***Guest Appearance

Credits to:

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

"Finding Investment Capital in Private Money with Jay Conner"

https://www.youtube.com/watch?v=MV3Ed6buyfI&t=26s  

In a recent Raising Private Money podcast episode, Jay Conner joins Jonathan Hayek, a former teacher turned commercial real estate investor, they share invaluable insights about private money lending. Their discussion shed light on practical strategies, community involvement, and building trust-based relationships to secure private money for real estate deals.

Emphasizing Simplicity and Flexibility

No-Penalty Approach: A Win-Win Situation

Jay Conner highlighted the simplicity and flexibility of his private money program. Unlike traditional banking systems, his approach eliminates penalties for early repayments by lenders. Over the years, he has had only two small notes called due early due to medical emergencies. This flexibility benefits lenders who prefer to keep their money generating returns rather than having it returned prematurely. Jonathan Hayek concurred, noting that his lenders also favor keeping their money invested for continued financial benefits.

Securing Loans: Importance of Legal Documents

Promissory Notes, Trust Deeds, and Mortgages

A pivotal aspect of securitizing loans involves proper documentation. Jay explained the roles of promissory notes, deeds of trust, and mortgages in protecting both lenders and borrowers. Promissory notes capture all loan specifics, such as borrower details, loan amounts, interest rates, and payment schedules. Deeds of trust or mortgages grant lenders the authority to foreclose if borrowers default. Adding further layers of security, Jay emphasized adding lenders on insurance and title policies. These additional protections ensure that both parties' interests are safeguarded, making the investment process transparent and trustworthy.

Identifying Suitable Borrowers

Understanding Who Should and Should Not Borrow

Jonathan Hayek queried Jay about scenarios where private money lending might not be appropriate. Jay addressed the question thoughtfully. Not every individual or situation aligns with private money lending. Traditional banking or hard money loans might be more suitable for some. Jay cautioned against borrowing private money without a thorough understanding of real estate. Investors must comprehend property valuation, management, and rehabbing, making decisions based strictly on mathematics rather than emotions.

Building Thriving Networks

Leveraging Business Networking International (BNI)

One of the keys to Jay’s success in securing private money has been his involvement with Business Networking International (BNI). BNI’s structure allows only one representative per profession in each chapter, fostering trust and encouraging referrals. By joining BNI as a real estate investor, Jay unlocked the potential of a robust network quickly, securing millions in private money.

Community Involvement: A Trust Booster

Principle of "Givers Gain"

Jay and Jonathan underscored the importance of community involvement in gaining trust and attracting private money. Engaging with local organizations like the Chamber of Commerce, Rotary Club, church groups, and Real Estate Investing Associations (REIAs) not only builds visibility but also trust. The principle of "givers gain" is central; by serving and giving to the community, individuals earn trust, making it easier to forge investment relationships. Jay’s active volunteering and consistent networking have established him as a reliable and giving individual, hence attracting significant private investments.

Consistency in Lending Terms<