Building a Legacy of Generational Wealth With Josh Cantwell

August 4, 2022

Episode 101: Building a Legacy of Generational Wealth With Josh Cantwell

The Profit First REI Podcast

August 4, 2022

David Richter

Summary:

Achieving entrepreneurial freedom has a price and also takes time. But the good thing is, it’s not impossible!

Our guest Josh Cantwell can attest to that. Today we dive into the finer details of how important the Profit First mindset is in your business, as well as how to use it so you can get the right framework in place to maximize your profitability.

Key Takeaways:

[1:54] What got him started in real estate?

[4:28] What early lessons did he learn about money, and how is it compared to what he’s learned about money today?

[9:00] What lessons about money does he want to pass down to his children?

[17:49] How does he use Profit First in apartment investing?

[27:43] Get into the psychological habit of making sure you’re taken care of , so you’ve got the right mindset and you’re not hating your business at a different level.

Quotes:

[4:43] “You realize that when you sign up as an entrepreneur, you sign up for personal freedom.”

[11:03] “One of the lessons I’ve learzed is that in order to be a high earner, you must have excellent time management skills.”

Links:

Free Land Ventures-www.freelandventures.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:

Josh Cantwell:

When we get to the point of the building being stabilized, it could be two years from now, four years from now. Then we do a big refinance. We pay all the investors off, we pay them back and now it’s all profit. <Laugh>

David Richter:

Right?

Josh Cantwell:

Yeah. It’s all profit.

Intro:

Welcome to the Profit First REI podcast where real estate investors, master financial management, eradicate entrepreneurial poverty, and learn to be profitable from day one. Now for your host, David Richter

David Richter:

Everyone. It’s David Richter here again on the Profit First REI podcast have Josh Cantwell today, which is, I am super excited about this because he does apartment investing and uses Profit First. So, and he’s gonna tell you, because there’s definitely a different aspect to the apartment investing and using Profit First. And you’re gonna hear about limited partnerships and how the cashflow plays into that, how it plays into when they’re buying, when they’re selling, when they’re refinancing, how the Profit First system and when he uses it and how he manages it, cash that way. And I think this is gonna be an awesome episode. Josh, thank you so much for coming on today.

Josh Cantwell:

Yeah, David, absolutely. I’ve been looking forward to this, you know, the Profit First books and the series of various books from Michael. It’s been phenomenal. I’ve, I’ve either done the audio books or most of the books. I’m a really slow reader, so it’s mostly audio books. Yeah. But no, I love his stuff. I love your book and I, you know, I’m super excited and honored to be here.

David Richter:

Awesome. Well, I really appreciate that. So let’s just, let’s start where everyone starts. How got what got you started in real estate?

Josh Cantwell:

Yeah, look, I, I probably have a little bit different story than a lot of people. I certainly fell into it. Like a lot of people. Do you kind of hear about it from one way or another? What I did was when I was in college, I was very lucky to have a father who was an entrepreneur. My dad built a business. He filed for bankruptcy when he was in sixth, when I was in sixth grade. And then by the time I was in college, just within six or eight years later, my dad was a multimillionaire. So he went from nothing. So I, I was like, wow, what, you know what happened? And he built a business. He built an employee benefits company. So I jumped into employee benefits. I jumped into actually financial planning in early twenties. That’s one of the things that’s led me David, to be so good at raising money is I was around money mm-hmm <affirmative> in my early twenties, right after school.

Josh Cantwell:

But long story short, those clients that I had that had stocks, bonds, mutual funds, IRAs, life insurance policies, estate planning. I noticed that a lot of them had their biggest dollars. Their biggest assets were not in the stock markets. They were in real estate. They owned apartment buildings. They owned rental properties. They owned strip centers. They leased them out to, you know, restaurants and things like that. And I took notice. So I started going to boot camps. Like a lot of people I got into real estate for the cash flow, but I, I started with wholesaling and I started with flipping like a lot of folks do, you know, fast forward 15 years. Now we own 3,700 units of apartments. We’ve raised and deployed about 80 million and we have about 40 million deployed right now. And I’ve got 451 units under contract to buy by the end of the year. So we’re adding to the portfolio as we go. Yeah. So very meager start. But you know, there’s a lot of lessons out there. Very fortunate David to have a, a dad that was an entrepreneur, the big, big, big advantage coming outta the gate.

David Richter:

Yeah, no kidding. Cuz a lot of the people that we talked to either they’ve had that advantage and they had someone that went through that or they didn’t, and it’s like, it’s just, it’s fun to watch people how they springboarded into real estate and just the whole entrepreneurship type board. So that is awesome. I love that. I hope to provide that. I have a four year old daughter, so I’m hoping one day she’s able to say that on some podcast that I’m really glad that my dad went into this. And so I really love what she’s

Josh Cantwell:

Always home.

David Richter:

Yeah, right?

Josh Cantwell:

Yeah. That whole point.

David Richter:

Right? Exactly. It’s just, it is, it’s so funny having a four year old and like, you know what, the kid, you have no idea like that. It’s not normal for me not to be home like fitting a typical, you know, nuclear family or whatnot because my dad went off to work every single day and stuff and she’s like coming and ask, can you, can you play with me? You know, like in the afternoon. So I love that. Love that. What you what you learned from your father, because one of the big questions I asked and I’m gonna ask you the same things is what early lessons did you learn about money and how does that compare to how you think about money today?

Josh Cantwell:

Oh yeah. The fantastic question. Look, I, I, the first lesson for sure, David is I realized that building a business, like taking the chance to be an entrepreneur, you realize that when you sign up to be an entrepreneur, you’ve signed up for personal freedom. That’s really what you’re trying to do. Yeah. Personal freedom. It’s not about the money. The money will come. It’s not about the Ferrari and the Lambos and all that crap. Like nobody cares. Right. What we care about is personal freedom. And so when I got to see my dad take lots of time off at certain times of the year and then other times totally bust his ass and work late. You know, I got to see how he got to manage that schedule. Right. I also got to see going from sixth grade bankruptcy, we lived in a very small, like 1400 square feet house with a half finished basement you know, paneling in the basement, that type of thing.

Josh Cantwell:

And all of a sudden about the time I was in college. My dad bought like a 4,000 square foot house and he had a third car and he had a condo in Hilton Head, and I’m like, whoa, like what happened? I remember we walked into the house that they were buying, right. Because me and my brothers were so used to this little tiny ranch we lived in, when we walked into the house, they were buying, we all kind of looked at each other like, can we afford this? Cause my dad was also very quiet, so, okay. One of the things about money, I realized one was that watching him in business was the, the multiplication, the multiplicity of business and owning the company, whether it’s apartment units, whether it’s eCommerce. In my dad’s case, it was employee benefits. He was able to grow a business substantially and then use that.

Josh Cantwell:

And it grew very quickly versus just working like a W2 job. It’s very hard to have that exponential growth in a W2 job. Secondly, my dad was very quiet about his wealth. He, my dad was very quiet about the money that he was making. We had no idea. My dad still shopped at thrift stores. He would buy suits secondhand, even though he could afford thousand dollars suits, he would, we was so proud to buy a $50 suit second hand and have that tailored to fit him. He would come home from work and be like, yeah, I stopped at thrift store. Second hand, guess how much this suit was? I’m like, I don’t know, 500 bucks. He’s like, dude, I bought this suit for $28. <Laugh> so that was amazing. Right. But also at a young age, when I got into financial planning, I also realized that everybody has the same goal, David, which is just to save and invest wisely.

Josh Cantwell:

Right? People don’t need to hit flyers. I understand people betting on crypto and all the up and down with crypto and the big returns I get it. But really wealth is built long and slow. It’s built long and slow. That’s why I love apartments. And that’s not just making wealth David, but keeping it right. If you make wealth really quickly, I get it. There’s the Facebooks of the world, the Instagrams of the world, the Snapchats of the world make money practically overnight. But for most of us, the goal is not just to make it, but to keep it. And I think it’s actually easier to keep it if you make it slowly, right. Build methodically. Instead of looking for this massive growth all at one time is to grow. When I always say grow it methodically. I’m not talking about over 40 years, I’m talking about maybe over five or 10 years, that wealth is hard to rip away. Right? So those are some of the lessons I learned for sure. Watching him.

David Richter:

Oh man, I love that because I feel like that’s the, the difference between principles and just like the next new fad, it’s the principles of marketing will take you further than the next new Facebook thing or the next new Instagram, you know, like just always on the, the trend it’s are, do you have the principles down? Same thing with money. I love what you said there. It’s not 40 years, but it could be five 10 of building something that’s real. And that lasts a lifetime. I think, I think if you stop listening to the podcast right here and just said, you know, that’s what I need to do. I need to build my five year plan of what I’m going to do long term. You could be, you could go very, very far for a long time if building that foundation. That was incredible. So thank you. Yeah. I love that. So then do you now, Josh, do you have children right now? Or I do

Josh Cantwell:

A sixth grader and a fourth grader girl, girl. Yeah.

David Richter:

So I love that because another thing that I like to ask too, is what lessons do you wanna pass down to your children to the next generation about money and like what you’ve learned so far. And it’s, it’s definitely selfish since I have a four year old

Josh Cantwell:

Daughter. Yeah. Well, look, look, I’ve already been coaching my kids and talking to them about high school and college. Right. And I’ve already told them that I want them to go to college, not for the degree. I want them to go to college for the relationships. Like to me, college is the biggest networking party of all time, right? Like 60,000 people at Ohio state university or where I went to school, 4,500 people at Baldwin Wallace college. If you use school to build and make relationships for sure. Now as a 45 year old my closest friends are still from college and high school and even grade school. And I’ve definitely had gotten in on some businesses and some business deals and private investors from college. So I didn’t really use college. My dad even told me back then, David, like you don’t go to college to get a degree.

Josh Cantwell:

You go to college to get that piece of paper, to get your first job. Everything really need to know you’re gonna learn on the job. My dad was very direct about that. So I’d, I passed that same lesson back to my kids, go to college, get the degrees. You have the options, but become an entrepreneur. Leverage the relationships that you make in college. The people that you meet in college to make that next leap. And hopefully they get into entrepreneurship as early as possible. I I’ve never had a boss. David. I graduated from college, got into financial planning. I never had a boss there. I worked for only commission only for profit. I’ve never had a W2 income. So I hope my kids do the same thing. I don’t know if my kids are built for it. We’ll see over time. Mm-Hmm <affirmative>, I’ve certainly had a lot of ups and downs.

Josh Cantwell:

So some of the things I would tell my kids look is business wise and money wise. One of the lessons I think it takes to be a really big earner is that you have to have super, super time management skills. Okay. Yeah. So one of the ways that you can be a big earner and have a, make a money lesson is that you have to have super time management skills to be a CEO, to be a founder, to be an entrepreneur. That is something you must have because the bigger your business. Again, we have 3,700 units. We own 17 large apartment complexes. We’ve got several different, large property managers that work for us, several construction companies that work for us. You have to have super time management skills to do that. Doesn’t mean you’re working all the time, but when you are dialed into something with work, make sure they have super time management skills. Another thing I would say that’s a money lesson. I tell, look like when you sign up for entrepreneurship and you sign up to be an entrepreneur, you’re signing up to have that personal freedom, but you’re also signing up and understanding nobody’s coming to your rescue.

David Richter:

Hmm. Yeah.

Josh Cantwell:

Nobody, you’re a hundred percent responsible and accountable for your own life. You’re a hundred percent responsible and accountable to whatever you build. And a lot of that’s gonna be built with a great team, but you are a hundred percent responsible and accountable to that. And so these are some of the money lessons. I think that really start with personal reflection, personal how you manage your time, your mindset of nobody’s coming to your rescue, the mindset of service trump’s price. You can always charge more. If you have amazing service. These are some of the things I learned in business that absolutely impact people’s incomes. And I hope my kids learn those.

David Richter:

No, I love that. And something I wanna pick out there that is contrarian to most entrepreneurial type podcaster, like lines of advice is going to school and going to college and having, but being intentional. I think that was so, so great that you gave a different perspective of like, Hey, no, go to college, do that, but be intentional with what you’re doing and then know that it is about networking and those relationships and be very intentional while you’re there have fun, you know, do that stuff. But it’s also be very intentional with it, which, you know, a lot of people, you know, especially like you hear the Robert Kiyosaki and stuff and it’s like, oh, school’s just, you know, it’s not for everyone. Don’t do it and just go into it. But it is. I think, I think what you said, it’s perfect. It’s the networking and who can you, who can you provide value to once you get into, out there and know what your superpower is and know how you provide value to others and how do you bring those people together? I think that was something I wanted to pick out. That’s not typically on what you hear on entrepreneurial type podcast. So yeah, no, I thought that was great.

Josh Cantwell:

I think there’s two types of school, right? There’s definitely the traditional college, which if my kids want to do that, want to go, like I’m very supportive, but I’m a huge fan of the weekend warrior boot camp.

David Richter:

Oh yeah. Yes.

Josh Cantwell:

Like real estate, eCommerce, raising money, lifestyle investing – so many different boot camps. And especially now that so many of ’em are virtual. You can get access to amazing information for a few hundred dollars or a few thousand dollars. If you buy a ticket and you have to travel somewhere that again, relationship building and learning together and having fun, right. Meeting new people and going out and having a blasting new cities. Like I, I just got, I got lucky that my dad really advocated for traditional college and my dad advocated for entrepreneurship. I went to, while I was in high school while I was in college, I saw my dad going to Zig Ziglar conferences. Like, you know, Brian Tracy Conferences, listening to books, you know, the, the university on wheels like Brian, Tracy used to talk about in the car. My dad did all that stuff. And my dad was a very much a W2 earner most of his life. And then when he was in his fifties, he started these companies and our, my, my life has forever changed because of it. And that was the mix of traditional schooling as well as weekend warrior schooling, as well as like, you know, understand, you might go into debt to get a traditional degree, but the networking that can come from it, that was a perfect mix for me. It’s not right for everybody, David, but it definitely worked out for me,

David Richter:

Man. I love this. I mean, if you’re listening to this, it doesn’t matter your age. Doesn’t matter where you are right now. You can get that education, whatever you want. And it’s not too late to start and it’s not too early to start like go out there, see how you can provide that value. I think it says, this covers anyone who’s listening right now. You can go out there and make something, do something. Don’t be afraid to take that leap and bet on yourself. I love what you said too. It’s your, it’s your accountability. So if you know right now, if you have that fear, it’s usually that fear that’s inside of you because you don’t trust yourself. But once you get over that hump and the mindset and going down your personal journey, it becomes a whole lot easier to bet on yourself. When you say I’m gonna do it, I’m gonna make it happen. I don’t care what it takes, but I’m going to do it. So absolutely love that. What

Josh Cantwell:

Expectation I think is important. You know, I think that as parents, especially entrepreneurial parents, we’re trying to build something special for our own lives, for our kids, our employees, our staff. Yep. But I’m also, you know, I think you’ve gotta take that extra effort. If you have young kids or grandkids or nieces and nephews, or just, even if you don’t volunteer at a school, go, go give a talk at a high school or a grade school or a college and expectation is so important. Right? So I expected because I watched my dad, I didn’t say a lot, but I just got to observe him that I expected to be in the top 1%. I expected to be the top of my class, get good grades. I expected to have success. Like I, I never thought any different, like I never thought I was just gonna be middle class and just get by that.

Josh Cantwell:

It was never, it was never in my vocabulary. It wasn’t in my DNA. It was never an option. And it wasn’t like my dad said, you have no option. You must be successful. That wasn’t it at all. It was just, that’s the standard, the example that he said. So I think as parents and as adults, we have an obligation. I feel to give that back to the next generation and talk to them about expectation. You should. There’s no reason why you can’t do it. I tell people, look, make a million bucks a year. What makes you so special that you can’t do that?

David Richter:

Right?

Josh Cantwell:

These are lots of people who are not special, who are making a million bucks a year who have a million dollar business. Yes. They’re not special. So why are you so special that you can’t do that? Because there’s so many people who are just very normal average who just work hard, take responsibility that build amazing companies. They can do it right. A little bit, sir. Walk, the example is big, but the expectation I think is just as important.

David Richter:

Oh yeah, no, I love that a hundred percent. So let’s for the last few minutes here, let’s talk a little bit about Profit First and, and apartment investing. So tell us about that setup and kind of taking a hard pivot here too. Now that side of the business of managing the money from that point of view and using the Profit First mentality and the Profit First system. Can you just tell us how you use that from the apartment side of things?

Josh Cantwell:

Absolutely. Look, Profit First had a big impact on my life couple years ago when I went through it. I remember I immediately, after listening to it, I was working out. I was in my basement. I called my CFO. I’m like, Roberto, we’ve gotta set up all these accounts, Profit First. This is the way to do it. And we didn’t adopt it exactly, but we’ve, it had an impact psychologically on how we were gonna manage the building. So when we buy an apartment building, I have an apartment building that we’re closing on in about 40 days. So that deal we’re gonna buy for 9 million. We’re gonna put in about a million million, one in improvements. So those are hard capital improvements, very similar to, if you have an eCommerce business and you’re buying inventory or you’re building your website or you’re setting up your Facebook ads, you’re doing the, the, the hard work of building the business that for us is improving the building, improving the units, adding new roofs, adding, you know new amenities, those kind of things to really harden the asset.

Josh Cantwell:

Then when the building is hardened, you could charge more money. Mm-Hmm <affirmative> you can raise the rent. Yep. Right? So it’s like, okay, if I have an e-commerce business and I’m selling crafts arts and crafts, well, maybe at the beginning, you’re just trying to get your first customer. So you charge less. Then you’re not making maybe a lot of profit, but over time they have a repeat customer. You upsell things. Maybe you could charge more, you have more established, you can raise your rates. So for us, it became, okay, we’re gonna take one account. We’re gonna set up one kind of Profit First account, just for capital improvements. We’re gonna take this million dollars. We’re gonna close on the deal. We’re gonna take a million bucks that we’ve raised from investors. And we’ve gotten from our lender. We’re gonna set that aside in a CapEx account.

Josh Cantwell:

Okay. Mm-hmm <affirmative> and the money’s gonna come out of there. Then we identify, we said, what’s the hard regular recurring costs, the cost of labor, the cost of people. What does that cost every single two weeks. And that comes out of that CapEx account. So our cost of our VP of construction, cost of the labor, it’s all starting to come out of that account, that account, just like my Mike talks about you guys talk about in your book, David is that’s not gonna intermingle with our operating account. Hmm. Yeah. Okay. So then the operating account, the operating account is where the cash is coming in from the rents. And the rents are coming in. The rents are coming in to pay the debt, service, the expenses, the real estate taxes, the insurance, those kind of things. And we have a budget for all of that.

Josh Cantwell:

So we have a budget when we buy the building, we know David that the previous owner was managing the building a certain way. We see a copy of his financials. Well, our financials are totally different, right? So we’re gonna have a certain amount of like management fees, management, expenses, insurance property taxes. Then we have utilities, those kind of things. So as we improve the building, all the money for the, the hard improvements of the building are coming outta the CapEx account. All of the operating expenses are coming outta the OPEX account. And then our property manager is paid a percentage of the gross rents, the gross collections mm-hmm <affirmative>. So that property manager gets paid more money. The more money we make and collect the more money they make mm-hmm <affirmative>. So we’re all in the same boat row in the same direction.

Josh Cantwell:

Okay. Then the next step is, and this is, I guess, the there’s several other steps, but these are the big ones. This third piece is our limited partners. So when we buy a building, we syndicate it syndication, right? Where we raise money from private investors for the down payment, for the capital improvements, the soft costs and the acquisition fee. So we now have two ways that we, one way we get paid, and one way the limited partners get paid at closing, we take our Profit First by taking an acquisition fee. So we usually take a one or a two or 3% acquisition fee upfront. We take that off the top, just like the books. Talk about, take it off the top that goes into our HQ account, our headquarters account to pay our, our HQ headcount, which means our CFO, our operations managers, and we as owners takes the money out of the business, right.

Josh Cantwell:

When we buy the property. Okay. Yep. So that comes out off the top Profit First. So we take the money. Then the limited partners who put up the money, they are now being paid first out of the cash flow that’s coming in. So they get what’s called a preferred return as they get a preferred return from the deal they get paid before we get paid. Okay. Mm-hmm <affirmative> so we’ve essentially set up essentially for accounts or four buckets, where one is a CapEx bucket. One is the OPEX bucket. You have the acquisition fee bucket. And then out of the operating account, we have to pay the debt service first, the expenses second, and the limited partners. Third. Okay. Yeah. So these, all the buckets that Michael and you talk about in your books, and then finally, when we get to the point of the building being stabilized, it could be two years from now, four years from now, then we do a big refinance. We pay all the investors off, we pay them back and now it’s all profit.

David Richter:

<Laugh> right?

Josh Cantwell:

Yeah. It’s all profit. Cause now we have enough new cash flow to pay the debt service, to pay the expenses. And just now everybody’s being paid profit out limited partners, general partners everybody’s being paid. So that’s how we manage the building during stabilization. And that’s how we manage it during, when it’s stabilized and it’s throwing off lots of cash flow.

David Richter:

Yeah, no, that’s awesome. I love that because so many people <laugh>, it’s from all walks of life, all types of real estate investors, it doesn’t matter if it’s a single family or they’re doing rentals flips, you know, or multi-family, they’re always thinking, how does this apply to me? How can I do this? Then here we go. If you have any qualms or any questions or anything, this is how Josh is doing it with literally multimillion dollar transactions. This is how he just gave you some steps of what he does to separate those out, to make sure he knows his numbers, knows it from the cash perspective, knows there’s enough cash to pay the people, take the Profit First and make sure that that he’s actually they’re benefiting from this and that the limited partners are benefiting and that it’s actually all in sync. And he does that very clearly. And I, I love that because, you know, we work with a lot of different types of people and it’s like, okay, this works no matter what type of business you have, this just helps you more with the mindset of, yes, we can make this happen. We can see the numbers very clearly. And we can make sure that we are profitable on these deals and help to retain that profitability.

Josh Cantwell:

I have no problem paying out the limited partners, paying the debt, paying the operating expenses because I took the Profit First. When I bought the property, I got paid off the rip. So even if I don’t make a whole lot of money now for the next year or two or three, while we’re izing the building, I always got paid first. So because of that, I’m not like mad at my deal. Now that I’m working hard to stabilize it. Like I mad at my business. A lot of people get mad at their business because they’re like, I just keep sinking money into it. It never pays me back. And I’m just working hard and my money keeps disappearing into all these expenses. Well, look, if you take some of the profit off the top at the beginning, like we do, or like we talk about in all the books, right?

Josh Cantwell:

That is a way to psychologically win out of the gate so that you’re okay. Working late, working weekends, working harder to build the business, ultimately that you want. So for us, it’s like, look, we get paid. Like I I’ll probably this year, we’ll close on seven or eight large apartment complexes. We’ve already bought five or six. I can’t remember. We’ve got three more closing. So I’ll get eight times. Let’s call it seven or eight profit. First off the rip hundreds of thousands of dollars. You’re talking close to probably a million bucks at the end of the day, that is gonna come to me, come into the business to run it. And then I have no problem working my face off so that we can have a long term stabilized asset. That’s gonna pay us forever. That to me is psychologically is where we went off the rip. If you’re not doing that, you’re gonna despise your business. You’re gonna hate your business. You’re gonna hate to work in it. You’re gonna feel obligated to it probably going into debt because of it, because you don’t even like your company. Right. Right. Right. So find a way to get paid off the rip and the whole psychological part of running a business changes.

David Richter:

Right. And I love what you said there because that’s how many people work late anyways and work nights, the work weekends. And they are, they’re just hating it. Why am I doing this? This is ridiculous. And this is, you are at the stage now you’ve been implementing it and you are seeing it. And now you’ve got a system for it at these high level deals. But if you’re just starting out in real estate and listening to this, do it from your first deal, do it or wherever you are right now, your next deal, I should say, your next deal, implement this, start this, because then it gets easier. You’re get into that psychological habit of making sure you’re taken care of. So that way, when you’re doing million dollar deals like Josh, that way, you’ve got the right mindset and you’re not hitting your business at a whole different level, you know, with 6 0 7, 0 8, you know, like however many zeros it is that you can, you’re going to get to. So absolutely love that. That was great advice. That is

Josh Cantwell:

One piece. Like I started doing this on single family properties over ago. I would buy that property for a hundred grand. I was gonna put 35,000 of renovation into it. I’m into it for 1 35. I would borrow like 140 or 145 from my private investor to do that deal. I would take a 5,000 or a $7,000 acquisition to what I was basically doing was I was taking Profit First. Some of my future profit I was taking when I bought the property, then I wasn’t despising that deal as we were renovating it or fixing it up. So you could do it on a, on a rehab, a small single, or a small duplex, cuz I did that. And you could do it on a, you know, 170 unit or a 220 unit like the deals we’re closing next month. Mm-Hmm <affirmative> it doesn’t matter. You just kinda over raise or over borrow a little bit of money for a real estate deal upfront that there’s enough cash sitting in the operating account. Take a little bit of scratch off the top. Then you go into all your stabilization plans and of course the deal still needs a pencil. You know, if I was into that deal for 1 45, I would wanna make sure it’s gonna be work two 10. Yeah. Or two 20, by the time I’m done with it or 200, there’s lots of equity, lots of profit for everybody. So, but yeah, we started on really small deals when we started this.

David Richter:

Yeah. And I love that. I love just getting into that habit, its getting to that habit of Profit First and making it that psychological effect of, you know, I don’t wanna hate my business while I go through it. You know, like let’s enjoy this and if I do need to work late or do these things, then it’s like, ah, well we we’re taking care of, I don’t, at least I don’t have to stress about money while I’m working late. We’re just getting the deal done and getting it across the finish line. Right. that’s awesome. So you’ve provided a ton of value here. Just have one final question here. So Josh, you are, you raise a lot of capital. You’ve got a mastermind, a very elite individual. So how, what, how can our listeners who, if they wanna connect with you and how can they provide value back to you?

Josh Cantwell:

Yeah. So just visit our website FreelandVentures.com. There, you know, we can work together like, look, I’ve, I’ve had a big coaching business before I’ve strategically wound it down just because I wanna focus on doing deals. Hmm. So, you know, I could partner with your listeners. They have deals, especially the bigger, the better for me. Like they’re looking for somebody who’s maybe wants to cosponsor a deal, raise capital. I’m looking for those kind of partnerships. You wanna be a passive investor. That’s great. If they’re an intermediate to advanced investor, looking to kind of scale up into apartments, we can connect that way. We can just go to our website, FreelandVentures.com. We can connect there and you know, I’d love to do deals. It’s all about partnerships, big deals. There’s so much equity. There’s so much profit. If they’re done right, you can splice the deal up with lots of people and everybody makes a lot of money. So happy to do that.

David Richter:

Awesome. So there you go. And there’s this website and we’ll make sure that that’s in the show notes too, but Josh, this has been incredible. Thank you so much for coming on today and giving people encouragement for your Profit First journey and what you’re doing now. Thank you so much.

Josh Cantwell:

Hey Dave, thanks for having me on,

David Richter:

Thank you so much for listening to today’s show. If you found this episode valuable, could you do me a quick favor? Could you give us an honest rating within iTunes and be honest, you could say whether you liked it or not. And obviously with iTunes, the more reviews and ratings we have, the better it is for other people that are searching for Profit First and a podcast. So we’d love to be ranked on there and that’s thanks to your help. So we would really appreciate that if you would like to go give us a rating. Also, if you’re looking to connect with us further, I would highly recommend checking out our Facebook group Profit First for real estate investors. And that’s literally what it’s called. So you can type in Profit First for real estate investors and you’ll be able to find <laugh>, you’ll be able to find our Facebook group right there.

David Richter:

So come join active real estate investors who are supporting each other and growing their businesses and profits together. That’s what that group is all about. The link should be in the description below. And if you’re interested in working with us and implementing Profit First in your real estate business, we offer coaching and guidance. So if you wanna work with someone who’s actually Profit First Certified and who works right now currently with real estate businesses, you can actually go start your application process by going to simpleCFO.com/apply or just go right to simpleCFO.com. And there’s an applied button right on there. If you wanna actually start your Profit First journey with someone who can actually walk you through those step by step and help, you know, and grow your cash flow. Thanks again for joining us for another episode of the Profit First REI Podcast. See you next episode.

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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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