The Two Keys to Financial Freedom: Profit First & Cash Reserves featuring Justin Silverio

April 10, 2022

Episode 81: The Two Keys to Financial Freedom: Profit First & Cash Reserves Featuring Justin Silverio

THE PROFIT FIRST REI PODCAST

April 10, 2022

DAVID RICHTER

Summary:

It’s incredible how profitability can give you so many options. It gives you the freedom to do whatever you want, and it also helps level up your business. Making more profit means having what it takes to navigate your real estate journey and achieve your personal goals.

We’re pulling in Justin Silverio as he deep-dives and spills out facts on how one can scale up their business and build a profitable company with the help of ridiculously awesome team players. He will also share snippets on how he’s been able to use his app, Invelo, to help improve people’s careers. And as well as dissect the benefits of using profitability to scale up and expand our business endeavors. What are you waiting for? Click that play button and kickstart your day by listening to this insightful episode!

Key Takeaways:

[1:37] The most significant and most challenging lessons he’s learned throughout his real estate investing career

[2:04] Making sure that you have the right people in your business

[5:21] Has he ever run into money struggles and problems along the way?

[5:42] On the importance of cash flow management

[6:56] How did Profit First enter his sphere, and how did it help him in his business?

[9:03] Making more profit gave him the opportunity and freedom to do things

[11:44] Using the profit to start a business and have team players

[17:01] Building a platform (Invelo) for investors that have three critical aspects: Software, Education, and Community

[24:42] Generating deal flow is one of the most critical aspects to having a successful business other than cash flow management

Quotes:

[1:53] “I am making sure that I align myself with the right people in my business.”

[6:27] “If you don’t have a good process don’t start to scale, those issues will be much larger and it will critically impact your business.”

[11:20] “Everyone is just so impressively amazing and it’s just exciting to be able to work around these people. And scale the business together.”

Links:

Email Justin – justin@inveloapp.com

Invelo app – www.inveloapp.com

JS2 Homes LLC – http://js2homes.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:

David Richter:

Hey, hey everyone. Welcome back to the Profit First REI podcast. This is your host, David Richter. I have Justin Silverio here today. He’s the founder of Invelo and the owner of Open Letter Marketing. And he does have a real estate company, JS2 Homes. He’s been a real estate investor for 11 years.

But this is an exciting episode. We are talking about how cashflow management is the number one thing that has helped him build his businesses, take vacations, be less stressed when he starts his business. I mean, these are some key things that we talk about in this episode that I’m really excited about. And then also, talking about projects and reserves, where to put the money in what you should do, as a real estate investor, to know what to do once you’re profitable. Once you start becoming profitable, you listen to this podcast, you listen to others and really diving in deep. What makes a profitable company and how can I use that profit to either start a new business, take more vacations, have less stress. So, this is an awesome episode. And I can’t wait for you to listen to Justin right now.

Justin, just did this intro here. I wanted to now ask you one of the toughest questions probably right out of the gate. What is the biggest or hardest lesson you’ve learned in your real estate and investing career, and I would even say in your business career, because of all that you’re doing right now, or that you have done, or the companies you’ve started?

Justin Silverio:

Well, you’re starting off with a good question because I would have to say making sure that I’m aligning myself with the right people in my business. At the end of the day, I think the most important thing for a business is you’re only as good as your weakest link. So, making sure that you have the right people in your business at that point in time is critically important. And as your company grows, you’ll actually notice that maybe the people that were right at this one point in time are not going to be the right people now. So, you have to make that hard decision in understanding that you need to make sure they either grow with the company or you need to replace them with somebody else that can operate at the level that you are at with your business.

David Richter:

Awesome. I love that because there’s nothing like being a business owner and seeing other people flourish with you, that it’s-

Justin Silverio:

Absolutely.

David Richter:

… You’re on this team together. You’re helping each other grow. You’re helping these people get where they want to be as well too. So, I absolutely love that. There’s nothing like it, being a business owner and seeing other people get their wins, whether it be the sellers or buyers you work with, or also the team members that you have. And it is all about the team. I feel like I hear that a lot on this podcast but it’s because I interview a lot of good people like you, Justin, that actually care about the people they work with and want to, and want to bring them along on the journey and make sure they’re succeeding too.

David Richter:

I want to ask the-

Justin Silverio:

Absolutely.

David Richter:

… Why real estate? Why did you even get into real estate? And what did that unlock for you? And now, you’ve done services for real estate too, and whatnot, and just trying to serve the real estate community. So, why real estate?

Justin Silverio:

So, I think real estate brings it back to I always wanted to be an entrepreneur. Didn’t know how, didn’t know where, but I have a lot of entrepreneurship in my family. My father was an entrepreneur, my brother, my uncles.

My father was a contractor but I knew I never wanted to be a contractor. I knew what he had to deal with day in and day out with other contractors and then homeowners. But I was always fascinated with what he did. I always felt like it was an art form that he’s taking raw material and he’s building a house that people can live in. And I was really fascinated with that. So, I loved that aspect of it.

And then, as I kind of went through schooling, I landed in a degree in accounting, in private equity and venture capital. And I loved businesses, and I loved understanding early stage and the excitement around a business. So, with all of that included, I was definitely a numbers person but I didn’t know construction. And then, I happened to come across HGTV on flipping. And I was like, “Man, this is really cool. It’s combining two aspects. Like I understand the numbers, what to purchase it at, and I can probably do the numbers on what I need to sell it for and all the construction but I don’t know management of construction, how to do it, all that stuff.” So, I teamed up with my father and I said, “Hey, do you want to flip a couple properties with me? And he was all for it. And that’s how I got started. And we started off with one, and then we just went from there and it kind of steamrolled and was just an exciting kind of road.

David Richter:

Awesome. So then, let’s talk about that road a little bit here because I don’t know if there… Maybe you’ll be the first one but I want to ask, along that road, because you’ve done lots of real estate deals, you’ve had your real estate business, you’ve opened up other businesses as well too. Have you ever run into money struggles or money problems along-

Justin Silverio:

Ah!

David Richter:

… the way in any of the businesses that you had?

Justin Silverio:

Absolutely. Absolutely. I feel like with real estate, it’s very easy. So, just going back, I’m an accountant by nature, so I’m super conservative. I think more conservative than most people are. So, cashflow management was always something that was at the forefront and making sure that I don’t ever get into a situation where I don’t have enough money to continue to fund a project because I didn’t budget for reserves. So, that was always something that was always on the top of my head.

But even though that was the case, there were a couple times that I did run into some issues with cashflow management. So, learning from those lessons and making sure that doesn’t happen again, and factoring for that, was a critical step as I continued to grow my business, doing bigger deals, making sure that I was really good with the reserves. Because if you don’t have a good process and you start to scale, those issues are only going to be much larger, and can really critically impact your business.

David Richter:

I love how Keith Cunningham puts it. He’s like, “If you scale a cancer’s business, the tumor just gets bigger.”

Justin Silverio:

So true.

David Richter:

It is.

Justin Silverio:

It is so true.

David Richter:

So, you’re also a Profit First fan, which is a cashflow management piece and really does help with that-

Justin Silverio:

Yes.

David Richter:

… clarity. So, speak to that. How did that enter businesses or how did that enter your sphere? And what did that help with, once you started implementing some of that?

Justin Silverio:

Yeah. So, I mean the biggest piece… Again, going back and just making sure my business is operating. So, there’s many different ways to run a business, right? But I want to make sure I’m running an efficient and effective business.

David Richter:

Yes.

Justin Silverio:

Okay? So, if people say, “You know, I made 20 million dollars in revenue this year.” “Great. How much did you keep?” That’s the important thing. It’s like, “Okay. What percentage net profit did you actually make?” Because that’s what’s really going to tell you how good and how efficient their business is run.

David Richter:

Yeah.

Justin Silverio:

So, as I’m running my businesses, my first thing is to make sure that I locked on a process on making sure that the business is working properly. And then, from there, my next step is always, I want to make sure that we’re efficient on the P&L side and that we’re keeping as much as we possibly can and squeezing everything that we can out of it by analyzing my expenses, analyzing my cost-to goods sold, all of that stuff.

So, that’s kind of how I go through because, at the end of the day, if I’m doing 20% in a profit versus 10% in a profit but it’s a huge difference. So, that’s really where I focus on a lot, is making sure that bottom line is as high as it possibly can be.

David Richter:

Because what does that do for you? What does that do for you as an owner? And then, does it… If you’re focused on that and getting that to be better, does it affect your family? Where do you take it from there once you’re getting to those bigger and better percentages?

Justin Silverio:

Yeah. So, just like what you said. I mean, you’re making more net profit, you have so much more opportunity to do different things. And for me, that was starting another business and being able-

David Richter:

Awesome.

Justin Silverio:

… to internally fund it. And that was a critical, critical step for us, is that we didn’t have to find outside funding. One of my businesses was able to fund another big project. My family and I can take… We were vacationing. So, we have more opportunity and more money to have freedom. And then, we can reinvest in the company as well.

Justin Silverio:

So, a lot of that, the more bottom line that we take home and keep, the more that we can reinvest in the business to continue to grow it. Because luckily I’m at a point where one of my businesses is growing really quickly, so we need to make sure that we reinvest that capital back in assets.

David Richter:

Awesome. And I love that because it goes right along with what we were just talking about, that you can’t scale your way out of those problems-

Justin Silverio:

Yeah.

David Richter:

… those issues that, either with cash or management or whatever that issue is, that a lot of people think, “Oh, it’ll go away as it gets bigger.” But if you’re profitable and you scale profitably, if you’re able to use the net profits to take the vacations or to reinvest or buy another a business or start another business, it’s like that is, I feel like, Nirvana to a lot of people. It’s like, “Okay. You mean I don’t have to go get outside funding and I can actually start this business, and we’re going to be self-funded here and really get where we want to be, and be profitable, maybe from day one here because we’re not taking on this debt that is just looming over us.”

So, would you say that’s a lot of the feeling that you get from starting that business with your own funds and from doing things that way?

Justin Silverio:

Absolutely. I mean, it’s amazing because not only were we able to fund the new business but we were able to start off with A-Plus team members. And it’s really interesting looking back when I started my first business from the ground and not having that capital, my ability to hire people wasn’t as strong as it is now. So, I wasn’t able to hire those A-Plus players. So, you hire the people that will get you by for right now. And this is what I was talking about earlier.

David Richter:

Yes.

Justin Silverio:

But then, as you continue to grow, those people really don’t have the skills to get you to the next level. Some people do but other people don’t have those skills, so you need to then reinvest in the company, hire more experienced, more expensive people, and keep on going. But when we were able to internally fund this new business, like everyone is just so impressively amazing that it’s really just exciting to be at work around these people. So, it’s like elevating the culture around us. Everybody’s very excited. Everybody knows what they’re doing, and they’re all moving toward the same goal.

David Richter:

I love that, using the profit to start the business and have A-Players right away. And I’m guessing too, since this is a Profit First REI podcast, that that also allows you to ride away with a new business, either pay yourself what you need or you’re paying yourself like you’ve got enough profitability from the last business. It’s like nothing needs to slow down with you because you see that a lot.

Justin Silverio:

Yeah.

David Richter:

Someone starts a new business and it’s like really drags the money from this other business. And now, they’re just struggling again and they’re all in… So, can you speak to that? When you started this new business, you could have A-Team players but were you also able to keep paying yourself what you needed to pay yourself?

Justin Silverio:

Yes.

David Richter:

Oh.

Justin Silverio:

Yeah. So, before… I mean, I learned early on, if I wanted to be successful in any business, I needed to have focus. And I learned that because I was investing part-time while working a full-time job for five years before I left my day job.

David Richter:

Okay.

Justin Silverio:

And once I left, within the first three months that I left and I focused fully on real estate investing, I made more than I would’ve made in two years of my salary.

David Richter:

Nice.

Justin Silverio:

And I was making six figures. I was making a good paycheck.

David Richter:

Yeah.

Justin Silverio:

It was amazing what focus could do or can do for people. And from that point on, I said, “If I ever want to do another business, I need to make sure I fully focus on one business, build out a team, that I’m not going to be a cog in the process, so that I can then focus my efforts on a new business.”

And that’s what I’ve done kind of over the years, I’d make sure that I could backfill. And I have now a COO running another business, and they’re managing all the day-to-day. And I have very little interaction throughout the week with that. I do still a lot of high-level stuff there but for day in and day out, 98% of my focus is on this new business, and I don’t have to be concerned about the other business still continuing to be profitable and all of that. And it’s not impacting me at all. I’m still making what I need to make. It didn’t change there because, again, the bottom line is actually increasing year over year because we’re becoming more efficient. And that’s, what’s exciting for me. I’m a total data nerd that when I see those numbers increase on that profit, that excites me.

David Richter:

I don’t think you even have to be a data nerd for that part of it because that’s-

Justin Silverio:

That’s true.

David Richter:

… fun. A lot of people know that bottom-right corner of the Profit & Loss, that Income Statement to say, “Are we making money or are we not?” And I think a lot of people can take away from that is that profitability gives you options. Options is one of my favorite words, of being able to have the option to hire A-Players, the option to continue paying myself or now maybe increase it now. Maybe the wife or the spouse or husband or family would like more, so that way we could do more or growing your net worth or whatever. It just gives you options. Personally, professionally, it helps you also launch a business because I’m sure one of the reasons you started a new business was to impact more people, bring more value to more people. It’s like when you get all of those in line, something magical happens. You have the profitability. You’re not… Because if you’re stressed, people can feel that, especially if you’re in-

Justin Silverio:

Oh, absolutely.

David Richter:

… education or whatever. It’s like people feel if you’re stressed or you’re under the gun. And having a system like a Profit First or like this to help you make sure that you have that profitability, you’re paying yourself, then you can. That’s where we also see people that want to start a new business but it’s really like, “I don’t like my old one,” or, “I don’t want to fix the problems in my old one. I just need to start a new one.”

And I feel like, on this podcast, we’re getting the total opposite of that mindset and mentality of you’re starting this business because you are profitable, because you can bring more value, because you do have the options, you can start with the A-Players. So, this is what being profitable affords you to be able to do, like getting you to where you want to be. This is awesome. So, I love talking about this new business and what I want to talk about what you’re doing.

So, do you want to talk about that new business of what Invelo is and how you’re helping investors or like-

Justin Silverio:

Yeah.

David Richter:

… what you’re launching with Invelo?

Justin Silverio:

Yeah, absolutely. So, just going back, being a real estate investor for about 11 years now and knowing the struggles and needs that are out there, that’s how I started. I launched Open Letter Marketing, which is a direct mail provider for investors. And we’ve worked with thousands of customers across the country since 2016. And then again, learning what the other people’s needs are. And mostly, if I have a need for something in the real estate investment space, then other people generally usually do too. But seeing that there is a consistent need, not only for beginner investors but even intermediate and advanced investors that have been doing this for a long time, I noticed that they’re still not utilizing or marketing in the best way that they possibly can and really managing their whole sales pipeline and having a community for that.

So, what we were looking to do is we were looking to build a platform that’s made up of three critical aspects; software, education, and community.

And through the software, we have a full-on sales pipeline. So you can pull less, you can manage prospects, you can identify your highest quality prospects versus your lowest quality so that you can segment them properly, so that you can market to them effectively and spend more money on your high-quality prospects, less money on your low-quality prospects, right? That right there, not many investors at all are doing. And that is how you, again, be very effective with your marketing spend, is making sure that you’re spending the right dollars on the right people, managing your lead flow, managing your deal flow, full-on marketing campaign. So the full gamut in a way that people haven’t seen before.

I mean, again, going back to working with the best people and the brightest people, we are pulling in people from the software industry to make sure that it’s extremely intuitive, it’s very easy layout, it’s simple to use. And I think that’s something that the investment industry really needs right now.

On the education side, you’re going to be one of the Masterclass instructors, which I am super excited about, but we are pulling in industry experts, not only to teach you on what you need for real estate to be successful. So, you’re going to be talking about Profit First. We have other people talking about how critical mindset is, or how to market properly, or how to do different things. But we’re also doing full-on on the personal side as well; how to be a great father or mother having kids and trying to run a business or start a business.

David Richter:

Yeah.

Justin Silverio:

How to stay healthy when you’re working sometimes long hours. So, we want to make sure that it’s really well-rounded and it will answer and make people feel like, “Everybody else is experiencing this but this is how I can get past it.”

And then, the community aspect is just bringing together other business owners so that they can really communicate and share information and knowledge with everybody else. Because, as we know, entrepreneurship is lonely sometimes. You’re in it by yourself and you don’t know if you’re making the right decision or if other people are going through the same stuff. So, having a community is really important for us. And that’s what we’re set out to do.

David Richter:

Awesome. Now, I love that because so many people, the reason they’re listening to this podcast is they want to be better stewards of their money. They want to know that… And they want clarity, they want direction. And the other side of that is, you have to know how to spend the money. You have to know. I love what you were talking about there with the marketing because that’s something we do with our clients is, where is the best place to spend it? So, I love that you’re building that and have that option and availability because that’s where so many people, they are really good at closing deals but they need to close the best deals-

Justin Silverio:

Yes.

David Richter:

… from the best marketing, and making sure, like you said, you’re building your business to be efficient and to be effective and to make sure you’re doing that.

So, I love that because you have to have the yin and the yang. You have to be able to make the money and make it the most efficient way possible.

Justin Silverio:

Yes.

David Richter:

And you have to keep it. You have to keep that money. Like we talked about here, you have to have that bottom line. I don’t care what you’re making if you don’t have that bottom line. So no, that’s awesome. So, that’s Invelo, and I’ll make sure that we have a link down below. We are doing the show notes now and making sure that you can have that link to Invelo. And I’ll make sure that Justin gives that link at the end here too.

But I want to ask too, since you are a fan of Profit First and that methodology and the whole system, what advice would you give to the real estate investors listening that are looking to adopt Profit First, and the mindset behind it, and just what it means to you?

Justin Silverio:

Yeah. I mean, a lot of people get into real estate investing and they’re not very well versed in maybe business or starting a business, right? They understand renovating. They know exactly what they want to do. They look at, “I just want to renovate properties,” but it’s a really important, especially on the real estate investing side, that you understand cashflow management. I really strongly feel like that is one of the most critical aspects. I can’t tell you how many people that I’ve talked to over the years. And it’s the same thing. You can be making a lot of money at a certain point in time with real estate investing but then, like you said, you can also be strapped-

David Richter:

Yes.

Justin Silverio:

… because you’re committed, you have projects going on, your money’s out funding new deals, construction, and you have a very small savings at that point in time. And there’s a lot of effects that can happen. You can’t buy a new deal because you don’t have the money. You might not be able to pay yourself that month because you don’t have the money because you need it for other stuff.

So, understanding cashflow management and making sure you have reserves and just dialing that in, I think, is so critically important that I think a lot of people overlook. And I would say that that’s probably one of the earliest things that people should learn is how to do it effectively.

David Richter:

Awesome. No, I love that. So, you brought up the word, reserves. So, I want to ask you because I get different answers here. You say you’re pretty conservative because you’re a numbers guy. So, what’s a healthy reserve for you? I wouldn’t even say like, oh this is for everyone. But like what do you feel comfortable with in reserves? Is it a month, like three months of reserves, or a year? Is it a monthly… of expenses, or what would you say on the reserve side?

Justin Silverio:

I mean, are you talking from when I take on a new renovation? Or are you talking just business reserves?

David Richter:

Oh, just business reserves itself to make sure that the company doesn’t just-

Justin Silverio:

Got it.

David Richter:

… live deal to deal.

Justin Silverio:

Yeah. I mean, right now, we’re probably trending anywhere from nine months to a year-

David Richter:

Awesome.

Justin Silverio:

… in reserves that we make sure that we keep. Before COVID, it was probably around six to eight.

David Richter:

Okay.

Justin Silverio:

But after COVID and after we learned, shit, this stuff can happen that I didn’t even know about, I wanted to make sure that we increase that. But we try to make sure that we have healthy reserves, not only for the business, but we can purchase new products, we can expand, which we’re doing now. And we have a lot of assets that we’re going to be buying over the next quarter or so. So, we want to make sure that we’re well capitalized, that can make adjustments but also can withstand anything that comes down the line similar to something like COVID.

David Richter:

Right. It’s that peace of mind. It’s that-

Justin Silverio:

Yeah.

David Richter:

… peace of mind-

Justin Silverio:

Well-

David Richter:

… like what price tag can you put on that to know that you’ve got the nine to twelve months worth of reserves? So, all of that.

Justin Silverio:

Yeah, it’s really nice to have that cushion and not stress about that.

David Richter:

Awesome. Love it. So, I just have a couple last questions here. So, now it’s advice about starting the cashflow management but do you just have any general advice for the real estate investing community that are still listening to this podcast now? Is there some last-minute advice here?

Justin Silverio:

Yeah. I mean, my advice always goes back to deal flow because that’s kind of what I’ve specialized in for the last 11 years and been critically understanding that, is generating deal flow is probably one of the most critical aspects to making sure that you have a successful business other than cashflow management. You need to have deal flow before you can really have cashflow management.

So, I was always a proponent of creating my own deal flow, and that is through direct-to-seller marketing. So, I’ve always feel, especially now in this kind of landscape, the competitive landscape that we’re in, it’s really difficult to find deals. I always advocate that people go out and go direct to seller to find new deals. And when they do that, just giving them the mindset that be consistent for four to six months. The biggest thing that we see is people fall off after a month or two because they’re like, “Oh, it doesn’t work.” But they just haven’t given it enough time. So, I think the mindset behind marketing is really critical. And I always want to preach that because people will be successful as long as they are consistent. That is the number one most critical aspect in marketing. But it will work. Direct-to-seller marketing is amazing, and has provided me and many other people with success in real estate investing.

David Richter:

That word consistent is, I believe, the definition of a true business.

Justin Silverio:

Yes.

David Richter:

Your people are consistent, you’re consistent, your marketing’s consistent, your cash is consistent. If we can build consistency, and that’s what we’re all struggling and striving for. Like you said, efficiency, effectiveness, and consistency.

Justin Silverio:

Yeah.

David Richter:

If I know this is going to come in every single month, this is why a lot of people like rentals and like going that route as well too, it’s like, what do I at least know that I’m projecting for this month?

Justin Silverio:

Right.

David Richter:

And it’s the same thing with your… If you have an active company, like what am I projecting this month of closing? That consistency is so key because that is… It’s a definition of a business is, how consistent are you? And in getting those deals in the door, closing those deals, then repeating that, and making sure that you can do that over and over again. That was-

Justin Silverio:

Yes.

David Richter:

… That was awesome. I think this has been an amazing episode here with you, Justin. I want to always ask… I always ask, is there any way the listers can provide value to you? Definitely know Invelo. They need to check that out. But I wanted to give you the floor, if there’s anything else or a link to Invelo, or whatever might be for providing value back to you.

Justin Silverio:

Yeah, yeah. I can share the link to Invelo. It’s inveloapp.com, I-N-V-E-L-O app.com. And if people want to reach out to me, they’re more than welcome to just shoot me an email at justin@inveloapp.com. Always happy to chat with people and share any experience or knowledge that I can.

David Richter:

Awesome. Well, there you go. We’ll make sure we put that in the show notes. So, I’m just going to recap here because this has been awesome.

David Richter:

Justin first started talking about the right people, having the right people, how important that is and building that team. Cashflow, obviously, super important, making sure that you know where every dollar is going, and have a name in a bucket or making sure you know exactly where you’re putting it. Projects and reserves, making sure that you’re not catching up to all these projects and not having the reserves and then building yourself into a Ponzi scheme. I love what you said, too, about bigger deals and reserves, like as you grow and as you’re getting to those bigger deals, it’s more important to make sure that you’re-

Justin Silverio:

Yes.

David Richter:

… scaling and growing those reserves as well. Being efficient and effective, I think if you just… If you’re listening to this now, and you focus on those two words in your business, it will help you so much see, not only more money, but more time freedom. Like Justin was saying, the reason a lot of people don’t work out is they don’t have time during their day. Becoming efficient in your business and building yourself out of a lot of these seats, putting those right people in there.

Justin Silverio:

Yes.

David Richter:

I thought that was awesome.

David Richter:

More net profit, so that way you could do whatever you want. Giving yourself those options. That was good stuff. It was like, “Do you want to take the vacations? Do you want to-

Justin Silverio:

Yeah.

David Richter:

… build a new business? Like, do you want to have A-Team players right from the start?

Justin Silverio:

Right.

David Richter:

This is how to do it.” I love that. And how we talked about the team.

And then, at the end there, consistency. “Can you be consistent as a real estate investor? And how are you striving to do that?” So, this has been an awesome, awesome episode. If you’re a real estate investor or business owner and want to double your cash and keep more profit, head over to SimpleCFOsolutions.com and click the Get Started button. Remember, start making profit a habit in your business.

Thank you so much for listening to today’s show. If you found this episode valuable, could you do me a quick favor? Can 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 a Profit First in 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 our Facebook group right there.

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 links should be in the description below.

And if you’re interested in working with us and implementing Profit First in your real estate business, we offer coaching and guidance. So, if you want to work with someone who’s actually Profit First certified and who works right now currently with real estate businesses, you can actually go start your application process by going to SimpleCFOsolutions.com/apply, or just go right to SimpleCFOsolutions.com and there’s an Apply button right on there, if you want to actually start your Profit First journey with someone who can actually walk you through those step-by-step and help you know and grow your cashflow.

Thanks again for joining us for another episode of a Profit First REI podcast. See you next episode.

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

Episode: 242

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

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

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

Listen and enjoy the show!

Key Takeaways:

[01:01] Introducing Jay Conner

[05:00] Introduction to private money

[08:30] The Great News Phone Call

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

[13:18] Maintaining relationships with private lenders

[15:40] Private money vs traditional money

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

[25:18] Advice for real estate investors

[29:01] Connect with Jay Conner

Quotes:

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

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

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

Connect with Jay:

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

Tired of living deal to deal?

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

Transcript:

Speaker 1 (00:00):

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

Speaker 2 (00:34):

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

Speaker 3 (01:01):

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

Speaker 1 (02:07):

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

Speaker 3 (02:24):

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

Speaker 1 (02:43):

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

(03:38):

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

(04:27):

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

(05:18):

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

(06:10):

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

(07:02):

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

(08:11):

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

(09:06):

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

(10:04):

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

Speaker 3 (10:38):

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

Speaker 1 (11:17):

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

Speaker 3 (12:22):

Right? Yep.

Speaker 1 (12:24):

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

Speaker 3 (12:33):

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

Speaker 1 (13:22):

I mail ’em checks.

Speaker 3 (13:25):

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

Speaker 1 (13:33):

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

Speaker 3 (13:41):

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

Speaker 1 (13:50):

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

Speaker 3 (14:00):

Yep.

Speaker 1 (14:01):

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

Speaker 3 (15:27):

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

Speaker 1 (15:32):

Options. Does that make sense?

Speaker 3 (15:34):

Yeah, that makes sense. A hundred percent.

Speaker 1 (15:37):

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

Speaker 3 (16:14):

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

Speaker 1 (16:33):

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

Speaker 3 (17:33):

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

Speaker 1 (18:04):

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

Speaker 3 (18:20):

Yeah, me either.

Speaker 1 (18:22):

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

Speaker 3 (18:53):

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

Speaker 1 (19:12):

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

Speaker 3 (19:17):

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

Speaker 1 (19:20):

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

Speaker 3 (20:25):

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

Speaker 1 (20:50):

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

Speaker 3 (21:53):

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

Speaker 1 (22:07):

Well pay ’em on time.

Speaker 3 (22:08):

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

Speaker 1 (22:12):

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

Speaker 3 (22:42):

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

Speaker 1 (23:03):

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

Speaker 3 (23:06):

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

Speaker 1 (23:10):

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

(23:37):

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

Speaker 3 (24:31):

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

Speaker 1 (25:18):

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

(25:26):

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

Speaker 3 (26:11):

That’s so good.

Speaker 1 (26:13):

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

Speaker 3 (27:08):

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

(27:55):

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

Speaker 1 (29:01):

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

Speaker 3 (30:31):

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

(31:13):

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

Speaker 1 (31:51):

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

Speaker 2 (31:54):

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