Developing Good Money Habits with Neil Timmins

October 20, 2022

Episode 122: Developing Good Money Habits with Neil Timmins

The Profit First REI Podcast

October 20, 2022

David Richter

Summary:

Neil Timmins is the CEO of Legacy Impact Partners, a company that invests in residential, commercial, and even medical real estate. He has been in the industry for 18 years, starting as a realtor, moving on to flipping houses, investment, and even coaching and mentoring.

Neil has since built up quite a portfolio and extensive experience. He gives us insight into money and people management, developing the right habits, and the lessons he learned that have since helped him build his success in the industry.

Key Takeaways:
[00:46] Neil Timmins and His Background

[03:01] Real Estate Investing and Making an Impact

[05:38] On Spending and Investing

[07:10] Struggles With Money and Hiring the Wrong People

[10:57] On Applying More Control and Finding Unicorns

[14:37] On Developing Good Money Habits

[22:18] On Personal Finances and Family

[24:57] Neil Timmins’ Key to Success

[27:07] Connect With Neil

Quotes:

[12:14] “[Success] requires bringing on the right people.”

[20:45] “We are what we habitually do. And so it’s imperative that if you want to be financially successful, you do what financially successful people do.”

[25:25] “Find a determination that is second to none.”

Links:

Connect with Neil – legacyimpactpartners.com

Piece on uncovering commercial real estate/cheat sheet – legacyimpactpartners.com/gift

Unicorn Hunting for Real Estate Investment Companies: How to Easily Attract, Screen, and Land a Unicorn – The Complete Hiring Funnel: Website, Amazon

Profit First Real Estate Investors FB Group – https://m.facebook.com/groups/ProfitFirstREI/

Simple CFO – https://simplecfo.com/

Tired of living deal to deal?

If you are a real estate investor or business owner who is tired of living deal to deal, and want to double your profits, head over here to book your no-obligation discovery call with me. Either myself or someone from my team will hop on a short call with you to get clear on your business goals, remove any obstacles holding you back, and map out a game plan to help you finally start keeping more of the money you work so hard to make. – David

Transcript:

Neil Timmins:

We are what we habitually do. And so it’s imperative that if you wanna be financially successful, you do what financially successful people do. And the Profit First outlines that for exactly what to do to be able to have a totally different outcome. If you’re down a path right now that just frankly isn’t getting you where to where you wanna be,

Intro:

If you’re a real estate investor who’s sick and tired of living, deal to deal, then welcome home. Hear from everyday real estate investors just like you, and discover how they’ve completely transformed their business by taking a profit First approach. This is the Profit First for REI podcast, where we believe revenue is vanity, Profit is sanity. It’s time to start making profit a habit in your business. So here’s your host, David Richter.

David Richter:

Hey, hey, hey, it is David Richter with the Profit First r I Podcast. Have another great guest today, Neil Timmons, who you want to listen to this one because he goes in deep emotionally about how he lost lots of money by making the wrong hire and what controls he put in place to stop that bleeding and never have him again. And honestly how it got him amazing A players in the future. But he also talks about how he’s paying himself now and through Profit First and how he has that mindset and the habits that were instilled with him from a young age that have helped him this whole time. And this is a great episode if you want to learn about what you can do in order to stop the bleeding or stop living deal to deal, or if you want to actually gain more money in your pocket.

Neil’s a high earner as well too, has been for a long time. So he can help you in a lot of different areas. And he gives some great nuggets here in this one and some of the people that he studied along the way too, that have helped him become a successful real estate investor in this, in the single family and multi-family commercial space. So let’s get ready for the podcast episode with Neil Timmons. Hey everyone, we’ve got Neil Timmons here. He’s here in the flesh, well at least on the recording here with us. And super excited to have him because I’ve now met Neil at a couple different masterminds and he’s genuine, as genuine can be. Everyone speaks of him very highly. And Neil, super excited to have you on the podcast today.

Neil Timmins:

I’m excited to see you here David. Thanks so much for having me on. It’s good. It’s good to see you here on, on in Zoom land, right?

David Richter:

Yeah. And and really excited to have you share with the investors too, cuz you’ve had quite the background. You’ve been a realtor investor, you coach, mentor, partner in helping a lot of people in the real estate investing space. And how long have you been in the real estate investing world?

Neil Timmins:

Oh, well, I got my first step in the industry as a realtor 18 years ago, and then bought my first, maybe 10 years ago or so, bought my first fix and flip. Had did that for a little bit, but it was about five and a half years ago that I actually picked up a piece of property that I retained as a rental.

David Richter:

Awesome. Very cool. So then what would you say a, because we’ll go a deeper question at the beginning here and then go go, you know, kind of back into it, But what excites you the most about real estate investing since you’ve had a, a career here in it for the last decade or

Neil Timmins:

So? Yeah, I mean the, the most exciting piece to me is the ability to make an impact and the impact in, in, in the lives of my family in the lives of, of my, my team, right? Our ability, especially when it comes to, to buy and hold property, the ability to do work now and get paid forever is pretty exciting to me. And is, you can grow that over a period of time. The level of impact we can make on others grows as well.

David Richter:

I absolutely love that, the impact that you can make, because I think a lot of people don’t think about that when they first get started. It’s usually like, let’s get outta the rat race, Let’s get outta, you know, like where we are right now. And it’s sometimes difficult to remember that, you know, you can make an impact on other people as well too. And all those people that you help, right? As a realtor or as an investor. It’s like you, the ripple effect is pretty large since real estate matters to everyone that someone’s gotta live, everyone’s gotta live somewhere.

Neil Timmins:

You’re totally right about that. You hit it on the head. This, it wasn’t, it wasn’t something I, this came to light over a period of time about when I was 40 a couple years ago that I, that I sat down and was like, Where, where am I going? What am I doing? What is my legacy? And that’s, that’s really what it came down to as my legacy has to be not the dollars and cents I leave behind, but the impact I make on others through my contributions in their life.

David Richter:

I love that. I don’t, I don’t think we talk about legacy enough. I think that’s something that we, you know, if we had that end in mind of where we’re going, I don’t know if you agree with this, but that’s kind of like your north star. That’s where you’re always, all the decisions are made around your legacy or what you’re planning to do. Or, you know, like what are you really wanting to leave behind? Have you seen that true for you in the decisions you’ve made since you made that decision?

Neil Timmins:

Totally spot on. You’ll appreciate this. You know, for me, coming from your background, you understand culture’s very important to hiring, to fire to everything else, right? That becomes your north star. And for me, the culture is, it’s everything which we have here at the, at our office. Yeah. And then, you know, my personal contribution to this, to this world, if you will, becomes, alright, well how can I, what impact am I making? What is my legacy? And again, it, you know, very often in this industry when one refers the legacy they’re talking about, you know, what do I leave? What are all the dollars and cents, Right? I’m building wealth for generations and I’m cool with that. It’s what do you get beyond the wealth? Like what, what is the money? What do you do with the money, right? Mm-Hmm. <affirmative>, because money in and of itself, idly means zero. It’s what do you do with that? How does it get employed? Who can you impact and who can you fact,

David Richter:

Right? Yeah. It’s so true. So do you mind me asking you, what do you do with the money? What do you do with, you know, like besides gaining that wealth or whatnot, what do you either invest in other people or, you know, your growth or what do you

Neil Timmins:

Do? Yeah, no, it’s a great question. For me, it is largely team focused right now, how can we grow and how can I continue to employ people and pay people above, above what the going market rate is for whatever their role happens to be. And I know that, and that it’s becoming as, as my personal business is morphing largely out of single families and more into commercial properties. It is, how can I create opportunities for those who are on my team to be, to be partners with me, to invest with me, and how can I do that with other, other folks?

David Richter:

I love that. I, I feel like number one, that just breeds a better culture, like you said. And then number two, it gets ’em more invested with you of like, this person actually cares about me and what we’re doing and they don’t have to be the business owner. Cuz I feel like a lot of people are scared to take that step to actually go out there and do it. And it’s like you give them that opportunity right there. And I love what you said, paying them above market needs. I talk about this all the time. It’s like, if you want good people, you have to pay them, you know? Correct. You have to pay for good people. And I love, I absolutely love that focus. So I love that’s what it goes to for you. And it sounds like you are making an impact just in that world right there. And, and with that mindset that you have with the team. I absolutely love that. So it’s probably not always been like that though. Sure. Where you had the abundance of money. So let’s talk, let’s get real a little bit here. Yeah. What money struggles have you faced in your life or business up to this point where you’re like, what the heck is going on?

Neil Timmins:

Yeah. Well, you know, the biggest struggle is what, what do you do and how do you, how do you get your head wrapped around all of it? How do you get a proper p and l in place? So when I was in my twenties, I was 24 years old when I got into this industry, I became the number one Remax agent when I was 29 years old in, in this number one agent in the state of Iowa. And so candid, I was making really good money in my twenties, that my counterparts of my friends didn’t, you know, weren’t, weren’t quite the case. But that, I mean, there was some, there are some challenges that come with that. How do you get everything your head wrapped around everything? My mindset that I possessed at the time was not that which I possessed today, today has become way more team focused way more how do we do this together with people and through people instead of, you know, how do they, you know, how do they serve me, if you will, from a, from a team leader standpoint.

So it’s become very different. That, and, you know, along the way, I made some really terrible hires that dramatically impacted the dollars and cents associated with, with with the business one. I, I mean, I, and I wrote a book on this about how to hire properly. And I, and I wrote inside the book about, I mean, the worst hire I’ve ever had. I mean, stole literally tremendous amounts of money from me controlled too many things, the one enough checks of balances. So I had to address a whole bunch of things. I mean, you’ve never, you don’t know what world you’re really in when you think, I just hire people. I’m a small business until this happens to you. And literally you’re in the, you’re in across the table from an FBI agent at their headquarters here in town having these conversations and talking about what, what charges look like and what, what recourse looks like.

David Richter:

Wow. That’s I think that might be a lot of business owners, you know, one of their big fears is, you know, like, Oh, I’m gonna hire these people and then they’re gonna steal or whatnot. So you said there weren’t controls or whatnot, so did this person just have their hand in all the different, you know, like trying to, to take the hats off of you and, you know, like,

Neil Timmins:

Too, too many Yeah, you’re exactly right. Too many things inside of a small business. You know, in a small business we wear lots of hats, don’t we? Yeah, we do. And I always say in my business, you know, there’s no place to hide, right? We, we, we all wear hats and there’s no place to hide. And so you’re exactly right. Too many, too many hands. Meaning, meaning wearing too many hats in too many places, not enough controls from my standpoint, to, to have the checks and balances, not enough controls from an external standpoint. Today we’ve got accountants and bookkeepers both internally and externally. So there’s a lot of eyes and a lot of things today that just didn’t, candidly did not exist back then. And, and for, from an owner’s perspective, I can tell you, I probably, there was probably a little fear from that early on in my twenties and into my thirties about all these people are gonna steal from me.

They’re gonna, you know, not just money, but I think about, it’s from sales guys. They’re gonna steal leads. They’re gonna go do a deal. Right? Right. Yeah. and I can tell you, you know, going through and just evolving over a period of time, always constantly focused going, you know, and challenging one’s thoughts, what’s, what are my limiting beliefs? How can I get better? Yeah. Where, where do, where do I think I absolutely stand on this position? And what’s the counter to that? How can I have an argument almost with myself or go to these masterminds to get challenged with, here’s my stance and here’s why. And I want somebody to convince me I, I’m wrong on this and I’m always trying to improve what I’m doing. And that’s, you know, you can imagine having, being in my shoes, having, having tremendous dollars and cents taken from you never largely to never see again. Right. One could get real sour and higher than anybody ever again. Right.

David Richter:

Yeah, exactly. So from that, it sounds like some of the controls you put in place were hiring the right people to what manage the money. And what, you also wrote a book, it’s almost sounds like from this experience on how to hire, right? So did you also beef up your hiring process as well too? Or like, what, what controls did you put in place after that?

Neil Timmins:

Yeah, exactly Right. So from a, from a dollar and cents control standpoint, yes, there’s multiple people looking at what’s going on at any given transaction. So there’s some things that are being done there with limited controls and who’s got access to right. Dollars and cents, who’s got, who’s got access to transfer out, Right? All the things that you talk about that you do so well, David, and, and help business owners do all these things that need to be in place. And, and then yes, hiring correctly. So, you know, I was at a point where I literally when, when this incident took place, I was in the, I had multiple businesses, but I wasn’t in the investment business. I was largely in the brokerage business and brokerage related services business. And so when I morphed my business and finally evolved into investing, specifically, I knew the only way to get to up was gonna be to hire and, and get it through, get through people, right?

So I had to swallow the pill and go, All right, cool, if I’m gonna do this again. It requires bringing on the right people. And so we put over a period of time, I, I have, there’s been multiple iterations of how do we hire, how do we screen correctly, what are the questions we ask? You know, Gary, Gary Harper, big influence in my life Gary and Austin was in town. I, I brought Austin out to, to, to help put in, you know, what are our values and how do we, how do we just a lot of internal looking to go, What are our lines? What do we hire and fire for past, you know are you ethical or not ethical? It goes past that. Yeah.

And then, and then eventually, yes, after getting three, four, five, really what I call unicorns, unicorn employees in place and hitting on all cylinders in a business, seeing multiple x growth, I was going, You know what, let’s, let me put a little, let me put a little book together. It’s really a, it’s really a love piece to go this industry and all the people you and I are surrounded with have been so good to me. It’s been so deeply impactful that I just wanted to give something back of value to go, Here’s what I’m doing, here’s what works for me. And I know it works consistently, so I’m certain it’s gonna work for you.

David Richter:

Have they, can you find that on Amazon? Or where can you find that little Yeah, little

Neil Timmins:

Piece. There you go. Unicorn hunting for real estate investment companies. How to easily attract screen and land at Unicorn. It’s a complete hiring funnel. You can find this in two places. You can find it on Amazon. Well, before I tell you that, David, do you know what the cost of a wrong hire is?

David Richter:

<Laugh>? A lot.

Neil Timmins:

A lot. Well, the national average is just over $15,000. Wow. The cost of a wrong hire. And so the book on Amazon, if you can imagine, you know, $15,000 cost of wrong hire the book on Amazon’s 50 bucks to get, but for your audience, I wanted to do something special. So, you know, just, just pay the shipping. I’ll send it to you guys for free and you can, you can pick that up on the website, www.landaunicorn.com,

David Richter:

Land a unicorn.com. I love that. That’s a great url. Really. we’ll make sure that’s in the show notes. But man, that’s, that’s a great one. Especially, I’ve got a five year old daughter, she’s going through kind of like the mermaid unicorn phase. So I’m like, I just see that and just okay. Just all the images in my head, but <laugh>. Yeah, exactly. Right. So no, I absolutely love that. But through that process as well too, of, you know, like this whole time period where, you know, it probably was pretty some dark times. Did you ever struggle either during that time or any time in your business to pay yourself?

Neil Timmins:

Oh, you know what? Paying myself, you, you won’t believe this. Maybe you will. Cuz you talked to a lot of business owners. It was not until maybe even eight or 10 months ago that I ever paid myself on a monthly basis.

David Richter:

Wow.

Neil Timmins:

And I’ve never done. Okay.

David Richter:

Yeah. Oh, there you go. So what did you do before? Did you take out draws randomly? Or like, what was the,

Neil Timmins:

What was the process? Yeah, I just take out draws randomly.

David Richter:

Okay. Yeah. Well then I’m glad you glad we fixed that about eight to 10 months ago, but Yeah.

Neil Timmins:

Yeah. I just, I just never did. I was always in a position, you know, where I’m candidly, I mean, I’m, I’m a high producer. Our business is high production, Right. And so, you know, like the dollars and cents that I even draw on today, like part of this is, it, it, it’s more so that there’s objectivity and I’m holding the business accountable versus Neil, I need money to live off of. If that makes sense. Yeah. Cause there’s enough, there’s enough draws and enough owner distribution at another point in time where I read a long time ago that really wealthy, successful people make money in chunks. And so I’ve always kept that in the back of my mind. And we see that in our transactions. It doesn’t mean, it doesn’t necessarily mean we individually, which you would advocate, we get paid in chunks, but oftentimes the revenue stream of our business means it comes in chunks.

David Richter:

Yeah, exactly. And that, I like how you put it, you know, more putting that controls in place for the business, making sure that it’s, you know, like that it works with the business and you’ve got, you know, now you’ve got a system to make sure that yes, you are paid, but that it, it flows with the business as it grows and as it as it scales as well too. So that leads me to a question because since you’ve always been a high producer, always a high earner, why maybe on the other end, why do you think a lot of investors, or a lot of ’em, you know, live deal to deal a lot of ’em, do, you know, like maybe paycheck to paycheck? What do you think is one of the big reasons that they might not be able to pay themselves consistently?

Neil Timmins:

Oh, why? That’s a good question. You know, well, one of the, I’ll answer this a little differently. One of the reasons they struggle is cuz they never suck any money away. One of the reasons I think I’ve done this isn’t the whole reason, but you know, a component about me is I just don’t spend that much money. I spend money in certain areas of my life, but like, I, I’ve been in the same, you know what the house I live in, I bought as a short sale 12 years ago. I’ve been in the same house ever since. I’ve never bought a new car in my life. I mean, there’s just a bunch. I don’t, I don’t wear a watch. I mean, there’s just a bunch of my, my ring is silicone that cost $2 at Walgreens, <laugh>. Nice. but there’s other, there’s other aspects of my life coaching, mentoring various things that I meant where I spend a tremendous amount of money, right? Because I books, I mean, I spend, I mean, there’s a pretty good budget for books that I, that it possess and that certainly are, or office possesses. So part of that is, you know, I’m just cognizant of if I’m, if I’m spending money, my goal is is for it to ultimately lead to an impact, improve me, improve our team, improve something else, try to be a good steward of it, and try to look at it as an investment.

David Richter:

Yeah. Sounds like you had some good habits before you became a business business owner too, or that, or you’ve, or you got very serious about those habits early on of saving money and not spending frivolously, you know, just on the thing, you know, on the things as you, as you were that high earner, high producer. Because it’s not like you ha you’re not making money, you’re making money and it’s like you still don’t have the, the new car, the watch or whatever, you know, the, the stuff of the day. So would you say that’s contributed a lot to it, that you had some good habits early on and that’s transferred to your business too?

Neil Timmins:

Y you’re spot on. Yes. I had some very good habits and, and largely, you know, I was influenced in, in a big way. I grew up in Des Moines, Iowa, and that’s where I live now. Yeah. But I went to school at the University of Nebraska, Omaha, so right in the middle of Omaha and who’s from Omaha, none other than Warren Buffet, right? Yes. So for three and a half years, that’s how long I was there before I graduated every day after school I drove by Warren Buffet’s personal house.

David Richter:

Wow.

Neil Timmins:

I studied Buffet, read everything about him. And it, as you can imagine, being just a handful of blocks away in the business school that, I mean, his name was conversed about every single day there. Right? Sure. <Laugh>, I mean, so his fingers are all over the whole, his thumbprint’s all over the whole city. And so in a very big way early on that became a, you know, a mentor, you know, a re you know, not directly, but indirectly, Right. To go, Wow, what are his habits? What, what, what are people like him, What do they do? How do they do it? And he’s a very good steward of, of, of financial resources.

David Richter:

And I, we haven’t even said the word profit first, but we’ve been talking about the concepts here the whole time because it’s like on knocking away the money, not spending on the previous things, like knowing where your money’s actually going. Like when you went through that time and got a better financial team to help you with those controls. So you’re a big profit first fan as well too. That’s one of the books that you’ve invested in. So can you give it just a little bit about that, that whole mindset, did that fit in with the habits that you had and like the Warren Buffet style, you know, like of, of really studying him and like, well how did that connect with you when you first might

Neil Timmins:

Have gotten Yeah. And then there’s one on top of it. The cherry is put money in different financial institutions, get money in different locations to where you don’t get your hands on it. And I think going back to, you know, the person who’s working, doing deals, getting deal flow, but they don’t ever seem to have any money. Part of that is they have too much access to it. There’s not that separation there. Yeah.

David Richter:

And

Neil Timmins:

So, and I think that’s, I think that’s a huge one.

David Richter:

It is, it is. I love that cuz with that answer to that question of why do people live deal to deals because they have too much access to the money that they create inside of their business. I think that’s a great answer to that question. So No, I love that. And that’s what Private First is all about, making sure that you, you build those proper habits and then you actually keep those habits and not just constantly raid those accounts and get them to you know, down to zero. So,

Neil Timmins:

Well you are, you hit it on the head, you are a reflection of your habits, right? Yep. I mean, w we are what we are habitually do. And so it’s imperative that if you wanna be financially successful, you do what financially successful people do. And, the Proffers outlines that for exactly what to do to be able to have a totally different outcome if you’re down a path right now that just frankly isn’t getting you where to where you wanna be.

David Richter:

Right? Yeah. It’s, that’s why, that’s why this message, that’s why this podcast and I love having guests like you who, who understand it and who have had those habits. Cuz now as I’m exploring that background, it sounds like you’ve had a lot of those habits and one of ’em was just by studying someone who was very, very frugal his whole life and had good habits his whole life. So some, if you’re listening to this podcast right now as the listener, it’s not always gonna just be one book. It’s gonna be those compilation of like the different things that you see, those patterns of success everywhere. Profit First fits in with what he is talking about with Warren Buffet and everything. I just, I absolutely love this Neil, this is great stuff. I love it. So all

Neil Timmins:

Those, all those guys have some really good habits, but then you read a lot about ’em, especially Buffet. I mean, you’re reading about outcomes. Yes. And what you, what you do is implementation of habits so that one can get to an outcome.

David Richter:

Exactly. Yeah. So they don’t, so they’re not the statistic of, you know, going outta business cuz they ran outta money and then actually having the money to do what they want to do cuz so that’s great. So I, with what you’ve done up to this point and have you been able to see the fruits of those outcomes, of those habits of like, hey, now, now without, you know, with those controls in place, I actually get to spend the money and I get to do the things that I want to do. For you, it sounds like it’s a lot of your education, but what do you do for fun with your money? Like since you don’t take cars since you don’t do Yeah,

Neil Timmins:

Bill, that’s a good question. Yeah. You just, as I said, everybody’s got different different things that trigger them, right? Yeah. And so I just alluded to, to houses and watches or cars just aren’t my thing, you know, I love to travel. Awesome. I love to spend time with family. So this summer is my wife and I, it’s our 20th anniversary. So we’re going to Europe, we’re going to Italy, and then we’re going to Greece. We’re gonna spend about 10 days. My children, you know, my children are, as you can imagine are are a big thing. And so my daughter’s, my daughter’s really creative, really artistic. So I’ve got her in this summer. She’s just headed to high school here in the fall. Yeah. So she’s going to a three week performing arts camp.

David Richter:

Nice.

Neil Timmins:

So, there’s some ability and as you can imagine, you know, if you reflect back to your child at all those things you like, wish you could, you had or wish that were that existed. And for me, as as a parent, it’s not giving them everything cuz you know, and I wanna manage ’em to a point where they don’t have motivation, but it’s giving ’em opportunities to, to find their passion, to find, you know, really why are they here in this world? What is it that’s special about them that they should be doing? And help guide them along a path and for that meetings get ’em creating and putting ’em in an opportunity position that, you know, I just wasn’t, did not have the opportunity to

David Richter:

Do. Yeah, no, that’s awesome. I love that you mentioned that cuz one of the questions I like to ask is what lesson about money do you want to pass onto to your children? So obviously not just handing them everything, but do you have a specific lesson that you are wanting to pass onto them or one that you could grab out of thin air here?

Neil Timmins:

Yeah. Yeah, good question. So I had my kids read The Richest Man in Babylon. Mm.

David Richter:

Great book.

Neil Timmins:

Yeah. So I had ’em read that and then I had ’em write me a two page book report. And so one of ’em was, and I just remember, you know, a piece that stuck out is what percentage of your income due safe, Right. What percentage of your income due safe. Right. And that’s, that’s in there and it’s obviously in profit first. Yeah. It’s just, it’s directly in line with that. So my, you know, I, one of the things I, I educated that my kids about through that process of reading that book and providing a birth report is the, the richest man of Babylon. I, I forget the exact percentage, but I, you know, I said the greater percentage that you can save the wealthy, you’re gonna be the fast you are. It’s, it’s, it’s, it’s a pretty simplistic process is you gotta sock money away to invest those who invest end up being wealthy.

David Richter:

Yeah. It’s

Neil Timmins:

Just educate him through that process. You know, part of this comes from a rich dad, poor dad, you know, there’s dua sections out of there. Right. it’s, it’s really to be a proper steward of, of money.

David Richter:

Awesome. Now I absolutely love that. Neil, I’ve only got a couple last questions here to ask you. So I wanna ask, you’ve seen, you’ve had a lot of different success, you’ve had success in, it’s as in the personal life and helping your children and you know, like doing the fun things with your wife and your family. You’ve also been doing the things, you know, like in your real estate investing journey. So what would you say is one key to the success over all this time period that you would say, this is, there’s one thing I could leave everyone else on this podcast, this is what I would wanna tell ’em.

Neil Timmins:

Oh, find, find a determination that is, that is second to none. I grew up playing sports. I’ve got three younger brothers and all of us just, you know my poor parents, you know, all of us just beat each other up playing everything you possibly imagine. It, it is a, it is a determination to better yourself. It’s, it’s really my, you know, my, my mom was saying, I never, I never thought you’d be this successful. And so occasionally in my mind I’m like thanks. Having me having a, a, you know, internally having a standard that is above and beyond as a standard anyone sets for you. Yeah. That’s really what it comes down. How do you, how do you improve yourself? How do you be the best version of you, you know, tomorrow I wanna be a little better than today.

David Richter:

Yeah, no, I think, and I think if you have that your whole life, I mean, it, it just gets better from there. Even if you go through the hard times, it’s that grit and determination that keeps you going. Cause it sounds like you’ve had some pretty difficult times in business too with the raw hires and what we’ve talked about here on the podcast and sounds like some pretty awesome times in your business as well too. So

Neil Timmins:

Those hard times are where you grow the most. They are you. It requires having the proper mindset, the proper perspective. Cuz early on in one’s career it was like, oh my god, you know, you can get really down, you can fall into depression, you can fall into a whole bunch of things that just leads you down a tough, tough path. But having that mindset of going okay, it just is, it is what it is. There’s a bunch of things in my life I just cannot control the outcome of, or can’t control what’s taking place, but I can control how I, how I react. I can control how I feel. I can control what I learn. Well the questions I ask myself to learn something from this in order to move forward into, to a greater, greater height.

David Richter:

Yeah, exactly. No, that’s good stuff. That’s really good stuff. So you provided a ton of value on this podcast today. Oh good. And I wanted to, I wanna always ask at the end for only the people that provide value, just kidding. I wanna make sure that I make that I ask you, how can the listeners provide value back to you because you provide a ton of value here. What do you have working, what do you have going on? Share it with the world here.

Neil Timmins:

Yeah, absolutely. Well, you can, you can connect with me in a couple of different ways. You know, what I’m working on largely is transitioning our single family business into, into commercial. We have been buying commercial assets for the last three and a half years, plus or minus. Yeah. And so we’re, we’re in the process of, of making a greater transition to, to focus on that really, really full time. And help folks along the way do the same thing cuz we’ve had tremendous success become financially free as a result of commercial real estate. And so I’ve tremendous success buying assets, managing assets and just all the benefits that come along with commercial real estate tax ands, but cash being a pretty big one. So if, if folks, you know, for me it’s, if folks wanna learn about the first entry point in the commercial real estate, it’s, it’s really how do you uncover an off market deal? You know, I wrote this piece uncovering, uncovering off market commercial deals. The who, the where, and the how. They can get that on my website. It’s legacy impact partners.com/gift gif ft.

David Richter:

There you go. That’s how you can connect with Neil, get that awesome tool there. And this has been incredible. If he, from where he first started, his ability to make an impact, if you just got that piece right there and that was your focus, I think that, if you’re a listening, this will help you right away. Where is your ability to make that impact? All the way to where he said find the determination that’s second to none. Cuz then you can be make the biggest impact you can because nothing will deter you from that. And we talked about some great stuff here. The team, how he’s team focused, culture focused, wants to pay above market rate. Like I love the mindset of I want to help other people get where they need to be and pay and overpay them what the market says.

So that way they know that I value them, that I appreciate them. I absolutely love that. Also, love too with the controls you put in place to stop that bleeding of the stealing and all that. I’m sure that might, that might right there save a lot of heartache from the listers that are listening right now. So thank you so much for sharing that too. And I really, there was just so much good, good nuggets here and really appreciate you being on. So thank you so much Neil for being on here today and providing all that wisdom.

Neil Timmins:

Thanks for having me on. I really appreciate you taking the time and I appreciate your work. You know, we talked about this, this is where, you know, I you really resonate with me is, is on an impact cuz I know the impact you make in, in folks from what you do and it’s life changing.

David Richter:

Awesome. I really appreciate that, Neil. And if you’re listening to this as a real estate investor and you are not paying yourself just like Neil wasn’t until eight or 10 months ago, or if you have, don’t have those controls in place from that perspective, or you wanna double your profits head over to simple CFO solutions.com, you can click the get scheduled on a call with us button so that way we could see if we’re the right fit. And if not, I promise we’ve got someone in our network that we can connect you to. So you don’t have to have those headaches that Neil went through with the whole hiring and whatnot and get good people into the financial team in your department there. So, and I just wanna remind you with this one last statement, make sure that you’re making profit a habit in your business and not just an event. Thank you so much.

Outro:

This episode of the Profit First for REI podcast is over, but there are plenty more where that came from. Are you ready to learn how David and his team can help implement the Profit First system in your business? Schedule a discovery call @ simplecfo.com right now. We’ll see you next time on The Profit First for REI podcast with David Richter.

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Title: “Profit First Strategies with Jay Conner: The Power of Private Money”

Episode: 242

There are 15 reasons to love about borrowing private money over traditional money. One of them is making your own rules for your private money.

In this episode of Profit First for REI podcast, Jay Conner, a nationally renowned real estate investor and the king of private money. He talks about how private money works.

Jay helps you get your money from private lenders and will share with you the mindset that will get you money in the door without you ever having to worry about it.

Listen and enjoy the show!

Key Takeaways:

[01:01] Introducing Jay Conner

[05:00] Introduction to private money

[08:30] The Great News Phone Call

[11:23] Why don’t you use your own money?

[13:18] Maintaining relationships with private lenders

[15:40] Private money vs traditional money

[22:05] Things that make them want to recommend you

[25:18] Advice for real estate investors

[29:01] Connect with Jay Conner

Quotes:

[07:34] “If you are talking about private money and raising private money with an individual and you got a deal for them to fund, you already sounded desperate.”

[12:07] “If you want to scale your business, private money is the way to go.”

[16:05] “In this world of private money, we make the rules. We set the interest rate, we sent the length and all of that.”

Connect with Jay:

Website: https://www.jayconner.com/book-details/

Tired of living deal to deal?

If you are a real estate investor or business owner who is tired of living deal to deal and want to double your profits, head over here to book your no-obligation discovery call with me. Either myself or someone from my team will hop on a short call with you to get clear on your business goals, remove any obstacles holding you back, and map out a game plan to help you finally start keeping more of the money you work so hard to make. – David

Transcript:

Speaker 1 (00:00):

I got 15 reasons I love private money over traditional money. I won’t share all 15, but the biggest one is it puts you in the driver’s seat. The traditional way to borrow money is you go to the bank and get on your hands and knees and you’re begging and chasing. Well, they are making the rules right? Like the lender is making the rules. But in this world of private money, we make the rules, we set the interest rate, we set the length of the note and all that.

Speaker 2 (00:34):

If you’re a real estate investor who’s sick and tired of living deal to deal, then welcome home. Hear from everyday real estate investors just like you, and discover how they’ve completely transformed their business by taking a profit First approach. This is the profit first for REI podcast, where we believe revenue is vanity. Profit is sanity. It’s time to start making profit a habit in your business. So here’s your host, David Richter.

Speaker 3 (01:01):

We have Jay Connor back on the podcast. I love Jay Connor. He helps you get your money, the money from private lenders and that whole framework and process, but he does it from a passion and a place of heart. And servant Teachership. I feel like he goes out there and is a servant teacher of how private money works. Listen to this episode. He gives the magic question he tells about desperation and private lending, and I thought his perspective was so good, and then ultimately the mindset that will get you money in the door without you ever having to worry about it. So listen to this episode. Can’t wait for you to get value from it. Thank you for being a listener of the Profit First. RII podcast. Have a great episode. Hey, here’s the profit first RI podcast. Really excited to have Jay Connor back because he’s the came of private money. And this is where I love to go into this topic because I don’t care what kind of business you’re in, you probably need help with this, but especially if you’re in the real estate world, this comes up all the time at every event I’m at with every conversation I have. So we’re having the cane here talk about private money today. So Jay, thanks for being on the show.

Speaker 1 (02:07):

Hey David, thank you so much for having me come on here to talk about my most favorite topic. Of course, that being private money. And why is that? Because private money’s had a bigger impact on our real estate investing business than any other strategy that we’ve implemented in our business.

Speaker 3 (02:24):

Why did you go down that road though? I mean, you teach this all the time. You’re helping a ton of people, like anyone I’ve ever talked to that works with you is like he taught me how to do and I got money and it actually works. So I mean, how did you even go down that road where it made a difference on you and then you wanted to get it to others?

Speaker 1 (02:43):

Well, I actually backed into it. I didn’t do it on purpose. So here’s what happened. So my wife, Carol, joy and I, we’ve been investing in real estate, single family houses, other real estate full time here in eastern North Carolina since 2003. And here’s what happened. From 2003 until 2009, David, all I knew to do in my real estate investing business was rely on the local banks to fund my deals. I mean, all I knew to do was go to the bank, get on my hands and knees, put my hand underneath my chin, raise my skirt up so they could look at all my personal financial statements and stuff and actually beg to get my deals funded. That’s all I knew to do. And so I had a big wake up call in January of 2009 after being in this business here in Eastern North Carolina. I called up my banker.

(03:38):

I told him about these two deals I had under contract in Newport, these two single family houses. And David, I learned like that over the telephone that my line of credit had been shut down with no notice. My banker, his name was Steve, and the bank was bb and t at the time. I said, Steve, what in the world are you telling me? My line of credit is shut down. I got two deals under contract. You gave me no notice. Why is the bank closing my line of credit? He said, Jay, don’t. There’s a global financial crisis going on right now. I said, no, but now you just gave me a global financial crisis. Financial crisis, yeah, I ain’t got no way to fund my deals. And I got ’em under contract. So I hung up the phone and here’s what happened, David. I sat here and I asked myself a very important question.

(04:27):

And so I’m going to share this question with your audience right now. This question I’m going to share with you will help you solve any problem you’ve got. I don’t care if it’s business, financial, career, health, relationships. I don’t care what your problem is. By the way, David, these people going around and saying, any problem, you got some opportunity I want to throw up. I didn’t have no opportunity. I had a problem of not funding my deal. So here’s the question I asked myself. The question I asked myself was, Jay, who do you know that can help you with your problem? And when I asked myself that question, I immediately thought of my good friend Jeff, who lived in Greensboro, North Carolina at the time, and he was investing in real estate. And so I called him up and I told him what happened. And he said, well, Jay, welcome to the club.

(05:18):

I said, what club? He said, the club of the bank shutting you down and losing amount of credit. They shut me down last week. I said, well, how are you funding your deals, Jeff? He says, well, have you ever heard of private money? And I hadn’t. So Jeff told me about private money. He told me about self-directed IRAs and how people can use their retirement accounts and funds that they currently have and move them over to a self-directed IRA company and then loan that money out to us real estate investors, either tax deferred or tax free depending on the type of account they’ve got. Well, that just opened up my whole world. I’d never heard of that. And so what did I do? How did raise $2,150,000 in less than 90 days after being cut off from the bank? Well, here’s what I did, and here’s the secret sauce I put on my teacher hat.

(06:10):

So I put on my teacher cap, which is my private money teacher cap, and I just started teaching people in my own network what private money is, how they can earn high rates of returns safely and securely. And what’s interesting, Carol, joy and I, we got 47 private lenders right now. Not one of them had ever heard of private money and private lending. Not one of them had ever heard of self-directed IRA companies and what a third party custodian is. That’s important by the way, to establish a relationship with a self-directed IRA company because over half of my private lenders are using their retirement funds. And if I didn’t have that relationship to introduce them to move their retirement funds over, I’d be missing out on over half of my private money. So how did I go about raising all this money when I was cut off from the banks?

(07:02):

I led with a servant’s heart. I led with education. And here’s a really, really important point. I separated the activity. I separated the conversations of telling people what private money is and how they can earn high rates of return safely and securely and having a deal for them to fund. You see, desperation has got a smell to it. And when you talk about is that not true, David? Yeah, very true. So if you’re talking about private money and raising private money with an individual and you got a deal for them to fund, you’re already sounding desperate and you’re not even trying to sound desperate. So we don’t talk about deals and when we’re first exposing somebody to how they can earn high rates of return, we talk about private money. So how do we separate those conversations? Well, when someone has told me that they’ve got, let’s say they’ve got $150,000 they want to invest and get high rates of return conservatively, I’ll say, great, I’ll put your money to work for you just as soon as possible.

(08:11):

I don’t talk about a deal upfront. If they’ve got retirement funds that they want to get higher rates of return on, I’ll introduce ’em to the self-directed IRA company that I recommend. They’ll get their funds moved over. And so here’s what happens and here’s the magic sauce, David, I give ’em and I call ’em up with what I call the great news phone call. What in the world is the great news phone call? Well, the great news phone call is not a pitch. I’ve never pitched a deal in my life ever since I started raising private money in 2009. I pick up my handset with my cord attached to it here in North Carolina and I call some of your, don’t even know what that is. And let’s say, David, let’s say you’re one of my private lenders. So I’ll put my phone right up here and you’ll answer the phone and we’ll have a little chitchat and I’ll say, Dave, I got great news for you.

(09:06):

I can now put your money to work. I got a house in Newport with an after repaired value of $200,000. The funding requires 150. Closing is next Tuesday. You’ll need to have your funds wired to my real estate attorney next Monday. I’m going to have my real estate attorney email you the wiring instructions end of conversation. Notice I didn’t ask If you want to fund the deal, of course you want to fund the deal. You’ve been waiting for the phone call. I’ve told you the program. I’ve taught you the program, you know what kind of rate you get, what the maximum loan to value is, the program that I’ve taught you. And so now you’re waiting for the good news phone call, which I just gave you. And in addition to that, if you as my private lender, if you’ve moved your retirement funds over to a self-directed IRA company, you ain’t earning any money until I put your money to work.

(10:04):

You moved it at my recommendation. Now I’m ethically bound to put your money to work. You ain’t earning any money until you actually put her to work. So again, we separate conversations, we leave with a servant’s heart, we educate, and by the way, David, these people going around saying don’t just get the deal under contract. The money is show up. I want to throw up where is the money going to show up? Is it just going to rain out of clouds or something? No, get the money lined up and you can get it lined up fast. Just like me. There’s always going to be deals.

Speaker 3 (10:38):

Yeah. Oh man, that’s really good stuff. I love how you went down that road and it helped you personally. Now you’re just teaching a lot of people. I love that magic question. Who do you know that can help me with my problem? It’s that who, it’s not always the how. It’s the who did I know, and in that point it really helped you. I also run into a lot of times, I don’t know if you see this, where there’s someone who’s like, I could save a couple interest points if I just use my own money versus a private lender’s funds. What are your thoughts on that of always taking down your own deals versus going out there and putting the work into getting a private lender?

Speaker 1 (11:17):

Sure, I get that question all the time. They say, Jay, you making all that money? Why don’t you use your own money to invest in real estate? Why are you still borrowing private money? Well, here’s the answer. If you’re just going to do one deal, that’s a great use of your money. That’s a fantastic use of your money. But do you want to scale your business? I mean, right now we’ve got seven different projects going on, single family houses simultaneously. Well, I don’t want my money buried in seven houses or projects simultaneously, which here in our local market can easily be over 3 million with the prices of our homes. So if you want to scale and really, I mean most people have got a bottom of the bucket in their checkbook. So if you want to scale your business, then private money is the way to go. Another answer to that question is, do I want to pay myself 8% or do I want to use my money for something else,

Speaker 3 (12:22):

Right? Yep.

Speaker 1 (12:24):

So that’s a couple of answers to why I use private lending and why I’m still using 47 private lenders,

Speaker 3 (12:33):

Which is great. I love what you said. If you want to scale, it can run out of cash real quick. If you just keep using your own money where a lot of people have to choose between, okay, paying some percentage points or sleeping at night, and it’s like, I think I like your option a whole lot better, especially if you’re looking to grow. But I like how you said that one deal. That’s okay, but if you are looking to be a real estate investor, this is something you’re going to have to go down that road. Now, last time I asked you some questions about the private lending process. I don’t think I asked this one though, is how do you maintain a relationship with that many private lenders? You’ve got 47 people in your network that you call up with the good news call. So is it like how do you maintain a relationship with all those people?

Speaker 1 (13:22):

I mail ’em checks.

Speaker 3 (13:25):

I love that. That’s a great answer. Oh man. No better way to keep a relationship there.

Speaker 1 (13:33):

I mean, they love getting money in the mail, right? Yeah. They love mailbox money, so I mail ’em checks.

Speaker 3 (13:41):

So you mail ’em checks. So you’ve built a good enough business where you can keep 47 lenders busy and their money active.

Speaker 1 (13:50):

Well, to be totally transparent, I mean, it is a juggling act to tell you the truth. I mean, there’s more money than there is deals.

Speaker 3 (14:00):

Yep.

Speaker 1 (14:01):

There’s more money than there is deals. And so we got 47 private lenders. Some of them have got $30,000 with us, some of ’em have got a million dollars with us. I can’t buy a house for 30,000, but I can use 30,000 for rehab money. You can use private money, borrow private money in a junior position, you’ve got to disclose that. But I can put private money in a junior lien. But what comes into play there is what we call total loan to value. So I’m not going to be borrowing more than 75% of the after repaired value. I didn’t say the purchase price 75% of the after repaired value. But let’s say back to that example that we just talked about, David, where if I’ve got a after repaired value on a home of 200,000 for easy figuring, I can borrow up to 150,000. That’s 75% of the after repaired value. But if I buy it for a hundred thousand, which I do all the time, 50% of the after repaired value, I can have a private lender in first position at a hundred grand. I could have another private lender in second position at 50 grand. So add a hundred to the 50, now one 50 divided by 200,000 after repaired value, I got a total loan to value of still 75%.

Speaker 3 (15:27):

Yeah, I love that. And it seems like private money gives you flexibility and

Speaker 1 (15:32):

Options. Does that make sense?

Speaker 3 (15:34):

Yeah, that makes sense. A hundred percent.

Speaker 1 (15:37):

Oh, absolutely. Flexibility is where it’s all at. I got 15 reasons. I love private money over traditional money. I won’t share all 15, but the biggest one is it puts you in the driver’s seat. The traditional way to borrow money is you go to the bank and get on your hands and knees and you’re begging and chasing, well, they are making the rules, right? The lender is making the rules. But in this world of private money, we make the rules, we set the interest rate, we set the length of the node and all that.

Speaker 3 (16:14):

I love that. Flexibility is the ultimate play in real estate. You want to have flexibility and you want to be able to have that. So I love what you teach. Who is the person that you’re trying to teach out there? Is it the person that’s done one deal a thousand deals? Who are you trying to help the most with your business?

Speaker 1 (16:33):

Yeah, that’s interesting. At my live events, which is called the private money conference, and my live events, we have about 60% or so have already done deals. They’ve already done deals. They want to scale their business. They are real estate investors wanting to scale their business, and about 40% are looking to get their very first deal. So I’m helping everybody. I mean Stu and Harriet Baldwin from New York State, they enrolled and joined my mastermind membership community and they already had a portfolio of a hundred houses. They’d already raised over $2 million in private money, but they wanted to see how I went about it. Well, just one webinar that I recorded with them brought in 1.2 million in additional private private money. So I’ve worked with real estate investors that are brand new and those that are also seasoned to help them get more private money ready to go for their business.

Speaker 3 (17:33):

I love that. It sounds like a lot of people out there need private money, and even if you’re just getting started, if you don’t have the funds to do that first deal, like you mentioned, you do that first deal, that one deal at a time, it might be okay, but this sounds like a great spot where if you’re getting into it or if you’ve got lots of stuff going on, this could be another way to make sure your company can keep running without what you ran into with the banks back in 2007, eight or oh nine. Would you say that’s true as well?

Speaker 1 (18:04):

Absolutely. Absolutely. I mean, I’ve met very, very few people. In fact, I can’t even think of one. I haven’t met any real estate investor that says, I got enough money.

Speaker 3 (18:20):

Yeah, me either.

Speaker 1 (18:22):

I can’t use any more private money. However, David, you are looking at one right now. I got about almost $2 million right now, what I call sitting on the shelf waiting to be deployed. And I tell you what, I’ve had new private lenders come into my world that want to invest and just to prove to them that I can perform. I’ll take the new private lender’s money and pay off a current private lender, refinance the deal so I can get their money to work for ’em, right?

Speaker 3 (18:53):

Ah, yep, that makes sense. I like that. As you grow and scale, you might run into that issue and you make one lender a little bit happy. I mean, at least they’re getting paid off, but then they probably come back to you and say, I want you to put my money to work again. Do you have that come up a lot?

Speaker 1 (19:12):

Quite frankly, when I pay ’em off, they’re not happy.

Speaker 3 (19:17):

That’s why I said just a little happy, maybe a little bit.

Speaker 1 (19:20):

But when I pay ’em off, they’re not making any money on that money. In fact, with a new private lender, I’ll get ready to pay ’em off cashing out on a deal and I’ll call ’em up and say, Hey, just want you to know that you’re going to have a check coming in the mail from a real estate attorney’s trust account. We’re paying off this house. And they’ll say, Jay, can’t you just keep the money? And I’ll go, no, I can’t keep the money unless I’ve got your money secured by a property because we do not borrow unsecured funds. Now, here’s maybe a little advanced strategy for some folks, but I do substitutions of collateral or loan modifications all the time. If it’s a small amount of money that a private lender’s invested 30, 40, $50,000, and we use it for rehabbing a property. So when I’ve got another property I’m getting ready to start on, I’ll substitute the collateral and keep that 30 or $50,000 note in play. So they keep earning money on that money, but we will substitute the collateral just to a different project that we’re moving to.

Speaker 3 (20:25):

That’s awesome. So then sounds like you have a good problem. It’s like, I want that. Well, I think a lot of real estate investors would rather the problem, I have too much money versus I’ve got these deals and I can’t fund them. So I really like how you teach people that and where it could snowball into this, where it’s like, I’ve got 47 private lenders, I’ve got to go out there and get the deals for ’em. Absolutely. And I really like that. And

Speaker 1 (20:50):

For goodness sakes, you don’t start out with 47 private lenders. I started out with one, right? I started out with one and then that quickly became two and three and four and five because private lenders tell other people what’s going on. So I haven’t actively attracted private money for years because our current private lenders just keep sending us people. In fact, day before yesterday, day before yesterday, I got a phone call from the mother of a good friend of mine, his name’s Craig, lives in Newburg, North Carolina. Craig had told his mother about this investment thing that I got going on and she had never heard of it, which is really funny. I’ve been doing it now private money since 2009. So she calls me up and she says, Hey, my son’s been telling me about this investment thing you got going on. Tell me about it. So word of mouth gets around very, very quickly when you start doing business with private lenders the way I do.

Speaker 3 (21:53):

Yeah, I like that a lot. So in order to get people to talk like that, what are the biggest things that you do for your current private lenders that makes them want to recommend you?

Speaker 1 (22:07):

Well pay ’em on time.

Speaker 3 (22:08):

There you go. That’s a big one. Sounds like that would be a really great place to start.

Speaker 1 (22:12):

Pay ’em on time. But I also have three times a year I put on a party for our private lenders at the Dunes Club. So we have three times a year a VIP reception over at the Dunes Club on the beach, and it’s just an evening of private lenders getting together and we have a good old time and I feed them and give them all the soft shell crabs they want, and I tell ’em to bring their friends with them.

Speaker 3 (22:42):

Yeah, that’s awesome. So number one though, that anyone can do at any stage is pay people on time. So actually pay, would you say, what about communication? I hear that come up sometimes too. How do you do a good job on the communication with your private lenders as well?

Speaker 1 (23:03):

Well, it must be good enough. They never go away,

Speaker 3 (23:06):

Right? Yeah, that’s the big things I hear.

Speaker 1 (23:10):

Here’s one thing I have not delegated as far as communication. I personally, I mean my relationships with my private lenders are very, very important. So I personally pick up the phone, pick up the phone, and call my private lenders when I have got a deal for them to fund. I do not delegate that out. I could

(23:37):

Delegate that out, but I don’t, when I got a deal for them to fund, I’m the person on the phone keeping that relationship When I’m getting ready to pay them off. I don’t have a check just show up in the mail. Of course they got to sign a payoff instruction letter if a different closing agent is closing it for a buyer. But before any of that happens, I personally call ’em up and I tell ’em that we’ve got that property sold. We’re getting ready to pay you off. Or I’ll call ’em up and I’ll say, Hey, we’re getting ready to pay this property off, but I will keep your note open so you can keep earning money. I’m just going to substitute the collateral. We got some documents we’re going to email to you for you to sign and send back the communication. I’m personally involved in putting their money to work and letting them know when we’re cashing out and where they are on the deal.

Speaker 3 (24:31):

That’s awesome. Then since it’s the profit first I podcast here, I love this concept of the private money because you need your cash in your accounts. So to be able to run your business, do those things, and then setting up a separate account just for your private money lenders, so it makes it easier to do what Jay just told you to pay them back, to pay them back on time to be in good communication with them. So now this has been really good. Do you have any other advice before I ask you? How could they work with you? How can they get in touch with, because I know this is something that is needed desperately, that I send people your way all the time. I know I trust you to help people, but any other last minute advice here that you would give to the real estate investors listening to the podcast?

Speaker 1 (25:18):

Sure. I appreciate you asking that question. It’s going to be very hard to own a lot of real estate

(25:26):

Until you own the real estate between your ears. So what do I mean by that? People ask me, how do I start? How do I start raising money? I can tell you how you start raising private money. You get your heart right, you get your mindset right. So what do I mean by that? Well, what do you do? You lead with a servant’s heart, you lead with education, you put your private lender money hat on, you private lender, teacher hat on, and you leave with education, don’t pitch deals, and you really, really are concerned about the other person and realize, part of this mindset is realize you’ve got an opportunity to change people’s lives, right?

Speaker 3 (26:11):

That’s so good.

Speaker 1 (26:13):

We’ve got countless people that are particularly in their retirement years, that have thanked me and Carol Joy for making a difference in their retirement years to where they can, I mean, they don’t want to touch their principal. They want to live off of their principal investment. So they’ve been able to travel, go see grandkids, do all this stuff that they couldn’t do otherwise until they got involved in our program. So just know that you’ve got a way to really make an impact on other people’s lives. And lemme tell you another part of mindset. It ain’t about reaping. It’s not about reaping. It’s all about sowing. It’s all about sowing. I can’t be reaping all that private money and deals until I have sown and given and led with value first. So how you sow is how you’re going to reap.

Speaker 3 (27:08):

Yeah. Oh man, this is so good. I’m glad I asked that question because I hear the passion in your voice and I hear that you really care about the people you work with, the people that have private money lenders out there, you care about that relationship. I love what you said. Get your heart right, get your head right. I also think, like you said too, that if they don’t have that desperation has a smell. So if you’re out there, you’re desperate and you’re just going out there, then you won’t have people like you have that want to keep coming back, that want to continuously invest in you. So that was, I think, the best advice that you could give right there. Get it between your ears and get your heart right. I absolutely love that. And just to recap too, I love your magic question.

(27:55):

Who do you know that can help me with my problem? Then one day you’re going to wake up and you’re going to be like Jay, and you’re going to be helping other people with their problem. I’ve got money. I want to put it somewhere, and you’re the able to get them to where they can be. Desperation has a smell. I love that. And then honestly, I love that pivot. You are like, it’s not about the reaping, it’s not about the interest that I’m making or the profit I’m making for the deal. It’s more about sowing those seeds and ultimately you’re changing lives. That’s why you get private money, and it’s like that interest that you’re paying them is twofold. It’s like you get to sleep at night, you’re not using all your money and you’re getting to help someone else get a return that they wouldn’t be able to get anywhere else or in someone that they trust as well too, and that’s a little bit more tangible than the stock markets or all this other Bitcoin, some of that stuff that’s floating around out there. So this has been awesome. So how do people then, Jay, take that next step with you? Do you have a book? You talked about an event. What can people do?

Speaker 1 (29:01):

Absolutely. Well for your audience, David, I’ve got two gifts. First of all, I finished writing my book Where to Get the Money. Now, this is not a ebook. This is a book book that we actually send in the mail Autographic where to get the money. Now the subtitle is How and Where to Get Money for Your Real Estate Deals Without Relying on Hard Money Lenders or Traditional Lenders. It’ll walk you through step by step how to get all the private money you would want. Very, very easy to read. It’s $20 on Amazon, but you can get it for free. Being David’s audience, just cover shipping. You can go to www dot j Connor, J-A-Y-C-O-N-N-E r.com/book. So I’m an er, not an or. So that’s j Connor, J-A-Y-C-O-N-N-E r.com/book, and we’ll three day priority mail it out to you. Now, in addition to that, I’ve got an upcoming $3,000 per ticket live event right around the corner. But for your audience, Dave, I’m going to let everybody come for free with a measly $97 registration fee. This private money event. You can check it out at www.theprivatemoneyconference.com. The private money conference.com. That’s coming up right around the corner in June. Get on over there. Registrations are open, and I’d love to meet you in person at the private money conference.com.

Speaker 3 (30:31):

Awesome. I’m excited about that too. I love what you’re doing and you’re solving a big need that we hear all the time. Just like all people always needing to sharpen their acts when it comes to private money, you graciously have also invited me there to speak about Profit First. So I’m excited to get to tell people about that so they can get more private money and be more confident and not be desperate when they go and ask for people. So I’m really excited about that as well. So make sure we’re going to put those links there, but make sure either get his book or go to that event. I cannot endorse Jay Moore because I know how many people he helps, but then he also has the heart. You heard it right here. That’s how he wants to help you too. It’s very much a heart and a mission and a passion for him.

(31:13):

So Jay, thank you for coming on, for sharing your wisdom, your knowledge today. If you are listening to this episode and you feel stuck like, what the heck is going on? Where is my money? I don’t know what to do. I’m a little bit nervous to go out there and get private money. I can’t keep my own house in order. That’s where you could go to simple cfo.com where we can help you walk you through that process. We’ll link you up to Jay too. If you need private money or need to learn about private money, this is who we recommend. I recommend Jay to many people, so make sure that if you need that help you go to simple cfo.com. But Jay, again, thank you for being on the show and sharing your wisdom here today.

Speaker 1 (31:51):

David, thank you so much for having me. God bless you.

Speaker 2 (31:54):

This episode of the Profit First for REI podcast is over, but there are plenty more where that came from. Are you ready to learn how David and his team can help implement the Profit First system in your business? Schedule a discovery call@simplecfo.com right now. We’ll see you next time on The Profit First for REI podcast with David Richter.

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