Effective Marketing for Real Estate Investors with Brandon Bateman

October 17, 2023

Title: “Effective Marketing for Real Estate Investors with Brandon Bateman”

Episode: 202

There are a lot of things you could do if you have money, but what to do if you don’t have money?

No worries! In this episode of Profit First for REI podcast, we have Brandon Bateman. He is an expert marketer and has done many things in real estate.

He is also an expert in trial and error and goes over the frameworks of inbound-outbound marketing. Listen as he shares how important the numbers are in your business and what most real estate investors struggle with.

Enjoy the show!

Key Takeaways:

[01:00] Introducing Brandon Bateman

[05:10] What does the CFO do?

[07:27] PPC, SMM, SEO

[12:24] Inbound-Outbound Marketing

[19:15] What inspires Brandon to do marketing

[24:27] Brandon’s book recommendation

[29:06] Connect with Brandon Bateman

Quotes:

[05:15] “What we do is we help investors find success with their online marketing.”

[12:38] “You could put all marketing channels on a scale from inbound to outbound.”

[15:01] “If you are just starting up, I think the question you have to ask yourself is, ‘What do I have a lot of, and what do I have very little of?'”

Connect with Brandon:

Website: https://www.batemancollective.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:

Speaker 1 (00:00):

Before this, I was grinding away. I was passing out cards, putting up posters, saying, come to my English classes, come to my English classes. I pressed a button online, spent two 50 bucks and got a result that was over 10 times larger than what I could do, grinding all day, every day for a month

Speaker 2 (00:14):

Speaker 1 (00:15):

I wanted to. So what I started to see with that is the power of online marketing, the ability of the leverage there, how many people you can reach.

Speaker 3 (00:25):

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 r e I 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 2 (00:52):

Oh man, I really love this episode for you because if you’re wondering how in the world do I even get deals in the door, Brandon Bateman is an expert marketer. He’s an expert person of trial and error and has just done a lot of things in the real estate investing space, and he goes over the frameworks of inbound outbound marketing, all the different things you could do if you have money, here’s what you do. If you don’t have money and you have more time, here’s what you do. So jam packed with so much value. I’m really looking forward to this. And then he tells you about how important the numbers are in your business and what he sees most real estate investors struggle with. So please listen to this episode. Take something away and I promise if you listen to some of this stuff, you’ll be able to go out there and maybe get your first deal or if you’re already doing deals, get your next one from a different source.

(01:37):

Hey everyone, it is David Richter here again with the Profit First r I podcast. Have a special guest, Brandon Bateman, and really excited about this because a lot of our clients use Bateman Collective. He runs P P C ads and helps a lot of people with their marketing in the real estate investing space. That’s why I wanted to have him on here and talk about that and talk about just the things that we all struggle with bringing the leads in and just the field of marketing. So we get to talk about that today. Brandon, thanks for being on the show.

Speaker 1 (02:06):

I’m super grateful to be here. David, likewise, a lot of our clients have worked with, worked with you guys. I’ve been following what you do for a little while, and yeah, super, super interested and grateful that it exists in this industry where it’s so needed. So anyways, I am super excited to reconnect with you. I know it’s been a minute since we’ve talked, but excited to reconnect and do this podcast

Speaker 2 (02:29):

And I’m like, because usually I don’t go seeking for people. They’re usually either brought to me for the podcast, but I wanted to go and get brand because I hear such good things from our clients about what you’re doing, which is really nice. Then it sounds like too, people are working with you, with us, and then you made the comment of like, I’m glad there’s this type of service out there. Why do you say that? I just wonder why in real estate in general, what do you see as an issue when it comes to the finances and the money?

Speaker 1 (02:57):

Well, let’s start with the first part. Very few of our clients have a C F O

Speaker 2 (03:02):

Because

Speaker 1 (03:02):

Small businesses in general kind struggle with having CFOs because CFOs kind like this big business title and usually you don’t really need a whole one when you’re a small business. Now, that doesn’t mean that the things that the CFO does aren’t really, really important and critical to your business success. It just means that you don’t have enough of that type of stuff to have a full-time person most often. So anyways, that’s why it’s super needed, but then also, I mean, what business do you know that’s more difficult from a cash flow and financial planning standpoint than a real estate investment company? Not only do you have your returns on your marketing channels going up and down and you have acquisitions doing better and worse, and sometimes you’re not able to disposition properties properly, but then you also, you have these cash conversion cycles and all the different exit strategies involved with that and a limited amount of capital, and at the same time you’re taking down rentals. It’s just an insane business where I see those credit cards decline. I’m the guy that sees the credit card decline and thinks, well, somebody’s having a hard time with cashflow,

Speaker 2 (04:07):

And

Speaker 1 (04:07):

Then they go dark for a couple months and then they come back to us and say, Hey, sorry, had a little bit of a tough time, but I realize we need to get our marketing back on and that type of thing. So it’s a wild business.

Speaker 2 (04:19):

Yeah.

Speaker 1 (04:19):

Oh yeah. People say how things are going in the business. I like to think that a lot of times I know how they’re actually going, if they can pay the bill or not, and there’s something to that.

Speaker 2 (04:30):

That’s a really good point. Yeah, I think you hit the nail on the head that if most people in the real estate investing world, especially if they’re doing any type of crazy deals, the cashflow is so up and down, but now that I appreciate that and that’s why we are doing this thing and trying to get this information out. There you are on the other side of the fence of it doesn’t matter what we do if there’s not money coming in the door, so we got to get money in the door. That’s why I like having people like you on because I want our listeners to be able to generate deals and generate that money. So tell a little bit about what you do. We’ll give the links at the end. I’ll let you go into your website, but tell a little bit about what your company is set up to do.

Speaker 1 (05:11):

Yeah, great question. So obviously, like you said, different side of the fence. What we do is we help investors find success with their online marketing. Interesting fact, the number of people who are going online and searching on Google to find an investment company to work with searching these motivated keywords has over tripled in the past four years.

(05:33):

So there’s this interesting growth of, it used to be that the average motivated seller didn’t know how to use the internet. You had to call them, you had to text ’em, you had to send ’em direct mail, and it’s kind of changing. So we’re seeing this sort of shift happening in the industry, which how it goes in real estate, whatever happens is just what happened in the rest of the world 10 years ago. So a lot of industries have already seen this where I tell people that in the industry that I’m in, direct mail is popular and they’re like mind blown. That was true in my industry 10 years ago, 10 years ago. But changes, but obviously because of the older demographics that we’re marketing to change is slow, but more and more sellers are finding the companies that they do business with online. So a big part of the strategy for so many of our clients to their lead generation is how do you figure out what online channels to be in? How do you actually maximize your results in those channels? We have done for you services in three specific channels. We do P P C, Facebook ads and SS e o services, and that’s kind of the three pillars of how motivated sellers will find you online. We help our clients basically win with those marketing channels. If you think about it from a profit first standpoint, let’s just say you’re putting 25% of your revenue into marketing.

(06:49):

If you can generate less than four, one return, then your company is by default shrinking because then you’re going to have less revenue and then you’re going to have less budget, and then you’re going to have less revenue. Then you’re going to have less budget. You kill your company. If you have a greater than that return, then you’re growing as a company. So that’s how we directly impact things. The idea is to stretch the marketing budget as far as you can possibly stretch it and grow the company.

Speaker 2 (07:13):

What is P P C? If someone’s listening to this, what’s P P C? Facebook ads is pretty self-explanatory, and then SS e o. So explain those acronyms for people if they’re listening and they’re just new to the real estate game or new to the internet.

Speaker 1 (07:26):

Yeah, welcome to the world of digital marketing where we have a three letter acronym for everything you could ever Imagine. Yes, oh my goodness, I should have used all of the three letter acronyms. We got P, P C, SS, M, M, and then s e o. So P p c, pay per click marketing. What that means is that these people are searching on search engines. Google’s the primary channel that people do the P p C through, so you’re searching for Syne a solution. Maybe you’re looking for a way to sell your house fast, and when you’re searching that there’s a bunch of advertisers looking to get clicks from you to go to the website, maybe fill out a lead form, et cetera. So it’s called pay-per-click advertising because it used to be that you pay per impression to show my ad I have to pay.

(08:15):

The neat thing about P P C is you actually only pay when someone actually clicks on your ad, which just a little bit of a change in how the platform works. So that’s kind of P P C. It’s a lot of people would call it paid search marketing, search engine driven. You’re paying for it, social media, marketing, Facebook ads, whatever we want to call that. Obviously there’s more platforms than just Facebook, but in this industry it’s going to be Facebook. That is the strongest that we found for finding motivated sellers. A little bit different, not coming to you. They’re not searching. That’s why people love P P C. These people are actually going to search engines and they’re looking for you. How many times have you sent somebody a direct mail card and they call you all upset saying, don’t mail me a kid. Nobody searches on Google for an investor and then calls you to yell at you because you showed up on Google when they were making the Google search,

(09:00):

Right? It’s like they were going to their mailbox just hoping to find a postcard from an investor. So it’s a different kind of lead versus Facebook, you’re going to be a little bit more, a little bit less qualified leads in general because you’re dealing with somebody who you still reach them with an ad and you reach a bunch of people, and some of them decide that they’re interested and they come through the funnel just like with most forms of marketing. The last one is s e o, which is essentially the same as P P C in terms of the type of lead that you get. The difference is you’re using Google for what it’s actually made for in an organic sense, which is when somebody searches on Google, what they want to find on Google is the most relevant and authoritative result to what they’re looking for. SS e o is the game of instead of paying Google to let you show up, it’s the game of convincing Google that you’re the most relevant and authoritative result. So you get to show up without actually paying them. Hence, SS e o is less expensive in the long run than P P C to get the same type of leads, but it is a long-term game. It’s not something that you just turn on and off like a light switch like you can with P P C.

Speaker 2 (10:04):

Okay, and then do they feed into each other? If you have P P c running does see, and Facebook ads, because you do all three things, do they feed off of each other in any way, shape or form?

Speaker 1 (10:17):

Yeah, absolutely, and you’ll find that people will often see you or interact with you through multiple mediums before they reach out to you, and this becomes more and more true the more dominant you become in your industry. I’m sure you’ve even seen this yourself, David, as you become more popular in the industry, and maybe it’s something like us, when people apply to work with us, we ask ’em where they found us. They’re just everywhere. I can’t even remember which one was first. Right? I’m sure you have the same situation where you’ve got all these different mediums, but when you’re smaller, that’s not really true. So yeah, they definitely interact. There’s certain things, for example, someone can find you through P P C and maybe they don’t fill out your form. You can then go to Facebook and do something called retargeting where you continue to show them ads, and as you show them ads, they might become more likely to convert. So maybe you paid $30 to get ’em to click on Google in the first place, and now on Facebook, each time you reach ’em with an ad, it costs you 2 cents, and through that process, you’re able to eventually turn them into a lead or nurture them over time. I’m sure you’ve had that experience. You look at this pair of shoes or whatever, and then it feels like it follows you around the internet.

(11:25):

If anybody wants a fun experiment, go to abatement collective.com and tell me you don’t see my face within the next 30 days in your Facebook feed somewhere.

Speaker 2 (11:33):

Yeah, yeah, that’s very true. It’s like I don’t even want to say some of the marketing things I allow my phone’s going to hear and I’m going to have all these ads for different things like, oh, the shoes. I just said the word shoes. Oh shoot, my shoe’s going to be full of that stuff. But no, that’s awesome. I love hearing how it’s cohesive because I think people, especially when you first get into it and you come from a zero knowledge base, like, Hey, I’m just becoming an entrepreneur, just becoming a real estate investor. They hear these words and they hear the acronyms and they’re not sure what should I invest in? What should I really pour my money into and let’s just stick to, no, I want your opinion in marketing in general, what would you say if someone’s just getting started out, where would the best marketing dollars be spent first?

Speaker 1 (12:19):

Ooh, this is interesting. So brand new investor not doing a lot of business yet. Exactly. Where would you best spend your marketing dollars? Okay, I’m going to map all marketing channels. I love frameworks, by the way, so you could be really annoyed by this or maybe you’ll be really interested by this. It depends on your personality. So for those of you that aren’t interested listening, I’m sorry, but you could put all marketing channels on a scale from inbound to outbound. Inbound, meaning people are coming to you outbound, meaning you’re going to them. So the most outbound of all channels is probably going to be like door knocking or something like that, right? It’s like the most,

Speaker 2 (12:57):

You’re literally going to them and knocking

Speaker 1 (12:59):

On your door.

Speaker 2 (13:00):

You’re

Speaker 1 (13:00):

Outbound

Speaker 2 (13:01):

To them.

Speaker 1 (13:02):

Yes, slight amount, more inbound. Maybe we’re doing cold calling because you could do it at a higher volume and they’re calling you back or whatever. Then we go to texting, maybe a little bit more automated. Then we jump into things like direct mail where you’re going to them, but in this kind of automated way where you send ’em a postcard and then they call you back. So a lot of people would say that’s inbound marketing. I would call it straight in the middle around there. We’re going to have Facebook ads as well, and then we’re going to start to move into these other things like maybe TV, radio that are a little bit more inbound than that because they’re actually calling you and they tend to be a little bit more of a qualified lead, and then we’re going to get to P P C and SEO O.

(13:41):

Those are going to be far inbound as far as you can get. So here’s the basics. Some people say, is inbound marketing better? Is outbound marketing better? Et cetera. I can tell you from a financial standpoint, because I’ve actually viewed, and I’d be actually really curious for you to do this study on yourself, but I’ve viewed full p and ls for people who are heavily outbound driven versus inbound driven. Here’s what happens. If you have a heavily outbound driven company, what’s going to happen is your marketing expense is smaller as a percentage of your revenue,

(14:11):

Your operations expense is larger as a percentage of revenue because there’s a lot of labor involved with those things, and you’re going to have a lot more work massaging leads down the funnel, talking to people who aren’t ready. You’re going to have a longer cash conversion cycle, et cetera, versus if we get to inbound, what happens is usually marketing’s a larger line item on the p and l, but then operations is smaller. So for example, given the same number of acquisitions managers, you might be able to do a larger number of deals because it’s not as hard to work those deals down the pipeline. So on the far outbound side, the p and l just reflects the reality of the situation and the reality that it’s reflecting is that outbound is less expensive, but takes a lot of time. Inbound is more expensive, but doesn’t take that much time if you’re just starting out. I think the question you have to ask yourself is, what do I have a lot of and what do I have very little of? If I have a lot of people starting out, they have a lot of time, not very much money.

Speaker 2 (15:13):

Speaker 1 (15:13):

That was me, you know what I would be doing? I would be hustling in every way I can. I’d be pulling lists, knocking doors, cold calling people myself, right? I’m looking for the cheapest way to get a deal done. That’s going to be extremely outbound versus if I’m well capitalized and I don’t have that much money, then I’m going to look towards inbound channels because I don’t want to waste my time doing that stuff when I can have leads coming to me and maybe it’s a little bit more expensive, but there’s still plenty of revenue to cover that cost and I can do it. So that’s where a lot of people don’t start there though. So a lot of people start with outbound channels, they hustle, they grind, they get to a point in their business where they’re doing two to four deals per month and they hate their life, and then they start to switch to inbound channels. It’s a very common real estate investor path

Speaker 2 (15:52):

That makes sense. Ah, man, that’s a really good answer. That gave you, if you’re on the other side of this, no matter where you are on that spectrum, it gave you a framework. If you’ve got less time but more money, do the inbound marketing and pay for that to get that in, and you got to close the deals. But if you’re jumping into real estate, you don’t have a lot of money, but you have more time. Then it’s like the outbound, you’re going to be door knocking and driving for dollars and going out there and doing that type of stuff where it’s like, okay, trying to drum up the deals where you can slowly switch to more inbound marketing because there’ll be better leads and less cash conversion from a lead to actual money in your pocket. So I think that was a great, I love that framework especially, and then I would think too, we work with some franchisees of different things.

(16:39):

That’s where it’s like, Hey, I got a W two job and I want to jump into real estate and I’ve got a lot of money, but I don’t want someone else to handle my marketing for me. So they go into the franchise model. So it’s like you’ve got the broad spectrum of inbound, outbound, and then you’ve got people handling it for you a hundred percent to get it in the door. So I think that was a very astute way of putting it, and then I hope if you now are wondering which way you should go, I think that’s a great framework. Even if you’re in the thick of real estate investing and you’ve been down the path before, you can really say, do I have, where am I on my journey? Do I have less time right now or less money? And it’s like I need to be able to pour into the things that either take more time or more money and then be able to do that at this point to get the better return. Then you can use someone like Brandon because you work on a lot of the inbound channels. Yours fall a lot inside of that inbound marketing, correct?

Speaker 1 (17:35):

Correct. I mean, it would be argued, a lot of people will say that they do inbound marketing,

Speaker 2 (17:39):

But

Speaker 1 (17:40):

There is nothing more inbound than search engine marketing,

Speaker 2 (17:43):

Right? Yeah. They

Speaker 1 (17:45):

Literally not just are they clicking, they literally searched for the page where they could find the link where they could click on your thing. There’s nothing more inbound through search engine leads. Right now our clients are averaging 11 leads per contract, and 11 leads is gross leads, meaning some of those are spam, some are completely unqualified, so it takes 11 people to have four that are legitimate opportunities to have one that goes under contract versus with cold call, you’re looking at 30, 40, 80 leads.

Speaker 2 (18:13):

I was going to say that leads per contract range from, yeah, 30, 40 to a hundred. I’ve heard. It just depends on, it depends on a lot of things too. Depends on the skill of you talking on the phone. It depends on the lead source that you actually have for that outbound marketing. But yeah, that’s a good statistic. I like that. I like hearing the numbers obviously as a numbers guy, so in the inbound you can have a much lower lead count but have a much higher deal conversion rate of like, okay, takes 11 leads to get the deal in the door, which just think about that. Think about that. If you are listening to this and you got 50 leads in, would that be four and a half deals for you? It’d be like you’d be doing so then you just work it backwards. So that’s really cool. I like having those numbers and I really like that. Thanks for explaining P P C and SEO O and the Facebook, the outbound, the inbound. I have some personal questions for you. What inspired you to get into the field of marketing? Why marketing?

Speaker 1 (19:17):

Interesting idea. I don’t even know how far back you want me to goth. Yeah, my first word was marketing.

Speaker 2 (19:25):

Marketing as a baby. There you go. That’s how we knew.

Speaker 1 (19:29):

That’s how knew. One of my earliest experiences with marketing was when I was doing a service mission for my church

Speaker 2 (19:39):

Speaker 1 (19:39):

Moldova, which if you don’t know a lot about Moldova, this is Eastern Europe, it’s like the poorest country in all of Europe, at least at the time that I was there. I don’t know what the word is now, but anyways, if you grew up in Moldova, you and I have a mutual friend, Mike is Lotnik, who’s actually from Moldova

(19:57):

I was talking to a little while ago, and he’s a funny case study for the brain drain that exists there because basically people are told from birth, if you want to be successful in life, get out of here. That’s sort of the path, and they want to learn English. So one of the things that we did, I spent two years between Romania and Moldova. One of the cool things I did in Moldova is I taught English classes. That was something that I did to help the people there to better their lives is if you can learn English, you have a lot more opportunities. So I’m a native speaker of English, let me speak English class, let me teach some English classes, and we would have 30 ish people show up to this little villa where we taught English classes each month. So I decided this is back in 2014, which if you know the world of Facebook ads, that’s early stages before it was popular

(20:48):

And not just that, this is eastern Europe where the purchasing power is a little bit lower, so the number of companies that are wanting to really advertise there are pretty low. So I thought, let’s do some Facebook advertising. I don’t know much about marketing, but I’m just going to make an ad up and see what I can pull off in 30 minutes, and I put $250 to it. That $250 bought me 800,000 impressions, which some interesting note, the population of the city that we were in, the main city in Moldova is about 800,000 people, so that’s great. It was insane if you had a Facebook account in Moldova, like you saw this ad sad, right? So it was so cheap and we had 500 people show up to these English classes.

(21:30):

I had this little villa. We could hold 40 people at a time if we crammed them in, and I didn’t even know how many people would show up and then 500 people showed up, so we just had to cancel the class. We’re like, we can’t do it. There’s too many people here. So I brought people in and scheduled all the other days, and I became a full-time English teacher to teach these people English, and then eventually did the same thing over and over again and found that I could impact a lot more people. Now, keep in mind before this I was grinding away. I was passing out cards, putting up posters,

Speaker 2 (21:55):

Saying,

Speaker 1 (21:55):

Come to my English classes, come to my English classes. I pressed a button online, spent 250 bucks and got a result that was over 10 times larger than what I could do, grinding all day every day for a month

Speaker 2 (22:06):

Speaker 1 (22:07):

I wanted to. So what I started to see with that is the power of online marketing,

Speaker 2 (22:12):

The

Speaker 1 (22:12):

Ability of the leverage there, how many people you can reach, and that was kind of like my first thing. And then I eventually went to college and while I was in college, I was a sophomore when I started this company, I just said, I want to do marketing. I want to learn more about that. I want to learn how businesses can be smarter with the way that they generate profits. And that’s how I got into this. So I started grinding away at that. I found this real estate niche that was six years ago. So the rest is kind of history, but that’s the journey.

Speaker 2 (22:38):

That’s awesome. What a great story. Then it just showed you that, okay, door knocking versus the inbound marketing, it could take you a long time and you can grind, but then can you do an ad or do something with them, then be able to get the elites to come to you. That’s why with this too, you have to be careful of spending the money. You have to be ready for leads to come in and you have to be ready to take the calls and to answer and to actually walk them through the process of potentially buying their property from them. So it’s like you got to wait. You got to make sure that you are ready for those inbound leads he’s going to perform. If you work with Brandon especially, that’s where I see, I get to see that our clients are using him and then having success.

(23:20):

So that’s the other thing. If you’re new, that’s why sometimes it’s better to do the door knocking at first when you have more time than money because you’re getting the skills, you’re doing the repetitions, and then you can go to Brandon and say, okay, I’m ready for the fire hose, bringing the leads on, and then you could spend the money on bringing the people to you. But what a great story. Just a couple last questions. Is there a person or a book that’s inspired you along your marketing journey or that you look up to in the field of marketing?

Speaker 1 (23:51):

Oh, interesting. A marketing book. So the wild thing, I mean, everybody has their things that they learned from. I’ve went through a lot of trial and error a lot less through books when it comes to marketing. Although what I can tell you is when it comes to running a company that I’ve learned almost exclusively from books, so it is interesting. So marketing books, I don’t know quite as much. What I can tell you is books that have made a really big impact on,

Speaker 2 (24:21):

Go ahead.

Speaker 1 (24:22):

Me personally, maybe I’ll just share a few buy back your time. I read recently from Dan Martel, fantastic book, if you haven’t read it. There’s another one called the, if you’re looking more on the religious side, I myself am a believer in Christ and it’s sort of like business slash a little bit religious. There’s a book called The Ruthless Elimination of Hurry that has made a big impact on life recently. John Mark Premier,

Speaker 2 (24:52):

Right? Yeah.

Speaker 1 (24:54):

Yes, yes,

Speaker 2 (24:55):

Speaker 1 (24:56):

The fantastic book

Speaker 2 (24:56):

Book too.

Speaker 1 (24:57):

Yeah, that’s a really good one, man. And then, I mean, there’s so many, right? There’s good to great’s, not how so many good books, man.

Speaker 2 (25:06):

Do you have a marketer that you look up to while you’re on this journey or is it No Nose to the Grindstone trial and error. I’m just building this thing. Screw it all, everything else.

Speaker 1 (25:16):

There’s a lot of different segments within marketing. Here’s the wild thing, and if we get deep, because everybody knows, you can say, Hey, I looked at what your clients are doing and they’re having great results and stuff. Nobody really knows how we’re doing it. We try to share as much as we can, but most of what we’re doing is actually stuff that you’ll never ever find in a book

Speaker 2 (25:39):

Anywhere.

Speaker 1 (25:39):

Most of the stuff that has made a really big difference for our clients, the reason you won’t find it ever in a book is because it wasn’t relevant a few years ago. That world is evolving so quickly and because it’s so highly niche specific real estate investing, marketing stuff that it wouldn’t even apply into other niches super well. So a lot of marketers not only don’t know it, but don’t even have the need to know it, and that’s why they don’t know it. So yeah, a lot of the marketers that people look up to are more brand marketers, copywriters, that kind of thing and all that stuff. I hire people that are great at that. It’s not my thing. You know what? I really love data, getting deep in data and understanding how we can use data to fuel better results, and honestly, the best thing that I ever learned to teach me that was data science and to courses on data science if I could recommend anything specific. But yeah, it’s weird because people ask me all the time, you’re a marketer, you have marketers that you look up to, and honestly, I probably should, but I just don’t do a lot of that. Mostly right now I’m running a business. It happens to be a business that does marketing, but my real passion data and my real profession, leadership

Speaker 2 (26:55):

Leadership,

Speaker 1 (26:56):

And that’s what I focus on.

Speaker 2 (26:57):

That’s great. What a great answer. This is, I love this because you’re focused on the actual business side, and it’s not just all about the marketing. You just happen to have a marketing business, but you’re building a business. And man, if you’re listening to that, that’s gold. That is gold. You’re not a real estate investor. You’re a business owner who happens to be in real estate investing and wants to put that moniker on too, which is fine, but then also remember, you’re a business owner, so that is great, and I love both those books. Those are really good book recommendations. I love what you said too, it’s all trial and error. That’s what people don’t understand is you have to go out there and see what works and what doesn’t. Just because other people door knock and they got three that day does not mean that you will.

(27:41):

It doesn’t even not for paid advertising, it’s also for the outbound stuff too. So it’s like you have to see what really works for you where I love that you gave that story when you were younger of you paid the money, you did that the Facebook ad and 500 people showed up, but that’s not going to happen every time. And it’s like you got a trial and error. Why did this one resonate? What happened here? What did we do right here? What did we do wrong? Asking those questions. I think this is really good because even if you’re a real estate investor, don’t own a marketing company. These types of questions to ask yourself, and of course, I love what you said about data. I don’t care what the business owner tells me, show me your numbers and I’ll see how you’re really doing. That’s not going to lie.

(28:26):

So that’s where we are. One accord there. Know your numbers, know how your business health really is. Look at those numbers, and he recommended going into data science if you want to dive into it. So yes, there you go. There’s one practical way. Or you could use people like branded on the marketing side or simple C F O on the financial side of if you want to go out there and do the sales and the stuff that’s going to make the money, we want to help you get more deals in, and then we want to help where the money’s at. So Brandon, this has been awesome. That has been some great information. What is the way to get ahold of you and your company if people want to look into your services?

Speaker 1 (29:06):

Yeah, great question. You could go to bateman collective.com. That’s probably the easiest way, right on there. You can schedule a call with somebody from my team, people that you probably know, David, considering you see ’em everywhere. Yes,

Speaker 2 (29:20):

Exactly.

Speaker 1 (29:20):

So yeah, you’re more than welcome to go to bateman collective.com and do that If you’re kind of interested, don’t really know if you, you’re ready for that step. A great thing to check out is our podcast. You can find that on podcast dot bateman collective.com. It’s called Collective Clicks, and we break down everything we do for our clients. The reason we do that is by the time you actually know all of it, you probably won’t want to do it yourself. So we break it down so that you can understand. I think understanding those aspects of your business is super important. What most people are doing, I find before they come to us is they’ve spent a long time trying to make marketing work. The problem is they’re not actually solving the root problem that they’re dealing with in their marketing, and that podcast goes a lot into how do you diagnose those different things? What are some different strategies that are working? And it’s always up to date and we interview some really cool people too. So yeah, highly recommend it. If you’re doing a form of online marketing or you just want to become familiar with it, you want to become competent and be able to talk the talk, that’s a great place to learn.

Speaker 2 (30:20):

That’s awesome. I love that you talk about the root problems, and it’s not just all about, oh, the surface stuff. It’s like, okay, how do we actually analyze this? So go check out his podcast and then also his website, bateman collective.com. I mean, I recommend them. They do a great job with the people that we’re working with, and if you want to pour gasoline on the fire and get some more calls in the door, go to bateman collective.com. Also, if you’re on the other side and you’re like, oh my gosh, I’m making money, but I feel broke and I don’t know how to analyze the data, and you need a fractional cfo, go to simple cfo.com. We’d love to help you. If you don’t like the financial side of your business and you would rather throw the p and l in the garbage, it might be time to reach out.

(31:02):

So you could go to simple cfo.com and at least get on a call. No pressure. We just want to point you in the right direction. Thank you so much for listening. If you’re listening here, this was gold. This is stuff that you could take away. Andy’s got more info, go to his podcast, listen to that. Become a student of marketing and just learning what you can because if you hire someone too, it helps you know what they’re doing and going through that process and been working alongside with them instead of against them like a lot of people seem to do in the marketing space. Brandon, this has been awesome. Thank you for being a great guest on the show.

Speaker 1 (31:34):

Yep. Thank you, David. I appreciate it.

Speaker 2 (31:36):

And remember, if you’re listening, make Profit a Habit in Your Business.

Speaker 3 (31:41):

This episode of The Profit First for r e I 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 r e I 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?

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.