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Investing to Learn or Learning to Invest? How Not to Be a Dinosaur With Mike Zlotnik

Episode 102: Investing to Learn or Learning to Invest? How Not to Be a Dinosaur With Mike Zlotnik

The Profit First REI Podcast

August 8, 2022
David Richter

Summary:

Mike Zlotnik has always wanted to invest in real estate. For over 22 years, Mike has been a debt and equity investor. He is a member of several mastermind groups and has taken on the role of CEO of Tempo Funding, LLC.

Mike jam-packs this episode with practical opportunities to improve efficiency and profitability in the REI realm.

Key Takeaways:

[1:35] Mike’s real estate journey

[3:13] Where is he on his real estate journey as of now?

[7:22] How does he source and manage his deals?

[11:00] Mike explains the difference between closed and open-ended funds.

[14:03] When is the right time to start a fund?

[18:39] Who are the most important and paramount people to have in their team?

[20:45] What philosophies around money have stuck with him throughout the years?

Quotes:

[22:03] “Money is essentially a commodity; it’s fungible. You basically have to have it, but you also have to invest in it. “

[25:24] “Life is all about growth. The moment you stop learning, you’re a dinosaur. And if you’re not moving forward, you’re moving backward. “

Links:

Big Mike Fund-http://bigmikefund.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:

Mike Zlotnik:

The journey has been learning how to invest rather than how to, and the more progress you have in your investment journey and your evolution, the more important it to learn to invest rather than how to earn money.

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:

Hey everyone. Thanks for listening to the Profit First REI podcast. Again, have another great episode here with Mike Zlotnik. I’ve known Mike for years now. We met at a mastermind years ago and have kept in touch with different projects and things. And he’s someone that’s very well respected in the industry. If you have any interest in funds or starting funds, this is the expert. Mike has done a lot in the real estate world and especially around creating funds and actually has several right now. I’ll have him talk about that, but he has been in the real estate world for a long time. And just gonna hear about his wisdom and hear about what he’s been doing. So, Mike, thanks for joining us today on the proper first podcast.

Mike Zlotnik:

Thank you David. Very much for having me happy to be. Yeah,

David Richter:

Really glad that you’re on here today. So Mike let’s, let’s go to the beginning. Where did it all start? Why real estate and why did you get into real estate? And when did, when did that start?

Mike Zlotnik:

Sure. My real estate journey started in the year of 2000. When I bought my first apartment here in New York city, it was my primary residence. I got married and we need a place to to live so nice. I bought an apartment and that’s the start of the journey and continue to buy here in New York for a number of years passively as a essentially technology professional. And then I went to real estate full time in 2009 starting a family of funds, but my, my journey has been passive 2000 to 2009. And then as a professional, 2009, and beyond that, we’ve done a lot of things, but just kind of big picture.

David Richter:

Huh? So two nine, that’s an interesting time to get started full time, right? That was just around the crash when everything started, correct?

Mike Zlotnik:

Yeah, it was good time and no question about incidental. I, I was burn out from the technology industry actually had a successful career as technology executive, but I was tired and I really loved real estate. So little estate became a passion and learning enough as a passive investor and being tired of the a little burnout from the te college world. I went full time. 2009 was not specifically timed by the crash of 2008. It’s just, it just worked out in my life.

David Richter:

Okay. Well, no, that, that’s awesome. So I’m glad you got into real estate. That’s your passion love that you stated that because I mean, if it’s not your passion, probably not gonna state in, in it very long, cuz it can get hard in real estate. So from where you were in two, tell us your journey to where you are now in two we’re recording.

Mike Zlotnik:

Sure. So I’ve done a number of things. Started family of funds. Actually the very first fund was not even founded by me by my good friend. He asked me to he started the fund and asked me to run it. And then I, I launched a family of funds. So we did a fund that originally financed short sales flips. Many of you are familiar with the concept. People are buying distressed properties with a short sale approval in front of the bank. So we’re financed a bunch of flips. Literally it was called transactional funding who did it for a couple of years. 2011, things got sort of slower and then transactional funding banks didn’t allow it. So we start essentially lending we’ll call it extended funding or hard money loans. So we started financing these flips, but people had to hold them 90 days, 120 days to renovations.

Mike Zlotnik:

So that whole business continued and we’ve done. The hard money funding continued to do it today. So that continued in essence until now, but on the way we’ve added a number of institutional sort of funds focused on commercial real estate. So 2017 we launched temp opportunity fund. I actually have some fixed and flip S and other businesses in Jacksonville, Florida kind of come there in 2015 on the wholesaling rentals fixed and flips, but separately the family of funds expanded quite a bit in 2017 will launch them opportunity fund our first commercial fund which is doing great today. It’s a growth and income fund and invests in broad range of multifamily storage industrial office shopping plazas. We have some niche investments such as land getting PTED for cultivation and number of really interesting other sort of niche investments.

Mike Zlotnik:

So that fund is well diversified, broad mandate, both growth and income. And then since then we’ve launched two other funds focused in on a single strategy. So we’ve launched tempo growth fund that was beginning of 2020 almost pre COVID, but it was a master blessing because we’ve gotten into a lot of projects during COVID that are just phenomenal deals as they were trading at a discount after the initial panic. So that’s the tempo grow fund. That’s our primary grow fund is closed. Then it’ll close to new subscriptions by then of this year. And then we recently launched tempo income fund in the middle of this year, focused, purely on the income strategy. The reason there separated these strategies is because in a combined manner, the growth creates a yield drag on the income. So growth has a ton of benefits.

Mike Zlotnik:

Income has the time of benefits you can do both or you can do them separately. So we have currently essentially three different funds. We’ve also done number of one off deals, indications. So commercial syndications last year again we we’ve gotten into a great deal in, in Indianapolis, almost a thousand doors, just a massive home run deal. Also during COVID this one area opportunity that we’re really picked up on is hotel conversions to multi-family that’s been a phenomenal journey. So that whole, if you, if you’re gonna ask me where the journey continues, that that still continues, even though COVID is sort of the hotels of recovered quite a bit, but still ton of opportunities we’ve seen in the space and that’s it. So we have family funds that we do one off deals. We just closed another one off deal. So it’s both funds and one of mostly commercial, we still do some hard money loans, but it’s sort of a legacy business. We do it as a relationship with all clients rather than a new thing.

David Richter:

Okay. No, I, I like that a lot. So how do you source the deals then? Do you have brokers? Do you have professional people on your team? Just actively looking all the time for that next? Like you said, you got the thousand, you know, doors in Indianapolis with thousand units. It’s like, do those just come across your desk and you’re analyzing those and from brokers or like where does a lot of that deal flow come from?

Mike Zlotnik:

Yeah, it’s a great question that I I’d say that absolutely not the brokers. We are actually trying to do some deals with the brokers, but it’s incredibly hard. The market is brutally competitive

David Richter:

Mm-Hmm

Mike Zlotnik:

<Affirmative> so I don’t recommend that my experience, you have to have a lot of money and you have to be pretty aggressive in your assumptions to pick up the deals that are listed on the market. A lot of the deal flow comes from relationships we have with sponsors and operators, years of relationships building. So the deal in Indianapolis the sponsor we’ve done business with in the past, and we’ve since done multiple other deals with same sponsor. He’s a specialist in Midwest. He markets, he finds these assets in certain cities. He’s a massive footprint and Indy. So he literally finds the projects he wants to buy. And he, you know, courts the owners until they’re ready to sell. It’s a very different approach for just, Hey, let’s see, what’s on the market today. If you approach the, the tire sellers and, and you give him a, a great offer avoiding marketing the property, this sounds, you know, you could, you could pick up a better deal for this versus a highly marketed property.

Mike Zlotnik:

So on the sales side, yeah, you typically try to market it through the channels, but on the buy side, you, you definitely wanna look for the off market deals through the special relationships. And that’s most of the buying that we’ve, you know, we’ve invested in and realize around a family of funds that is called essentially funds of funds. We are sometimes an operator, but we more often, we’re not an operator. What we do is we identify the active operators, we’ll partner with them. We’ll do GP & LP coaching. So we, we are mostly investors with the specialists in whatever they do. It may be multifamily conversion of hotel to multifamily storage, as I mentioned, land permitting for cultivation and so on and so forth. That’s the whole focus is to, is to basically identify the best operators and be programmatic and systematic capital provider for them.

David Richter:

Awesome. I love that. So you’ve used some terminology. I wanna make sure that I understand and that people are listening to understand what’s a sponsor and what’s a subscriber. I heard you use a couple different terms there, like a sponsor and then subscriber to the fund.

Mike Zlotnik:

Yeah. So the sponsor is typically the operator. Anytime you do a project, you, you find a multi-family deal. You raise capital, you are the operator or the sponsor that’s, it’s a, us is a synonym subscribers, typically a passive investor. So I, I’m not sure how else I mentioned this, but yeah. Subscribers to a syndication or a fund, the investors in a fund, just another, another term to use it.

David Richter:

Okay. So then you had mentioned as well, too, in that same sentence, that one of the funds was you were winding down on subscribers and there wasn’t many slots left for subscribers. So is, does that mean that you’re basically funded it to where you want to get the fund up to, and then it’s just gonna be like, okay, there’s no more room for passive investors in that fund.

Mike Zlotnik:

Yeah. Great. So, great question. So the temp growth fund specifically is a closed-ended fund just to differentiate temp opportunities and open ended or evergreen fund tempo income also launched as an open-ended fund. And tempo Grove is launched was launched as a closed-ended fund. What the difference, the difference is open-ended funds. They just do business, quarterly subscriber, investors, distribute income on quarterly basis, and they keep running forward. And then the the closed-ended funds they do not do quarterly process. They do quarterly statements and quarterly adjustments, but they basically have three phases. One phase is called subscription phase subscription phases. While the investors come in and then subscribe, then you have what is known as the investment phase and subscription phase often overlaps with the investment phase. So as subscriptions come in, we identify in investments for the fund and we call in the capital.

Mike Zlotnik:

So closed end ended fund works on subscriptions, which is basically I’m ready to invest a million dollars with you, but you, the fund manager don’t need the money today. So the money doesn’t go in until there’s a deal. So there’s a deal. We call in the money and then that’s when the money goes to work. And that’s when the prep starts. So the the subscriptions, when the capital is committed or pledged the capital calls is when the capital is pulled in and goes to work in deals. The reason we’re closing the fund is because the fund has maximum cap pledge period, the, the basically subscription period of two years. So we’re running out of time. Instead of extending the fund, we will close the fund to new subscribers continue to invest the capital throughout the investment period, which is another year.

Mike Zlotnik:

And that point after that, the fund starts essentially winding down any money that comes back from projects as a result of cash flow result of refinancing or sale starts going back to investors. That’s a normal, natural life cycle of a closed-ended fund. And the fund is right now is a phenomenal investment opportunity because it’s cut assets that were acquired a year ago. You almost can get into the fund as crazy as it sounds today at a prices of last year, which is not a common scenario because fund investment period was two years. There is a differentiation between old people and new people, but it’s 8% per year. It’s the pre, so the fund has institutional pre 8% cumulative prep. And then there’s a split, let us get 80% of the app site. We get 20% as a fund manager, if they write a million dollar check, and if they write a smaller check, it’s 70, 30 split.

David Richter:

Okay. That makes sense. So then the subscribers in there, are they accredited investors or do they have to be certain types of investors to be subscribers in the funds?

Mike Zlotnik:

Yeah, there are absolute credit investors. We do not take any non credit investors. We appreciate the interest if you’re not accredited but we cannot take non credit investors.

David Richter:

Okay. So then cuz there’s a lot of people, especially in the world that I’m in with the real estate investing, you know, all the time they’re thinking, should I start a fund? You know, like, I don’t know, I’ve got so many deals or so much opportunity and I need, you know, and I keep using private lenders when in your opinion is the right time for someone to start a fund.

Mike Zlotnik:

Yeah. It’s another great question. The, the answer is not binary. It depends. That’s the right answer. Of course it’s an individual circumstances and I’ve actually coached quite a number of people on starting their funds or changing or even modifying funds or setting up syndications. So I’m happy to do coaching. I’m not a ship date <laugh> so people are interested. They can reach out, I’ll give the information, but in general the fund is a vehicle. So a few use case scenarios where you, you could start a fund one you have enough one-off deals and you feel that basically the fund would be a good option to acquire small portfolio. It’d be easier for you to operate that as a portfolio. So the fund helps from diversification perspective, it’s moves the journey for investors. It reduces the risk of a single project.

Mike Zlotnik:

When is the right time when you feel like you’ve must sort of one of deals you’ve done, no one of deals starting a specialty fund. So what I’m referring to right now is a specialty fund such as sell storage fund or multi-family fund. The specialty funds require enough experience in a single project. And then the fund becomes just an easy entry point to split the journey for investors. The alternative to that is if you operate sort of the way I operate, you love multiple investment investments and you have enough knowledge in many asset classes that you want to have a fund to diversify across many strategies. Then you need a fund that that’s that’s the vehicle. Again, it is really a function of who do you envision raising capital from and for what a type of purposes people set up a fund, and then they have struggles raising capital.

Mike Zlotnik:

One of the reasons is because you haven’t thought through who you’re gonna raise capital from, if you know, who is your audience first, and you’ve talked to them and you’ve run the idea of a fund and they love the idea because they, they really trust you as the fund manager. Then it’s a consideration to raise a fund. The big difference between a fund and a single deal is a single deal as a whole lot easier to explain. So single deal you’re investing typically in the operator sponsor, which is your most, you know, important. Obviously if you invest with media, don’t mess it up. But sponsor operator number two, the single deal you are actually investing in a deal specific characteristics, right? You can explain this is a property in Memphis, Tennessee, or Orlando, Florida, or so on. So forth. You can actually explain what the property is all about.

Mike Zlotnik:

And then you have the performer, the economics, and then you have individual waterfall and individual investor economics. You could really explain what happens to the investor. You could show them worse-case scenarios. You can, you control projections and that’s easier to sell just to be very clear. One ordeal is easier to sell than a fund. Usually there are exceptions to that. The fund, typically the sales processes, you’re selling yourself as the fund manager and your team, whoever is your team, what is your track record? What your experience will, what results you’ve achieved and so on. So for some folks, and I’ve seen very successful fund operators who don’t sell one of investments because they won all. They want all the investments to go into the funds and then they just manage the money. It’s easier to manage the money for a fund manager.

Mike Zlotnik:

You don’t have to have a less minute rush. Can I raise enough capital the capital sit in a fund and you have that benefit. So if you want control of the decisions where the money goes, the fund is a really elegant vehicle, but the capital raising for the fund is a little bit harder because you are just selling, Hey, it’s sent a certain percent annual return or 12 to 18 or whatever the number and I’m that rate. I know what I’m doing. And here is the PPM that describes what what’s what’s in the box, but it could be a pretty broad box. Does that make sense?

David Richter:

Yes. Makes total sense. So I appreciate that. And just, I think that all spark some interest in conversation with people listening of like, okay, is this time to start a phone or not? And like you said, if you wanna work with an expert, who’s not a cheap date. You’ll Michael give his contact info of how to reach him at the end here. Cause it that’s, I love non cheap dates cuz then they’re worth their waiting gold of what you need to do. And when it’s this type of information that they help with. So, but I, I love that too, Mike, so then I will have one more question on a phone. Who do you say is paramount and super important to have on your team when you have a fund or like when you, you know, like, is it, you know, the processors, the people that you work with, like who all makes up that team and who would you say, like you have to have these people in place if you’re going to start a fund?

Mike Zlotnik:

Sure. So we, we outsourced a lot of our back office work and, and we use a third party administrator in my view, having a good administrator is very important when you’re starting a fund. Some point when you scale up and you get bigger, you could bring that administration work, essentially accounting and investor relations and investor statements into the house. But, but without it, you do need third party administrator. I think it’s a requirement. At least part of the planning. You should have one. In addition, obviously you need to have staff members that can help you source deals and under ideals. So you, you just wanna start a fund because it sounds cool. It’s a little rough. Where are you gonna find the deal flow? So it’s more important to actually identify the sources of the deal flow. It’s either your own relationships where you need a competent let’s just call ’em asset acquisition, executive who has the deals, or has the relationships where to get the deals.

Mike Zlotnik:

And the, on the other side, you need investor relations. So as the fund grows, but you don’t need it from day one day one, you manage to investor relations. But over time as the fund grows, you’ll need to have pretty strong executive in that area. Because when you’re running a fund, what are you doing? People ask me, what do I do? And you marry money, an opportunity. That’s the way to put it. Mm-Hmm <affirmative> right. So you need to be good on both sides. You need the opportunities and you need the capital and you need both strengths of both sides. And then you need the operating team in the middle, let and run actual mechanics of the fund.

David Richter:

Awesome. Well, thank you. I think that’s provided a lot of, a lot of good info on funds I’ve got, since this is the Profit First II podcast. Wanna talk about money a little bit. And one of the questions I like to ask is where did you learn about money or like what philosophies around money have stuck with you, you know, like over the years as you’ve, you know, grown and as you’ve learned more, so where did you learn about it and kind of like, what philosophies do you just have about money in general since we’re talking about it?

Mike Zlotnik:

Yeah. I mean, it’s a journey. It’s really not a one day thing. I’m kind of, you know, I grew up in the former Soviet Union and immigrated to the United States in 89 and there was very different journey obviously, but I started learning about money through my own hard work and kind of saving and investing. And then at some point I, I came across, obviously everyone that has read Robert Kiyosaki and, and Rich Dad, Poor Dad. That kind of got me thinking, and then this really not single single source, but being in New York and observing kind of what happens here that, that find real estate here is as long as the there’s some, some lessons I’ve learned really observing real estate and investing in real estate myself and then a series of books. I mean read obviously a lot of stuff that to stock, he put out, but many other books, there’s not a single, the journey started journey continues.

Mike Zlotnik:

I just think of kind of money as a so lemme take a step back. So money is essentially a commodity money. Money is is fungible. Money is, is something that is just, it, it, you basically have to have it, but you also have to invest it. So having money itself is really meaningless. You need to have wealth, that’s a better way to put it. So what I’ve learned about money is that essentially is you, you earn capital as you grow capital. You have to invest if, to learn how to invest. It’s more, it’s more important learning how to invest then than just having money. If you have a lot of money, it doesn’t mean anything. You just gotta be able to deploy it. Cash in the bank is a whole burning a hole in a pocket in, in a pocket that needs to be deployed. So I don’t know if I answered your question, but it’s sort of the journey has been learning how to invest rather than how to in the more progress you have in your investment journey and your evolution, the more important it to learn to invest rather than how to earn money.

David Richter:

I love that. No, I love what you said too. You look as money as a commodity. It is just a tool, a tool to build the wealth. And it’s basically showing you that scorecard, you know, like, are we helping? Are we providing that value? Are we matching opportunities with the money? You know, like with the capital and making sure that those are happening. So it’s like, that’s how I love that. Because then, like you said, it’s about investing it and doing the right thing with the right people and making sure that, you know, it is the win-win in that cycle and money is just a commodity. So I love that. I love what you gave there. Then as far as just in general, we’re winding down here, just a couple ask questions. What’s some general advice you would give to the real estate investing community, you know, either around their money or around their, you know, it could be any general advice whatsoever, but you’ve got a wealth wealth of knowledge. What would you give us some last minute advice to the listeners here?

Mike Zlotnik:

Sure. So we live in an inflationary environment. Inflation is your friend. And the kind of rule of thumb in general is that if a rate of appreciation of the property exceeds the cost of debt on the mortgage, you’ll always wind up ahead. So we live in unique times that the accelerate inflation actually accelerates the growth of the equity and devalues the, the debt. So in this, in this environment, continue to consider investments into equity, more than debt. Even though we do hard money loans and we lend money but generally returns a higher in this environment, in the equity space pick the right risk adjusted returns. And that’s the whole grail of investing. These are the, the terms that the hedge fund managers, the most experienced guys say risk adjusted return. Don’t always focused on a top line. Don’t always focus on the exciting shiny objects.

Mike Zlotnik:

Look behind the scenes and, and try to understand what are the risks investing. It’s all about the risks you could, you could be promised a great number, but if you’re taking enormous amount of risk, you’re not getting compensated for the risk, then you’re not taking the right risk adjusted return. So always look at the risks associated with whatever project and, and kind of look at the, the good, the bad, the, a ugly scenarios. What could happen if things turn now, it’s not a perfect game. It’s just, it’s a game of, of, of learning. It’s just continuously evolving your own playbook and your own rules and improving. It’s a continuous improvement like life is, is, is all about growth. The moment you stop learning, you’re a dinosaur and, and if you’re not moving forward, you’re moving backwards. So the other thing that I wanted to say, and I’m gonna crack this phrase, I just feel like this phrase and most people don’t don’t understand, but it’s a very clever phrase because it, it, it, it summarizes the essence of thinking when you invest.

Mike Zlotnik:

So the question is to the audience, are you investing to learn or learning to invest? Hmm, you’re always doing both, right? If you’re not doing both at the same time you are either old, you get too much money and you don’t need to learn anything else, which is, which is fine. And so if you are investing to learn to get better, that, that you, you expect to, to have some lessons from, from your investments, if things go perfectly, you learn very little things, go a little choppy, you you’ll learn something from that. And then the other one is obviously learning to invest means that you will practice some plan and measure seven times before you’re gonna cut once. Otherwise it’s very easy to write a check and then get stuck in it, in the wrong deal. So that, that means that my thoughts on the subject.

David Richter:

Awesome. Well, that was, there was a lot of knowledge drop there. So make sure you go back, listen to that, listen, that little clip there. He gave a lot of great information and listen to this, this whole thing again, listen about when to start a fund, the people to have on your team. There was just some really good information there when, you know, the types of funds that he’s working with right now, and the types of funds to set up, but all that information. Now, Mike, we wanna know what the cheap date is. How do we get in touch with you, you know, the non chief date. So how do we get, how do people get in touch with you? How do our listeners provide value back to you and, you know, reach back out to you.

Mike Zlotnik:

Thank you, David. So it’s fairly easy. We do have obviously a primary corporate site, TempoFunding.com, but the easy one to remember I’m known as the Big Mike and so it’s BigMikeFund.com. That’s actually the name of my podcast, but you can go to BigMikeFund.com or you can navigate from there. And if you misspell it and you forget the D at the end, so BigMikeFund.com. I promise it’s not a kinky site.

David Richter:

<Laugh> oh man, there we go. We got cheap non cheap dates and kinky sites. So here you go. So it’s,

Mike Zlotnik:

<Laugh>

David Richter:

Non kinky. Okay, good. So it’s BigMikeFundund.com and then we’ve got TempoFunding.com. If you wanna go there, we’ll make sure to put those in the show notes, if you wanna have your non chief date with Mike reach out to him. And I know that he has been, he’s done a lot of great things as you can hear here in the, on this podcast episode. Thank you so much for listening. Thank you for listening to the Profit First REI podcast and for being another great listening and to another episode here, Mike, thanks for being on. Thank you for just sharing your knowledge about funds, about investing and what you’ve seen, and then your thoughts around money too, and an awesome episode. Thank you so much for being on today.

Mike Zlotnik:

Thank you David, for having,

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 in 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 apply button right on there. If you, 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 private 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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