Why 90% Of Businesses Fail and How to Scale Up with Nick Bradley

April 13, 2022

Episode 83: Why 90% Of Businesses Fail and How to Scale Up with Nick Bradley

THE PROFIT FIRST REI PODCAST

April 13, 2022

DAVID RICHTER

Summary:

Investing in real estate can be fruitful, but dealing with it alone can be challenging and risky. Real estate is a tricky business that requires knowledge, talent, organization, networking, and perseverance. It also takes a little savvy to succeed in this highly competitive arena. If you want to scale your way up, you must remember to keep the end goal in mind!

But what does that necessarily mean? Don’t worry because real estate rockstar Nick Bradley will get to the bottom of that. Nick is on the show today to teach us how to network, organize, and run a business that works without us. Join our talk by clicking on that play button!

Key Takeaways:

[4:23] Networking with high net-worth individuals

[6:27] How important it is for people to have that network, and when should they start building that high-level network?

[6:4] The six reasons why your business will never hit eight figures

[8:32] How do real estate investors keep the end goal in mind?

[11:10] You need to know your need and want number

[16:15] You have to scale to sale

[19:11] The three principles to in driving your

business: Clear end game, Scaling fast and build value, Exit rich

[24:30] How did Profit First situate in his line of business?

[27:20] Start with the good habits as early as possible

Quotes:

[0:21] “People who don’t have a strong foundation of their finances from the beginning end up with a problem as they start to scale.”

[9:30] “When you get something that is not optimized, and it needs to be to get the outcome that you want.”

[12:45] “When you exit yourself from the business, and the business still runs, and you own it, you have freedom from that, but you don’t have to be there.”

Links:

Scale Up with Nick Bradley Podcast- https://open.spotify.com/show/3zWRNth6fPJc8rKdXgOZEH?si=_SdjZntfSH2P3hF-GQCj9g

Traction by Gino Wickman- https://www.eosworldwide.com/traction-book

Nick’s Facebook page: https://www.facebook.com/therealnickbradley

Nick’s LinkedIn: https://scaleup.vip/LI

Nick’s Instagram: https://www.instagram.com/therealnickbradley/

Nick’s YouTube: https://www.youtube.com/channel/UCegGXRp5Nxhn6wyN2SvFeuA

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:

Nick Bradley:

If you are at early stage, and I think Profit First is great at the very early stages. It’s one of those things that you should adopt in your business right from the outset. So if you want to, as I said, a philosophy or a methodology, then you should apply that to your business from the outset. It doesn’t mean you can’t apply it later on, but what I find is that people who don’t have strong foundations around the finances from the beginning, ends up with a problem as they start to scale.

Speaker 2:

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

David Richter:

Hey everyone. Welcome back to The Profit First REI Podcast, it’s your host David Richter. Here with Nick Bradley, I am super excited about this one because Nick is an incredible human being. I’m going to start, I’ve got like this long bio here and all this stuff, but I want to say first, one of the things that made Nick stand out about me is that he’s a family person, that’s one of my core values.

So he flew into Tampa and was away from them for two weeks, and you could just tell, he wanted to be back with them, he enjoyed his family time, and he makes that a priority. And that’s even into his bio, I love when people put in their bio, it’s like, we’re human beings here. And honestly, so that’s what impressed me about Nick.

But then he is also done some pretty cool stuff in the business world too, I mean, sold 25 businesses within the last 10 years for a combined valuation of $5.2 billion, not million but billion. So he’s done that, he works with private equity, he works in UK, and the US, and other different countries, but he also is a co-founder of the Fielding Group, which is a growth consultancy that helps companies improve business performance.

He owns seven other businesses now. Like I said, a dedicated family man, he’s just, he’s run ultra marathons and marathons has done like 67 of them. Nick is just someone who I feel like is a personal development and really takes it seriously about developing himself, not only as a business owner, but as a human being and as a family person. So Nick, thank you so much for being on the show today.

Nick Bradley:

What an intro, David, what an intro. I mean, I don’t know where to start with that. I mean, yeah, what I will say is like that at Tampa trip where we met, where I was speaking at an event there, when I met you it was the end of it. So I was missing my kid and my wife, because I’d been on the road for, I think 27 days.

David Richter:

Oh wow.

Nick Bradley:

Something like that. So that’s almost a month, that does feel like a long time.

David Richter:

Yeah. It is. And absence makes a heart grow fonder for sure, if it’s the right people. Yeah. And I just wanted to mention too, he also has the UK’s number one business podcast, Scale Up with Nick Bradley. So that’s what I want to focus on today, because a lot of entrepreneurs and real estate investors, whenever they come to us and they work with us, they’re always like, how can I solve today’s problems?

But usually, they’re not thinking about, where do I really want to take this. If I solve this problem today this way, does it affect us down the road? So I’d love to talk about use with the businesses, the exits and whatnot, and kind of take it that direction. But yeah, I just wanted to least give you a little bit of that introduction there. And before you go into that, do you have any words to say or anything that you want to say up front of how you even got into the business and into selling the businesses?

Nick Bradley:

I’m happy to kind of do a very quick sort of backstory without it boring everyone listening to this. Yeah. I mean, I’m originally from Australia. So I grew up in Australia, I moved to the UK where I live now in 2003. So coming up to almost 20 years here. I started off as a, what I call a pretty typical entrepreneur, I started my first business when I was 18, I sold it at 21. Sold it for 3000 Australian dollars.

David Richter:

Nice.

Nick Bradley:

I always joke and say that’s probably a Starbuck’s coffee or something. It’s not very much. But it wasn’t so much, I mean, I was a young guy and didn’t know a lot about things back then, but what was interesting about that business, it was in the personal training fitness space, you mentioned the running and all that.

But what it did do is it allowed me to develop some really interesting skills at a young age. One of those skills was networking with high net worth individuals, and there’s the ego, and the success, and all the different things that come from that. But just being comfortable in that environment as an 18 year old guy.

And then from that, I obviously got introduced into various networks via them. And my first, I suppose, job, after selling my business, I worked for Men’s Health Magazine, which was owned by Rupert Murdoch, actually his nephew, a guy called Matt Hamre run that. And I got introduced into that world through my connections of entrepreneurship, is probably the best way to say it. Spent good 15 years doing that in the world of corporates and big companies, I got involved in the strategic side, marketing and sales.

My first pretty large exit, I was involved in the management team was a big media company in the UK back around 2007. And that was an exit from just over two billion pounds. And after that, I kind of got catapulted into the world of private equity for the next 10 years or so. And over that time, did 117 acquisitions, it’s actually 26 exits as of two days ago.

David Richter:

Oh wow.

Nick Bradley:

It’s pretty-

David Richter:

Congratulations.

Nick Bradley:

And by that, just so everyone’s clear, they’re not all my exits, I’ve had a few, but that’s where I’m helping founders scale up and realize what I call that get rich once number. When you look in your bank account and you go, “Wow, how did that happen?”

But yeah, so that’s the kind of check it passed. And these days I focus my time buying my own companies, I have, as you said, seven businesses, all via acquisition, other than my consultancy, which I did start. And then the rest of the time it’s helping people scale fast and exit rich, that’s my big thing.

David Richter:

So before we go into maybe the core message there of how people should be thinking about at the end, the end in mind, you said, something that is so, I see this, especially now, having that network and scaling up yourself, making sure you’re in the right room with the right people, because that introduced you to now what you’ve done for years and years and now helping other people do it as well, too. How important would you say that is for people to have that network and when should they start building that high level network?

Nick Bradley:

It’s funny actually. Before we pressed record, I said, I was writing this quite a small guide at the moment, which is the Six Reasons Why Your Business Will Never Hit Eight Figures and reason, I’ve got it here in front of me, so I’ll read it to you. Reason number five is your environment and the people that you surround yourself with won’t get you there.

So in answer to your question, it’s critical that you put yourself in rooms, and I mean that rooms in terms of virtual rooms, as well as live rooms, where you put yourself in environments and spaces where you are the smallest person in the room, you are inspired, challenged, you feel the fear of maybe, why am I here? Do I deserve to be here? All those sort of things. But that feeling is growth. And unless you’re doing that on a regular basis, unless you are making that part of your philosophy, then you’re always going to be contained, you’re never going to be able to reach a potential in my mind.

David Richter:

Yeah. And that’s so good. And we see that a lot, a lot of it real estate investors go to masterminds and go to different events like that, where they, where I do, I hear that a lot from people there like, I’m doing X amount and like, which is really good in my market, but then I go to this meeting and I am a small fish in a very big pond, and I think that is, it is so good, especially if you’re just starting out in real estate investing, who’s local to you that’s doing deals.

And then once you are doing the deals and you’re the big fish in the small pond, getting outside of there and making sure that you’re growing as well too. That’s excellent advice, so we hear that a lot, just that network is really, it really helps you get to where you need to be in helping more people.

So then let’s talk about the exit, like keeping the end in mind. So what would you say? Do you have some core principles around that? As a real estate entrepreneur, especially the listeners could be from rentals, to fix and flip, to commercial or whatnot, what would you say for real estate investors and just business owners? How to keep the end in mind? What should they be thinking about? How to make those decisions? And just from your expertise in so many billions of dollars.

Nick Bradley:

Yeah. There’s a number of principles that I have found to be true over years of experimentation and also seeing other people go through various journeys. And the first thing, and again, I mentioned this when we first met is a lot of people just don’t think big enough and therefore, by not thinking big enough, and that’s not about creating something crazy, that’s not achievable, it’s about being realistic, but it’s about asking more of who you are.

And you’ve got to ask that question or you’ve got to say, “Listen, am I really building something here?” It doesn’t matter if it’s real estate, or business, or whatever, am I really building something here that’s going to afford me if you like an outstanding life?

And it’s funny, I get brought in usually in the transition from startup to scale up in businesses, but it doesn’t really matter what it is, it’s when you’ve got something that is not optimized and it needs to be in order to get the outcome that you want, be that a piece of property that needs development and then you’re going to flip it, versus a business that needs to be optimized, improved, scaled up, and then sold, it’s the same thing.

The key thing I say is you’ve got to realize what are you doing this for ultimately? Is there a number in your head? And I mentioned this, a life changing number, amount of money that’s going to create freedom for you. Once you achieve that, is that freedom going to allow you to do other things, be that, sit on a beach if you want, or go out and make a bigger impact in the world, leave a legacy.

But it starts with that idea that the end in mind is what am I creating for myself first? Which will allow me to create more for others, what’s that going to cost? This is me putting the private equity hat on now, what’s the investment required? So therefore, what is my life changing number? What is my get rich once number, my freedom number? Why does that number actually matter? And here’s the real kicker, this is the one I think that it doesn’t matter, who’s listening to this, they need to hear it, is what you are doing now in your business, how you’re spending your time, is it going to get you to that outcome?

And if you haven’t sat down and asked that question before, do it, if you have asked that question before but not really got an answer, I suggest press pause, do it now. No. But seriously, it will open up a different way of thinking, and that’s the first probably principle we can discuss because it’s such a powerful one.

David Richter:

That’s really good too. I just, because it’s The Profit First REI Podcast, in The Profit First REI book, I say in the first chapter, you need to know your need and want number. You need to have like, and I love what you said, Nick, it’s the questions that we’re asking ourselves, that’s a better question to ask herself than what is the fire that’s happening right now today? What do I need to put out?

And then you’re running, like you said, what are the activities that I’m doing today getting me to where I really want to go? And it’s like, it’s having those deep conversations with yourself, it’s really looking internally, figuring out first, what do I need just to survive? And then what do I need to thrive? What would make me excited as a business owner? I love what you say too, with a get rich once number, can you talk about that with the business owners that you work with? What does, is that when they exit or whatnot? What is that one number? Is that what…

Nick Bradley:

Yeah. So happy to talk about it. So remember there’s different nuances within the wording here. So if I say the word exit, there’s actually two ways of exiting in my mind, you could probably say there’s heaps, but there’s two ways. You can exit a business when you sell it, so you actually sell it and obviously, you sell it for a sum of money and that’s sum of money lands in your bank account, as I said beforehand, and hopefully you’re counting lots of zeros and picking yourself off the floor, right?

David Richter:

Right.

Nick Bradley:

And that’s the first time a lot of the people that I work with realize total, the pressure of having to make money is now gone because… And I’ll get into what these numbers are in a second, so we’re not talking about billion dollar unicorns here, will-

David Richter:

Right.

Nick Bradley:

… we get a bit more real. But that’s one way of exiting. The other way of exiting, which isn’t talked about in the same way but is equally important is when you exit yourself from a business, but the business still runs and you own it, and you have freedom from that, but you don’t have to be in there. And I have that, I have the privilege of that with my companies, so I have people run the businesses.

I get involved in the strategy, because I like it, but I don’t have to be there at all. And so both of those are exits, both of those are things that you can work towards. But to the point around, what’s the number? And I joke about this, your life changing number is not a billion dollars, it is not, okay?

David Richter:

Right.

Nick Bradley:

You may want to be a billionaire, that’s cool, but that’s not your life changing number, your life changing number is the number that creates that first pathway to both time and money freedom. And the number for most people is somewhere between $10 and $20 million. All right, first thing.

So what I say is, if you had $20 million in your bank account right now, David, all of your liabilities are paid for. You’d probably be able, even with some very, very cautious investments, you could probably take home a salary and income of somewhere between $80,000 to $90,000 per month, for the rest of your life, that’s putting into like a 7% Vanguard accounts, right?

David Richter:

Yeah.

Nick Bradley:

That’s not buying houses, or buying businesses, or doing anything creative, it’s not investing in startups, that’s just bricks and mortar type of stuff, right?

David Richter:

Yeah.

Nick Bradley:

Now, is not about your lifestyle, I don’t spend 80 grand a month.

David Richter:

Me neither.

Nick Bradley:

But if you think about, that’s $20 million and obviously $10 million, it’s going to be a bit less than that, but they’re still compelling numbers. So what I advise lots of founders to do, business owners to do is when you’re setting your exit and you want to sell the business, don’t stick in there forever trying to get to a number you don’t need.

As soon as someone turns up and that ratio is there, you’d be wise to look at it, because I’ve also been involved in people who have held on for a bigger number and then the bigger number didn’t happen, in fact, the worst happened, the market changed, pandemics hits, blah, blah, blah, and all of a sudden, everything they’ve spent the last five to 10 years building is worth nothing.

David Richter:

Yeah.

Nick Bradley:

So pace matters, scale matters, timing matters, and being realistic with what you’re trying to create for your life is all part of this equation we’re discussing.

David Richter:

No, that’s really good. Wow. Because yeah, so many people think that I just need to keep working, working, working, but they never put that number to it and what is that realistic number? To actually stop your rat race of having to work, or whatnot, or getting out of that business.

So once they establish that number, that’s at least one of the first steps there, but then what about… I had a question, once you’ve talked about those two different exits, selling or staying a part of the business, but you don’t have to be a part of the day to day or in that anymore. Do you prepare for those differently or do you prepare for them the exact same way? Only one, you’re taking home money, the other one, you’re just, it’s your cash machine almost, it’s like, you don’t have to do anything. So do you prepare?

Nick Bradley:

It’s a very good question, David, because it is exactly the same, exactly the same. So I look at it in terms of a methodology that I’ve sort of crafted in my head after all those years of being involved in these scale ups to exits, right?

David Richter:

Yeah.

Nick Bradley:

So I call it scale to sale. So it’s when you’ve got a business, that’s got good foundations. So everything we’re talking about now is good foundations, it’s not startup, right?

David Richter:

Yeah.

Nick Bradley:

Usually it’s a business that’s probably getting into the high six, low seven figures in revenue, that sort of size, and then you’re thinking, well, how do I get it to eight? We mentioned that previously. And so the first part of the methodology is what we spoke about the very beginning of our conversation, clear end game, clear end game in terms of what you want the business to be like and what that’s going to give to you.

So you are building back from that very, very clear position of what it is, so that’s the first principle of the methodology. Second principle is what I call scale fast and build value right now. Scale fast is an interesting one because a lot of people still get stuck into what I call organic growth, which means they’re trying to build their business one customer at a time.

So that’s traditional sales and marketing. You have to have a very, very good machine in your business that drives predictable flow of the right customers coming in. But if that’s all you’re doing, your growth is going to be slow.

David Richter:

Yeah.

Nick Bradley:

So the other part of that scale fast and build value is you’ve got to overlay the strategic stuff, and that’s where I talk about acquisitions, joint ventures. So that it’s much easier to go and buy your competitor down the road who’s got all these customers do a deal there, or even a partnership, if you’ve got a product that you can sell into that other business, and you are going to get much faster scale of your revenues than just trying to go out there and do it yourself.

So that’s one thing, that’s just one dimension. And small business acquisitions right now is incredible, there are so many businesses out there and if anyone’s not, I mean, even if you’re a real estate investor, just pivot a bit of your thinking towards buying businesses because it’s the same principle, buying a house, and buying a business, and how you leverage capital is the same bloody thing.

But you are going to get a much higher return on scaling and exiting a business than you will from real estate. The multiples are just so much bigger. So that’s that. And then the last principle is this exit rich, how do you build towards that?

So that’s processes, systems, making yourself redundant from the business, because even if you decide to sell it as in exit and then take what we call a capital payment, you don’t want to be the person that’s going to be sitting around running that business for ages right after you’ve sold it to someone, you want to have someone in the business that’s kind of your number two, who’s running it for you.

So to your question, those three things, still has to be worked on, and whether you decide to sell it, set a cash payment, or whether you decide to exit yourself and have someone run it for you, you would’ve still built the business with those foundations to get you to that sort of eight figure milestone.

David Richter:

And then could you just repeat those again? Just real quick, those three, just so we have them in bullet form.

Nick Bradley:

So principle one is clear end game, principle two is scale fast and build value, and principle three is exit rich. So build everything back from that so you know your numbers and then you compound those together.

David Richter:

Huh, I love that, I love the terminology there and know your numbers, because that’s where a lot of people, I think that at least we work with or whatnot, that’s one of those things that entrepreneurs, they don’t have that drive to know the numbers or like to know where they really are inside their business, just from not only their end game, but just looking at the numbers of the business and being financially savvy.

So can you talk to that since it’s a Profit First REI Podcast, having a system for your finances, and knowing those numbers, and really knowing where everything’s going, how important is that when you are looking at businesses to buy or to sell, what would you say on the financial side?

Nick Bradley:

The number one thing when you sell a business, and it’s probably the same when you sell a house. But the number one thing is people are going to look at the quality of that business, and that means that if I buy a business, that’s got a few things broken in it, I’m going to pay less, in the same way if you buy a house that’s not painted, it’s going to be that’s whatever, all that stuff.

So in terms of the financials, the first thing that I look at when I buy a business is the P&L and the balance sheet. Then I’ll start to look at things like the quality of the product and service, the customer base, the people in the business, but if the numbers don’t make sense from the outset, I can’t buy it because I won’t be able to buy it in the way that I like to buy it.

So I like to do what we call leverage buyouts, and I’ll explain this quickly for people, it’s important as an investment tool. Where I am leveraging the assets from the business that I’m buying to do the deals. So very commonly, when I buy a company I’m only putting 10% of my own capital into a deal, the other 90% to get the deal done is other people’s money.

And the only way that I can do that is by leveraging the assets on the balance sheet and making sure that the forward projections on the P&L are going to be able to cover the way that I structure the deal. So just to make this grounded, if I go and buy a business and they haven’t got a clean set of numbers and metrics, firstly, I’m not going to buy it probably, it’s too much risk.

If I was going to buy it, I’m going to put all of the risk onto the seller, 100%. So that’s sometimes what we call 100% seller finance deal, which basically means I’ll buy your business off you, but I’m going to pay you installments over the next three to five years from the profits I’m taking from the business. And the reason that I’m going to do that is because you can’t give me certainty on your numbers.

Now you might say, why would I sell a business to you, Nick, for that? Well, if you are reaching retirement age, you are sick, your partner’s sick, or something like that and you just don’t want to be in the business anymore, that might be the best offer you’re going to get. So long-winded response, but I just want to people to understand the context here. Equally, if the numbers are great, the value’s going to be greater because it’s just so clear and transparent where growth is coming from, where value is being created, and that sort of stuff.

David Richter:

Yeah. I think this all ties into what we’ve talked about because I think people and business owners, entrepreneurs, real estate investors, especially in those circles that I’m running in, if they don’t have that end game, the numbers don’t become as important.

So that’s why sometimes it’s just about getting the next deal or their living deal to deal, month to month and they might be at that high six figures, low seven figures, but like they’ve just built it on their back and not have the firm foundations. And I think once you know that end game of where you want to go, and now you’re listening to the expert here, Nick Bradley, number one business podcast in the UK, he knows his stuff of how to exit the business, he’s telling you that the first thing he looks at is the profit and loss and the balance sheet.

So you have to know those numbers, you have to make sure it’s clean up to date, and then whether you want to sell it or not, because what you said, Nick too, I’m sure it’s the same that even if you’re not looking, if they’re not looking to sell it and like you said, stay in the business or whatnot, and they might still be there, but not actually a part of the business the day to day, they still need to have those numbers to be able to show someone. So that way they know, yes, I can take off or yes, I can pass this on to Nick, or whatever their situation might be. So that’s just, yeah, we try and beat this over ahead all the time and it’s just great to hear it from someone who’s done billion dollars.

Nick Bradley:

We can underline it, we can put full stops all around it.

David Richter:

Right, exactly.

Nick Bradley:

We can, I’m sure everyone’s heard it, but a lot of this stuff, I mean, as much as I’ve been doing this for 20 odd years or so, it’s not rocket science, when you look at it. And one thing I want to say also is align with that sort of thinking bigger piece. It’s not just about thinking bigger in terms of a strategy, it’s also trying to get yourself up to that 30,000 foot view so you can see the landscape and you can see the path. And quite often you don’t and you get stuck into that. So you want to be able to elevate that and that’s when you can be more strategic and you can build to some of these bigger numbers that we’ve been discussing.

David Richter:

Yeah, man. That’s great stuff. So I just have a couple final questions here. Profit First, you’re a fan of Profit First, how would that situate with what you’ve seen in businesses? Do you like that system to be a part of the financials or, wait, I don’t know, you’ve read the book, you are friends with Mike Michalowicz, what do you think about the Profit First just as being a part of the cash flow management piece of a business?

Nick Bradley:

I like, yeah. I mean, great stuff. I mean, it’s one of those seminal books right up there with Traction by Gino Wickman that I often advise people to read and adopt. I think for me, with Profit First, it’s just a good philosophy of how you should think about not just your business, but your life, the concepts behind that.

So and this is where I’m going to probably alienate a heap of your listeners now because I’m going to say something. I’m not someone who likes businesses that are building to profit. So when you get lots of these tech businesses who are out there raising lots and lots of money on the premise that one day they’re going to be profitable. And I know they sell for billions like WhatsApp, sort of stuff.

I know that there’s value there. I just think real value comes from profit. It’s the cashflow and those sort of things of the business. So what I advise people to do, if you are at early stage, and I think Profit First is great at the very early stages. It’s one of those things that you should adopt in your business right from the outset.

So if you want to, as I said, a philosophy or methodology, then you should apply that to your business from the outset. It doesn’t mean you can’t apply it later on. But what I find is that people who don’t have strong foundations around the finances from the beginning ends up with a problem as they start to scale, because it’s a little thing, like a small, what do they say? What’s the saying? It’s better to kill the giant when it’s small or kill the monster when it’s small.

David Richter:

Right.

Nick Bradley:

You heard that saying?

David Richter:

Yes.

Nick Bradley:

Because if you haven’t got some level of structure around how you manage the business performance, then as it starts to grow, it’s just going to grow out of control to a point where any growth that you’re getting will stall, and then you’ll have to stop and you’ll to go back and fix. And a lot of business owners give up at that point because they start to see the performance going backwards, they start to lose their mind, and when people say, “Oh, 90% of small businesses fail,” a lot of that is because these sort of things are not in place. So that’s my general summary of why it’s important.

David Richter:

Awesome. Well, I love that because it is, I always see that all the time, we work with some people where they’re first starting out and we work with some people on the back end where it is, they’ve got a bigger operation and it is, it’s like pulling teeth to get to where, okay, we at least got to get the foundation now of like, okay, being on the same page with the numbers, and with the cashflow, and whatnot.

So I love your advice there. If you’re listening to this and you’re just starting out, this is why I tell people, you start out with the good habits as soon as humanly possible. So even if you’re doing 100 deals right now, now’s the day to implement it, or if you’ve done zero deals and you’re looking to buy and sell your next one next week, implement this cash flow system, so that way you start out on a better foot.

So that way, when you go to Nick, when you want to scale up to eight figures, and you want to sell, and you want to exit, then you can go to him and say, “Hey, I’ve got my finances in order, and here’s where they are, and here’s the cash flow, and here’s why my multiple will be better and I can actually sell for something that…”

Nick Bradley:

Makes my life easier. It means I need to do less work than you say, it’s a…

David Richter:

Yeah, exactly. That’s awesome. So Nick, this has been awesome. Just have one final question here. You gave a lot of value on talking about the network, talking about how to scale and exit, some of those principles, how Profit First fits into this overall and into the finances and even exiting.

So then how, since you provide a lot of value here, how can our listeners provide value back? I know they can listen to your podcast and I can keep it the number one podcast, but then is there anything else, any links, sites, anything you need? I just always like asking…

Nick Bradley:

Yeah. Very nice, I like that. I’ll share with you, I’ll share with them, your listeners one of my goals for this year, actually, which always in, I want to… So I do a lot of speaking now on this subject and I want to start to do more of that, and I’ve got a number of different opportunities that are starting to present themselves across the world actually, but a lot of it is in the US.

So if anyone listening to this has events, conferences, things like that, where they want this type of information shared, then I’m certainly open to those type of things. And then the only other final thing is if people are kind of interested in the concepts and whatever else, I have a Facebook community, free Facebook community called Build Your Business Empire. So if you go into Facebook, you can join that, we’ve got a few 100 people in there now, it’s a very vibrant group of what I call Empire Builders, people who are trying to do something stunning with their business. So there you go.

David Richter:

Awesome. There you go. That’s how you could connect with Nick and what his goals are for this year. If you know someone who can have him on a stage, he’s an excellent speaker, I heard him last few months ago in Tampa and it was incredible, and just hearing him talk about scaling, exiting, and everything.

So loved having him there at that event, if you can use, or if there’s someone in your mastermind networks or whatnot, just reach out. And then if there’s anything else we could do for you, Nick, let us know, but thank you so much for being on the podcast today, it was an awesome episode.

Nick Bradley:

Okay, David, very, very grateful to be here. Thank you very much for having me on.

David Richter:

Thank you so much for listening to today’s show. If you found this episode valuable, could you do me a quick favor? 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 simplecfo.wpengine.com/apply, or just go right to simplecfo.wpengine.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 cash flow. Thanks again for joining us for another episode on The Profit First REI Podcast. See you next episode.

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

Episode: 242

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

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

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

Listen and enjoy the show!

Key Takeaways:

[01:01] Introducing Jay Conner

[05:00] Introduction to private money

[08:30] The Great News Phone Call

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

[13:18] Maintaining relationships with private lenders

[15:40] Private money vs traditional money

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

[25:18] Advice for real estate investors

[29:01] Connect with Jay Conner

Quotes:

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

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

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

Connect with Jay:

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

Tired of living deal to deal?

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

Transcript:

Speaker 1 (00:00):

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

Speaker 2 (00:34):

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

Speaker 3 (01:01):

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

Speaker 1 (02:07):

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

Speaker 3 (02:24):

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

Speaker 1 (02:43):

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

(03:38):

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

(04:27):

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

(05:18):

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

(06:10):

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

(07:02):

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

(08:11):

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

(09:06):

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

(10:04):

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

Speaker 3 (10:38):

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

Speaker 1 (11:17):

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

Speaker 3 (12:22):

Right? Yep.

Speaker 1 (12:24):

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

Speaker 3 (12:33):

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

Speaker 1 (13:22):

I mail ’em checks.

Speaker 3 (13:25):

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

Speaker 1 (13:33):

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

Speaker 3 (13:41):

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

Speaker 1 (13:50):

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

Speaker 3 (14:00):

Yep.

Speaker 1 (14:01):

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

Speaker 3 (15:27):

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

Speaker 1 (15:32):

Options. Does that make sense?

Speaker 3 (15:34):

Yeah, that makes sense. A hundred percent.

Speaker 1 (15:37):

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

Speaker 3 (16:14):

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

Speaker 1 (16:33):

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

Speaker 3 (17:33):

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

Speaker 1 (18:04):

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

Speaker 3 (18:20):

Yeah, me either.

Speaker 1 (18:22):

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

Speaker 3 (18:53):

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

Speaker 1 (19:12):

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

Speaker 3 (19:17):

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

Speaker 1 (19:20):

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

Speaker 3 (20:25):

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

Speaker 1 (20:50):

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

Speaker 3 (21:53):

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

Speaker 1 (22:07):

Well pay ’em on time.

Speaker 3 (22:08):

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

Speaker 1 (22:12):

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

Speaker 3 (22:42):

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

Speaker 1 (23:03):

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

Speaker 3 (23:06):

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

Speaker 1 (23:10):

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

(23:37):

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

Speaker 3 (24:31):

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

Speaker 1 (25:18):

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

(25:26):

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

Speaker 3 (26:11):

That’s so good.

Speaker 1 (26:13):

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

Speaker 3 (27:08):

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

(27:55):

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

Speaker 1 (29:01):

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

Speaker 3 (30:31):

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

(31:13):

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

Speaker 1 (31:51):

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

Speaker 2 (31:54):

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

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