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How Overcoming Mental Roadblocks Will Make You More Profitable featuring Mark Stubler

Episode 82: How Overcoming Mental Roadblocks Will Make You More Profitable featuring Mark Stubler

THE PROFIT FIRST REI PODCAST

April 10, 2022

DAVID RICHTER


Summary:

Without an intentional focus on measuring and growing cash, as well as profit, your business might turn into an awful 360 degrees. Sharp-witted business owners are always one step ahead in maximizing growth, profitability, and value — especially in a competitive market like real estate. These strategies help leverage upcycles, weather downturns, and achieve your growth and value targets. If you’re not yet convinced, then you should give this episode a listen. 

Mark Stubler, owner and founder of Joe Homebuyer, is here to provide us with a blueprint on how to operate the “franchise model” in your business, understand your numbers better, and focus on profitability so you can achieve high levels of personal and financial success. But of course, success comes with failures. He will also talk about the mental roadblocks he encountered throughout his journey. So be ready to deep dive into these exciting topics!


Key Takeaways:

[1:44] What is the hardest lesson he learned as a real estate investor?

[4:53] What keeps Mark going in real estate?

[6:34] Has he had any money struggles in his business as he grew business and branched out?

[8:07] What are his struggles? How did he get past some of those, and what systems does he have to make sure that he’s taking as few risks as possible?

[10:40] Has he incorporated the profit first system

[12:24] The franchise model, how can you turn a successful business into a successful franchise?

[16:27] What early lessons did he learn about money, and how does that compare to how he thinks about money today?

[23:54] Understanding your numbers better and focusing on profitability


Quotes:

[2:03] “There are many ways to make money in real estate; if you’re not careful, you can chase two rabbits and catch none.”

[5:30] “It’s not an easy industry, but it’s simple. And if you apply consistently, you can yield such incredible returns on a fair amount of effort.”

[11:07] “At the end of the day, if you’re not paying yourself, if you do not realize profits, you’re looking at it backward.”


Links:

Mark’s LinkedIn- https://www.linkedin.com/in/mark-stubler-a201b56b

Joe Homebuyer’s Website- https://joehomebuyer.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:

Mark Stubler:

I adopted this idea that I actually believe that we’re all entitled to becoming the best versions of ourselves. And a lot of times that translates to financial independence, there is a greater law, being, whatever you call it, a God that actually has interest in you, not just surviving, but thriving.

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:

Today, we have Mark Stubler on The Profit First REI Podcast. I am your host, David Richter. I am really excited about this episode because he is the co-founder with Cody Hofhine at Utah Sell Now, Texas Sell Now and Joe Homebuyer, which does franchising, which is amazing if you want some help and getting the deals done. We talk about that inside this episode, but we also talk about some other things which are incredible from what Mark is talking about.

He talked about some of the mental roadblocks of when he started actually making money in real estate. So many people make money in real estate, but they don’t know what to do with it, and he gives you the answer. If you listen to the very end, he gives you the answer of how he got out of that mental block. And we talk about how revenue is vanity, profit is sanity and how his businesses really reflect that now and what he had to go through. I’m super excited about this episode. So let’s dive into it. Mark, so tell me just right out of the gate here, what is the hardest lesson you’ve learned as a real estate investor?

Mark Stubler:

Dude, I love the question. Stay in your lane. I realized early on that when I tried to get a little bit of commercial and land development, and even in the early days, taking on a rehab before I knew what I was doing or had somebody to manage it, man, it’s stay in your lane. There’s so many ways to make money in real estate. If you’re not careful, you can chase two rabbits, as the saying goes, if you chase two, you catch none. And I’ve been guilty of that.

David Richter:

Yeah. I think that shiny object syndrome gets a hold of everyone and then it’s like that focus and you just go, crazy everywhere. That’s a big one, stay in your lane, and that’s where if you’re wearing too many hats in your business, it’s very easy to drop the balls in the air if you’re trying to juggle 15 of them at a time and you’ve never juggled before.

Mark Stubler:

That’s right. Now, there’s a time and a season to take on additional exit strategies, additional focuses, but be good, really good at what you’re doing. We started wholesaling in Utah and we thought, “Hey, we’ve been doing this for 12 months, now it’s time to expand to another market.” And it was a foolish mistake. We weren’t ready to expand. We didn’t even have our infrastructure built out in Utah. Just that simple step of now we’ve expanded to another market, but it was after we had the infrastructure, the foundation in place. And we were in a position where we could take on another project or take on an additional element to real estate.

David Richter:

Yeah. Awesome. So, tell me then, why real estate? Why did you get into it?

Mark Stubler:

I feel fortunate that real estate found me or I felt found real estate. I have to tell you a quick story. So I was a fence and deck salesman for 10 years, worked with a great company. Regional sales rep, had a lot of success, made pretty good money because I’d been there, felt comfortable, worked with a great organization. And it was just time, I realized through what I referred to as a gift that the employer gave me. They said, “Hey, you’re an outside sales rep. You’re killing it. You’ve been doing great for us for 10 years. But by the way, to cut budgets, we actually need you to come into the office and be an inside sales rep for four to six hours a week.” And so I called that the pencil sharpener position. Now all of a sudden, instead of having complete autonomy, showing up once a week to report sales, I felt like I was literally sharpening pencils.

And it just triggered in my brain that, “Wait a minute, I don’t work for myself. I’m not completely autonomous. I got to do my own thing.” And it was a blessing in disguise because I started on a heavy journey to find my next path. And because I’d had a rental and done a rehab, I knew a little bit about real estate. Fortunately, I knew I needed to get on that path. So, I started taking friends out to lunch, started asking questions. Cody Hofhine and I were close friends. We stayed in touch because he and I worked together years prior. And I said, what are you doing, man? He says, “I’m doing wholesaling in real estate and it’s working great.” And that was my introduction and kind of the beginning of the journey.

David Richter:

Awesome. I love knowing how people got into it. And how about now, you’ve been in real estate now for years, what keeps you in real estate?

Mark Stubler:

Oh my heck, it’s such a journey, man. To be honest, real estate to me is really just a really fantastic industry. I just feel fortunate to found it in the sense that, I mean, what industry can produce the type of income without having the requirement to have brick and mortar, you don’t have to hire a bunch of pimple faced teenagers, you don’t have to have a ton of overhead, you don’t even have to have an inventory, a bunch of stuff that you have to buy and try to sell. It’s just unique. And then to be able to do a transaction that could be 20, 30, $100,000 or more if we’re talking a multifamily or commercial or development. I mean, it’s just wild. So, I guess it’s the return. It’s not an easy industry, but it’s simple. And you apply the simple principles consistently, you can yield some incredible returns on a fair amount of effort. And I don’t know of an industry that can yield that type of return relative to the contribution.

David Richter:

Awesome. Now, I love that. Real estate is such a great game. And then what you said before about there’s so many exit strategies too, it’s like there’s so many options and opportunities. It’s like, yes, you need to stay in your lane, but you get to pick a lane because it’s a very wide road there on the real estate journey where you can have … there’s enough for everyone to do something and to help people and to go out there.

Mark Stubler:

Well said.

David Richter:

That’s the real estate side. Let’s get to the business side of things, because if you want to be in real estate for years and years and be successful, you have to learn some business principles and abide by them. But I want to ask you first, maybe you’re the first one, but have you had any money struggles in your business as you have grown your businesses and branched out and done those things?

Mark Stubler:

We all have business struggle, or financial struggles and cash needs and I feel the pinch for sure. Because even when things are going great, you can leverage and tie up your cash, and before you know it, you’re still feeling the pinch even though you’re doing pretty well. But you have to have that because it makes you appreciate the profits that you are making and it makes you appreciate the grind. So yes, the day in the life of what we do with the several exit strategies we have is a lot of our cash is tied up, tied up in a rehab, tied up in investment on a bigger project. You never really feel overly a fluid as it comes to cash, but I am a pretty conservative guide. I like to take risk when it’s calculated, but I’m pretty conservative in terms of I like to keep a healthy number in the account so that at least I feel like I’m in control. So I feel like I can write a check for something if I need to. It’s finding that balance at the same time.

David Richter:

Yeah. Man, that’s good stuff, because it is. There’s a huge difference between being profitable, I love what you were saying there. We could be doing good, but our cash is all tied up and I feel like, “What’s going on here?” So, there’s a big difference between your profit and what cash is in the bank. So, don’t always trust those numbers. Here we go. With your struggles, how did you get past some of those or what systems do you have in place now to make sure that you’re making that risk as less as possible for running out of the cash?

Mark Stubler:

So, a couple things that we’ve done and this may not be overly orthodox, but obviously we do whatever we can to leverage other people’s money as often as we can at the best rates possible. So, we do that and we always want to have a baseline relative to the amount of projects we have going on so that we have buying power when we need it. But one ninja trick that we’ve used, and I can tell you, this is not going to be overly typical or it’s a variation of other people’s techniques, but we’ve actually paid for property without having a lean position on it. Meaning we don’t have a lender on it. And we paid, we own a rental that’s collecting whatever per month, small multifamily or a single family. And then we’ll put a line of credit on it. Generally, banks because it’s a non-owner occupied.

Don’t want to … Home equity line of credit more or less. It’s a little different because it’s not owner occupied, and we’ll leverage it. Meaning, we’re 100% cash flow positive on everybody. We’re tying up cash, that’s the an orthodox part that people are going to be like, “I don’t know if I like this strategy.” But I like it because I feel like I’m double dipping the chip. I’m able when I’m not leveraging the funds and I don’t need the cash, I’m not paying any interest at all on that property. And the rent that I’m collecting each month go straight to the bottom line. There’s no debt affixed to the property. But I can leverage up to 60, 70% of the property. So, if that property’s worth 500,000, I might be able to leverage 350 at the drop of a hat.

It’s totally liquid, and I can put it into something for two months, three months, a year, whatever I want. Sure. Then I’m paying interest at a little bit higher rate than you would if it was a fixed mortgage, not much higher. So, I feel like I have the autonomy, the flexibility, leverage it, but at the same time, there’s plenty of times when I’m in a cycle where I might not need the money for a month or two or three. And I like being able to draw small quantities, large quantities. Anyway, that’s an ninja trick that we leverage to have as much cash as we have, can have accessible, but not necessarily be committed to it in a fixed payment.

David Richter:

Okay. That makes sense. So, on this show too it’s all about the Profit First REI Podcast, have you incorporated, or anything with the Profit first system as far as like different bank accounts or are you able to see at the drop of a hat like, “Okay, this is how much money we have and I know we could spend this or whatnot too,” because that’s where a lot of people come and say, “Oh yeah, now we’ve got a good system to be able to see where that money’s going at any time.”

Mark Stubler:

Yeah. That’s obviously the most fundamental aspect of it is I think we get ambitious to, all right, I’m going to scale, I’m going to grow, I’m going to double down on this efforts, I’m going to put more into marketing. But at the end of the day, if you’re not paying yourself, if you’re not realizing profits, you’re looking at it backwards in the sense that you’re not really experiencing success if you’re not able to pay yourself. It doesn’t have to be a killer amount, it just needs to be modest, it needs to represent growth, and again, profit. So, I’ve found that multiple bank accounts that are dedicated, you have the tax, you have owners pay, you have some of these things that are set aside so that you’re in a position where you’re not surprised, but yet it’s very clear, calculated the way to know where I’m actually at as a result, where am I actually at when I’m talking cash? How much do I actually have?

David Richter:

Right. Exactly. What’s yours versus what is other people’s. So yeah, I love that, which as I was reading your bio, and as the questions that I love reading those things of everyone what they send over, but you seem to have a corner on the market on how do you take a business and franchise it as well too? Because if you’re going to franchise a business, you better as heck know your numbers and know to a T because that can get very tedious and very much, you could go down a slippery slope there if you don’t know it. So, can you talk about that a little bit, the franchise model and how you can turn a successful business into a successful franchise?

Mark Stubler:

Yeah. It’s been the most rewarding and challenging experience as a business owner that I’ve been ever had. And one of the most challenging experiences. So we started Joe Homebuyer franchise, which is a home buying franchise almost two and a half years ago. And you’re exactly right, we have franchisees that have a lot of I would say money background or finance background, and we have others that are very fairly elementary with their experience. That’s okay. And so we have to have a pretty systematic way of helping them utilize these principles that are going to set them up for success and making sure that they leverage even the most fundamental things like, “Hey, we’re going to track your expenses. We’re going to track your profitability. There’s going to be metrics that are going to be meaningful to you so that you can drive the bottom line and be as healthy as possible.”

And so that’s a fun aspect of the business for them to realize their profits, to help them recognize what’s going to help them get to revenue as quickly as possible and maintain and keep as much of it is as they can as well. So yes, in implementing systems is simple as like, do you have a bookkeeper and helping them plug into a system to track those things, very elementary, but can have just instrumental impact on their business if it started from the beginning that way.

David Richter:

Right. Yeah. That’s really good. I’m sure you see all types of owners, all types of different people, how they handle the business. And what would you say with the franchise model, what provides the most value to that end person that’s purchasing a franchise to be able to go out there and be successful?

Mark Stubler:

David, I appreciate the question. We have some franchisees that are already successful wholesalers and they just were ready to scale their business to the next level. And they were doing lots of deals, but now they just … What do I need to do to become you in my market? I want to do more deals. I want to be more profitable. I want to scale my business. And then we have others that didn’t do anything with real estate, but they wanted to get into real estate because they wanted to have rentals and passive income. So, every franchisee, I can tell you that there’s just some common themes. A lot of people like the culture, the community, the mastermind behind it. Others like the resources. We’re really big on the art of negotiation and the acquisition, how to acquire properties at a deeply discounted rate.

And what are the best processes to structure deals with sellers. And a lot of acquisition related and negotiation specific type support and training. And then it’s how do I maximize my profits on the back end, the disposition process? Do I rehab this one, do I wholesale it? And various things. How do I build out a plan for the next five years to become financially independent by keeping rentals? That’s what the franchise model is, is a turnkey system to leverage our experience, our team, and the collective group that we’ve put together, this guy can help you build out a plan for … create a finance structure with the sales you’re working with and that type of thing. So, every franchisees, if you talk to 30 of them, you’d probably get 20 or 30 different answers as to my favorite part of the franchise is this. But I can tell you, it’s been a rewarding experience to see our franchisees thrive and grow their businesses.

David Richter:

That’s awesome. Sounds like it’s a great way for, like you said, community, for structure, for system, for negotiation, for knowing what’s important, the numbers and making sure they are actually profitable at the end of the day-

Mark Stubler:

That’s right.

David Richter:

… and knowing those things as well too. That’s awesome. I think that provided a lot of value to the listeners here. And if you’re looking for something like that, make sure to reach out to Joe, we’ll make sure Joe at the end, that there’s a way that people can reach out to you. But we’re going to like take it a little different direction here now. I’m going to get a little bit personal if you’re okay with this.

Mark Stubler:

Absolutely.

David Richter:

I want to see what early lessons did you learn about money and how does that compare to how you think about money today?

Mark Stubler:

I might go a little different direction with this, but for me, I have to be honest, when I started making a decent amount of money, I have this mental block, maybe it was a confidence thing where I wondered if I was one that was supposed to … Is there some bigger law out there that says, “Mark, you’re not going to be wealthy. That’s not just the plan I have for you.” And it took me some time to realize, and again, I’ll try to be sensitive to the listeners, I adopted this idea that I actually believe that we’re all entitled to becoming the best versions of ourselves. And a lot of times that translates to financial independence, there is a greater law, being, whatever you call it, a God that actually has interest in you thriving, not just surviving, but thriving.

And it took me a minute to get there, both the self confidence and reminding myself that prosperity is available to all of us, and prosperity comes in different forms. We all know that. I’m a father of four and a husband of 18 years. And so I feel like I’m prospering. But there was a time that I was like, “Man, am I supposed to be wealthy? Am I supposed to accomplish these great things?” And at the end of the day, I’m here to tell you that I’m a pretty average dude. You’re going to find that even on this presentation on this podcast, I don’t know that I have a silver tongue.

I do work incredibly hard. I’m really disciplined, but at the end of the day, I’m a pretty average dude that feels grateful to say that I’ve been able to prosper in some areas and I think that’s available. In fact, I’m confident it’s available to all of us, but it does require the disciplines and the hard work to achieve it. That was my biggest roadblock I had to overcome is, “was this an opportunity for me?” Am I being afforded the opportunity to be prosperous and develop these wealth strategies and be fortunate enough to have those.

David Richter:

Man, you just hit on what I believe most real estate investors that get into this game struggle with, because they come from, they read Rich Dad Poor Dad, or they read a book or they have a mentor, they have a good person, a friend that helps them get into real state-

Mark Stubler:

That’s right.

David Richter:

… and they come from a background of maybe they make good money, but in real estate you could do a 20, $30,000 on one deal. It’s like-

Mark Stubler:

One deal.

David Richter:

“Holy crud. I just did.” If you do two of those deals in a month, like beginners luck here and you get two deals, like right away, it’s like, “I just made as much as I made in a year or whatnot,” for some people.

Mark Stubler:

Right. Right.

David Richter:

They’re like, “I’ve never made this much money before.” And then that’s when those feelings start coming in. They feel, “Am I worthy?”

Mark Stubler:

Crazy.

David Richter:

“Do I need to do this?”

Mark Stubler:

That’s right.

David Richter:

Man, I love that you bring that up because there’s so many people that feel like that I talk to. Man, I’ve already had 100 calls this year just with investors that are in that mind space of, “I’ve never made this much money, I don’t know what to do with it. Just help me know, is it okay that I take money out of my business? I’ve never taken out $20,000 for myself in a month. Is that okay?”

Mark Stubler:

Is that okay? Yeah.

David Richter:

It’s like giving them that permission. So, that was really great. You did say you’re a father of four, I do need to ask, what lessons about money do you want to pass on to your children?

Mark Stubler:

Thank you for asking that. I actually have an 18 year old son, three daughters after him. He’s kind of at the later stages. And I have to be honest, in some ways I feel like I’ve failed him. He’s had to earn his own money. I’ve made it pretty hard. My kids think I’m poor in a lot of ways. So, maybe that’s the one inherent principle I’ve succeeded at. Not that they think I’m poor because we have some nice things, we go on some nice vacations, it drives them nuts that they have to buy their own shoes. And it drives them nuts that they have to earn everything. And they’re just like, “Well, why don’t you just pay for it?” Type thing. And we have a good relationship, but we have a friendly banter about it.

But with my 18 year old, I’m realizing, “Hey, you’re going to the real world.” So recently, in fact, a day or two ago, I’m like, “No, I want you to get on Google Sheets. I want you to create a financial plan. I want you to look at what you’re bringing in. I want to look at what you’re saving.” Again, don’t know that I’ve done anything perfect, but I’m realizing at least with him, I’m a little behind the eight ball. I’ve got to put some more things on his plate so that he can have those tools, evaluate, and hopefully, be a little bit better prepared as he takes on the chapter of his life. But such a important thing to do. So, do better than I’ve done, those that are observing and listening because it’s important.

David Richter:

I would say, I just want to give a little bit maybe of advice right to you. I think you’re already providing a good example for them of where you are. That’s the biggest thing you can and give them. You can talk to you’re blue in the face, but if you’re showing them hard work, that discipline, you’re showing them, “You have to, you have to buy this stuff.” And you’re guiding them on that path. I think that you’ve been married, you said 18 years, right?

Mark Stubler:

That’s right. 19 in June.

David Richter:

  1. See, it’s stuff like this that they’re really looking at. That’s where I’m like, if you’re listening to this now as a listener, or Mark right here, it’s like, “That’s what they’re really looking for.” So I feel like you’ve already … Just the fact that you’re on here talking about like, “I had to go through some growth pains in myself as I was growing, because I never made this money before.” This stuff, that’s the stuff that they’re seeing, that they’re like, “Okay,” even if they don’t see it specifically behind the scenes at your real estate company, we bring all this stuff to every conversation with who we are. So, I just think-

Mark Stubler:

Well said. Thank you.

David Richter:

I think you’re doing … Yeah, don’t beat yourself up too, I think you’re doing well with what you’re doing there, and it sounds like your kids have a great example. And being married for 18 years, I mean, that really solidifies a lot of things with them as well too.

Mark Stubler:

Yeah. Thank you.

David Richter:

That’s stability. Awesome. We’re going to wrap up here pretty soon. I just want to know a couple other things. Let’s go to the business side. That was kind of the personal side, let’s go back to business. In your business, what would you say is the biggest challenge when it comes to the finances in your business? Is it still the cash flow of, I’ve got a lot of money tied up would you say? Or now at a different stage, years down the road, do you see different challenges?

Mark Stubler:

Well, I can tell you knowing your numbers is super important. I’m technical in a sense, I like to know my numbers, I like to know profitability. I like to know net. But I can also tell you that I’m better at hiring somebody to know those numbers for me. Because there’s somebody that’s better, there’s somebody that pays attention to the detail. The one thing that I would share with you that I have observed from myself and learned recently, it’s just so important to know your numbers, and learn how to read your P&L and understand it. And when I say that, I’m challenging myself to continue my journey with understanding it and really appreciating the details there. But as I’ve learned to really understand my numbers better, profitability, and really I’ve been focused so many years.

David, you might appreciate this and some of the listeners, I was so focused on top line and how set that sounds and how big my business is and how much revenue I’m pulling in. It just doesn’t matter. End of the day, top line means nothing if … I mean, there was years we had some pretty sexy top line, but the net, we just kept on adding personnel. Our labor efficiency was going down, our net profit was going down, but yet our gross rev, our sexy top line looked attractive. And that’s the wrong way to look at the profit ability in your company. That’s one major lesson I’ve learned.

David Richter:

No, that’s good stuff right there, because that’s what this podcast is all about. I don’t care how much you make, I care how much you keep. At the end of the day, that’s really what it’s about. It can sound sexy to say, “I have a seven figure business,” but if you’re seven figures in debt after that year two, it’s like, “What’s going on? I think I spend a little too much.” No, what a great thing to bring to the listeners as well too because it is, is we’ve all heard that cash is king, that net is what really matters and it’s like the top line. What is that? Revenue is vanity, profit is sanity. That’s really what we are.

Mark Stubler:

That’s right.

David Richter:

That’s really what it’s all about. Here we go, just a couple last questions here. What advice would you give to the real estate investing community? This doesn’t have to be financial related. It can be anything on your journey that you’ve taken down your path.

Mark Stubler:

Well, and you just said, one of the words I’d use here is enjoy the journey. I will tell you that the thing I share with anybody any chance I get is that I believe that part of what helped me overcome the psychology of money, and am I worthy of this wealth or this opportunity type thing is developing myself as a leader. And that’s an ongoing journey, meaning that I’m continually studying what does it mean to be a good leader? What does it mean to build a good organization and to bring and establish a team of other great leaders and develop leaders within them. And I have to tell you that the more I’ve developed personally and focused specifically on leadership, that would be my advice. That has been, I believe, a catalyst to the success that I’ve experienced. I have a great mentor. The other thing I’d quickly share is I have a great mentor that I work with regularly. He’s not just a very financially successful person.

This is a person that his family’s successful. He’s successful as a husband, as a father, he’s posterity, he’s almost 80 now, but I meet with him regularly. Has just an incredible history of success in business and family and community and his involvement in so many different notable causes. But surrounding yourself with people that inspire you to be the best version of yourself, that’s another one. And I think that compliments well this idea of this journey of developing as a leader. As I’ve done those type of things, I see the world differently, I focus on the right things and I’m able to enjoy the entire process and realize … because I’m a pretty imp person, David, I want results, I want them now. And I think that’s part of what makes me good. But at the same time, as I realize, “No, this is all part of me developing as an individual and becoming better and well rounded.” A better husband, better father, better contributor. All of those things helped me enjoy the journey and made everything more meaningful.

David Richter:

Awesome. There you go, enjoy the journey. That’s definitely a big one, because it’s easy to get wrapped up in the day to day and just being yourself up. And it’s like, “No, this is it.” This is the journey that you’re going through right now. So, great stuff. Mark, you provided a ton of value here and I just want to always give back to the person that’s given to our audience. So, how can people get in touch with you? What are you working on right now? And I just want to make sure that we can connect you with the listeners.

Mark Stubler:

Thank you so much, David. I would love to connect with any of you. You can reach me on LinkedIn. It’s Mark Stubler. And then if anybody was attracted to this because they’re in investing, they want to scale their investing business, they want to buy more single family or small multifamily or focus in real estate, which is obviously what you listeners do, and you like the idea of a franchise model being part of a community where you plug into a turnkey system. That’s what Joe Homebuyer is. You can find us at joehomebuyerfranchising.com, joehomebuyerfranchising.com. I would love to connect with people, just talk ideas, love the community of investors and find some common things to hang out and talk about.

David Richter:

Awesome. Well, there you go, that’s how you can find him. We’ll make sure to put that in the show notes as well too. So I just want to recap. So, we talked about some awesome stuff on this episode. I mean, we talked about growing and scaling the business, growing it profitably, what to do when your cash is tied up. And I love this, the one top line versus net, revenue is vanity profit is sanity. Enjoy the journey. And then those mental blocks of wealth. I mean, if you can go back to that space in the middle of that episode and how he got out of that, he gave us the answer at the end, which I thought was coming full circle there, is prepare to be that leader, study, grow yourself, get out of that mind trap that you’ve laid for yourself. I thought that was great. This was a great episode. If you are a real estate investor or business owner and you want to double cash, profit and keep more of your profit, head over to Simplecfosolutions.com and click the get started button. Remember, start making profit a habit.

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 The Profit First Podcast. So, we’d love to be ranked on there and that’s thanks to your help. 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 our Facebook group right there.

So come join active, real state investors who are supporting each other and growing their businesses and profits together. That’s what that group is all about. The links should be in the description below. And if you’re interested in working with us in implementing profit first in your real estate business, we offer coaching and guidance. So if you want to 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.wpengine.com/apply. Or just go right to simplecfo.wpengine.com, and there’s an apply button right on there if you want to 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.

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.