How Profit First Helped James Manning Marry the Girl of His Dreams After Hitting Rock Bottom

June 1, 2022

Episode 90: How Profit First Helped Jim Manning Marry the Girl of His Dreams After Hitting Rock Bottom

THE PROFIT FIRST FOR REI PODCAST

June 1, 2022

David Richter

Summary:

James “Jim” Manning is a true industry professional who is well-known for his excellent communication skills and quick wit. His attitude, grit, and determination helped him to surpass many challenges and earn a couple of milestones along the way.

In today’s episode, we’ll hear how Jim was able to climb the success ladder in tandem with the Profit First methodology.

Key Takeaways:

[4:08] How did he manage to do 3,000 deals in a span of 13 years?

[9:22] You need to keep an eye on your books and the bottom line.

[11:00] Knowing your numbers and keeping track of how the money is flowing within your organization may feel like you don’t have time, but that is one of the most valuable investments that you could possibly make for your time and business.

[17:06] Having that money for yourself and being able to think a little bit differently and having that system in place, having that profitability and seeing the true cash flow.

23:53 If you’re a new investor, there’s a system to help you avoid making mistakes.

[25:25] There are all sorts of resourceful ways you can make Profit First.

[27:36] There are riches and niches; don’t try to be the jack of all trades. Find something that you’re passionate about, that you’re good at, and that you can do over and over again.

Quotes:

[4:50] “If you’re just starting out in business, don’t compare yourself to someone who has 13 years of full-time effort building a business.”

[9:49] “The highest dollar producing activity that you can possibly do is to cut expenses and audit your books.”

[22:52] “Do not lie to yourself that you don’t have enough time. That’s just not how it works.”

Links:

Door To Deal Website: http://doorstodeals.com

Doors To Deal Podcast: https://open.spotify.com/show/5ylH82AN6t0SF4mgfGRJ6u?si=climrZ4OQnKkxAl2nZAuQA

Company Website: threedoors.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:

James Manning:

I really wanna start implementing Profit First too, because when I look back at it and I think about having a model where you have to take your Profit First and then get creative with what’s left to then be able to grow your company.

Intro:

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

David Richter:

Everyone. It is David Richter again here at the Profit First REI podcast. Have another signing guest on today. Jim Manning three doors, real estate, and excited to have him here. And I had the priv the privilege recently to be on his podcast just a couple weeks ago. And that was exciting time. And just going through and answering questions about Profit First for real estate. And now we’ve got Jim here and he’s doing a lot of cool things with his business has scaled up quite a bit, and he’ll talk about, you know, where he was, where he is, come from, and we’ll dive into that. But Jim, thanks for being on the podcast today.

James Manning:

Oh yeah, absolutely. I guess the, the tables of turn now I’m in the hot seat, right?

David Richter:

Exactly. <laugh> yes, yes, indeed. Now, now I get to, to fire off the questions for you. So let’s, let’s start at the very beginning. What got you started in real estate and, you know, kind of that journey. How did it begin?

James Manning:

Absolutely. So I got in back way back in 2007. I started studying and I didn’t get in and do my first deal until 18 months later in 2008. And I got in cuz I was in a corporate America job and it didn’t matter how good of a job I did. Uh, my boss wouldn’t notice, you know, I could just bust my tail do really well in a month. And, and no one noticed it was just pushing paperwork at a corporate America job. And I thought there just has to be something more in a life than having kind of like a, a dead end corporate America job that if I do really good, maybe I get a 1% bonus at end the year or 1% raise or whatnot. Right. And so I started studying man rich dad, poor dad, Warren buffet books, you know, like I just had this passion for kind of numbers and investing.

James Manning:

And I ran into my now business partner, Ryan Wessel’s coaching baseball, and he was doing this real estate thing and I, I got a little jealous. I said, well, man, he’s living the life the way he wants to make him making a lot more money than I am. And, and you know, if he’s doing it, why can’t I do it? And so I, I ended up falling in love with that idea. I fell in love with the idea of, of, of really high financial ceiling. If I did really good, I gotta make a lot of money. And if you flip a property there’s also an emotional appeal to me too, that I can make that little piece of the world better. I can literally create a home for a family that they can raise and, and whatnot. So so I got in and I you know, got in full-time in 2008, about 13 years ago and, and lots of ups and downs and, and, and here we are today, 3000 plus deals later, so. Awesome.

David Richter:

Wow. Yeah, that that’s a lot of deals. So what type of deals are you doing or have you done in your past?

James Manning:

Oh, we’ve been a little bit of everything, whether that’s wholesale. Uh, we have an agent team our agent team’s a top 10 team in Missouri in the state of Missouri. Um, you know, we’ve done flips, we’ve had in our heyday, we had three full-time construction managers running projects on flips. Um, we’ve done additions on homes. We have a couple commercial buildings that we own lease, purchase stuff, creative financing stuff. You kinda you name it. We’ve, you know, we’ve probably tried it out. <laugh> Airbnb done that a little bit vacation rentals. Um yeah, with a little bit of everything.

David Richter:

Okay. That’s awesome. Yeah. Cuz I was gonna say we’ve probably got the Schmo sport here, listening to the podcast. So just wonder what that background is. And you said 3000 deals you later, like that’s a lot to do in 13 years. I mean, that’s more than, you know, that that’s, that’s a lot. So like how have you done that many deals? What marketplace and how big’s the team and like tell about kind of the journey that you’ve taken to, to that many deals.

James Manning:

Yeah. Yeah. And I, I mean, I think the biggest thing that I like to tell people is, yeah, we’re gonna do five, oh, I just looked at this board something like we’re gonna do around like 560 deals this year. Um, but don’t com if you’re just starting out, don’t compare yourself to the five 60 and think, oh, that’s something that you have to do. That one deal my first 18 months guys. So if you’re just starting out, like don’t compare yourself to someone that’s like 13 years of full time effort, like building a book of business. Um, but out of those deals, it’s a little bit misleading cuz our agent team accounts for about um, 30% of our revenue mm-hmm <affirmative> and you know, and they do about depending on the year 30 to 40% of the deals will be just strictly agent deals, like advising someone how to buy and sell a house.

James Manning:

Uh, so yeah, I mean we’re still doing a couple hundred investment deals in a year though. Uh, so we have six full-time acquisition. Uh, managers is what we call ’em property buyers, just going out, hunting for deals all day. Um, our ops team has about eight people in it. Um, you know, so we have a, a couple VAs doing the text blasting thing. We have a couple internal people that are just here in local in the office doing some cold calling on the prospecting division that we have. And uh, so the, yeah, the, the way we do most of our deals is prospecting through texting and cold calling and then networking networking accounts for anywhere from 60 to 80% of our deals. Um, typically depending on the, the year, even though, you know, we have all these people lead generating and that’s all they’re doing too, so.

David Richter:

Wow. Yeah. That’s awesome. And what is the main exit strategies or that you’re doing right now? So besides the agent side, what are on the investing? What are you, what are you focused on right now?

James Manning:

Yeah, you know, I so we start out doing a ton of flips and I, those around 2010, 2011, I remember looking at my business partner and saying, Hey, like this property here on the MLS, we can give them exactly what they want and it’s gonna cash for like $150. It’s like a really good deal. Why don’t we just buy and hold on all this stuff. And, and then we both looked at each other, we talked about it and we were like, nah, that’s just the property management. I don’t wanna deal with it. And my goodness had, we just flipped the script and started doing that, you know, fast forward 10 years later. I mean, I guess there’s a silver lining to it cuz we’re having this conversation, I’m meeting friends, but you know, I, I may be retired <laugh>, just buying rentals. So, so that’s like we have more of a long term approach now for the wealth building. Uh, we’re doing lease purchases like rentals and uh, really buying and holding onto the, the quite a bit of what of what we do is, is, is the, is the goal there for sure.

David Richter:

Yeah. Awesome. Well, that’s good. That’s uh, yeah, it’s definitely for the long term and yeah, I can, I can feel that gut check, you know, of like, oh man, cuz 2000, I that’s when I first started in the early 2000 tens there and you know, that’s where it’s like, ah, man, if we had just had kept on and held onto all those, the crazy appreciation that we’ve seen, especially in just the last few years here. So, and definitely, definitely feel your pain.

James Manning:

Yeah. And it’s yeah, it’s funny cuz it’s like you think of flipping as being a real estate investor, like flipping, I mean it’s kind of just a, it’s a job. Like you do that for income. Yeah. That’s not like an investor, like you’re looking to, to move money and invest, you know, and, and hold on and build wealth and um that’s really, I mean the majority of the money is that that’s slow dollar. Right. That’s that’s as opposed to the quick nickel, you know, like that’s right. That’s really where it’s at for

David Richter:

Sure. Yeah. Yeah, for sure. And I, I love that you’re, you’re faced that way now and you’re, that’s what you’re that’s what you’re doing. So I think there’s a lot of lessons to be learned there for any real estate investor listening here. So since this is the Profit First REI podcast, let’s talk about money a little bit. So I like asking some deeper questions first. So what early lessons did you learn about money and how does that compare to what you think about money today?

James Manning:

So the early lessons I think the, one of the most important things is back in, was it 2017, we were on a quest for like a six, seven year run. More, I need more deals. I need more deals. I need more deals so I can generate more revenue. And what we lost our side of was if you generate an extra a hundred thousand on revenue or in our case, it was like an extra million, but your expenses go up an extra million. It’s not worth it. <laugh>. So I think the biggest, the first thing when it comes to like money and, you know, being a small business owner and entrepreneur is keeping an eye on your books and the bottom line, I thought I, and I, I had this excuse, all that, that I would default to, like, I don’t have time to go through my expenses and audit them and, and cut expenses that where it’s necessary.

James Manning:

I just need to, I only have time to go do another deal. And Gary Keller, I don’t know if you’ve ever listened to the one thing podcast. Yeah. Outstanding podcast. And I was listening to him talk and he says the the highest dollar producing activity you can possibly do is to cut expenses and, and audit your books. And I got to thinking about it and I was like, holy cow’s right. If I just spend three hours once a quarter, once a year, whatever the heck I can do, I spend three hours. I find like a subscription to a MailChip account that I don’t use anymore, a hundred bucks or another coaching platform that I’m not using anymore. That’s 200 bucks a month and you do all the math and it’s like, like relatively easily, you can shave off 10, 20, 30, $40,000 off your overhead. It’s like took three hours to save. You know, we ended up when everything was going on and our expenses were scaling. Uh, we were at around $160,000 a month in overhead. Wow. That, that we cut down a hundred and ten thousand dollars a month. And yeah, our deal flow went back a little bit, but it actually didn’t go back as much as you would think.

David Richter:

Right.

James Manning:

And the whole thing swings around the whole profitability swings around. So, so I think the biggest thing that I would say is, knowing your numbers and keeping track of how the money’s flowing within your organization, you may feel like you don’t have time, but it’s one of the most valuable investments that you can possibly do with your time for your business and for your life. And there’s no question about it. Yeah. Um, think about all the stories that we hear on what famous athlete, you know, makes millions of dollars a year, then they retire. And like they don’t even, they don’t end up with anything. They end up poor, completely broke because even though they made 5 million that year, they spent 5.1 million that year.

David Richter:

Right. Exactly. And not on investments. So <laugh>

James Manning:

Yeah. Not on investments like a party in Vegas or something. Right.

David Richter:

And that’s really good because, and I like what you said there that, you know, like how Gary Keller says that it’s, you know, that’s the best activity that you could use with the highest dollar per hour or whatnot, because if you cut expenses that goes right to the bottom line. I mean, it goes right to the bottom line. And like you said, I could go and find, figure out how to do a million dollars more a year, but that usually comes with a price tag of how much do I have to spend to get that million dollars. So it’s like that there’s always a cost for bringing in new revenue usually. And then, but cutting the expenses usually just takes thinking power. And that time, that discipline to sit down and say, okay, we need to go through this to see what’s what we can go through. So I love that. I think that was great advice. Uh, if, no, if you just, if you’re listening right now and you just go and do that in your business, you could probably find no matter what size you are, probably from a hundred dollars to a thousand to 50,000, like Jim found here. So that’s just something that you could go and do right away.

James Manning:

And for the record guys, that was a month, 50,000 month that we were doing. So it’s like literally $600,000 a year and less revenue, less deals that we had to do. Yeah. And when you go down that rabbit hole, guys of trying to get more, drive more revenue to cover expenses and you need more and more and more, do you think you’re making this quality of decision on a, a yes, no. On a buy or you’re saying, well, no, I need to buy this. Cuz I have a shot at making 20 grand on this float because I need to pay the, and keep the three construction managers that I have on salary right now. Like I need, you know, now you’re exposing yourself to making poor decisions on the buy, which leads to issues. And, and, and we lost control of it, man. I mean, we, we got to a point where we built it so big, so fast that, that, that we completely lost control over the, the profitability.

James Manning:

And we looked at it, we’re like, holy cow, we just did 565 deals. This was like four years ago, 565 deals in a year. And we broke even like literally three-fourths of our sales team made more money than we did this year, our ops team’s ready to kill us cuz they’re, you know, they did an extra, 150 deals with transaction coordination, stuff like that than they were used to doing, you know, at that point. Right. And it was just like, like why like what are we doing? We were like, felt like the hamster on a wheel and aren’t you supposed to get off the wheel? Like, that’s why you’re an entrepreneur to not be the hamster on the wheel. And it’s like, we had created this thing. And uh, one of the things that I think is so powerful and uh, when I’m digging into Profit First and, and fold, so our perspective is a little bit different in that since we’ve been doing this 13 years we actually do have our books in pretty good shape.

James Manning:

You know, we have knowledge and like I know what our expenses are. I know what our profit is. And at the same time, I really wanna start implementing Profit First too. Cause when I look back at it and I think about having a model where you have to take your Profit First and then get creative with what’s left to then be able to grow your company. I mean, I just wish I had those 10 years ago because the couple lean years that we had it, it wouldn’t have been possible to have them, had we been running a Profit First model appropriately. So so even though we actually really know our numbers and maybe need it to less of a degree than what we would have, like 5, 6, 7, 8 years ago I think we’re still gonna implement it, because it’s just really phenomenal, it’s just a phenomenal way to do it, to know instantaneously what’s going on. Right. Uh, now have you seen, um have you, have you seen anybody that’s been like 10 plus years doing Profit First David?

David Richter:

Well, the, the book officially came out in 2015, so, but there are people that have separated out accounts, you know, longer because it’s, it’s the envelope method, you know? So some people have done that for their business and, and it’s almost like the people that I’ve heard that I’ve been doing it for a long time. Like over a decade of like separate accounts usually had the long term like rentals or, you know, like passive, passive type of investments where they’re like, okay, you know, for my investors, I have this account over here for the deposits. I have this over here, you know, like for my cashflow, that’s mine to keep like I have this bucket. And they were like, yeah, when Profit First came out, it almost felt like, you know, I was doing that for a while, but yeah, I’ve, I’ve talked to some people now that have been doing it like five, six years.

David Richter:

Like once the first book came out originally and they’re like, yeah, it’s like, now it’s on automatic. We have, you know, six figures in our profit account or in our you know, or in the inside of there and like in the actual cash. So this is something where, like you just said, that is, that is exactly what I hear the most from people is I wish I would’ve started this sooner. You know, like, or I wish this system would’ve been out 10 years ago. That’s why I want people looking back now like 10 years from now to say there is a system, you know, like there is profit burst for real estate investing now. So now we can start it from square one and get that out there. But yeah, it’s the people that I’ve been doing it a long time. No one says, man, I wish I wouldn’t have been doing this. <laugh> cause it’s all about the mindset of, like you said, having that money for yourself and not in being able to think a little bit differently and have that system in place to be able to pay yourself, have the profitability, see the true cash there.

James Manning:

So if I can make an observation here, guys, those of you that are listening what David’s doing, do you feel his energy? Do you feel his passion? Do you feel how excited he is about it? Like David’s operating in his unique genius zone around this he’s operating something that he really cares very deeply about. And like that’s a piece of advice I would give you, like when it comes to whether it’s investing or being an agent or what, it doesn’t matter what business you’d be a loan officer for a like, Hey, is find something that you can feel the way David feels about Profit First, take the time to get the right mentor, to get good at it and then just do it over and over and over again until you get to that mastery level. And, um I love when I, when I get to interact, I meet with the high level people such as yourself, that, that are really into something that just gets me so pumped up.

James Manning:

It gets me so excited again for sure, I mean it’s life changing stuff, man. so we were on the quest for more and kind of go back to my story a little bit. Yeah. We were on the, so we were on the quest for more and couple years in doing some deals, making some money, having some setbacks, making some mistakes. And then at one point Ryan and I bought three houses that were on the market that weren’t selling. Hmm. And I was living on credit card debt. And because I was the, the disclaimer, the, the belief system that we had or, you know, whatever, what we kept telling ourselves is, well, we’re just gonna reinvest all the profits into this business and grow it and get more and grow it as fast as we possibly can.

James Manning:

Right. And so we get these three properties, all the money I had made from the last three plus years of investing are in these houses. And then they sat on a market and didn’t sell. And I had 40,000 in the first one, I had like 10,000 in the next one. And I forget what I had in the third one, but I also got into a game of Russian roulette and that I had to sell the one that I had more money in to pay for the loss that I was gonna make on the second one. Ah, so like, so not only did I have these three properties sitting, I had to sell ’em in the right order to be able to make it work. And it got so desperate. It got so bad that I end up having a double closing that I was able to figure out and make like an extra 15 K that, that allowed me to sell one of the properties off.

James Manning:

I was gonna take a hit and gave me the cash to bring that to closing. So we were going through all this cuz like we didn’t know our numbers and we’re working through all this and just trying to reinvest and grow the business and not pay ourselves anything kind of be as slaves to our business. And then I hit my head and I had two seizures cuz I hit my head really hard. And when you hit your head and you have two seizures, you’re not supposed to drive for six months. So not only was I facing these financial difficulties, I couldn’t drive. And I remember being in the hospital, it was on a weekend. So I had two days to think about my life before on Monday they could, would gimme the test to tell me, Hey, did you just pass out and hit your head?

James Manning:

And that’s why you had the seizures or is there something worse happening? Are you dying? So I remember sitting there thinking like, am I gonna die or not? I don’t know. And then my girlfriend at the time, my now wife, she was there by my side. And I remember thinking like this was the rock bottom moment of my life. And simultaneously one of the best moments of my life is I was like, holy cow, here’s this woman. I wanna marry her. I’m in love with her. She is the person, my person, I wanna spend the rest of my life with. And then that was immediately followed by. I don’t have enough money to buy her a ring right now. I don’t know if I’m even, you know, so I remember praying to God and I just remember thinking, okay, if it ends up being, I was just a wimp, I passed out, hit my head too hard.

James Manning:

And I’m like, actually, okay, I do everything I can to figure out this whole financial thing. That’s like just a nightmare and, and, and marry this woman. And if, you know, and then I’d ask for help. And for some grace, if it ended up being something that, you know, I wasn’t gonna make it through. Right. And so, so then ended up being like, you know, just kinda like supposed to be a one time thing. And we just, we hustled, we grinded, we did like 50 short sale listings just as agents that year to somehow some way, figure it out on and write some of the mistakes that we made. And you know, it’s interesting is, is because like, had we just known how to structure the financing a little bit better on those deals and had we just not had that belief that we had to reinvest everything into the company and actually paid ourselves something, you know, to have like some proper growth, not some uh, not some kind of overinflated growth.

James Manning:

Um, I wouldn’t have had to deal with any of that stuff. Yeah. Had to go through what I did. And um, so when David sent me the Profit First book, I got it on like Wednesday and I was done with it by like Friday like, I mean, I just devoured this, like it’s an incredible book. And what I see in myself and what I see through the book is, is like, gosh, I made all these mistakes and I, if I just had a, a path like this, but I just had a way to do it. Like I could have avoided all this trial, all this, all these issues that I ended up having. And, um so I cannot, I mean, this is important stuff and do not, do not lie to yourself that you don’t have enough time do not lie to yourself that, you know, you just need another deal. Um, that’s just, it’s just not how it works guys.

David Richter:

So yeah. No, and that was good stuff. That was really good stuff. So thank you, James, for for for doing that. I mean, it’s like just bearing your soul out here for the audience to hear. And, and I really appreciate that. Appreciate, you know, what you said about the book, but it is, it’s like, this is why, why I get so passionate cuz I don’t, I don’t want people to have to be in that anymore. At least they have a solution, you know, like at least now it’s like, let’s get this out there because yeah. I don’t want it to be, you know, 20, 25 and like, okay. You know, like people in the same predicament, only 10 years later now, you know? And so yeah, I really appreciate that. I think I think it’s those, it’s those moments on podcasts like that, that really hit home with people.

David Richter:

So if you, if you’re listening, go back, listen to Jim, what he was just saying right there about where he was. And I think he’s doing that for two reasons. If you are a new investor, please avoid that. You know, like there’s a system to avoid it and if you’re already there now you can get out of it. Cause I know Jim and his, his team, they’re incredible. They’re doing a lot of good stuff now and they’ve got their, they do have this stuff in place and they’re getting it. So it’s like, you can get through that type of thing. So thank you, Jim. That was, that was incredible. Thank you for,

James Manning:

For sharing that. Yeah. Yeah. And, and the thing I like a lot about the Profit First mentality too guys is like, like it used to be like how I would used to think I’d be like, ah, maybe I’ll just like throw money at it. And, and like, for example, like, like I was, I’ve been looking for a business partner on the agent side of things that could like be the manager, be the salesman manager, be the person in charge to take that company at a different level. And I thought to myself over and over again, well, we don’t have the money to do that. We don’t have the money to do that. There’s no way we can’t afford to do that. And um, the deal that we have now with Caleb, with Caleb, Caleb Davis is his name. Uh, we actually didn’t pay him a cent.

James Manning:

Hmm. We did. We structured a deal that gave him a tremendous amount of financial upside on growth and with, without a salary. Cause he wanted that financial upside. Yeah. The reason I share that with you is um, if you just say, well, I’m gonna just reinvest into my business. I’m just gonna kind of keep growing. Well, it’s kind of a little lazy. It’s kind of a little sloppy way to do it. There’s all sorts of resourceful ways you can do it. And the book talks about a, what’s the name of the principle where, um where if you have a hundred thousand dollars to spend, you’re gonna spend all a hundred thousand.

David Richter:

Oh right. Yes. It’s uh, I wanna say parade principle, but that’s the 80 20. No, it’s no. It’s um, oh man. Now, now you’ve put me on the spot where I would’ve to look it up again cuz it’s

James Manning:

All you wrote this darn thing

David Richter:

I was gonna say I do <laugh> oh man. That’s great. But uh,

James Manning:

But it’s so true is, is like, like it’s just gonna like, so like if you force yourself to have less money to work with, it will expand. You’ll find a way to, to spend, if you have a $50,000 budget, I promise you you’re gonna find a way to spend at least 49 of it. Right.

David Richter:

Parkinson’s law. It’s Parkinson. Yeah. Parkinson’s law. I was like a Preto principle of Parkinson’s law. So yeah. It’s

James Manning:

Yeah. That’s why I threw you off cuz it’s a lot, not a principle, so

David Richter:

Yeah, exactly. So no it’s yeah, that comes up all the time, just in the real estate investing world. So yeah. I’m glad you brought that up because it is, you give yourself as much time and as you, you’re gonna take as much time as you give yourself or as that much money that you have in your bank account. So that is, that just is permeated throughout everything that we do as real estate investors and yeah, man guy, it is it’s, it is incredible to see this lived out through real estate investors and through, you know, through the business owners that we work with and that we talk to just like, you know, if you just split this out, you’re gonna save yourself a whole lot of heartache down the road, you know? Like you’re gonna be able to see what you have and what you have to spend, what you have for yourself. So yeah, there you go. Parkinson’s a lot. I’m glad, man. I’m glad I saved myself there cuz I was, would’ve been super embarrassed here cuz on the podcast it’s like, come on, I know this, I know this, so no that’s great. But yeah, you

James Manning:

Didn’t write the book.

David Richter:

right. I was gonna say I did write the book, but uh, Jim, just a couple last questions here. Two last questions. Number one. What’s some last minute advice you give to the real estate investor community. That’s listening to this podcast.

James Manning:

Uh, yeah. So there’s riches in the niches. Don’t try and be a drag ball trade. Yeah. Uh, really like find something that you’re passionate about that you’re good at and that you can just do over and over again and it’s okay to be a little bit boring. Um all the mastermind groups, whenever I meet with somebody, the more exciting something talks about their business and they have these 10 different entities going and they have all this stuff. I kind of start in my head, subtracting what their net worth is.

David Richter:

Right.

James Manning:

Then I’ll meet somebody else. That’s like I lend money or I may landlord and they say it in one sentence and it sounds kind of boring. I start adding to their net worth cuz I know they’re probably making a lot more money because they’re being more focused. Um, and then the second component is, make sure you get the right people around. You get, make sure you get the right mentor. Um, yeah, I’ve been trying to this is the first time in my life I’ve been trying to teach like really learn how to golf and not just be like a hundred golfer, like kind of start to get good at golfing. And I started out doing the YouTube thing, trying to learn some videos there and uh, I’ve since just decided, okay, I need this mentor. So I, I got a mentor for my golf swing and my swing is about 500 times better and like three lessons than it was working on it for 10 months on my own. Yeah. With all sorts of YouTube videos. Uh, there’s just something to be said about getting someone around you. That’s been there. That’s done that. And that can kind of show you the way. So I think that’s, that’s a really important thing is, is making sure you have the right people around you.

David Richter:

Awesome. That is, that is so good. And keeps coming up with people who are doing a lot of deals or that, you know, that are also profitable too. They, they always say it’s those, it’s the people, it’s the people that you’re working with and that, and focusing, like you said too, focusing on the things that you’re good at, cutting out all those other distractions. So Jim, this has been incredible. Thank you so much for being here today. Now I always ask how can our listeners provide value back to you? What do you have going on or do you wanna connect or need a connection or whatever it is that you might need?

James Manning:

Absolutely. So we doorstodeals is our podcast. You know, if you like here in our style, we have a whole podcast. So doorstodeals, feel free to check that out. And then since we’re in St Louis are markets really good for turnkey investment deals. So if anybody, any of y’all are listening that may want some passive income through some turnkey opportunities. Uh, our team’s been, um you know, doing, I think we got like 10 or 12 under contract right now. So we’ve been really kind of hammering all that niche lately and, and um, we, we have some good opportunities there. So yeah, so doors to deals and then, um you know, threedoors is the name of our company. So, our company’s websites, threedoors.com too.

David Richter:

Threedoors.com. And is that with a number three or is that spelled out?

James Manning:

Oh yeah. So this gets confusing cuz no, we’re not three doors down the band we’re <laugh> so it’s a T H R E E so three written out and then doors is plural, D O O R s.com. So there

David Richter:

You go. So that way you won’t, so that way you’ll go and to see real estate deals and not actual band or something there. So I love that. That’s great. Awesome. So Jim, thank you so much for being here today, sharing incredible wisdom and experience from your, from over a decade now in the real estate world. So thank you so much for being on.

James Manning:

Hey, thanks for having me buddy. Have a nice one.

David Richter:

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

David Richter:

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

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

Episode: 242

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

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

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

Listen and enjoy the show!

Key Takeaways:

[01:01] Introducing Jay Conner

[05:00] Introduction to private money

[08:30] The Great News Phone Call

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

[13:18] Maintaining relationships with private lenders

[15:40] Private money vs traditional money

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

[25:18] Advice for real estate investors

[29:01] Connect with Jay Conner

Quotes:

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

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

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

Connect with Jay:

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

Tired of living deal to deal?

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

Transcript:

Speaker 1 (00:00):

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

Speaker 2 (00:34):

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

Speaker 3 (01:01):

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

Speaker 1 (02:07):

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

Speaker 3 (02:24):

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

Speaker 1 (02:43):

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

(03:38):

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

(04:27):

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

(05:18):

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

(06:10):

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

(07:02):

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

(08:11):

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

(09:06):

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

(10:04):

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

Speaker 3 (10:38):

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

Speaker 1 (11:17):

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

Speaker 3 (12:22):

Right? Yep.

Speaker 1 (12:24):

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

Speaker 3 (12:33):

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

Speaker 1 (13:22):

I mail ’em checks.

Speaker 3 (13:25):

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

Speaker 1 (13:33):

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

Speaker 3 (13:41):

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

Speaker 1 (13:50):

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

Speaker 3 (14:00):

Yep.

Speaker 1 (14:01):

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

Speaker 3 (15:27):

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

Speaker 1 (15:32):

Options. Does that make sense?

Speaker 3 (15:34):

Yeah, that makes sense. A hundred percent.

Speaker 1 (15:37):

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

Speaker 3 (16:14):

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

Speaker 1 (16:33):

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

Speaker 3 (17:33):

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

Speaker 1 (18:04):

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

Speaker 3 (18:20):

Yeah, me either.

Speaker 1 (18:22):

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

Speaker 3 (18:53):

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

Speaker 1 (19:12):

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

Speaker 3 (19:17):

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

Speaker 1 (19:20):

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

Speaker 3 (20:25):

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

Speaker 1 (20:50):

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

Speaker 3 (21:53):

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

Speaker 1 (22:07):

Well pay ’em on time.

Speaker 3 (22:08):

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

Speaker 1 (22:12):

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

Speaker 3 (22:42):

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

Speaker 1 (23:03):

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

Speaker 3 (23:06):

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

Speaker 1 (23:10):

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

(23:37):

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

Speaker 3 (24:31):

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

Speaker 1 (25:18):

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

(25:26):

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

Speaker 3 (26:11):

That’s so good.

Speaker 1 (26:13):

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

Speaker 3 (27:08):

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

(27:55):

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

Speaker 1 (29:01):

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

Speaker 3 (30:31):

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

(31:13):

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

Speaker 1 (31:51):

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

Speaker 2 (31:54):

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

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