeping, executive assistance, and property management. This balanced delegation of responsibilities ensures that each aspect of her business runs smoothly.

Words of Wisdom: Persistency Is Key

Maura concluded her narrative with an important piece of advice: never give up, no matter how many mistakes you make. Her journey from a novice investor to a real estate mogul brimming with industry knowledge and a robust portfolio exemplifies the power of resilience. Mistakes, according to Maura, are the stepping stones to long-term success, provided one learns and grows from