The Benefit of Profit First for Real Estate Investors with Aryeh Sheinbein

October 17, 2022

Episode 121: The Benefit of Profit First for Real Estate Investors with Aryeh Sheinbein

The Profit First REI Podcast

October 17, 2022

David Richter

Summary:

Aryeh Sheinbein has done stocks, real estate, business buying, syndications, and more. He started with investment banking after graduating with a finance degree, and from there, built an impressive portfolio and even more impressive well of knowledge and experience.

Aryeh Sheinbein’s expertise gives us profound insight into understanding numbers, cashflow and profit, and why implementing Profit First is a tremendous benefit to your business.

Key Takeaways:
[00:51] Aryeh Sheinbein and His Background

[03:51] How Aryeh Sheinbein Started on Money

[08:07] On Profit First

[13:52] The Benefit of Profit First for Real Estate Investors

[18:58] The Key Indicators in Finances to Look Out For

[22:38] The Concept of Product Agnosticism

[26:48] Advice for Real Estate Investors

[22:44] His Advice for the Real Estate Community

Quotes:

[09:42] “The biggest driver isn’t revenue, isn’t profits–it’s cashflow.”

[16:08] “You need to understand where the money is.”

[27:09] “Whether you want to be in the stock market, or whether you want to be in real estate [you have to ask yourself]…Are you creating a new job for yourself? Or are you actually creating some sort of passive income?”

Links:

Aryeh’s Instagram – https://www.instagram.com/aryehthebusinessman/?hl=en

The Investment for Wealth Coaching Program: solutionadvisory.com

Inside the Lion’s Den Podcast https://insidethelionsdenpodcast.com/

Profit First Real Estate Investors FB Group-https://m.facebook.com/groups/ProfitFirstREI/

Simple CFO-https://simplecfo.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:

Aryeh Sheinbein:

A lot of the people really don’t understand their numbers because they look at it so simplistically, they’re like, Okay, I bought something for $10, I sold it for $30. There was another $10 of hard costs, so I net $10 a profit. And you’re like, Okay, but now you actually have to rebuy new inventory and you’ve re the cash went right back in. Where’s your profit? Like, where did that $10 go?

Intro:

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.

David Richter:

Hey everyone and welcome back to the Profit First REI podcast. Have another interesting guest today. We have Aryeh Sheinbein on and he has done quite a bit. We were just talking for the last 10 minutes. So I am excited to have him on today about what he’s done in his past. He’s done some real estate, he’s done investing, he’s done stocks, he buys businesses, he’s done syndications. He’s done a lot of different things in the real estate and outside of real estate as well too. And I believe he’s got a real passion for helping people and not just selling them whatever product that he’s doing. He’s calls himself a product agnostic, so we’ll probably talk about that a little bit today too as well. I’m very excited to have him on. He loves Profit First, so that’s a big plus, especially on this podcast since that’s what we are mainly all about here. But Ra thanks for being on today and thanks for coming on our podcast.

Aryeh Sheinbein:

My pleasure. Thanks for having me.

David Richter:

Yeah. Aryeh can you give the audience right now a little bit of your background, cuz we talked about a lot and just the different types of things you’ve been involved in from real estate to stocks to, you know, Wall Street to everything that we talked about.

Aryeh Sheinbein:

Sure. So I went to college, got a finance degree and went straight to Wall Street. So I did the investment banking route. I worked for JP Morgan, and after a couple years I had researched really what I thought I wanted to do, but like anything else, you get there and you’re like, it’s not exactly what I thought it was. But from a skill set and training perspective, it was really not just eye opening, but it was a great skill builder. You know, from there I moved into a, a small investment firm where we made early stage investments, both in, you know, some tech and business services types of companies as well as more established type of businesses over my career to, you know, shorten this and make sure that everybody pays attention so that I don’t bore them with my stuff. You know, I’ve worked at or with some of the largest private equity firms, hedge funds on investments both on the public side and the private side and, you know, through it, out through it all.

Some of it’s real estate, some of it’s other things, both personally and professionally. I’ve always really drifted and been attracted to non-publicly traded things. I mean, I have a large stock portfolio and I like following stocks, but at the end of the day private companies allow you to have certain levels of control you don’t necessarily have on the public markets, you know, and that’s why, you know, if you read certain books, they’ll talk about Mr. Market being in a good mood, in a bad mood, but it doesn’t mean that the value of Apple Company changed so much overnight. Like one day it’s up 5%, one day it’s down 5% realistically, that’s just the market indication of things. So through it all, like I, I like having like a perspective on the value of things, whether it’s a cash flowing asset like real estate or it’s, you know, a business I’ve been involved in in all kinds of stuff. So hopefully that gives you a little bit of flavor of what I’ve done.

David Richter:

Yeah. So let’s, let’s go backwards from when you got into, you know, what you went to college for. Go a little bit deeper. Where did you first learn about money and what was that thought process like? What, like what took you down that road?

Aryeh Sheinbein:

That’s interesting. So I played a lot of sports when I was a kid, but I also was a big sports card collector. Okay. And by the time, like it started out that when, when I was a kid, the price guide’s Beck was like the, the premier price guide and it wasn’t online. Like it didn’t exist yet. And so this is, you know, I guess I’m dating myself a little bit here. And what I would do was, is because I followed sports, I knew the players who were having good seasons are up and coming and the guides would only come out once a month. And what would happen is is let’s say you had a rookie player that was hot and the cards like may have priced well the first time in, in the publication, but you see that the demand for that player is just gonna be there because they’re having great statistics, they’re having a great season, everybody wants it.

And so basically I would buy or try to accumulate like their cards before the next price guide would come out and maybe even trade for some of it. And typically like you’d go into a store, right? And the store would say, ah, book value is this. And then a lot of times if you wanted to sell to them, they’d be like, Well, we, we, we buy a half book. Like, that was like the standard line that like any dealer would tell you. So I started going to shows and my dad, you know, would kind of drive me around on Sunday to like the different hotels and, and like they had all these car shows, right? And I, I would go to dealers trying to just accumulate things that I thought were going to increase in value and then flip them out if I, once the price guy came out and validated basically my play, and by the time I was like 15, I actually beca I started having tables and selling at some of these shows.

Hmm. and so at the time I didn’t really understand that that became my stock market, but it became my stock market. And so probably around that time my father told me like, Hey, you should probably like look a little bit at some of like, you know, investments or at least put some of your money to work. And, and so I did, like when I was 13, I actually started putting money in like mutual funds mainly index funds, but I didn’t really conceptually understand other than like, it sounded like a good idea because he said like, you know, Hey, this, that the other thing fine. But by the time I got, you know, it was like a senior in high school though, they had like a stock market game for you know, school and like I participated in that and I did well and that really was heading into college.

I was like, I’m going to be a lawyer. I liked, you know, the litigation aspect. I like, you see the movies, you see the tv, this is what it is, right? And of course it’s not right. Like freshman year I had a professor who’s like, Do you like to read? I’m like, Yeah, I’d like to read. They’re like, No, I mean like hours and hours and hours of paper. And I’m like, Yeah, probably not. And they’re like, Well, do you like to just do the same thing and not really deal with a lot of people? And I’m like, Yeah, no, I like people a lot. And he said, I mean he had a, he had a law degree from an Ivy League school and he wasn’t, you know, he wasn’t using that. And he said, You’re gonna hate being a lawyer and I can tell you like, and so honestly the pivot became, Okay, now what?

Right? Like mm-hmm. <Affirmative> unbeknownst to me, I happened to have had a really good mind for business and it just came naturally to me, but I never zoned in on it. And like really honed that fact, people would say things to me cuz I would say, Oh, you should do this or that, or have an idea. But what happened was, I noticed this crazy, I read a Jeffrey Archer fictional book called Can Enable, and basically there was two guys who became like nemesis who came from nothing. And they, one was in the stock market. And I’m like, well, even though I know this was fake, I’m like, well, this dude could do it. Like I could do this. And so that’s it. Like I just started focusing on finance investing, what drive stocks, what, you know, what do the financial statements do. And I happened to have always liked numbers, so it came easily for me. And, you know, that was, that was really like what drove the beginning of the passion.

David Richter:

Wow. That’s awesome. So that’s you see that we have a high caliber person here on this, on this podcast today who’s had quite an experience in the realm of money, finances from college all the way through his professional career too. So we were talking a little bit about like what Profit First and how kind of are introduced to that? Or a specifically the question you like to ask about the three, or I just gave it away <laugh> the answer, but how many financial statements there are and like how that ties in. So can you kind of give that like, the story of how you do that with investors or with other people, but then also like what got you interested in the book and what was, you know, interesting to you about the Profit First methodology?

Aryeh Sheinbein:

Yeah, sure. So I had told David before a story that a lot of times when I would meet with entrepreneurs, I ask the question, how many financial statements are there? And everybody kinda gets the one, right? The p and l would i e the income statement. And you know, some people are like, Oh, you know, there’s that thing some people know it’s called a balance sheet, some people don’t. But, but they know it’s where like the cash resides, right? Like it’s where you see that numbered Now if you have debt, okay, they know it sits there. The idea of equity not so much in a business, like they don’t really get it very, very few, let’s call it one out of every 10 know that there’s a third financial statement. And of that one outta 10, only about 50% of the people actually know it has a name that’s called the cash flow statement.

Now, when I was in college and I was going and I decided I wanted to either be an equity research analyst or I wanted to do investment banking and any of these types of things, you started to prep just like anything else, you started to prep for the interviews. And the big question that you needed to understand was, if you’re going to value a business, if you’re going to value something, what is the biggest driver? And the biggest driver isn’t revenue isn’t profits, it’s cash flow. Hmm. And so to understand that you actually understood how the three financial statements had to work together and understand that the cash flow statement was actually the most critical one because it tells you where the cash is going, where the cash came from, and how much money the business is going to truly generate. Yeah. And, and I think most people, a when they don’t like something, they avoid it.

Right. It’s just natural forget like business just in life, you know, like we procrastinate what we don’t want to do. Like I’m a guilty for it, You know, if my wife is listening to this, she’ll be like cheering. Yes, yes, yes. You procrastinate the things I don’t, you know, <laugh>. But the reality is, a lot of business owners, especially like entrepreneurs who kind of get into things they don’t necessarily they didn’t grow up saying, Okay, I’m going to be a business person, and, and they get a corporate job and then they leave. A lot of people are like, Hey, I don’t, I wanna work for myself, or I have this passion, You know, it’s kind of like emit revisited, you know, Michael Gerber, like, you know, you have a skillset and now you’re trying to mon you become the business person monetizing your skillset.

Right? Right. And what happens is that people are like, Oh, whoa, I don’t wanna deal with my numbers like someone else, like someone else will handle that. Yeah. And so they avoid it. And the, the, the problem with that is like, there’s a lot of important things that are going in there. Now you don’t have to do it, but you just have to like understand it. So when I think about Profit First, I actually think, you know, Mike, in in, in writing the book really did everybody a tremendous favor who didn’t come from like a numbers background or doesn’t really interested in like, you know, his, his reference to like Spock accountants and whatever, Right? Like, I’m not an accountant, but I tell people like, numbers tell me a story. Yeah. And then the objective is like, have the story sound better or look better.

That’s how I think about like my day job in, in valuing businesses. But for the business owner, this just simplified everything. This is like, Hey, we’re gonna take user behavior, we’re going to take how people think about things today, and we’re just gonna keep it the same and make it work for you. Right. So that’s why I, like, I really liked Profit First, but when I got into understanding the cash flows, like back to to college, it actually just started to make a lot of sense of like, okay. And so as I’ve done different things and I have my eCommerce businesses, I’ve always said when I got into them, a lot of the people really don’t understand their numbers because they look at it so simplistically they’re like, Okay, I bought something for $10, I sold it for $30, There was another $10 of hard costs, so I net $10 a profit. And you’re like, Okay, but now you actually have to rebuy new inventory and you’ve re the cash went right back in, Where’s your profit? Like where did that $10 go? Yeah. And they’re like, I don’t know, but I can’t pay my bills. Right. Like <laugh>.

David Richter:

Right. Exactly.

Aryeh Sheinbein:

And so, like this system just allows people to strip away all the noise, all the complexity and just say, Okay, just like, you know, I think he references this, in the book. Like there’s, you know, I’m not per se a Dave Ramsey fan, but the concept of having envelopes for your cash, Right? That’s what this did. It just modernized. Like he definitely mentions this in the book, like he modernized you know, the envelope system. But what it really does is it just allows human behavior not to mess things up. Right. It allows you, you’re already conditioned to do one thing, just keep doing that one thing and, and the money siphons off. And this is why I tell people in investing the same thing. It’s, you know, Parkinson’s law, if you, you know, whatever time and space you have to do something, if I give you a project and you have, you know, two weeks, boom, you’re gonna, you’re gonna take full two weeks.

Even if you think you could do it in two days, and if you tell me it really takes three weeks, you’re gonna get it done. Two weeks investing living off a certain amount. It’s the same thing if I pull that money out. Right. If I take 10% of your $5,000 a month and I pull it out and that, that’s kind of like where the 401k model probably came from. Like you didn’t see it, it didn’t really exist. Right. So you can live off it. Right. You make it work. Yeah. And, and so that’s how I think about like the system works that way and, and so does investing. Investing should be as automatic in, in the similar kind of sense, like once you have the, the money built up.

David Richter:

Awesome. So then real estate investing and the investors listening here, how do you think that the concept of Profit First applies to them? You know, like what does it help them the most? Because, you know, they’re buying assets a lot of times either to buy and hold or like you said you had bought some single families or, you know, fourplexes or up to that or whatnot. What do you think is one of the greatest advantages of using a system like Profit First for the real estate investing world?

Aryeh Sheinbein:

Yeah. So I think it depends, Like, I kind of segregate that into two categories. Yeah. And that is, are you a real estate investor who has another job and this is just kind of like what you’ve done with you’re doing with your money? Yeah. Or is this your job and it’s your primary source of income. And the reason for that is if, if I’m gonna go fix homes, right? And I now have, I basically have a business and some people think about it this way and some people don’t. Like you’ll talk to business owners and they’re like, Oh, well I want to go buy these houses and you know, HGTV made me realize like how much I can, you know, do this and this and this, Right. Or my brother-in-law’s doing this, or my cousin’s dentist, you know, whatever. He left dentistry to do this.

Okay. Understand that. Like, now you have a job, right? Yeah. And so if you’re in that category that like you want this to be a job for you, now the Profit First is totally going to help you because it’s, it’s any other, it’s just like any other business, right? Like your business needs to understand where the cash goes. So you went and you bought this house, whether you use other people’s money or you put some of the money down yourself, plus you may have some other kind of financing. Okay, where is the cash going? And as it comes out, okay, siphon it off because now this is my pot for the next kind of deal. Right? Like, as I’m kind of sweeping it into my Profit First account, that’s super helpful because otherwise people are like, Hey, a mid deal over here and now a new opportunity comes up, the bank account looks flush with cash.

Yeah. So I can go and do it. Turns out I forgot I gotta buy this, this, this, this and this for this, this fix I’m in the middle of and now I’m stuck because like I took that money and I shouldn’t have taken that money. Right? Yeah. So, if you’re doing it that way, it’s hugely valuable because it’s just like any other business, you need to understand where the money is. Yeah. If it’s on the personal investing side, it’s interesting because what happens is, and this is the part that’s interesting about real estate, is people are generally looking for one of two things, right? Appreciation or cash flow, Right. Depending on, on what you’re doing. And if you, if you’re looking for appreciation, obviously there’s not gonna be a lot of returns kind of coming out until you have like some sort of event, whether it’s a refinancing or a sale.

Yeah. And ultimately though, if you are investing on cash flow, the concept that people miss, and this is where I, I kind of try and help like entrepreneurs understand this, is everyone talks about compound interest, compounding growth, compound, compound, compound real estate cash flow is great, but it doesn’t compound. And so if you’re basically, if you think about things a little bit in a Profit First mindset, like when that cash flow comes in, it should basically go to your Profit First account. Right. Because now it has to get redeployed. Yep. And, and so like I remember like my dad who got me into stocks originally, right? When he started looking at real estate deals and he would start, you know, showing me getting my views and thoughts on things I said to him, I said, Well how much money do you have to invest? Like, what’s the allocation to real estate?

And he is like, I don’t know, you know, like I have this, I have that. Like, it was all almost like willy nilly. Yeah. You know? And I said, Okay, well what happens to the distributions that you get quarterly from the other deals? He’s like, Well it goes into this bank account. I’m like, But but that’s like your, your operating bank, you know, basically your, your lifestyle operating account. And it’s like, yeah, so I use it if I need it. And I’m like, now the whole thing’s not growing, you know? And so I basically had him redo some of the stuff just to say, listen, the investment world, like, and this is what I did, like probably, I’m trying to think like at least 15 years ago, and I don’t even know if the book was out yet, but it was just made sense to me like, okay, here’s my allocation for you know, like high expense, big expenses that I knew I had coming.

Yeah. I have a separate bank account, so if I get my bonus boom that money just goes in there and that’s like four saves for that and I don’t have to think about it. Yeah. So it’s the same with investments. Like I had another bank account where I make investments, whether it’s real estate or buying a business or whatever it is. And then the cash flows from those come back in and that’s basically the Profit First model, right? Like the money is coming back there first before I go and like say, Okay, now it’s time for me to buy a new car or whatever I wanna do with it. Right. Yeah. So it’s like a tool separation now, not even to get into the legal side of it, like does that sit in an LLC or other things? All lots of stuff that like people like CFO or any other accountant probably from can, can help you with, but just conceptually it’s a separate bank account and the cash flows are coming in there and it’s effectively your Profit First.

David Richter:

Yeah. No, I love that. That’s awesome. So going a little bit further with any type of business, cuz you are you know, conno sore of the business realm what do you, what would you say is the biggest thing that they should be that an entrepreneur or business owner should be tracking from the financial point of view? You know, like what are the most key indicators that they should be looking out for?

Aryeh Sheinbein:

Well, I think the way I think about it for an entrepreneur is I always tell people, like people come to me and they’re like, Well, should I be doing this? Or how should I handle this? The number one challenge I think people have is they don’t start with the end goal in mind. Yeah. In the beginning, right? Like, I always tell people like, what is the end goal? Like, what are you trying to achieve? Like in today’s world, information is everywhere, right? There’s access to tons of stuff, right? People listening to us on this podcast, you can check out, you know, things on YouTube and all this different stuff where, you know, years ago you didn’t have that, but part of it did the messaging. Like if, if you just like take a step back and you look at social media, you look at all the, the, all of the information, it always sounds like grow, grow, grow, grow, grow, grow, grow.

David Richter:

Yeah.

Aryeh Sheinbein:

And it doesn’t necessarily mean that that’s the right answer for you, right? And so like, what does this person want in their business? Are they looking for an exit? If they’re looking for an exit? Like, what is the number that they want? Like, I know that sounds like abstract and like, what do you mean what, what do I want? Like, but if you actually take a step back from your business and you’re like, Okay, I get it, you did this cuz you didn’t wanna work for someone else. Okay, fine. Is that what you wanna do for the next 20 years in the sense of just like not work for someone else? And then if your kids wanna step in or if you wanna exit, then you’re gonna think about it like, have a plan in place because the key indicators are important, but if you don’t, if you don’t know where you’re trying to get to, you’re never gonna get there.

Right? Like, if we don’t get, get in the car and say like, Hey, I wonder where I’ll end up today. You know, like we, we know we’re going to the mall or we’re getting gas, or we’re picking up our kids or whatever we’re doing. And so it’s the same with your business. So in terms of key indicators, I think the question becomes like, do you wanna be a so printer? Do you wanna be a $10 million business? Like the only way to track the indicators of, of your specific business is knowing where your destination is gonna be so that you can kind of get there, right? So if you tell me like, I want to get to a 10 million revenue business, then we can focus on the revenue side, but understand like, are you gonna bleed cash to get there or are you looking for profitability along the way?

So depending on, on like what you’re trying to do. And so it’s, it’s an interesting conversation probably one for another time is a lot of people who are entrepreneurs and have these businesses, the amount of their net worth that’s tied up in this business is on, on a disproportionate level Oh yeah. To, to the rest of the neural net worth, right? And so, like, one of the things I try and get people to understand is like, hey, if, if you ultimately are gonna sell this and you’re gonna free that up, you definitely need to know where you’re going and you probably need to have some like annual check-ins of like, Hey, how much is my business worth? Or how is it doing? And like I know a lot of people are like, Oh, I don’t wanna pay for this, I don’t wanna pay for that, but yet you pay for, on your personal side, you pay for all this other crap, right?

Like, but you don’t wanna pay for some important things because it doesn’t necessarily quote unquote make you money today. Right? Right. And, and so if you are taking distributions or you are kind of taking cash out of the business, which totally is acceptable once it kind of gets to the other side, you know, on your personal, let’s call it personal balance sheet hey, okay, now let’s focus on making that grow. Because if it’s not gonna come out in this sale, it needs to be working for you. Just like if it was inside the business, it needs to be working for you.

David Richter:

Yeah. Yeah. That makes sense. That’s awesome. So before we wrap up with the final few questions here, what product agnostic, let’s talk about that a little bit. You know, just, we talked about that up front and I really like that concept because I feel like it’s more focused on what the end user, you know, it’s what’s really best for them. So let’s just talk about that concept if you could.

Aryeh Sheinbein:

Yeah, sure. So when, when people, you know, generally think about investing or generally think about like, okay, what do I do with my money? It doesn’t have to be investing per se, right? Like, so again, focusing on the fact that like once it’s out of your business, okay, so it’s now on the personal balance sheet side of the equation. The issue I find with the overarching, you know, financial service industry is whoever you’re talking to, they’re generally selling you that thing mm-hmm. <Affirmative>. So if I talk to the insurance guy, he’s going to tell me how I need this insurance, right? Whether he’s a whole life person or a term or whatever it is, right? He has the best product because he basically has a vertical that he can sell me in his suites of services and suites of product, and it’s probably AB or C.

And then if you go to the broker at Merrill Lynch or Edward Jones or wherever it is, or your cousin who tells you this, that the other thing they’re selling within the product realm that they have. So they usually can sell you stocks, they can sell you maybe some bonds, but all mutual funds. The number one thing, and you don’t actually per se think about for the fact is it’s like why aren’t they offering you something else? Right? The reality is, is each one of these verticals is set up to only be able to sell these things. It’s even, you know, in today’s world where there’s crypto, you don’t see Schwab, the platform doesn’t today allow you to trade crypto. Maybe it will in five, 10 years. So now who knows? But it’s interesting, right? Like you’re inside every vertical and everyone is always kind of pushing their product.

Yeah. So the, the marketing messaging of all of these industries, even like the real estate, Hey, learn to fix and flip. Hey, learn to wholesale, learn to do this. They’re selling that one thing right now from a marketing message, it works the best, right? Like if I tell you here’s your schorge board of options, you’re like, oh, like, you know, decision fatigue, right? But that may not be what’s best for you. And so I view it as like, hey, part of the value of, you know, my experiences, like I’ve dealt with buying businesses, I deal with investing in stocks, I deal with real estate, I deal with lending, I deal with tax lie. So all these different things, some of which have performed, some have not. Like, you know, like there’s no shame in having missteps because I think everyone over their career is no one’s gonna hit it outta the park every single time or even at least hit a single every time.

It just doesn’t happen, right? Like the guys in the hall of fame in baseball hit 300. So in looking at that, my belief is like, hey, I don’t really care what you want to invest in. If you tell me you’re gonna be nauseous because the NASDAQ is down 30% this year and it just, you’re never gonna feel okay, okay, then we can say what stable type of investments, cash flowing real estate, may better for you. Maybe even a whole life insurance may be better for you. And I’m not going to sell you one thing or the other. I’m first gonna educate you, understand the risks of every asset class, understand the benefits of every asset class and hopefully understand like the positive returns. But this way, like if you wanna call the insurance broker, hey, call the insurance broker, but now you’re educated, you wanna invest in stocks, Hey, now you’re educated, you wanna get into real estate, okay, now you’re educated and where I can give you access, great, I will give you access. But it’s much more of like a true advisor. Like you don’t, you don’t call a lawyer when you’re looking to for a plumber, right? Like he, he’s going to advise you on the legal side of it. My objective is to advise you so that you have full perspective before you get on that call with that broker who’s really only gonna sell you on that one thing.

David Richter:

Yep. Awesome. Now I love that that’s what we believe at Simple CFO too. We don’t wanna sell anyone anything. We want what’s best for them. And if that means we have it, great if not, then how do we educate them on that, that, so that’s amazing and I love that. So we’re getting down here last couple questions. Anything else you would recommend or any other advice to real estate investors, the audience that’s listening right now? That person on the other end here listening to this podcast?

Aryeh Sheinbein:

Yeah, so I, I think for the, the people who are interested in real estate in general, I think one of the big things that they always should just understand, like we touched on it a little bit, is whether you want to be in the stock market, whether you wanna be in real estate, let’s focus really on the real estate is understanding are you creating a new job for yourself or are you actually creating some sort of passive income? And, and sometimes like, I think different markets are different things in the sense of like, you know, the single family home model works for some geographies better than others. At the same time understand like even if you have a property manager, is there going to be times that you’re still going to have to manage the property manager? Yes, very much likely. But at the same time, when was the last time, if you think about like truly like large wealthy people, like generationally wealthy people that they said, Yes, I manage a portfolio of a hundred single family homes, right?

Like never, Right? That person probably is an investor in real estate. They may back the person who’s managing a hundred single family homes. Yeah. Or just back the person who owns the, you know, you know, portfolio of apartment buildings or self storage units or whatever it may be. So just think through like, hey, yes, I may be able to position it that the cash on cash return is better for a single family home, but how well does that scale when you have real money and how much money is that gonna truly drive to your, you know, personal bank account every month or every year? Right? So that’s like the point I would just kind of highlight to people.

David Richter:

Awesome. Love it. So provided a ton of value here. What’s the way that the lister can provide value back to you? Is there a way to connect with you or what, where is, how can people get more of you?

Aryeh Sheinbein:

Sure. So they can follow me on Instagram as the businessman. My website is solution advisory.com and they can head over and have a listen to my podcast, which is not Real estate Focus, it’s more business in general and leadership and financials called Inside the Lines, Then podcast available on all podcast platforms.

David Richter:

Very cool. Well re it was amazing having you on today. A lot of knowledge and a lot of, I believe a lot of value brought to the listeners, so thank you so much for being on here today.

Aryeh Sheinbein:

My pleasure. Thanks for having me.

Outro:

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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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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