Raising Private Money with Jay Conner

Welcome to a deep dive into the latest episode of the Raising Private Money podcast featuring Neal Bawa, a visionary in the realm of commercial real estate. This episode uncovers the methods and philosophies that have made Neal Bawa a noteworthy figure in the industry. Sitting down with Jay Conner, Neal shares invaluable insights on how to leverage data analytics, technological advancements, and genuine brand-building to elevate your real estate investment game.

Transforming Real Estate with Data-Driven Insights

Neal Bawa’s Remarkable Achievements: Neal Bawa, CEO and founder of two commercial real estate investment companies, is not your typical real estate mogul. With a background in computer science, Neal has seamlessly merged technology with traditional real estate practices. His pioneering use of real estate analytics has facilitated the acquisition and development of commercial properties across the United States. Under his leadership, these companies have raised an astounding $325 million from over 1,000 private lenders and investors, managing a portfolio boasting over 4,400 units.

Neal’s commitment to education is evident. With a top-rated free real estate data analytics course on Udemy, boasting over 1,000 five-star reviews, and an expansive reach with over 10,000 participants, Neal has democratized real estate knowledge. His multifamily webinar series also attracts over 5,000 annual attendees, further solidifying his reputation as an industry thought leader.

The Vision: PropTech and FinTech Innovations

Neal Bawa’s Forward-Thinking Vision: Neal envisions a future where real estate, augmented by PropTech and FinTech innovations, becomes a tradable, highly liquid asset class competitive with the stock market. This futuristic outlook isn’t just theoretical; it’s grounded in his vast experience and success. Neal believes that leveraging technology for data-driven decision-making is key to realizing this vision, enabling more informed and efficient investment decisions.

Strategies for Raising Private Money

Building an Authentic Brand: Neal and Jay Conner discuss the intricacies of raising private money, emphasizing the importance of building an authentic brand. Neal’s success is a testament to this approach, where genuine engagement and transparent communication trump high-pressure tactics. In a region like Silicon Valley, a data-focused, authentic brand is especially effective.

Neal shares an illustrative example of how he uses newsletters to provide real estate insights. By sharing an analysis report from Local Market Monitor on social media, Neal builds his data-driven brand, attracting investors who appreciate his expertise and candor.

Technological Mastery in Real Estate Investment

Leveraging AI and Automation: Neal’s strategies go beyond traditional methods. By integrating advanced technologies like artificial intelligence and automation into business operations, Neal has created an efficient, high-functioning system. For instance, his use of ChatGPT and Perplexity aids in content creation and organization, significantly boosting productivity. Neal’s ability to manage a substantial workload with just 27-28 work hours per week, supported by four full-time executive assistants, is a testament to the power of leveraging technology.

Optimizing Property Management

Grow Capitas: The Value Add Approach: Neal Bawa’s company, Grow Capitas, is dedicated to acquiring and improving multifamily properties rather than engaging in new construction. Neal’s approach involves a comprehensive optimization strategy employing a team in the Philippines and utilizing over 600 systems and processes. This ensures high tenancy satisfaction and financial efficiency, aiming for a 97-98% occupancy rate. Neal believes in long-term projects, focusing on sustainable improvements over typical five-year periods.

In the challenging realm of real estate investing, Banjo, and Erica Camardelle have emerged as a dynamic duo. As guests on Jay Conner's popular podcast, "Raising Private Money," they shared their remarkable journey of raising $3.3 million through private money lenders. Their story is a testament to determination, innovation, and strategic networking, providing invaluable insights for both novice and seasoned investors.

Struggling with Cash Flow and Early Challenges

When Banjo and Erica launched their business in 2018, they faced the same obstacle many entrepreneurs encountered: a lack of capital. Despite their innovative approach to creative deals, which often involved offering existing note owner financing instead of cash payments upfront, they soon found themselves constrained by financial limitations. With scarce capital, their ability to purchase new properties dwindled, leading to a temporary halt in their business activities.

Additionally, the couple encountered operational challenges. The absence of robust systems and processes meant that most of their time was consumed with property rehabbing, diverting their focus from closing new deals. These initial setbacks underscored the necessity of securing a reliable source of funds to sustain and grow their venture.

The Breakthrough: Learning to Raise Private Money

A game-changer for Banjo and Erica was discovering the art of raising private money. By tapping into a network of private lenders, they managed to secure funding for their real estate transactions without relying on their own capital. Their first private lender marked a significant milestone, allowing them to navigate the market with newfound confidence and financial backing.

Their strategy revolved around understanding the mutually beneficial nature of private lending. Private lenders could enjoy predictable, high rates of return, while Banjo and Erica leveraged their funds to acquire and rehab properties efficiently. This symbiotic relationship became the cornerstone of their successful business model.

Private Lender Luncheons: A Networking Masterstroke

One of the duo's most effective strategies for attracting private lenders has been hosting Private Lender Luncheons. Initially intimidating, these luncheons have now become a preferred method for Banjo and Erica to introduce their private lending program. By gathering around 25 acquaintances—including team members, friends, and family—and providing an overview rather than a pitch for specific deals, they created a low-pressure environment conducive to discussion and education.

The luncheons emphasized key aspects such as protection and the benefits of partnership, making prospective lenders feel secure and valued. Attendees were given forms to express their interest levels, which Banjo and Erica later followed up on through phone calls. This non-direct approach allowed potential lenders to express interest without feeling pressured, fostering genuine connections and trust.

The Impact of Networking and Community Engagement

Banjo attributes a significant portion of their success to the power of networking. Regularly engaging with potential contacts in places like gyms, clubs, and social gatherings has been instrumental in building a broad base of private lenders. These interactions often began with casual conversations, evolving into educational sessions about private money lending.

Addressing the educational gap, Banjo and Erica found that many of their prospective lenders (around 90-95%) were initially unaware of private lending's benefits. By positioning themselves as educators, they effectively demystified the process and attracted a diverse pool of investors.

Educational Outreach and Consistent Communication

Their approach to private money lending is deeply rooted in education and transparent communication. Banjo and Erica focus on providing

The real estate industry is full of promise and potential, but navigating its complexities can often feel like running a never-ending race. If you're a real estate investor looking to break free from the constraints of traditional financing and maximize your profits, you're in the right place. In a recent episode of the "Raising Private Money" podcast, Jay Conner and David Richter dive deep into the transformative strategies that have not only kept them in the game but made them leaders in the field. Let's unpack their insights on raising private money and implementing Profit First principles.

Raising Private Money: A Game-Changer

Understanding Private Money

Private money refers to funds sourced from private individuals rather than traditional financial institutions like banks. This method of raising capital has become increasingly popular among real estate investors due to its flexibility, speed, and accessibility. According to Jay Conner, known as the Private Money Authority, raising private funds allows investors to operate under their own terms, becoming both the borrower and the underwriter.

David Richter’s Journey

David Richter, an expert real estate investor and the author of "Profit First for Real Estate Investing," shares his personal experience with raising private money. His entry into real estate began with traditional financing methods. However, after realizing the limitations and high out-of-pocket expenses, Richter pivoted to private money through his networks—family, friends, and specifically, high-net-worth individuals.

Effective Strategies for Raising Private Money

Networking Groups: One of the most effective strategies discussed was the power of networking. Richter emphasizes the importance of joining local Real Estate Investment Associations (REIAs), masterminds, and even specialized meetups like "Investor Addicts" or "Captains of the Deal" cruises. These platforms bring together lenders and investors, opening avenues for funding and collaboration.

Building Credibility: Jay Conner and David Richter stress vetting potential lenders and showcasing your own credibility. Maintaining transparency and demonstrating a strong knowledge of what you plan to do with your money instills confidence, making lenders more willing to invest.

Implementing Profit First: Maximizing Your Earnings

The Profit First Philosophy

The core idea behind the Profit First methodology is deceptively simple: pay yourself first. Traditional accounting often follows the formula: Sales - Expenses = Profit. Instead, the Profit First approach flips this on its head, proposing: Sales - Profit = Expenses. This shift ensures your business not only generates revenue but also secures and grows profit from day one.

Creating a Cash Flow System

Richter's real-life expertise is underscored by his work in company finance, where he helps businesses identify and stem financial leaks. By implementing the Profit First system, businesses allocate their income into several predetermined buckets, such as:

1. Profit Account:
   Ensuring a portion of every sale goes directly into profit.
2. Owner’s Compensation:
   Paying yourself adequately.
3. Taxes:
   Setting aside money to avoid tax season panic.
4. Operational Expenses:
   Budgeting what’s left to maintain and grow the business.
5. OPM Account:
   Other People's Money, which safeguards investment funds from operational expenditure.

This structured cash flow system not only promotes financial health but also provides clarity, fostering better decision-making.

Avoiding Common Financial Pitfalls

David Richter points out that many real estate investors fall into the trap of associating business growth solely with more deals, often neglecting the financial health of their company. The most common mistake, he su

Mortgage note investing is a compelling alternative for those seeking to diversify their investment portfolios beyond traditional property ownership. In a recent episode of "Raising Private Money," hosts Jay Conner and Dan Deppen delved into this lesser-known, yet highly lucrative, investment strategy. Dan, who has raised approximately $3 million for mortgage notes over the past year, shared his valuable insights into the world of note investing.

What is Mortgage Note Investing?

Mortgage note investing involves purchasing existing mortgage notes from lenders or other investors. These notes are financial instruments that promise to repay the borrowed funds with interest. Essentially, note investors step into the lender’s shoes, collecting monthly mortgage payments from borrowers. If the borrower defaults, the note investor can foreclose and take ownership of the property.

The Appeal of Annoyance-Free Note Investing

One of the most appealing aspects of note investing is the relatively hassle-free nature of the investment. Unlike traditional real estate investing, where landlords may deal with property repairs, tenant issues, and vacancies, note investors simply collect payments. This makes note investing more akin to a passive income stream, particularly when dealing with performing notes.

Raising Private Money for Note Investments

Raising private money is a cornerstone of Dan Deppen’s investment strategy. He built his approach around an educational model, sharing his learnings and experiences with a growing audience over time. By cultivating trust and providing educational content through newsletters, podcasts, and videos, Dan has attracted private investors organically. Rather than directly asking for money, he focuses on sharing what he has learned, which naturally draws in those interested in investing.

The Hypothecation Strategy

One key strategy that Dan employs is hypothecation. Hypothecation involves borrowing money to invest in a mortgage note, using the mortgage note itself as collateral for the loan. This method offers a two-tiered security system: the investor loans money to Dan, and the loan is then secured by the note. This layered security minimizes risk and makes the investment attractive to private lenders who seek high single-digit returns without active involvement.

Risk Management and Investor Protection

Risk management is integral to Deppen’s approach. Investors often worry about what happens if the borrower defaults. Deppen assures that his structure mitigates this risk effectively. If a borrower defaults, Deppen manages the foreclosure process, ensuring that his investors are not left to handle these tasks. This adds a layer of security for investors, making them more comfortable with the investment.

Finding and Evaluating Notes

Finding quality notes is vital, and Dan places a high value on network cultivation. Being well-connected in the industry not only provides access to exclusive deals but also strengthens trust with sellers and fellow investors. Leveraging this network, he buys notes with his funds initially and then refinances with private money, which allows for greater control over the buying process.

For those new to note investing, starting with smaller, easier-to-understand deals and incrementally building confidence and expertise is recommended. This approach underlines the need for thorough due diligence and an understanding of market norms.

Passive Income: An Attractive Proposition

Dan’s method de-emphasizes the complexity faced by traditional landlords. Investors can earn high single-digit returns passively, without worrying about property management. This philosophy of sharing knowledge instead of hard selling is appealing to investors who seek reliable returns without active participation.

Getting Started in Note Investing

Dan Depp

*** Guest Appearance

Credits to:

https://www.youtube.com/@moneywithmission3142 

"Money is Everywhere with Jay Conner"

https://www.youtube.com/watch?v=FgTaMJjHOYY 

Exploring the Power of Private Money Lending for Real Estate Investments

Jay Conner, renowned as the "Private Money Authority," recently graced the “Money with Mission” podcast hosted by Dr. Felicia Froe. During the episode, Jay delved into the transformative power of private money lending, sharing his journey from relying on traditional bank loans to becoming a successful advocate and educator in private money. This blog post unpacks the wisdom shared by Jay Conner, offering actionable insights for real estate investors and potential private lenders alike.

A Turning Point in Jay Conner's Journey

The Bank Collapse and a Search for Solutions

Jay Conner's real estate career, which began in 2003, took a dramatic turn after the 2008 financial crisis. By January 2009, Jay faced an abrupt financial dilemma: his bank unexpectedly severed his line of credit. With two houses under contract and no traditional financing available, Jay found himself questioning how to overcome this seemingly insurmountable obstacle. It wasn’t about "how" he would resolve it, but "who" could assist him.

Discovering Private Money Lending

A pivotal conversation with his friend Jeff Blankenship introduced Jay to the concept of private money, including the use of self-directed IRAs. This option allowed individuals to lend their retirement funds for investments. Jay's curiosity led him to research and ultimately master the private money lending model, paving the way for his remarkable success in raising funds.

Crafting a New Financial Path

The Power of Raising Private Money

Jay’s in-depth understanding and strategy for private money paid off quickly. Within 90 days, he raised $2,150,000, far surpassing his previous $1 million bank credit. This success was a game-changer during a time when conventional loans were nearly impossible to secure.

Shifting from Borrower to Educator

Acknowledging the transformative effect private money lending had on his business, Jay transitioned into a teaching role. By focusing on education rather than solicitation, he attracted investments organically. He emphasized the importance of leading with a servant’s heart and sharing knowledge about private money lending's benefits to potential investors.

Strategies and Practices for Real Estate Investors

Practical Approaches to Real Estate Deals

Jay leverages private money to fund fix-and-flip deals, averaging a profit of $82,000 per deal. He typically conducts two to three deals per month, amounting to approximately 30 deals annually. Additionally, Jay employs creative financing techniques, purchasing single-family homes on terms and then offering them on lease purchase or rent-to-own agreements.

Navigating the Market Landscape

Jay’s strategy involves acquiring off-market properties, crucial amidst low inventory scenarios. The speed of acquisition, facilitated by private funding, often leads to substantial profits. He cited a recent condo flip netting $160,000, showcasing the effectiveness of his methods.

The Dual Roles in Real Estate: Lenders and Investors

Opportunities for Private Lenders

Dr. Felicia Froe highlighted the significance of financial independence, especially for women, advocating for investments in cash-flowing assets. Jay further explained that self-directed IRAs, an IRS-approved entity, enable individuals to diversify their investments and achieve higher returns compared to traditional re

Navigating the world of real estate investing often comes down to having sufficient capital to make the right deals. Raising private money offers the most straightforward and beneficial bridge to financial freedom, giving you access to funds without the hoops of traditional loans. In a recent episode of the "Raising Private Money" podcast, host Jay Conner and his dynamic team laid down a five-step roadmap designed to help both new and seasoned investors master the art of securing private money.

Step 1: Make Your List

The journey to raising private money begins with a well-curated list of potential lenders. Start by identifying people within your network, including friends, family, and business associates, who might be interested in real estate investments. Jay emphasizes the importance of having "a conversation in person" with each individual on your list. While scripts can serve as useful guides, your passion, and drive are your most valuable tools in those initial discussions.

Step 2: Casual Conversations

Once your list is in place, the next step involves reaching out to these individuals to initiate a casual conversation. The goal is to pique their interest without overwhelming them with details. According to Jay, asking the simple qualifying question, "Do you have any money not earning you a high rate of return safely and securely?" serves as an excellent conversation starter. This approach efficiently filters out those who may not be interested, allowing you to focus your efforts on warmer leads.

Step 3: The 16-Minute Audio

One of the standout tools Jay discussed is the 16-minute audio titled "Stress-Free Investing." This audio snippet serves as an excellent way to inform potential lenders about the benefits of private lending without requiring you to constantly explain the concept. Crystal, Jay’s co-host, explained that this tool essentially saves you time, energy, and money—a true system that works efficiently. The key here is to distribute this audio widely to pique the interest of as many qualifying individuals as possible.

Step 4: Teaching the Program

After your potential lenders have shown interest by engaging with the audio, the next critical step is to teach them your private lending program. According to Jay, at this stage, you're not pitching individual deals but educating your potential lenders on how the overall private lending program works. Providing them with comprehensive details helps build their confidence and trust in you. Jay advises mimicking an already successful program—his program details can be found in his book, and examples are shared during his live events.

Step 5: Securing a Verbal Pledge

The fifth and final step involves getting a verbal pledge from your potential lenders. This means understanding exactly how much they are willing to invest and the source of their funds. If their funds originate from retirement accounts, you may introduce them to a self-directed IRA company. Jay elaborates on the importance of this step, emphasizing that you don't need to pitch individual deals once they’re onboard with your program. They are already committed to investing their funds based on the terms laid out during your presentation of the program.

Leveraging Live Events

Attending live events such as Jay Conner’s upcoming event on October 23-25 provides an invaluable opportunity to dive deeper into each of these steps. These events offer a hands-on learning experience with expert presentations, real-life case studies, and interactive sessions. Participants can meet Jay's team members, including real estate attorneys, project managers, and acquisitionists, and even hear from private lenders who have invested in Jay’s deals. Additionally, these live events frequently feature a live bus tour, allowing attendees to view ongoing projects and see firsthand how strategies are implemented.

Why Your Personal Network is Your Biggest Asset in Real Estate Investing

Navigating the world of real estate investing can be daunting, especially when it comes to financing your ventures. Often, it's not about what you know but who you know. In a recent episode of the "Raising Private Money" podcast, hosts Jay Conner along with Cara Broyles, Erica Camardelle, Chaffee Thanh-Nguyen, and Banjo Camardelle, delved into the five essential steps to successfully raise private money. This blog post expands on their discussion, offering practical advice to help real estate investors unlock the potential of their networks.

1.  Make Your List

The first step in raising private money is to identify potential lenders within your existing network. This might seem straightforward, yet it's often overlooked. Jay Conner emphasized the importance of listing people you already know, particularly those you see regularly and individuals who are retired.

Jay pointed out two key categories:

• People you see frequently:
  This includes friends, family, co-workers, and members of any social or community organizations you belong to.
• Retirees:
  They often have investment capital or retirement funds that could be put to work in your real estate projects.

By focusing on these groups, you tap into established relationships where trust is already present—a critical component for successful private lending.

1.  Start the Conversation

Once your list is ready, it’s time to engage with potential lenders. There are two primary methods for initiating these conversations: the direct and the indirect approaches.

Direct Method

The direct method involves asking a straightforward question, known as the "magic question." Banjo Camardelle shared his experience with this approach: "Do you have investment capital or retirement funds not giving you a high rate of return safely and securely?"

This question is designed to pique interest without coming off as desperate. It’s a powerful way to shift the focus from your need for funding to the opportunity you are offering.

Indirect Method

If the direct approach feels too confrontational, the indirect method allows for a more subtle introduction. Crystal elaborated on this technique, which includes asking if the person knows anyone dissatisfied with their current investment returns. Often, this leads to the person considering the offer for themselves.

1. Leverage Enthusiasm

Both Crystal and Kara highlighted the importance of enthusiasm. Sharing your excitement and genuine belief in your investment opportunities can be contagious. Crystal likened it to the enthusiasm parents show when talking about their newborns—it's palpable and hard to ignore.

When you’re passionate about your investment program, it organically draws people in, making them more inclined to learn about and participate in your offerings.
2.  The 16-Minute Introduction: Stress-Free Investing

One of the standout strategies Jay Conner discussed is the use of a 16-minute audio recording called "Stress-Free Investing." This pre-recorded message serves as an automated way to introduce potential lenders to your investment program, answering common questions and alleviating concerns.

The recording allows you to present a polished, consistent message to all potential lenders, saving you time and ensuring that all key points are covered. It's an efficient way to get the word out and generate interest without continuous one-on-one meetings.

3. Focus on Serving, Not Selling

A recurring theme throughout the discussion was the mindset shift from needing money to offering an opportunity. Chaffee Thanh-Nguyen emphasized leading with a servant's heart. When you truly believe that you are helping othe

Private lending is a powerful tool in the real estate investor’s arsenal. It allows both novice and seasoned investors to scale their portfolios by attracting funding without the traditional hassle of convincing lenders. In the popular podcast episode of "Raising Private Money," Jay Conner and Ruben Izgelov dive deep into this topic, sharing invaluable insights and strategies for leveraging private money to build a thriving real estate business.

The Power of Networking: Starting Small to Raise Big

Ruben Izgelov, who has raised over $50,000,000 in private money, reveals a simple yet effective start—leveraging your immediate network. Friends and family are often your first potential investors, as their trust and familiarity with you create a solid foundation for initial funding. As Ruben mentions, trust must be coupled with a demonstration of your expertise and experience. The widespread use of social media today makes it relatively simple to showcase what you do and how well you do it. So, his first piece of advice to aspiring real estate investors is to ensure everyone in their social circle knows they're in the real estate business and understands their capabilities.

Leveraging Social Media: Building a Consistent Digital Presence

In today’s digital age, social media provides an invaluable platform for sharing your real estate journey and drawing potential investors. Ruben emphasizes the importance of consistency in posting about your ongoing projects. From Instagram and Facebook stories to LinkedIn and even TikTok updates, the continuous flow of relevant content engages and informs your audience.

A fascinating tip Ruben offers is creating videos and images that demonstrate your work's progress—both completed deals and those you’ve chosen to walk away from. This helps potential investors understand your thoroughness and decision-making process, enhancing their confidence in you. He suggests starting simple and scaling up; even the most basic social media posts can grow into comprehensive marketing strategies over time.

Creating Impactful Investor Decks: Confidence in Presentation

A lacking or overcomplicated investor deck can be detrimental. Ruben advises striking a balance; preparing just enough to showcase important details without overwhelming your audience. Investor decks should be straightforward, highlighting key property info, planned strategies, and anticipated returns. He suggests a landscape where real estate investors should be constantly learning and evolving. By keeping your pitches clear and straightforward, you build trust and show potential investors that you know your business inside out.

States Capital: A Refuge for Passive Investors

States Capital, Ruben’s private debt fund, provides an enticing entry point for accredited investors looking for real estate opportunities without the intricacies of ownership. As Ruben explains, States Capital focuses on attracting passive investors by offering them safer returns, given that they sit in the most secure part of the capital stack as debt investors rather than equity investors.

The fund is structured to support both short-term and long-term goals, providing fluidity and less lock-up compared to traditional syndications. This setup attracts those who want to earn passive income without being directly involved in every decision or deal negotiation associated with property ownership.

We Lend: Speed and Efficiency in Every Transaction

The service difference is what sets Ruben’s firms apart. We Lend, the originating arm of States Capital, specializes in providing fast, efficient loans for real estate investors. Speed is of the essence in property deals, and Ruben boasts turnaround times ranging from 3-7 business days, with existing clients sometimes experiencing funding within 24-36 hours.

Their approach stands out by focusing on the asset rather than exha

Welcome to another enlightening episode of the Raising Private Money podcast! Today Jay Conner sits down with Jered Sturm, CEO of S&S Capital Group. Jered has transformed his journey from a humble apartment maintenance technician to managing a multi-million dollar portfolio in the real estate multifamily sector. Jered shares invaluable insights about investment strategies, raising private capital, and maintaining a balanced lifestyle amidst the challenges of entrepreneurship.

The Early Days: From Maintenance Technician to Real Estate Mogul

Jered's journey began 18 years ago in Cincinnati, Ohio, where he worked as an apartment maintenance technician. Fresh out of high school, he and his brother purchased a six-bedroom house and launched a construction company, leveraging their skills in the trades. Initially, they utilized their resources to acquire and improve properties, building a solid portfolio without raising outside capital.

Their business model focused primarily on the advantages of compounding interest and long-term investments. A significant milestone was reached when they secured a cash-out refinance loan on eight of their houses, allowing them to reinvest in additional properties, setting the stage for their success today.

From Small Beginnings to Syndication: The Power of Networking

For the first eight years, Jered and his brother operated without external investors, relying on their resources and grit. However, a pivotal shift occurred seven years into their career when Jered recognized the potential of syndication. Encouraged by exceptional investment results that outperformed traditional retirement funds, they decided to share these opportunities with others.

Jered emphasizes the importance of treating borrowed money with the utmost care, viewing it as a representation of the time and effort invested by the lenders. This philosophy has earned the trust and commitment of investors, with 60% repeatedly participating in multiple deals.

Syndication has allowed Jered’s company to scale significantly, leveraging both personal networks and word-of-mouth to attract investors. Their approach involves contracting specific deals and presenting a comprehensive offering memorandum to investors, detailing the business plan, projected returns, and more.

Infinite Return Model: Forced Appreciation and Long-term Hold Strategy

A key strategy at S&S Capital Group is the infinite return model. Typically, projects are held for an extended period, around ten years, but investors often see their principal returned within 2-3 years due to forced appreciation. This involves modernizing units and executing strategic property management improvements. By doing so, the company can return 100% of the initial investment while maintaining ownership, creating a cycle of continuous, passive income.

The benefits are twofold: investors receive predictable cash flow and returns without actively managing properties, and the company gains financial advantages through economies of scale and operational efficiencies.

Balancing Business and Personal Life: An Entrepreneur's Guide

Maintaining a balance between personal and professional commitments is a recurrent theme throughout the interview. Jered underscores the importance of intentionality in staying balanced across personal, professional, and spiritual life. He acknowledges that perfect balance is an elusive goal, but the continuous effort towards achieving it is essential for personal growth.

He advises entrepreneurs to leverage their strengths, whether in construction, sales, or analytics, as their unique competitive advantage in the multifamily space. Jay Conner complements this with his father's philosophy of 'dictate, delegate, and disappear,' underscoring the significance of knowing one's strengths and delegating tasks to maintain focus.

Contact Information and Additional

***Guest Appearance

Credits to:

https://www.youtube.com/@passiveincomeadventures 

"Tax-Free Ultimate Private Money Challenge! Jay Conner"

https://www.youtube.com/watch?v=5cHECcNUl8I 

In a recent episode of the Raising Private Money podcast, renowned real estate investors Jay Conner and Emma Powell delved deep into the world of passive income and investment strategies. The conversation traversed through practical advice on private money lending, the intricacies of networking for investment opportunities, and personal experiences that shaped their journey to financial autonomy. Whether you're a seasoned investor or just dipping your toes into real estate, the insights shared in this episode can serve as powerful tools for your investment toolkit.

Investment Strategies for Smart Returns

Emma Powell opened the discussion with a compelling observation on investment returns, highlighting how wealthier individuals often witness lower proportional returns due to their chosen investment vehicles. She advocated for the straightforward nature of hard money lending, where typical returns range from 10-12%. According to Powell, adding hard money lending to one's portfolio can fill a crucial gap in diversification, ensuring that investors don't overlook simpler, high-yield opportunities. This strategy aims to balance out portfolios and hedge against market volatilities.

Understanding Private Lenders

Jay Conner shared his extensive experience working with private lenders, stressing that these lenders are often regular people—teachers, retirees, and even minors with inherited funds. He illustrated this with an example of his pool of 47 diverse private lenders, indicating that you don't necessarily need to target "accredited investors" to secure substantial investments. This democratization of investment opportunities underscores the importance of building trust and educating potential lenders about the benefits of private money lending.

The Power of Networking

Networking emerged as a cornerstone theme in the episode. Jay Conner and Emma Powell both underscored the significance of being actively engaged in organizations like Business Networking International (BNI) and attending high-value conferences. Powell suggested seeking out wealthy individuals through expensive hobbies or clubs that resonate with one's interests. For those attending self-directed IRA conferences, there was an acknowledgment of the competitive environment, with Conner preferring to position himself as a speaker rather than an attendee to stand out. Both hosts agreed that feeling like you don't know wealthy individuals is a barrier best overcome by diverse event participation.

Best Practices in Private Lending

Diving into the mechanics of private lending, the conversation pivoted to the importance of protecting and optimizing investments. Both hosts warned against unsecured loans and emphasized the necessity of collateralizing promissory notes with real estate. They advised maintaining a conservative loan-to-value ratio, around 75% of the after-repaired value, and ensuring lenders are named as mortgagees on insurance policies and title policies as additional insureds. This creates a robust security net, giving lenders peace of mind and solidifying the operator-lender relationship built on trust.

Handling Funds with Care

On the subject of fund management, Emma and Jay advised that wired funds should be directed to a closing agent’s trust account rather than to the borrower, ensuring transparency and security in the transaction. They highlighted the pitfalls of desperation in securing investments and advocated for having funds lined up or a solid relationship with a hard money lender before soliciting deals. Thi