How This Professional Athlete Transitioned To Full-Time Real Estate Investor

April 6, 2023

Title: “How This Professional Athlete Transitioned To Full-Time Real Estate Investor”

Episode: 170

The Profit First REI Podcast

April 6, 2023

David Richter

We’ve got Terrie Schauer joining us here at the Profit First for REI podcast. She is a champion in every sense of the word, as a single mom, 3-time, title-holding ex-athlete, Ph.D. holder, and real estate investor.

Her career in real estate began as a property manager before fully transitioning into investments. All the while, she worked as a professional athlete, competing in Brazilian Jiujitsu and even achieving world championship titles.

In this episode, she shares her real estate journey, and how she applied a lot of what she learned as a professional fighter to her career. Tune in to the discussion!

Key Takeaways:
[00:40] Introducing Terrie Schauer and Her Background

[03:55] On Mindfulness and How to Use It to Succeed

[07:54] On Her Sports Career and How She Found Mindfulness

[16:06] Juggling Her Sports Career, Being a Single Mom, and Her Work in Real Estate

[21:10] Why People Live Deal-to-Deal: Fear and Not Managing It Properly

[24:54] Advice for Real Estate Investors

[27:14] Connect With Terrie and Grab Her Book

Quotes:

[04:37] “Mindfulness is not mindset. It’s not positive affirmations. It’s not your morning routine. It’s not hustling at 5 am…Mindfulness is understanding how the human consciousness works, to be able to get the most out of the tool that is your mind.”

[21:52] “The number one biggest [reason why real estate investors get in their own way] is fear, [and] not managing fear properly.”

[25:27] “If you’re not executing on something, or you’re performing below the level at which you want to be in business, it’s up here, [in your mind]. [Work] on your mind…Mindfulness training has really allowed me to get kind of get the most out of that”

Connect with Terrie:

Mindful Landlord: How to Run Rental Property for Profit and Peace of Mind: https://www.amazon.com/Mindful-Landlord-Rental-Property-Profit/dp/1554832365
LinkedIn: https://www.linkedin.com/in/terrieschauer
Instagram: https://www.instagram.com/terrieschauer
Facebook: https://web.facebook.com/TerrieSchauerInc
Real Estate Investors Club Podcast: https://podcasts.apple.com/us/podcast/real-estate-investors-club-podcast/id1530582814

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:

Terry Schauer:

You didn’t have to be doing that full-time in order to be elite level. The real estate aspect, like the great thing about doing real estate is that you have a really flexible schedule.

Outro:

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:

We have a world champion on this episode, Terry Showerer, who has won the Brazilian Jiujitsu title three times. And she tells about her journey from crippling anxiety at 25 and how a lot of these things mirror how she got out of it, the real estate investing journey cuz she’s also a real estate investor. She talks about the techniques that got her to be number one and she talks about what that takes. And I think this has a great parallel for your financial life as well too. You can learn a lot, but you can also listen to a great story of how she became the number one Brazilian jiujitsu person in the world. So this is time for the Profit First REI podcast. Thank you again for listening. Hey, this is David Richter of the Profit First REI podcast. Have Terry shower here today on the podcast. Super excited because get to learn about her business. She has a podcast as well too. I believe you’ve authored a book as well, so there’s lots of different things that we get to talk about here today. Terry, thanks for being on the podcast.

Terry Schauer:

Thanks for having me on.

David Richter:

So let’s get to know you. Let’s ha if the people don’t know you that are listening right now, just give a high level background of what you’ve done. Talk about the book, the podcast, like what’s your, you know, and what you’re currently working on and kind of where you’ve come from.

Terry Schauer:

Okay. So, uh, let me try to, usually somebody else does my bio, so this is my chance to do my own bio.

David Richter:

Oh, there you go.

Terry Schauer:

Um, yeah, so I guess like for me I started with the hat of a property manager, um, which I’ve been doing for like 25 years. <laugh>

David Richter:

Nice.

Terry Schauer:

Um, and then along the way that turned into buying a first investment property when I was 26 and then that turned into a second and a third property. I then stagnated there for 10 years until I began to understand how to scale and how to do more multi-family stuff. Oh,

David Richter:

Okay.

Terry Schauer:

As, uh, I’m in Canada and so we like have a real line between residential and uh, commercial property. And so like learning to move from one market segment to the other, uh, took me a long time. Takes some people, never make the transition.Then in parallel, I also have a background as a competitive athlete. I have won some world championships in Brazilian jujitsu through the combat sport world. I really learned about mindfulness, uh, as a way to hone your mind for performance and just kind of get the most out of what your mind can do. And I became so excited with that, that I just like, you know, apply it to everything. And so that then turned into my book, which is called The Mindful Landlord, which is basically about how to apply mindfulness techniques to a real estate business and the podcast. So I’ve been protesting for a couple years. It’s uh, called the Real Estate Investors Club podcast. So I’m in Montreal, Canada. So it’s uh, a podcast that’s kind of Canadian focused, but we try to have conversations that are not super common in the investment world. So

David Richter:

Okay.

Terry Schauer:

Bringing in, you know, topics that people are not always discussing other than what I call the three this deals, doors and dollars. We kind of try to look at the holistic picture that’s around that to uh, bring it into focus in a way that’s not focused on the IG feed

David Richter:

<laugh>. That’s great. Okay, cool. I like that. And that’s awesome about being a world champion and uh, as you said in Brazilian jiujitsu. Awesome.

Terry Schauer:

Yes.

David Richter:

So I’m glad we’re uh, across the screen here and now like in the same room cuz she could take me down then

Terry Schauer:

<laugh>.

David Richter:

But uh, so mindfulness talk about that so that it seems like that’s the center core piece cuz was that the name of the book too as well?

Terry Schauer:

Mindful Landlord? Yeah,

David Richter:

Mindful Landlord. So that’s way you’ve got this philosophy that’s helped you become a world champion. So can you break that down for us? What does it mean to be mindful? Like what does that word embody to you and like what do you, that message that you get across to people?

Terry Schauer:

Yeah, a hundred percent. And like you’re right, that is kind of the central thread of everything that I do because it’s been such a powerful force in my own life. And so I’ll try to break this down into a nutshell. So in the real estate industry we talk a lot about mindset and everything mental gets collapsed into mindset and it’s something that like, it really drives me nuts. So let’s start out by saying that mindfulness is not mindset.

David Richter:

Okay?

Terry Schauer:

It’s not positive af affirmations, it’s not your morning routine. It’s not hustling at 5:00 AM like it’s none of those things. Mindfulness is understanding how the human consciousness works in order to be able to get the most out of the tool that is your mind. And I’m just gonna like break down sort of the fundamentals of that for you like in two minutes. So,

David Richter:

Okay,

Terry Schauer:

For example, my mind, there’s my thoughts and my thoughts are kinda like the radio. They’re always going, I can’t turn ’em off, but I can choose to not listen to them.

David Richter:

Hmm.

Terry Schauer:

Underneath my thoughts are my emotions. And so like my emotions, basically they’re messengers. Um, if you feel fear, it’s to alert you to something. Where we run into trouble is when we allow ourselves to be consumed by emotions or we begin to identify with them. So for example, if I say I am depressed, I am scared. No, I’m feeling sad, I’m feeling fear, but I am not those emotions, those are a process that’s running in my mind, but like I don’t need to identify with them. And then the basic sort of fundamental of mindfulness is to understand that you are basically presence. Like we can call that, you know, in mindfulness practice we call that the watcher or pure presence. And the more that I’m able to identify with that aspect of my consciousness, the more I’m able to become intentional about how I use those other tools. Because like if we take emotions for example, like where we run into trouble is either if we find them not useful, we repress them. So you’re like, okay, I’m just gonna like not feel fear, I’m gonna like disregard the fear signals or else you’re like, I’m so scared that I can’t behave appropriately. Neither of those two reactions is good. You need to be able to like take the information that the fear is giving you, choose the appropriate action and then move forward. Right? Like maybe the fear is maybe you actually do need to respect what’s going on. Maybe you need to not proceed. Like maybe that’s the purpose of that message, but it’s not the emotion that’s positioned to make the decision for you. The presence needs to make the decision for you. And okay, thoughts are the same thing, right? Like, you know, very often when we have anxiety-provoking thoughts or you know, sometimes I have like mean thoughts or like aggressive thoughts and it’s very easy to like let that freak you out and be like, man, why did I just think that’s like so dysfunctional? But like it’s just the radio talking and it’s normal that some of that stuff like self-limiting thoughts, it’s normal that like some of that stuff comes out. But I am not my thoughts. I am the watcher and I can choose, I wanna tune into this conversation in my mind or I wanna just let it keep playing and I don’t have to listen.

David Richter:

Yeah.

Terry Schauer:

So that in like in a nutshell that’s kind of what underlies mindfulness and then you know, there’s techniques that you can use to get better at that. And then there are like specific, like if you’re working on fear, there’s like gonna be kind of a specific way of doing that. Working with sadness, working with like all these other kind of different things. Like there’s little sections on that, but that’s the fundamentalist to understand that your mind, your consciousness is separated into these different things and learning to toggle between them when it’s appropriate is the ultimate performance tool. And it’s not positive affirmations or my morning routine <laugh>.

David Richter:

Okay, so you didn’t get there being a world champion with positive affirmations. So

Terry Schauer:

<laugh> I did not good to know.

David Richter:

Well let’s do you mind, let’s talk about that then. Did that start as a kid that you wanted to be a world champion in Brazilian jujitsu? Like when did you say yes, this is the thing, I wanna become the best thing, you know, the best person in the world at this one thing?

Terry Schauer:

Yeah, also like, I mean I’ve always been really competitive and uh, I’m Canadian so that started with ice hockey and like when I was 10 years old I was like, I’m gonna play in the N H O, doesn’t matter that like I’m a girl and I’m five four and I don’t know how to skate. Like I’m gonna make that happen.

David Richter:

Yeah.

Terry Schauer:

<Laugh>, that’s awesome. So that didn’t happen <laugh>

David Richter:

<Laugh>.

Terry Schauer:

But I did end up playing university hockey for one of the best teams in the country at the time because that’s was kind of the ceiling of what women can do. And then I kind of became disenchanted with team sports, got into martial arts and then actually ended up kickboxing and I kick boxed semi-pro for a while and then kind of that ran its course and then I found Jiujitsu cuz actually I had a, an ex-boyfriend who was doing jiujitsu. I started that and then like, it kind of like latched on, you know?

David Richter:

Okay.

Terry Schauer:

So I think like I always knew I wanted to be a world champion at something, but I think it took me a while to find the right place for that.

David Richter:

Okay. Well that’s interesting cuz I, a lot of people go through life and I, they don’t ever find their thing. And it sounds like you found like that I became the best in the world at Summit. So how long ago was that the championship for you?

Terry Schauer:

Yeah, so I think the first one was, I think maybe like, just trying to remember, I calculated everything in my son’s age.

David Richter:

Okay.

Terry Schauer:

Um, <laugh>, so like five years ago I wanna say. Yeah. And so it’s um, so there’s like actually different like age divisions in, uh, in Brazilian jujitsu. So like it was always, I won three times, like each time in a different age division. Yeah.

David Richter:

Wow, that’s really good. So then where did you discover mindfulness on that journey? Did that help you go from being a really good Brazilian jujitsu to the best in the world? Like where was that connection with what you teach and preach today?

Terry Schauer:

Yeah, it’s um, it’s a really good question. So actually when I was 25, I uh, had some serious anxiety problems.

David Richter:

Okay.

Terry Schauer:

So like I was not back then, the person that’s sitting in front of you on the screen, I was like had, you know, social phobia. I was in a, you know, a place I think where like a lot of young people get into where they just don’t know what’s their future. I had a lot of self-doubt, a lot of kind of like limitations that I placed on myself. The environment that I grew up in sort of didn’t encourage really what I wanted to do with my life, which was competitive sports.

David Richter:

Yeah

Terry Schauer:

Like I come from a, you know, a business background and a background that was like very into performance but more like in a economic social status thing. And so like the, you know, martial arts was really like not a thing.

David Richter:

Yeah

Terry Schauer:

In fact it was like kind of looked down on. And so getting my way out of the anxiety disorder, like I had three months when I almost didn’t dare to leave the house. Like I was having panic attacks and I needed something to pull me out of that. And that’s where I got into mindfulness meditation through um, I read Dan Millman’s way of the Peaceful Warrior and I actually started meditating as a way to like solve my anxiety disorder. And then I just got so obsessed with the ideas cuz like, once I understood like, okay, this is how my mind works and like this is what I have to do to really use these principles to like live my best life. And then it’s actually amazing cuz what happened is like, I was kind of like severely underperforming and then I went through this like incredible leap where all of a sudden like all the dreams that I had were became accessible to me because I was able to really implement those things in my life. So, you know, we talked about competitive sport, but like in business, like I really didn’t believe that I had the ability to own a business to exist outside of academia. I did, yeah, I studied for a long time and I thought I would be kinda like stuck in a dusty office somewhere for the rest of my life cuz I was shy.

David Richter:

Nice.

Terry Schauer:

Um, but then, you know, I was to kind of just push out of that and transform my life in a way that it reflected exactly what I wanted. And you know, those ideas were so powerful that they just made their way into everything and that’s when I became a bit of like an evangelist for it because I can just see the power of like, once you begin to implement that, like every little thing that’s like keeping you down you can just really break out of it. So.

David Richter:

Okay. So it sounds like it did help you a lot on your journey. So it wasn’t those

Terry Schauer:

Yes.

David Richter:

Like we’ve been joking about those affirmations. It was the yeah, it sounds like you came from a really dark place to, and you, and it sounded like you leap forward like pretty steady. So at 25, is that when you were doing the jiujitsu at that point? Or was that later on past?

Terry Schauer:

No, it was later. So I like, I kick boxed from, I guess when I was 22 until I was, I retired when I was 30, 33, 34.

David Richter:

Okay.

Terry Schauer:

And I started jiujitsu like two years before stopping kickboxing.

David Richter:

Okay, Awesome. So then there was that journey. So then after that, did you find mindfulness while you were in kickboxing then? Is that when Uh,

Terry Schauer:

Yeah.

David Richter:

Okay.

Terry Schauer:

Yeah, but I really found it because of the anxiety problem, you know, and like

David Richter:

Okay

Terry Schauer:

At that point, like I was ready to try anything. Like I went to go, you know, talk to some shrinks and they then like prescribed me drugs and I was like, no, I’m not gonna do this. And then I, and then I discovered like mindfulness practice and it took me, honestly it took me like three, four months to end the anxiety disorder. And then after that it became just like, wow, like the world is my playground with this stuff because

David Richter:

Yeah

Terry Schauer:

I’m not in my own way anymore. Like that’s all it was. Like I have to just not be in my own way. And like when I look at people, especially like now, you know, I coach a lot in real estate, but like people are just so much in their own way and they don’t even realize it and that the tools are there, you know?

David Richter:

Yeah. Well I, you’re preaching and teaching my language here cuz like a lot of people, what finances stop them, that’s what this all about is profit first for real estate, you know, like, but a lot of people don’t even have the ability to think about other things because they’re so bogged down with their finances and all of that. So I totally get where you’re coming from that a lot of people let them stop and it’s usually themselves, you know, stopping them from I still have more questions though because you went to, you know, from kickboxing to the jiu-jitsu, when did you know that you could potentially be the best in the world that you could go to the championships? Like was there a time where you were like, whoa, either other people were telling you or like, wow, this is really good and you were, you’re super competitive so like were you just like, what’s the best I’m gonna start here and I’m gonna try and get to the be the best in the absolute, you know, in the entire world. So I guess what was that journey going from kickboxing to Jiujitsu then realizing I have a shot at like the title?

Terry Schauer:

Yeah. Well I mean <laugh> it’s funny because like, so already coming from kickboxing, like when I started jiu-jitsu, like I was already far ahead of other people

David Richter:

Sure.

Terry Schauer:

And physically far ahead, but like mentally way far ahead.

David Richter:

Oh, okay.

Terry Schauer:

Because like when you have like ring f ring fighting experience, like if ring fighting is here, like jujitsu is like there as a stress level.

David Richter:

Oh okay.

Terry Schauer:

So like, because like when you’re ring fighting, like you can get knocked out, the person’s trying to knock you out. Whereas like in jujitsu, the worst thing that can happen is you’re just gonna tap.

David Richter:

Okay.

Terry Schauer:

David Richter:

<laugh>

Terry Schauer:

It’s when you’re not like

David Richter:

A little less stress,

Terry Schauer:

It’s a little less stressful cuz you’re not like worried so much about bodily harm, you’re worried about performance. So

David Richter:

Yeah.

Terry Schauer:

You know that mental thing was already there and so like, you know, whatever I performed well in local competitions and then when I started going to um, you know, international stuff, then it’s like, okay, wow. Like the, you know, the girls are good. And then like I would say like, I just kept showing up and like, I don’t think there was a moment, you know, I knew that I was whatever elite level, like I, you know, I podium a few times

David Richter:

Yeah.

Terry Schauer:

And was like, okay, like this is within my ability. But like there was always sort of something missing.

David Richter:

Yeah.

Terry Schauer:

And then I just kept showing up and you know, the funny thing with these sports is that like, it really depends on who shows up.

David Richter:

Yeah.

Terry Schauer:

Because you know, like a championship one year, like it can, a category can be stacked and then the next year somebody had trouble with their diet and then she’s like in a category up or somebody had a kid

David Richter:

Oh, okay.

Terry Schauer:

And she’s not there. And then, you know, if you just kind of keep showing up long enough

David Richter:

Yeah.

Terry Schauer:

And putting in the work one day, it’s gonna be your day, you know?

David Richter:

Yeah. That’s pretty good. I like that. So you went on that journey and then became the best in the world. I have a couple questions around that too. Were you working at that time or like, was this all consuming? Like what did it look like on the personal side? Because you know, you hear about either professional athletes or Olympic athletes, you know, those type that you know the world the best in the world and you know, just not having any home life. Like did you have a home life during this time?

Terry Schauer:

Yeah. Also, I mean this is actually like the really interesting part of the story. So, uh, my son is now seven. I was competing like, you know, from before, like before he was born.

David Richter:

Yeah.

Terry Schauer:

But, um, like I was a single mom for the first two years of his life I was running a business and that was when the World First World Championship happened for me. Yeah. Um,

David Richter:

<Laugh>

Terry Schauer:

So, you know, that’s a thing about showing up. But you know, I think also Juujitsu is a sport. Like it’s not, um, it’s becoming more of a professional sport, but when, you know, this happened, which was like seven, eight years ago, like it was an amateur sport and so,

David Richter:

Okay.

Terry Schauer:

Like a lot of the people who were super competitive, now it’s changed a little bit but back then, like most of the people like weren’t even professionals. Right. And like, especially the women, like the ones who are most professionals, cuz they married a gym owner and so they can train all day long.

David Richter:

Right.

Terry Schauer:

But like, you didn’t have to be doing that full-time in order to be elite level and um

David Richter:

Okay.

Terry Schauer:

The real estate aspect, like the great thing about doing real estate is that you have a really flexible schedule.

David Richter:

Yeah.

Terry Schauer:

And so, like I didn’t, you know, normal Canadians get a year of Matt leave when they had a kid. Like I didn’t have Matt leave, I had one week in the hospital and then I went right back to the office.

David Richter:

Hooop, Yeah

Terry Schauer:

Um, but <laugh> Yeah. No, but I mean it’s, that’s cuz I, it’s what I wanted to do, you know?

David Richter:

Yeah.

Terry Schauer:

And then when you own a business you care enough about, but to juggle those things and um,

David Richter:

Yeah, to juggle,

Terry Schauer:

You know, the flexibility of this life, uh, means that you can have the financial freedom to be able to pursue other things and the time to do it as well, which is just an incredible luxury.

David Richter:

So then you were in real estate at that time?

Terry Schauer:

Yeah.

David Richter:

Uh, was that the business you were running that I’m assuming that,

Terry Schauer:

Yup

David Richter:

Okay. So what were you doing in real estate during this time?

Terry Schauer:

Yeah, so, um, I’ve always had the property manager’s hats. So like I’ve been managing properties ever since I was about 20. And then, you know, I started investing in residential property, uh, and to the point when I got three trip Lexus so that in Canada’s qualified as like reside like residential as opposed to multi-family. And I just like managed the hell out of those and attained financial independence with nine doors.

David Richter:

Wow.

Terry Schauer:

Initially.

David Richter:

Awesome.

Terry Schauer:

So when I was like able to, you know, spend most of my time on, on sport, like that’s kind of where my business was as an investor. And then like, I would say in the last, you know, five, six years I learned more about multi-family investing and kind of started scaling things. So it’s gotten a bit bigger. Um, but that’s kind of where I was for most of my

David Richter:

So let’s talk about that though.

Terry Schauer:

Yeah.

David Richter:

You said you got to nine doors and you got freedom. What did you do?

Terry Schauer:

Financial freedom,

David Richter:

What did you do? Did you pay the properties down? Did you cut expenses? Well, you said you manage the hell out of ’em. So like what does that mean so that people know like, how can I manage the hell out of nine doors and become financially free?

Terry Schauer:

Yeah. So I mean I had a great business model basically like I took, I bought in really crappy area. I, uh, found a way of renting those units to foreign students. So I was running, renting them by the room furnished. And because we created this like great community, like people were paying to be in there in the same way they would almost pay to be like in student dorms because it was just so much fun, you know? And

David Richter:

Huh

Terry Schauer:

At the height of this business model, like, so I owned those nine doors, but I was managing 50, 50 rooms total. Like so, cause I managed buildings for other people with the same business model.

David Richter:

Yeah.

Terry Schauer:

And so like, it was really cool. Like we had a whole community of people. Like every Saturday there was a party in this house, a party in that house. And so,

David Richter:

Yeah,

Terry Schauer:

Like it was really, um, a good way to kind of make money because people were willing to pay to be a part of that community.

David Richter:

Oh, that’s pretty neat. So you were managing, but then you also had your own doors and that, you know, it gave you the flexibility and time to do the other things in your life and go figure, right? It’s like you figure out what you want from life and then you go out and take it and it’s right there. You kept showing up. It sounds like you showed up in real estate, you kept doing the things

Terry Schauer:

That’s it

David Richter:

You need to do. And then you showed up there. And then you also during this time too, had the mindfulness, like actually going through and getting yourself out of your own way. Let me ask this, since you found that, you know, years ago mindfulness, that’s kind of been your core pillar. Have you ever relapsed and gone back into

Terry Schauer:

No. I mean it’s, you know, like, how can I explain this? It’s like, um, you know, those pictures were like, you know, you have to stare at it for a while.

David Richter:

Yes.

Terry Schauer:

And then all of a sudden you see something and it’s like once you see it, you can’t unsee it.

David Richter:

That’s awesome.

Terry Schauer:

Definitely. Like there, you know, there’s been challenging moments in my life where, um, you know, I had to draw on all the resources that I had since I discovered the mindfulness thing. But I never, like, it’s like I couldn’t go back to seeing things the old way. It’s just not, which just wasn’t possible. It’s like when you discover the truth, like try to believe the untruth again.

David Richter:

Yeah.

Terry Schauer:

It’s not gonna work.

David Richter:

So now I love that because then it’s like once you see it, it’s over. It’s game over,

Terry Schauer:

It’s over done <laugh>.

David Richter:

I know. Yeah. It’s over. Like I know that this is the way. So then from here you said that most people are in their own way and that’s probably why a lot of investors, you know, I, because on here we talk about living deal to deal. Like what is it, you know, like why are the finances hurting you so that way you can’t accomplish what you really wanna accomplish through real estate. What would you say are some of the biggest reasons that people are in their own way? Like why do they think that way? Or like, cuz I think you have a very unique perspective and I like your framework. So like why would you say that a lot of real estate investors get in their own way?

Terry Schauer:

Yeah. So like the number one biggest thing is fear.

David Richter:

Okay.

Terry Schauer:

And it’s not managing fear properly. And like if we kind of flip back to the initial part of our discussion, like it’s our relationship with our emotions, right. Because fear is a message. It’s uh, it’s an a warning system. It should be like the light that shows up on your dashboard.

David Richter:

Yeah.

Terry Schauer:

Right?

David Richter:

That’s good.

Terry Schauer:

And where people go wrong is either they become consumed with the light, light, they’re like obsessing about the light to the point where they can’t even find the gas station. Cuz like all they can see is the fact that they’re scared.

David Richter:

Yeah

Terry Schauer:

Like, oh my God, oh my God, I missed the exit. That’s how scared I am.

David Richter:

Yeah.

Terry Schauer:

Or like, I’m just gonna ignore this. Like, here’s this warning signal. But like I don’t feel it. Like I’m not, I’m not scared <laugh>.

David Richter:

Yeah.

Terry Schauer:

You know,

David Richter:

That’s great

Terry Schauer:

And like both of those reactions are dangerous for different reasons and the optimal places to be in the middle. But in order to get there, you have to understand the fear system and how it works. And so like, basically like if you wanna get into like technically how this works is there’s the long-term fear system and the short-term fear system. So the short term is like fight or flight or like a panic attack. Right.

David Richter:

Okay.

Terry Schauer:

Is that like, I’m so afraid in this very second that I can’t behave properly, I wanna run away or I want to attack something. And like, let’s be honest, the most common reaction nowadays is not to attack, it’s to withdraw or to avoid

David Richter:

Fight or flight.

Terry Schauer:

And so like, yeah. Fight or flight. But like most of the time we end up fleeing and

David Richter:

Yeah.

Terry Schauer:

In the real estate context. Um, what does that look like? Well, very concretely. I started with this like I didn’t network, I like lived in my own little world because I was too scared to put myself out there and admit my ignorance. I was too scared to like go and shake hands cause I was like a little bit, you know, socially phobic. And so I cut myself off from great connections and from the information that would’ve allowed me to take things to the next level. I think that’s one way in which fear can sort of keep you at a lower level.

David Richter:

Yeah.

Terry Schauer:

Um, the other one is just, it can paralyze you because now I’m sure you see this a lot in your practice, like analysis paralysis, right? Like,

David Richter:

Oh yeah.

Terry Schauer:

People think that, oh, it’s just like the next piece of data is gonna help me make my decision. But like, no, your decision is gonna help you make your decision and the data like decide to decide

David Richter:

Right

Terry Schauer:

And then the data is like something you need to take into account, but like the data’s not gonna help you, is not gonna make the decision for you. You have to make the decision for you.

David Richter:

No, that’s really good. <laugh>, I love that you’re bringing this up because I think fear is what stops a lot of the real estate investors from taking the dive into the financial aspect of their business too. Like, they’re good at making the deal happen. They’re comfortable with that. They, like you even said like, I wasn’t comfortable with some of these areas, so I didn’t, you know, I didn’t go out there. It was made me afraid. And a lot of people have a fear of the financial side, like, what am I actually making what I do? I get to keep any of it. Like, am I, what am I spinning out the door? Like they don’t wanna look at it. And I think it’s exactly right here. It’s like, it’s either that fight, fight fee, a flea, or it’s paralyzed. You know, they’re paralyzed. So there’s a lot of parallels there. That was really good. I only have a few last questions here. This has been awesome. I think we’ve really dove into it, but I want them to be able to get like all your stuff too and like hear more of what you have. So I’ll save that for the last question. But, so you gave us a good technique there, like for fear, but what is, do you have any other advice for real estate investors or anything else? You know, like to kind of wrap up the conversation?

Terry Schauer:

Yeah, I mean, you know, I’m gonna end up being a little bit redundant, but you know, I think like the power of mindfulness tools and you know, I always come back to diet, right? Like we all know what we need to do to be at our ideal weight. Okay? It’s not cause we don’t know, it’s because we keep putting the wrong stuff in our mouth, right? And that’s up here. And like real estate is the same thing. Like you can’t today say there’s not enough information, there’s like more than enough information. If you are not executing on something or you’re performing below the level at which you wanna be in business, it’s up here. And so like really working on your mind. And for me, you know, the mindfulness training has really allowed me to get, kind of, get the most outta that. So I would say if I could name some resources, the first book I read was, um, Dan Millman’s, uh, way of the Peaceful Warrior that’s kinda like the Rich Dad, poor Dad of mindfulness.

David Richter:

Awesome.

Terry Schauer:

And then from there you can kind of move out like any sort of like Buddhist, uh, stuff, anything, learn how to meditate, um, you know, that those resources and obviously my book, um, you know, marries the mindfulness aspect to real estate. So if you’re looking of how that applies specifically to real estate investing, like obviously my book,

David Richter:

That’s the Mindful Landlord, correct? The name of your

Terry Schauer:

Yeah, that’s right.

David Richter:

Is the name of your book. Okay. So then that you’ve provided a ton of value here. I love this. This is where you took us through what mindfulness is and what if it is not. Thank you for being open about when you had that anxiety and what helped you come out of that as well too. I think a lot of people would connect with that. And this can help you on the other end, you know, like there are tools and techniques. This, there is the mindfulness. This is, this has been so good then from, I love what you said too about the nine doors then equally framed because of what you did and what you set up in your business. Gave some great tools there. And then fear being the number one killer there of just a lot of our hopes and dreams and not managing it correctly. It’s more a sign. I like that you said that too. That fear is more of that dashboard light and we either focus too much on it or we tape it over and say, no, everything’s good. You know, so I love that too. But this is really great. I also liked how you said you didn’t want to admit ignorance, and I think that’s a lot of people do that as well too. Just said, I don’t want to even look at this. And that’s definitely what it comes down to on the financial side too. But this has been awesome. Where do people find you? How do they get the book? Is it on Amazon or like, is it on your website or where do we go to learn more about you and the mindfulness movement that you’re starting here in the real estate world?

Terry Schauer:

Uh, sure. So my book is available on Amazon Mindful Landlord. Super Simple. And I’m available, you have my name there, Terry Showerer. You can, uh, hit me up on Instagram, Facebook or LinkedIn. LinkedIn is probably my favorite social media. Um, but either of, none of the any of those will work. And if you wanna connect with me, shoot me a message, I will answer you.

David Richter:

Awesome. So that’s how you connect with Terry. Terry, thank you so much for being on here today. And I wanted to also say, if you’re listening to this and you’ve got any of those roadblocks as a real estate investor and you need to, and if money’s one of those big ones, it is stopping you. If you are just so afraid of it that you can’t knock that pillar down, reach out to us. It’s simplecfo.com. We can help you walk through that. Make sure that we can at least remove that stumbling block for you and guide you through that if you need that. And if not, we have other good people in this space. We just wanna provide value to you. Just like this podcast episode, remember, make profit a habit in your business. Terry, thank you again so much for coming on and telling about your journey and then the mindfulness movement.

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 at simplecfo.com right now. We’ll see you next time on the Profit First for REI podcast with David Richter.

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):

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.