Unpacking the Profit First Approach with Jason Marks

August 29, 2023

Title: “Unpacking the Profit First Approach with Jason Marks”

Episode: 195

This week’s episode will save your business and will give you hope to start with your life!

The guest for this episode of Profit First for REI podcast is Jason Marks. He has been in the business for 12 years and has run different companies. One of these is a wholesale company.

Listen as he shares his experiences on how he started making money and increased profitability through Profit First.

He also tells about the stress of the taxes and how Profit First saved his life! Enjoy the show!

Key Takeaways:

[00:59] Introducing Jason Marks

[04:05] Jason’s craziness before Profit First

[09:29] How goal setting helped him in his investing journey

[15:08] First hire in his business

[16:33] Importance of delegating

[23:19] Jason’s tough times

[28:51] Making decisions based on your bank account and your goals

[34:05] Advice to first-time investors

[38:12] Contact us!

Quotes:

[13:26] “It’s very important that you have to know what you want because you also have to get ready if you don’t get it.”

[17:29] “If you’re not good at it and don’t like it, you should not be doing it.”

[28:51] “To run a successful business, you need to make decisions based on your bank account and your goals.”

Connect with Jason:

Website: 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:

Speaker 1:

It’s been a challenge running both, but implementing Profit First has me talking to you in a very calm still manner as opposed to last year when there’s going on all the time wondering about this, how to implement this, how are we going to pay for this? So the short and the skinny is logistics. Real estate a year ago was super crazy. Trajectory right now is way more where it needed to be for a long time.

Speaker 2:

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 r e I 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:

Today we have a very special guest, Jason Marks. He’s someone that we work with at Simple C F O and he tells his story about being in business for 12 years. He ran a couple different companies, one of them a wholesale company and literally telling about how the stress of the taxes, that type of stuff and versus how this process has literally saved their lives. He says that in this episode. I want you to feel that because he talks about a lot of things that people don’t talk about, but that feel deep inside and I want you to get that hope because of where he was to where he is today, and I want him to share that with you. Please listen to this episode. It could save your business and it could give you hope to start this process if you’ve never started it before. Thank you for being a listener and enjoy this episode. Hey everyone. So here we have Jason Marks. Sarah can’t be here today. I’m going to get her on a podcast in the future. She is camera shy, but Jason and Sarah are incredible investors that we get to work with, but also they fully embrace profit First and that methodology. I know that they’re going to provide a lot of hope to you today and Jason is here with us, really excited to talk about his story. Jason, thanks for being on the podcast today.

Speaker 1:

Oh, thank you for having me and if hope is what we’re after, hope I will help give.

Speaker 3:

Yeah, well there’s a lot of people out there that I feel like don’t have hope and that’s where I hope that this podcast gives that breath of fresh air. But Jason, why don’t you give a brief background like what you’ve done, where you are, because then we’re going to talk about what did life look like before and after and the trajectory you’re on now and give people some of that hope. But Jason, tell them a little bit where you are.

Speaker 1:

Let’s see. We started in logistics about 12 years ago. We’re still in it. We started making some good money. It was time to start investing. I found wholesaling, which in the trucking business is essentially the same thing. We’re middlemen and so we jumped into starting a real estate company. So now we have these two businesses. We’ve done really good with the real estate. We were not as good with profit. The idea is to make money, but we just started spending more and doing more and the freedom we were supposed to have, we didn’t have. And it’s been a challenge running both, but implementing Profit First has me talking to you in a very calm still manner as opposed to last year when they’re going on all the time wondering about this, how to implement this, how are we going to pay for this? So the short and the skinny is logistics. Real estate a year ago was super crazy way. Trajectory right now is way more where it needed to be for a long time.

Speaker 3:

Well now I’ve got to, for the listener’s sake and for my sake and everyone here, what’s dive into craziness. What does craziness look like or what did it feel like at that time before Profit First? You said, oh the questions and stuff, but can you give me some examples? Did you start wholesaling a year ago or was it longer than that? When did you actually start the real estate side?

Speaker 1:

So the real estate side started about four years ago when we wanted to start buying rentals. I knew that going on the m l s couldn’t be the only way. So I’m researching how to find creative deals. I find wholesaling. So we just jumped in my real estate mentor, his audio and video guide did wholesaling. So he put us in touch. We partner partnered on a deal, bought 20 acres of land or we got 20 acres of land under contract. We sold it, made 54 grand and split it. Nice. So the proof of concept happened immediately. Awesome. And so we just started tax delinquent list, handwritten letters we’ve been going ever since.

Speaker 3:

So then let me ask real quick though, do you think that the trucking and logistics side helped you get a faster start in the real estate side? You had proof of concept pretty fast it seems like on the real estate.

Speaker 1:

Yes and yes it did. Mostly because I learned about goal setting a long time ago. Yeah, goal setting helped us grow the trucking business very well. But what happened in that is the idea of oh my god, we can do it so we can do that. We can do anything. So when wholesaling started, there was a change from do we do wholesale deals or do we start a company? So it was why not start a company because we know how and not having profit first in either company, we were just as irresponsible with our money as we were in the trucking company. So the financial freedom that we’re all after, I had no idea how we were going to find that freedom because answering your question of what does craziness look like, there’s enough responsibility just with one company double that up with the same unorganization equals crazy.

Speaker 3:

Okay. So then man, there’s so many questions I want to ask. I’ll try to be as clear as possible. So what do you think contributed to, you’ve been in the trucking logistics for like 12 years you said, right? That side of the, so then real estate for the last four. Why do you think that you didn’t have the clarity on the finances or didn’t attain that freedom because it was open for so long?

Speaker 1:

Two reasons. Number one is taxes. With the logistics company, there’s not much overhead. We don’t actually own trucks, so all we did was pretty much produce revenue and profit. So when you’re earning,

Speaker 3:

So that’s how it’s like wholesale because you’re the middleman, so there’s not a lot of, you don’t own the trucks and stuff. You’re basically just buying. Okay,

Speaker 1:

And then we have a huge tax bill at the end of the year, which we can’t do anything about. There’s also no depreciation or write off if the company doesn’t own assets. But even after paying the tax bill and then looking at our W nine, seeing what we brought in and then the bank account, we just couldn’t ever get a grasp on if it shows we made 800 or a million and we paid one 50 or two, where’s the rest? The answer is all just a fun machinery or stuff that we would do for ourselves, but it still shouldn’t have been that way real estate, it was we’re earning more, now we can market more. Let’s increase marketing, let’s increase this. But at the end of the year, where’s our money? And that literally is where implementing profit first snap of a finger turns it all around. It’s not even stuff that you shouldn’t just kind of know on your own. I feel like deep down we know those things, but we’re still left with those questions and we’ll get into that hopefully why the implementation and how the implementation worked. Not just that we needed to do it, but how it came about.

Speaker 3:

We’ll definitely talk about that. I’m not letting you off the podcast without us talking about the how and the why for sure. But I love that what you said there is because I think a lot of people go through that right where they start to make some money, oh, taxes, oh shoot, and then it’s like then in real estate, I don’t know if you have ever been in real estate, that probably resonates with you. I earned more so I market more and then you’re left at the end of the year saying where is our money? So I think that resonates with a lot of people, especially the real estate world. I have one more question before we go into the how and why a profit first because I know you are big on this. I’ve heard you speak on this a lot, the goal setting, how did that help you with the trucking company? Because, because there was a key piece that if a listener’s on this podcast listening, their first business might be real estate, but how did you learn that goal setting or what helped on that on the trucking side specifically, so that way it gave you more confidence to start the real estate investing business?

Speaker 1:

I want to try to keep this as short and simple as possible. I can talk about this for hours

Speaker 3:

Ad naum, right?

Speaker 1:

I still have a phenomenal business mentor that I met a long time ago. He got me a subscription to Success magazine, nothing to do with the pages in the magazine, but everything to do with the D V D that came inside and Darren Hardy was the editor. He would interview people every month. So he got me this subscription so that I can turn off the music in my car, start listening to business leaders and interviews. First one that I listened to was Darren Hardy and Brian Tracy talked about goal setting and the exercise was to write down your top 10 goals every single day, 30 days in a row, and you’re not allowed to look at the day before when you’re writing the current day.

So in trucking, so I bartended when I found the trucking industry and instead of quitting my job, I felt like if I can talk to some of these bar customers, maybe someone works in manufacturing, maybe I can just drum a business where I’m working for this new endeavor. In order to quit bartending, I had to figure out how much am I making? So how much do I need to start making here that I can then quit? So as simple as the two ways of looking at it, we won’t go into the psychology, but the psychology of how writing your goals down frequently supercharges your subconscious mind was the most intriguing subject. So while I won’t go into it, I would suggest everyone and anyone that listens to this to do that research because it’s magical. But number two is if you look at it like a roadmap, you have to start with the end in mind so we know where we want it to go.

I had to subsidize making $600 a week, which is what I was making bartending. So I knew if I set a goal to make 600 bucks, it was going to require X amount of customers in order to require a customer. It was X amount of phone calls and then it turned from how is this going to happen to now? I have a plan, I have a goal. So while I’m working the plan, customers start coming, revenue starts coming. Now I’m making a thousand dollars a week at trucking. I don’t need bartending anymore. So the quitting, anyone who’s ever been in any kind of service industry, when you’re young, you don’t really know how you’re going to get out. So the day that I was able to quit was a great day, but now I have that confidence and that momentum. Then it turned into what’s everyone else at the company that I was working for doing, who are the big guys Now my sites are set on how do I catch them? And you just fast forward to today we have our whole own business doing our whole own thing and we still utilize goal setting and everything today. So going into real estate, we were blindsided. It was supposed to be to buy rentals,

But I found wholesaling, I can middleman trucks now I can middleman houses, I can also help people. We’re not even talking about being able to service others and their issues. That makes it all worth it. But yeah, goal setting taught me that you just have to have a plan and you have to, it’s painstaking sometimes. You have to do the research. You need to be still and present with yourself. It requires turning the phone off, having a notebook and a pen and being vulnerable because I think someone or maybe a lot of people say that we define success, it’s hard to define success because in doing so you also define failure. So it’s very important that you have to know what you want. You’re also going to get ready to know if you don’t get it, and I think a lot of people stumble right there. So

Speaker 3:

No, that’s really good. So then goal setting, it sounds like it really helped you in the logistics business and then it translated into the real estate. What I hear there though is intentionality is that you’d had the goals, but it was the plan and it was the process that you went through of I’m being intentional with the business and how I build it of even then you were able to reverse engineer the numbers. That’s what I’m hearing. That’s

Speaker 1:

Exactly right.

Speaker 3:

Then in wholesaling probably you probably took that same mindset and said, okay, how many deals do I need to do or to get to where we want to be? And that’s where it’s like a lot of people can be really good at the acquiring of the properties or the wholesaling or the logistics side, but it sounds like you were still missing a key piece and the keep side of the like, okay, we’re getting a lot of these dollars in, but now these taxes are killing me or this other side. So at those points in time you had not learned anything about the financial side up to that point of keeping more of the money.

Speaker 1:

Correct. I also didn’t know about delegating as much as I should have.

Speaker 3:

So the finances and that’s on the operational side, how do I delegate this to other people? So this whole time, okay, when was the first time you hired someone on your team? Did you hire someone a while ago and then you just didn’t know how to delegate to them or did you not hire someone until more recently?

Speaker 1:

No, technically our first hire was our mother. When my mother-in-law, she didn’t go through a process. It was kind of like we just needed help. She had nothing to do. But our first official official hire was probably middle of last year or our first acquisitions person. That’s when we went to,

Speaker 3:

So you didn’t have someone helping you in the trucking business for a lot time or the logistics and then real estate. It was just within the last year. So were you and Sarah doing this and then maybe your mother-in-law help it with some of the other stuff for a long time,

Speaker 1:

And I should clarify, so the trucking team, we do have a bunch of people hiring. They were all people that I knew who just didn’t see it in themselves, but I knew that they would be good at it, so I forced ’em to come in. It’s a little bit different than a hire, but in real estate is where I needed most of the help. I’m very hands-on in trucking, I love it so much. But real estate, we were doing it on the weekends and at nights we would have a printed letter, but we would hand write the envelopes and if we’re only putting out 50 a week and I wanted to put out 500 a week, we need hands. So that’s where we reached out. So it wasn’t even so much delegating, it was more just assistance. But as I got older and smarter and I met a lot of people in the collective genius, then I took a program called Insane Productivity by Darren Hardy who I mentioned, and that’s what I really learned, the delegating and why it was so important.

And the quick synopsis is like I use the heart surgeon is a great example. So if you ask a heart surgeon how many minutes a day he actually works, it’s going to just be minutes. But if you’re the patient, you’re paying a lot of money for this specific person, you’re in there for hours, you’re still going to tell everybody that this doctors who did your procedure. But the fact of the matter is this doctor has an entire team getting your gauze ready, making the incisions, the surgeon’s going to come in when it’s his time to shine at what he does best. He doesn’t need to be booking rooms, he doesn’t need to be calling and making sure that you’re going to come in for your appointment. So if all of us can understand that, we all have our superpower, figure out what that is. If you are not good at it and you don’t like doing it, you should not be doing it and I don’t want to hear that you can’t afford it and I don’t want to hear that you don’t have time. Both false

Speaker 3:

Now that’s great stuff. I feel like that ties into this. Did you have the skills for the financial side?

Speaker 1:

I’m cool saying no, only because it was so I knew a spreadsheet is never going to give me energy and it’s also where I will tell everybody in a weird way, I would say that you saved our lives, not even buttering you up on your podcast. Real life is we would still be in that unorganized state had we not first found out that you existed. B understood delegating and we would be trying to do a horrible job on our own where now I’m not going to spend the time, I don’t need to spend the time and I don’t care if we couldn’t afford it, I would still figure out how to make it work because it’s such an important part of your business.

Speaker 3:

Okay, we got to dig into that a little bit. When you say saved your life, what did life look like then? It could be logistics or the real estate before we met and before you got profit first implemented. Can you go into a little bit of maybe even the feelings you were having with money at those points in time? Because that’s a very bold statement and I did not pay Jason to say that here. So

Speaker 1:

If you’re realistic

Speaker 3:

To that, he just said that because that’s where a lot of people feel. I see that a lot. That’s why I even started what I did. The very, very first client said that to me, to my face, this has saved my life and my family, but I know his story. But I’d like you to share that part if you’re willing to, because a lot of people might be feeling it but just not talking about it. So if you’re willing to share,

Speaker 1:

Okay, so four years ago we were making a ton of money in trucking and we started wholesaling at some of the best wholesaling times. So revenue was never a problem. So you kind of have this thought process that it’s going to be like this forever. We can have $250,000 months just in real estate. We would average maybe one to 180 in trucking and it’s like who cares about the tax bill? There’s all this money in the bank account, we pay it. But then time goes by and you learn about cycles in real life and all of a sudden things dry up a little bit. Deals don’t come in as fast. Well if you’re not allocating your money for the appropriate, first of all, we’re just talking taxes, let alone what about profit for yourself? If you’re not allocating those things and you’re not paying attention, they can dry up. So life for us back then was who cares? We’re making so much, we’ll cover it. If we didn’t have that now or if we were still running that way now we might not have our company anymore.

Speaker 3:

Wow.

Speaker 1:

Because taxes come deals slow down, everything’s picking back up now. Thank you. But for those nine months it wasn’t as exciting. Why is there 60,000 in our bank account when I’m used to it being multiple triple digits? Where does it go? Well, it goes to whatever irresponsible you. We can have fun. Our acs always going to be fixed. I’m always going to have a good John Deere to mow all of our properties, but do you need ’em? Can you technically afford it? And in our world now, you can only afford it after everything else is taken care of and then there’s enough disposable in your owner’s comp account to cover as opposed to, Hey, there’s 300 in there, this costs seven grand. Just go ahead and buy it. Just very irresponsible for sure.

Speaker 3:

Can I ask a personal question? Did this ever affect home life before you implemented this stuff or were you guys on the same page? Because I’ve heard it both ways. Yes and no. So there’s no wrong answer here.

Speaker 1:

No. I think now when you say this affected home life,

Speaker 3:

Not keeping the money as much or seeing the tax bill or the counts getting lower, but not having anything employees.

Speaker 1:

So it’s hard. I’m going to say yes and no. Right? Okay. So my wife and I, as you’ve seen, it’s like the best thing that’s ever happened to me and I’m sure she would say the same and we communicate very good. We understand. So when either one of us is in that mood, the other one’s there to support, not get angry, but yeah, have we shared anxiousness together? A hundred percent. If one of us is anxious and the other one’s not, it’s usually it could have been about the finances. So we’ve never gotten in any down places or been fighting, but we’re also both very happy. We understand that life is short, we like helping people. So generally we’re just going to be happy and bubbly all the time. So there’s definitely a few months where I was stressed, Jason that no one has ever seen before. So I would definitely say that it affected that. But like I said, if it wasn’t for starting, who knows where we would be.

Speaker 3:

So let me ask this. During those times of stress or whatever, did you ever think about throwing in the towel? Have you ever thought about No, this just isn’t worth it either on the logistics side or the real estate side?

Speaker 1:

Both. Oh yeah, probably not both, but having to make a decision if it’s too much for us, which one would make more sense to go hard? I started, I’m sure people have said this in the past, so when I say that I coined this, I don’t actually mean it, but my new coin line was that you can’t half-ass two different things. You have to hold S one and I’m here trying to do both without the right people in the right seats and it was driving me crazy because the phone would never stop. I’m getting home late, I have to be back up early. There’s just always a ton of stuff to do. You throw the possibility of fearing that you might not be able to cover your tax bill on top of all that. It’s not a fun place to be.

Speaker 3:

Would you say then during those times, how long ago was that specific time there where you’re getting up early, going to bed late going to thing and maybe this isn’t going to even cover the tax bill?

Speaker 1:

How ago was that? I’d say within the last 18 months. 18 months ago was probably the height of it and I would say that maybe four months ago was where it was all the way completed and I was back to

Speaker 3:

Breathing again. Yeah. Yeah. Awesome. We’ll talk about that for sure. But would you say that 18 months ago then would probably be one of the lowest times in the business, if not the lowest time of just everything coming together?

Speaker 1:

Yeah, lowest time for my brain.

Speaker 3:

Yeah. Okay. It does give tough sometimes. So four months ago was when you finally started to feel that, but talk about that journey. When did you say Enough is enough or what got you turned on to what we were doing or profit first or that, where did that come into your life?

Speaker 1:

So this is where I would give all the credit to the Collective Genius. We’re part of the collective genius, their select group and May of last year was my first meeting and I met you. We got blown away by the vendors and the people that we met and we knew that we needed marketing. We found our marketing people in Jason Lewis and Investor Machine, AB Bateman and Bateman Collective Brewer Method. I was infatuated to find out you can put deals on the M L Ss in the right way, but then the profit first was, whoa, maybe we can get some clarity in organization to these bank accounts. So much so that it’s been such a help with the real estate company that our C F O Eck who’s been the other life changer. We just hired her to be our C F O with our logistics company.

So now we’re simple C F Oing two times, but it’s not like you don’t just start day one and everything is organized. Day one is like, oh my goodness, we have to go in and go back and get all this stuff organized and as much as it’s not my role, and as much as I didn’t want to do it, it was so important that I was able to suck it up because we had to. And Sarah again, she’s our finance person with real estate for sure. Or the budget police as well. So she has been imperative in helping get those things completed. Awesome.

Speaker 3:

I remember that’s why I was like I wanted her to come on it. I remember what she said at collective G is the last time it sounded like she’s been invested a lot in this process as well too. So I will get her on her at some point. I am going to make her face this fear,

Speaker 1:

But we’ll trick her. We’ll tell Rick we have a zoom about something else and it’ll be this

Speaker 3:

And I will lose trust with her forever. So there you go.

Speaker 1:

That’s great. Somehow.

Speaker 3:

No, she would

Speaker 1:

Do good if the pressure wasn’t, you’d do

Speaker 3:

Great. Exactly. She would. She’s a great speaker. But that’s where I want to talk about too. Okay. What did you ever think about before that, before May of last year that you’d ever have a CFO on your team, a chief financial officer?

Speaker 1:

Probably not. I want to lie to you and be like, yeah, of course it’s an important role. We would’ve had it eventually, but

Speaker 3:

Everyone says no, so don’t usually for bigger businesses, that’s what people think. Something like that. Then let’s talk about that process because 18 months ago in the thick of it, end of 2021, you meet me, may 20 of 22, you get started. When did it start feeling better? You said four months ago felt like the biggest sigh of relief, but talk about along that journey when you started it, obviously you’re cleaning stuff up, but when did you start to get some of the clarity or some of the financial of okay, we’re putting things wherever they should go and that type of thing?

Speaker 1:

So first of all, day one is when it started to feel better because I found out that there’s somebody out there with a program that can actually help the first couple months knowing it’s going to be good, but still having to go through numbers, spreadsheets, bank accounts, and what I’m about to say is still a work in progress that we still work on every single other week with Mahe. But I think you just alluded to, we started to understand it’s not even just to keep yourself organized. It’s that to run a successful business you have to make decisions that are based on your bank account and your goals. So if investor machine, if we’re spending this money and we’re not getting a return, you’ve got to be able to know to cut it off if it’s not working for your market, same as Stateman and having somebody who’s helping us build our spreadsheets, build our K P I sheets, because again, we can input numbers on ’em, but how do you build them?

I see people with rental calculators on Instagram as I’m scrolling and I’m always like, man, I wonder how they created that thing. So having that getting done is cool, but we’re making decisions based off of numbers. We didn’t do that ever in either business and turning off a lever that’s just not producing, you don’t really know. You can actually think that something is working until you see it’s raw real numbers. So that’s also why it’s just so important to have that clarity. I would argue that certain counties were doing great. It’s like you’ve done three deals and made 26 grand total over 13 months. And I’m like, why was I thinking that it was so good? Well, emotion is one thing and logical and or data is another. It’s just been helping us make decisions how we need it to based

Speaker 3:

On based the actual numbers. Well, that goes back to would you say that’s intentionality? That’s like the goal setting what you said there. It’s like now you’re intentional in those decisions. Would you agree with that?

Speaker 1:

A hundred percent and not even knowing what to be intentional about for how can you run a business and not understand you have to make decisions based off money. I don’t know, but we were doing fine at it. Now that we know it’s way better.

Speaker 3:

Well then let me ask this. Did you open a tax account and do you have money that’s being put away for taxes?

Speaker 1:

So short answer, yes, humorous answer would be come on. You know that we are in your program.

Speaker 3:

Yes. But I want them to know too though, because that was a big thing. That was definitely especially the logistics side you said, but it’s like now what happened four months ago? You said four months, that was obviously there was something that happened four months that, was that the taxes or was that something else that contributed to that? What was the crystal clear four months ago?

Speaker 1:

Four months ago was about the time that all the work that we’ve been putting in finally started to show all of its fruit

Speaker 3:

Where

Speaker 1:

We’re paying taxes quarterly. We cut off a couple marketing channels we had, I have a new personal assistant instead of just an assistant for the company. So it’s like implementation knowledge and then execution. So we were in the execution. We were in the beginning stages of the execution phase finally, and then it all just started to be not as crazy every day. We started to have a really good idea of not just where we’re going, but how do I word this one? We’ve always known what direction that we’ve wanted to go, but implementing these things, it’s maybe it’s like putting in the better version of oil for your car that it drives more efficiently, something like that. We were using a horrible oil before and now we’re using your oil. So the first couple oil changes, the car was still rough, where now the car got used to this new good oil. So it’s running smooth. That’s probably, that’s a really

Speaker 3:

Good

Speaker 1:

Analogy

Speaker 3:

Because of what you said too. Saving your life is not a small thing to say. So it’s almost like the oil, it’s almost the wrong brand or the wrong thing for that car where a couple more things. If the market went the wrong way and if you weren’t doing these potentially all the money’s gone and then you’re like, what in the world happened?

Speaker 1:

And then do you blame it on yourself? Do you blame it on the car? You have to also be able to

Speaker 3:

Vehicle stuff

Speaker 1:

In the mirror.

Speaker 3:

Is it real estate or is it the vehicle or is it the person driving the vehicle? Oh no, that’s a really good Now this has been awesome. This has been awesome because this is where I believe a lot of people feel like this. They’re just, they’re going out there, they’re getting the deals, they’re getting ’em under contract, they’re actually selling them. The market’s great. We don’t have to worry about anything. What you even said a few like, Hey, we were just running and gunning and if we were making money, we’re fine. But then it’s like when it stops, what do you do if you have a dry spell? So this has been awesome. There’s been so much good things on here. I want to just ask a couple final questions. First, final question is if someone were looking to get started with Profit first, how would you advise them, especially in the real estate arena, since this is for real estate investors?

Speaker 1:

Well, so you’re one of the few awesome vendors who you’re not an owner that nobody can get in touch with. Most events that I go to, I’m going to see you there and be able to shake your hand. If we shoot an email to you, you answer. So I would tell anybody to probably just reach out to you first If you’re on vacation, I’m going to put them in touch with my C F O in order to get you. But I would just say do it. Don’t think about it. It’s the most important part of your business. Number one, people will argue that revenue is first, which is probably true. So I would say that revenue plus organizing your funds equal weight.

Speaker 3:

Yeah, I agree with that. If you’re going to do the work to bust your butt to get the deals in the door, you might as well keep the money that you’re getting in the door as well too. So that’s great. I appreciate that. I also did not pay Jason to say that too, but it’s like if you need help implementing, we could definitely help. But I want to also ask you one last thing too is you’ve dropped a lot of knowledge here. Do you need help with anything? Do you need private lending connections or do you want to connect with people on Facebook or Instagram or anything like that? Because if someone wants to get in touch with you and you need any help, how would they get in touch with you or follow you? I know you’re on Instagram, you’ve got a couple of those outlets. Is there any way that our listeners could potentially provide value back

Speaker 1:

So they will be able to? I would say right now, as far as real estate’s going, we’re working really hard at our processes and our SOPs and everything. We have enough of the information. It’s right now we’re just, we’re implementing it slowly and correctly. Once all that’s done and we’re to where we should be is when I’m going to start needing the help. So the exciting part is I’m not sure what help we’re going to need just yet. Right now, we just need more time to go by so that all the things that we’re doing can be completed. We also learned that rushing forcing is not good. So anyone can follow me or find me, but if I can leave, one really important message to anyone who’s thinking about this is that there’s two feelings in business and when you make your money, right, there’s all those wins and accomplishments, but then there’s always tax time. And I will tell you, the feeling of worrying about your taxes weighs more than any big win. So if you understand that I would much rather have all singles and no doubles, triples or home runs than have all home runs, but then worry about Uncle Sam

Speaker 3:

Or striking out or losing the game. Ultimately,

Speaker 1:

Yeah, there’s no stress being kicked out. Yeah, there’s no stress in having a walk or getting hit by a pitch or hitting a single, but there’s a lot of pain if you’re looking at Uncle Sam in the eyes. So take care of that first, and that’s the biggest lesson that we’ve learned. Those two feelings, one makes life a lot easier. What is a book? Eat That Frog, eat this Frog. Everything else falls into place as it should if you’re calm and happy and can focus. Awesome.

Speaker 3:

That is great advice because it is then, this is why we exist because so many people have this problem, but just don’t talk about it. That’s why we’re talking about it. That’s why Jason opened up today and told the stressful situations of up late, working early and then wondering, is this all not going to be worth it? I don’t, can’t pay Uncle Sam. You don’t have to feel that way. You don’t have to make money and feel broke. So if that’s you and you resonate with this at all, you could reach out to us@simplecfo.com. We would love to help you, even if we’re just pointing you in the right direction. But get on a call with our team. We want to help you get out of that rat race. Don’t be in the real estate rat race. Don’t be living deal to deal. Don’t do that to yourself. We want to help you just like we helped Jason and Jason, I want to say again, thank you for coming on, but then also being open. Being open and sharing and helping people have that hope.

Speaker 1:

And if you’re having an issue, being honest with yourself, call me. We can have a conversation. I’ll help you get it out of yourself and on the right trajectory.

Speaker 3:

Awesome. Well, there you go. This has been great. Remember, if you’re listening, make Profit a Habit. And Jason, thank you again for being on the show.

Speaker 1:

Thank you for having me more than it’s my pleasure.

Speaker 2:

This episode of The Profit First for R e I 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 r e I podcast with David Richter.

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?

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.