177. Raising Private Money with Jay Conner, Richard Canfield & Jayson Lowe

You are listening to the Wealth Without Bay Street Podcast, a Canadian guide to building dependable wealth. Join your host, Richard Canfield and Jason Lowe as they unlock the secrets to creating financial peace of mind in an uncertain world. Discover the strategies and mindsets to a financial future that you can bank on.

Get our simple seven step guide to becoming your own banker. It's easy. Head over to 7 Steps CA and learn exactly the learning process required for you to implement this amazing strategy into your financial life. That's seven Steps ca. Well, our guest today started out in real estate investing, and like many of us, he did it all the way, all the wrong way. And this is a common thing that happens with real estate investors. You know, he kind of felt like he was taken to the slaughterhouse, but he had to come up with all the big down payments. He had to pay the loan origination fees, and most importantly, had to play by everyone else's rules. Now, I know our listeners aren't a big fan of that. He hated it. He felt like he was owned by the bank. He was out of control. He was stressed out. Then he realized that he needed to combine all the best aspects of the research that he had done and create a system. He refined that into a formula. And that formula, when he first tested it, on the very first individual he tested it with, he raised $250,000 in private money. It blew him away just how easy it was. Within a few short months, he had raised in private money for real estate deals. 2,150,000. That is epic. And we are so excited to have Jay Connor with us today, the Private Money Authority. Jay, what a wonderful story. You've been in real estate a long, long time. You've got so much value to give to our listeners. Not just, you know, for those who are real estate investors or interested in real estate investing, but really just around the understanding of how you can go about raising private capital for the things you need to get implemented, whether you're a business owner or what have you. So welcome to the program and we're so grateful to have you.

Richard. Jason, thank you so much for inviting me along to talk about what I'm most passionate about, and that's private money. I mean, private money has had more of an impact on mine and my wife Carol Joy's business for the past 20 years. And I can't wait to share how fast you can get it and how easy it is to attract it. You know what's so funny? I've never asked anybody for money. I got eight and A half million dollars of private money to fund my deals. I've never asked anybody for money. I've never pitched a deal, can you believe, and they asked me all the time, well, how in the world do you get your deals funded? I can't wait to talk about it.

One for, for our listeners, you know, we can start with the basics in terms of like, what is private money? Like, is it money that just stays in the house with curtains drawn saying, I don't want to talk to anybody private.

I'm not public, I'm private money.

But so what, what is private money? Now, anyone in the real estate investment realm will have either heard that term used or maybe had some exposure to it. But at a, you know, at a, at a you and me level, a simple level, what is private money?

Yeah. So private money is money that is borrowed from a human being, from human beings. We're talking about doing business with individuals just like you and me. So we're, so it's even easier to understand what private money is not. So private money is not institutional money. Private money is not any kind of a bank. Private money is not a hard money lender. Now, I've got many friends all across the nation and in Canada that are hard money lenders. Most of the time a hard money lender is a broker. And what the hard money lender does or broker does is goes out and raises private money from those individuals to invest into their hard money lending fund. And then the hard money lender loans that out to us real estate investors. But in this world of private money, we're doing business directly with the individual. So a private money lender is an individual who loans their money from either their investment capital and, or their retirement funds and, or retirement funds to us, the real estate investors. So there's a, it's a one on one transaction from us, the borrower, the real estate entrepreneur and the private lender or private lenders.

And it's from what we've been, you.

Know, hearing, even within our own network.

And community, there's a lot of capital out there that is, is looking for really high caliber opportunities. And that's.

You're so right, Jason. And here's the exact stacks. Before COVID there was. Now I'm just talking in the US I'm not talking Canada because I don't know the Canada statistics, but I can tell you the US statistics. Prior to Covid, there was $18 trillion in cash just in retirement accounts. I'm not talking about people's just liquid capital, but there's there was $18 trillion in cash sitting in people's retirement accounts wanting to loan money, private money, to real estate investors right now on this side of COVID $31 trillion in cash sitting on the sidelines available. And here's the deal. The people, the individuals, don't know what to do with their money. So it's us, the real estate investor entrepreneur. It's our ethical and moral obligation to relieve them of that problem of not knowing what to do with their money to where they can get a high rate of return safely and securely.

Excellent, Excellent. And this is actually a great time to share what you were.

Expressing to us at the beginning of the program before we started recording. You mentioned that you wanted to be able to provide listeners and viewers with an opportunity to download a complimentary copy, which again, we're so grateful for. Thank you sincerely. And that's what we love about the guests that come on our show. They're always giving. And so we thank you sincerely for that. And we're going to put a link in to download a copy of this ebook that is undoubtedly going to be chocked full of value. And Jay's holding that up on the screen right now. Why Private money will skyrocket your real estate business and help you build incredible wealth.

Free.

Download it, read it. I promise you, you're going to get.

A world of value from it.

And so, yeah, and Jason, the URL link is really, really simple that your listeners and audience and viewers can download this Private Money guide. To get on the fast track, just Simply go to www.jconner and I'm an ER, not an OR. So. Most Connors are ORs. I'm an ER. So it's J A Y C O N N E R.com forward slash money guide. So J Connor, Jay Connor.com forward slash moneyguide.

And what inspired you to write the book?

What inspired me to write the book was first of all, I just think all of us are created to give back. And my journey, mine and my wife's journey through our real estate investing business. We've been full time in single family houses. We've done commercial deals as well since night, since 2003. And the first six years, Jason, that we were investing in single family houses, I relied on the local banks, I relied on mortgage companies. That's all I knew to do. And then something happened unexpectedly and it was the biggest blessing in disguise that I've ever had since being in this business. And what was that something that happened that ended up being a blessing in disguise? You know, believe it or not, we actually still have hand phones or handsets and cords attached to telephones here in eastern North Carolina. Some people don't even know what that is. But anyway, I remember like it was yesterday in January 2009, I called up my banker. His name was Steve. I had done a ton of deals with my banker for six years, and I learned very quickly on that conversation that my lines of credit have been closed, that I had two deals under contract with profits of over $100,000, and now no way to fund my deals. I knew I had to find a better and quicker way to fund my real estate deal. So I learned about private money. So in less than, you know, 90 days, I raised over 2 million. So what inspired me to write this, I know from experience it is the money, it's the funding that's the number one source, in addition to knowing how to find the deals. But it's the number one reason what holds people back from doing real estate deals is the money, you know, and so when I learned about private money, in this world, we make our own rules. We set the interest rate, we set the term. There's no application process. There's no approval process. Your credit score has got nothing to do with it. And we tripled our business the first year. So I know from over the years, getting the money for your deals is the number one thing that holds you up. And, you know, we make a big impact here in local eastern North Carolina. We've rehabbed over 475 houses. We've, you know, helped people with problems on buying houses. But I knew that I could make a much bigger impact by writing this guide for people that can download it all over the US And Canada and even elsewhere. So what's my reason? My reason is now and a part of my life. I'm 62 years old now in a part of my life to where significance and impact is more important than the money and anything else.

That's one of the reasons why we have you on the program, Jay. That's. That's basically our. That's our M.O. around here. So we're big fans of that and how people show up and how we like to show up for. For our listeners, for our clients. And so, you know, a lot of synergies there. What I really love about what you share about your story, that that moment in time is. Is something that would. Would cripple, you know, if there. If there was a doppelganger of Jay receiving that, you know, having that same phone call with the banker, and he just, you know, hung up. The thing is like, oh, what am I going to do? I'm going to let that a hundred thousand dollars of profits disappear. And I guess I'm out of, I'm out of the real estate business now because it just got too hard. So there's a whole nother track of a story that could have been, but that didn't happen because you chose the path of opportunity and you went to work to figure it out. And that's a unique signifying thing that I think our listeners should really take heed of. Opportunity shows up for you. And usually the biggest opportunities are when the biggest problems show up, whether it's your problem or someone else's problem. Once you can overcome and solve that problem, now you're, you're on the other side and that's when you know, you know, the sun shines very, very bright by doing that. So I really appreciate that story. The second thing really captured me. I love what you said, that that time frame of 2009, the reason those credit lines froze, that was that that happened pretty much across the board in a lot of the major banks all across the United States. It had to do with the, the aftermath of the financial crisis and the bailout situation and, and the property values were, were declining from, from an overinflated scenario. So there was this, there was this kind of whole like ebb and flow trickle effect that impacted you on your deals in an un, un. Characteristic, unsuspecting way, if I'm being so bold to say it that way. And, and you weren't the only one impacted. Thousands of thousands of people were impacted that way. And so we find ourselves in an interesting situation where, you know, we're, we're hearing some interesting stories about banking, you know, collapses and buyouts and things happening presently at the time of this recording. And so there's a little bit of that similar fear taking place again here both in Canada and the United States. So I'm curious, as you look at the opportunity for, for building the skill set of raising private money today, even in comparison to before COVID what would you say about its value and its importance now, given the current economic climate?

Given the current economic climate, as there's, there's more liquid capital on the street, and when I say on the street, I mean in people's back pocket, in their checkbook, there's more liquid capital. Now, regardless of your political affiliation, here's the facts. There's been more money printed in the basement of the White House in the current administration than ever before. So you've got all that, I mean, that's been, that's contributed, of course, to the inflation, you know, situation that we have. You got all this money. Well, the flip side benefit of that is you got all this money and people are looking for a place to put it. So how does that tie into your question? How do I raise money? I've never asked anybody for money. Well, what I do is I put on my teacher hat. You know, the traditional way of borrowing money is you go to the bank or the mortgage lender or the hard money lender and you get on your hands and knees and you put your hands underneath your chin. You go, please fund my deal, please fund my deal. Right? Or I'm going to die if you don't fund my deal. Right. By the way, I know you all have heard it, I digress here for a second. I know you all have heard it, but for goodness sakes, I'm sick and tired of the gurus out there saying, oh, just get the deal under contract, the money will show up. Have you heard that before? And I want to go, where is the money going to show up? Is it like going to rain out of a cloud? And I can tell you why that stuff and that junk is taught. The reason that junk is taught of getting the deal under contract, the money will show up is because somebody's selling a course on how to find a deal. That's why they're saying that. So that's why I say get the money lined up first. There's always going to be deals, always going to be deals. So get your funding, line up front now. I'll get back on course. So back to that traditional way of raising, raising. I mean, borrowing money is you go to the bank and you beg, right? So in this world, there's no begging, there's no chasing, there's no selling, there's no persuading. Instead of, instead of asking for a mortgage, we are offering a mortgage, right? So I teach people. That's how I started. I started when I'm going to have those two deals on the counter. By the way, I closed both of those deals with private money, right? And so I teach people there's three categories of where you find these private lenders. People you got some association with or in your cell phone. Email is social media. And then I teach people how to expand their warm market. You know, your network is like equivalent and correlates to your net worth. And then there's existing private lenders. We'll Talk about how to find them if the show allows time. Anyway, I started teaching people what my private lending program was without trying to pitch a deal. I started teaching the opportunity. So I put my program together, right? What's the interest rate? I'm going to pay a straight 8%. No origination fees. I'm going to pay 8%. You know, I'm going to give you, I'm on back that note. I'm not going to borrow unsecured funds. You know, what's the like. So I started teaching the program and it takes 20 minutes to teach the program that I've put together to people that you've got some kind of relationship with. And then by the end of that, I promise you, if they've got investment capital and or retirement funds, they're going to be saying, well, what I do, just write you a check? No, they don't write you a check because we're going to back that note with the real estate. So they only wire funds either from their retirement account or their liquid investment capital directly to my real estate attorney or closing agent. Then we close. So how do we attract it? Teach? Put on the teacher hat. What are you doing? You're serving. You see, in this world of private money, there's no rejection. You cannot be rejected if you're not asking for the money, right on a deal, right. So I'm teaching how they can get high rates of return safely insecure. They said, wow, I want to do this. Or if they want to use their retirement funds, I'll introduce them to myself to ready the IRA representative that I refer all my private lenders to, they're all set up to go. And then when it's time for them to fund a deal, I never, I never pitch a deal. How in the world do I do not do that? I call them up, I say I got great news. I tell them four things. I say, I got a house over here in Newport, North Carolina with an after repaired value of 200,000. The funding required is 150,000. I know they got it. They already told me. And I'm closing next Friday. So you got to wire your funds next Thursday. I'm going to have my real estate attorney email you the wiring instructions. You notice I didn't say do you want to fund the deal? That's the most stupid question in the world I could ever ask. Of course they want to fund the deal. They're waiting for the phone call because they told me. And particularly if I introduced them to the self directed IRA company they've they've, they've transferred their money over to the self regulatory IRA company. They're not earning any money until they put it to work. They're counting on me to put their money to work. So you see, what's the first step in being successful and attracting private money? You got to own the real estate between your ears before you can own the real estate out there. It's the mindset. No chasing, no begging. I'm teaching. Here we go. I got the money lined up. All right, let's get the deals funded.

And what do you see? Some of the common mistakes that people make, you know, when they first kind of, you know, forge their way into lending their capital, you know, how, how often have you seen people, you know, make mistakes in that space where they.

So from the standpoint of the private lender. From the standpoint of the private lender, number one, if you're interested in being a private lender, and I mean this money God is written for the real estate investor that wants to borrow private money and teach private money. On the other hand, if you want to be a private lender and loan your money out, number one, don't ever, ever loan money out unsecured. Yeah.

No promissory notes.

Yeah. I mean, I mean you can, it's legal. Right. But for goodness sake, your, your, your, your recourse is a piece of paper. Yeah. Israel recourse. Right. So secondly, who are you doing business with? Right? I mean, how well do you know this person? I mean, the operator, the guy or the gal running the show, really, as from the standpoint of a private lender, you're really not investing in that piece of real estate, you're investing in that person.

Right?

Is really what you're doing. Right. So where's your level of trust? Where's your level of confidence? Right. You know, I mean, I mean, pretty much I'm not going to be. And I'm a private lender myself, right? I mean, private lending is beautiful. I mean, it's passive. I don't have to go find a deal, I don't have to negotiate a deal. I don't have to rehab a house. You know, I just sit back and watch the money get printed. But who am I going to do business with? I'm going to do business with, first of all, how well do I know them? I mean, I'm obviously not going to take a phone call or an email from somebody that I don't know and they pitch me a deal and I'm going to invest in it. I Don't care how lucrative it looks, right? Because I'm really not investing in that real estate. I'm investing in that person and their knowledge and they know what's going on. Now here's another red flag on the other side of the coin. Big red flag for you real estate investors, whether you're brand new or seasoned or whatever. Let me tell you one of the biggest scams out there on the Internet right now. Private money scam. And here's the private money scam. You get an email or it shows up in your, whatever, your newsfeed or whatever. And here is a person, an individual, not institution, private lender. You know, here's Max, you know, Max Money Sam, whatever his name is, and he's offering you money at only 3%. Well, there's a red flag right there. Who's going to loan you money at 3% in today's economy, right? So he's going to loan your money at some ridiculously low rate and he or he's going to say, no appraisals, know this, no that, no that. I'll fund you deal in three days. Blah, blah, blah, blah, blah, blah, blah. And here's the catch. You just got to send me a $1500 application fee and I can get you all set up within about 48 hours, okay? You send that 1500 bucks money, Mac Sam is gone.

Yeah, but so, but here's how you know, you never, as a real estate investor, borrower, you never, never did I say never as a borrower, send money to a lender before closing. You never send them any money before closing. There's no application fee and all that mess, right? So I mean my way, I mean my lands, the way I do private money, when I close on a deal, I never take any of my own money. Down payment money, the closing table anyway. I always bring a check back home. I'm not taking money to the closing table. And how do I do that? Because I borrow more than I need, right? Because there's a lot of equity in these discounted houses that we buy. But while we're talking about red flags and how to protect yourself, private lender, you're investing in that person, borrower. Don't you pay no, you know, junk application fee up front before you go.

To closing, become your own banker and take back control over your financial life. Hey, is this even possible? You may be asking, can I even do, do this? Well, you better believe it. In fact, it's easy to get going. So easy that we've put together a free report 7 Simple Steps to becoming your own banker. Download it right now. Go to seven steps ca. That's seven steps ca. Now let's get back to the episode.

I'm glad to hear your, your commentary on things like the promissory notes. I mean, you know, when a real estate market starts getting really hot and things are happening, everyone who wants to get in on, get in on the deal, whatever the deal is, and then that's what you start to see happen. I've even heard of a lot of even real estate coaches who are then doing deals with people that they're coaching, but they're doing the deals, raising private money from students using promissory notes, not even securing on title. And if you're coaching someone to be successful in real estate and you're not even coaching them to take security on the deal that you're, you're helping them get involved with, I mean, that to me is a pretty big red flag.

You reckon?

Well, I love it. One thing I'm really curious about is, you know, you mentioned you again, seasoned investors versus the newer investors. Just because we have so many listeners on our, on our program, some people who are just getting excited about getting into real estate, you know, if you're new, maybe you've got one or two or three doors, you're kind of at that state and you're looking to grow. Maybe you started, you tapped out your current banking relationship. You already had that call with Steve and Steve's like, I can't get you any more money. And you're looking at moving into the private money space. You know, what would you say about helping that person have the confidence? Maybe, or the, or maybe, maybe they're because they're still new in the game. Maybe they don't have enough years under their belt of experience. What kind of tips and tricks would you give them to help them get, get what they need so they can start having those teaching conversations appropriately. So again, they're not chasing, not asking for capital, but they're, but they're setting themselves up in the best position so that the capital will begin to flow.

Richard, I love your question because there's one word in your question that is critical. The word you said was confidence. So first of all, nobody's going to loan you money for your real estate deal unless you believe in yourself and your deal and your private lending program to start with. I mean, you got, you got to believe what's going on here. You got to be passionate, right? You got to be passionate about what you got going on. Look, people are attracted to passion, right? People are attracted to people that know what they're talking about. So you better know what you call you're talking about. Well, how are you going to know what you're talking about? You need to know your private lending program, which is duplicate mine that you teach other people. You need to know your program inside and out. Like you can just talk about it in your sleep. Right now I've got a beautiful PowerPoint that if you can read, it works, right? And it takes like 20 minutes to go through it and it teaches the private learning program. But if you're eating fried chicken and pork barbecue and coleslaw at Smithfield's barbecue chicken joint after church on a Sunday, you ain't going to have your PowerPoint and your laptop on the fried chicken table, right? So you need to be able to have like just this nice little casual, fluid conversation about what you do, you know, I love did you know questions. I love did you know questions. It's a great conversation starter about private money. For example. Here's one of my favorite did you know questions. So Jason, you look like you would enjoy fried chicken. I'm not sure. But anyway, let's say you and I are hanging out there at Smithfield's Fried Chicken and we're eating along and I say, jason, and, and let's say, let's say you don't know, Harley. I mean, you know, I invest in real estate or whatever, but you don't know how I fund my deals, right? So we're, we're, you know, we're right there, you know, chomping on a chicken leg and you know, we're talking about what's going to happen this coming week. And then I say, jason, did you know there's a way that people can earn unlimited money per year, tax free? And of course you're not going to the answer to that question because where in the world can you go and earn money, unlimited money, tax free? And of course you almost say, what? How do you earn tax free money? Well, my next did you know question is I say, I mean my next question, I said, well, have you ever heard of self directed IRAs? And of course you haven't. 99% of the people walking around, he never heard of I say, and I'll say, well, and now here I go. I mean here, now I've got, the door is open, I opened the door, you stepped in. And now I can say, well, you know, self directed IRAs is a great vehicle that hardly anybody knows about financial Advisors don't know about it because there's no commissions in it. If you have got retirement funds, you can transfer them over. And if you've transferred over, you got a Roth ira. You can be a private lender and invest in real estate and earn unlimited money per year with no tax effect, no penalties, no nothing. And so we talk about self care IRAs, you know, did you the did you know? Questions. So back to the question. Brand new real estate investor hasn't raised any private money. Number one, get your thinking straight. You're not asking, you're not begging, you're not chasing, you're teaching. Right? And I'm talking about in your warm up. We haven't talked about existing private lenders. You don't teach existing private lenders anything because they already know what a private lender is, Right? You ain't gonna, you ain't teaching an existing private lender your private lending program. Cause they're already doing it, right? So you teach, teach people in your warm market, teach them your program and hey looky here now don't make this mistake. Don't be teaching your private, your, your potential private lender, your program. And in the same conversation talk about the house you got at 411 Chatham street that's under contract that you need funded. You're already begging and sounding desperate and you didn't even mean to because I told you not to sound desperate. Well, you're already desperate because you combine the conversation of the program and now you got this deal under contract. So we separate. How do you think I learned all this stuff? Because I screwed it up to start with.

You have this unemployable shirt on, but I bet you in your closet there's a school of hard knocks shirt that you probably have as well.

It's so Richard, one of our, one of our late mentors, he said this was years ago, he said, do you know, you know how you become a really, really good lender? And we said no, how do you become a really good lender? He said, be a bad one.

Exactly.

That's right. That's right. That's how you become a really good one. So, so, so I don't know how we got off on that. But anyway, we separate the conversations of teaching the program and then, and you know, they tell us how much they got. Is it retirement funds? Do we need to introduce them to our company that we recommend to use as your self directed ira, you know, third party custodian. Anyway, so they got our money lined up to go. I know how much they got. And then I call them up and I do that little script that I did a few minutes ago and I say, I got great news. I can now put your money to work. And I'm not asking them do they want to fund this deal. I mean, you know, it's like, it's just a natural progression. I taught you what private money is. You love it, you're all excited, you want to get going, right? By the way, they always have more than they tell you. I got a private lender by the name of Terry. That's all the name I'm going to give because I know how you are, right? So I have this private lender and Terry has been loaning me money for quite a while. And that's all she had. That's all she had until Tuesday of this week. Lo and behold, here's another $250,000. How fast can you put it to work? Well, I put it to work today and I brought home a check for $50,000. Because we always bring home a check when we buy. Who wants to get paid to buy houses, right? So anyway, that's back to that confidence thing. Know the program you're teaching, you're not asking, you're not begging, but like back to the fried chicken story, it's got to be a conversation, right? And look, it doesn't take long to get this down. There's only 14 talking points and all of them are short. Right? Yeah, that. You just talk through the talking points and you know, there you go.

Well, well.

And by the way, by the way, I'm sorry this comes to mind. And again.

Here'S the deal. I hear this all the time. I know you all have heard it. I hear this all the time. New real estate investor says Jay Connor, who in the world is going to loan me money? And I've never done a deal before in my life. Right? Well, here's the answer. And here's a writer downer. As we say here in North Carolina, if you don't pay them, the property does. Now, they don't want the property back, Right? They don't want the property. That's why they're a private lender. But you see, we don't borrow more than 75% of the after repaired value. I didn't say 75% of the purchase price. And by the way, all that's in the money guide for the download. But since we only borrow 75% of the after repaired value, then you know, if you screw up and you're going to, you're going to screw up. I mean, I've done 475 rehabs, and they never come in on budget. So that's why the magic is not in estimating repairs. The magic is in the offer that you do on the house. But I digress. But you know, if that deal goes sideways, then your private lender has got a ton of equity, right? We got. We call it a 25% equity cushion to where if, if the house needed to be liquidated, then your private lender can be made whole. That's back to looking after your private lender. But let me also comment on what I just said, and that is, if you've never done a deal before, then for goodness sakes, don't do it by yourself, right? I don't care how many books you've read. I don't care how many seminars you've been to. You better have a mentor or a coach or a seasoned investor in your local market that will work with you on that deal. Hey, look, here's the deal. You're going to pay for your education one way or the other, and you do not want to pay to go to a seminar that you did not intend on going to. Trust me.

Yeah, we've. We. I'm pretty sure Jason and I could both put our hands up in regards to the seminars that we've. We've paid for unintentionally on our time frame. And you know what I love about this is that as people are listening to this episode as it goes live, obviously you might want to consider getting some stock in the fried chicken establishments that, you know, anyone who's a listener that actually owns a fried chicken establishment, you can send the checks to Wealth Bay Street. So we're happy to support your business in that endeavor. But, you know, as you're talking about that, I could just picture that conversation happening, by the way, down in Eugene's Fried Chicken down in Alabama, which is absolutely amazing. We love that place. Shout out to Eugene's. So you know what's really cool about this? Something that you centered on you said several times. It's something that similar language to what we use when we talk about how we help people in our process. But you really emphasize the program. And I think to expand on that, I'm going to give you what I interpret as it runs through Richard's brain filter, and I'm going to shoot it back out and you just tell me if I'm on base or not. Jay, the program really is a set of guidelines and steps about how you Go about doing your deal so that the deals themselves, when it comes to the raising of capital, are systemized. They are, they are similar systemized. In other words, you know, you know, real estate deal A and real estate deal B don't have different lending rules and lending this and lending that. So you've got everything systemized, whether it's the repayment, how the repayments works, the time frame of the loan, how long capital's tied up for, how you're going to go about delivering ongoing cash flow payments. All of that's part of the systematic aspect that's built into the program. Am I on track?

I wish I could have said it that clearly. Yes, yes, your, your filter gave me beautiful 9 1/2 ph water. That was great. So, yes, that, that's, that's it. Right on. I mean, because. And here's an example of what you just said. I got Ray over here as a private lender, and then over there I got Terry that I mentioned is a private lender. Guess what? Ray's program with me is exactly the same as Terry's program, right? I don't negotiate, man. I've heard this, for goodness sakes. I don't negotiate on the rate that I'm going to pay. I am an equal opportunity borrower, okay? There's a writer downer. I never thought of that in 20 years. So right now, as an equal opportunity borrower, meaning everybody's got the same opportunity. And that way, I mean, people talk, right? And by the way, when you start attracting private money, which you will very quickly, I got students all the time getting at least $500,000 in private money in less than 30 days from just starting to implement. But the thing of it is, is, number one, they already have more. They always have more than they tell you. And they refer other private lenders, new private lenders to you, right? But the deal of it is, is yes, everybody's treated the same. The only thing different is two things. Only thing different is two things between private lenders. Number one is the interest rate I pay. So the interest rate is either 8% or 10%. So I pay 8% to private lenders that are loaning money and their mortgage or deed of trust is in first position, right? Because you can have multiple private lenders secured by the same piece of property. So a junior lien position or second position or second mortgage, I use smaller amounts of money, such as $50,000, 40,000 for rehab money, right? Well, I'll pay 10%. So the. It's either 8% or 10%. And that's just depending on the position. The program didn't change, the system didn't change. It was what position the note was in. And the only other thing that changes from one lender to the other is how often are they paid. And guess what? They get to pick. They get to choose how often they're paid. I mean, I'll have. If I'm doing a fix and flip and I'm only going to be using the money for six to nine months, I'll say, well, you're going to earn the same money whether I write you a check every month or we just let the interest accrue and I just write you one big interest check, you know, at the end of the deal. But I've got some private lenders that are elderly and they need the monthly income. I mean, they invest. I got one private lender has got $1 million investment capital. $1 million. And he and his wife are retired school teachers. Right. Well, guess what? They're living off of the million dollar invested with me. They're living off of that along with their Social Security and a little bit of teacher retirement. But let me tell you what, they are live in the dream, having $1 million with me because, you know, they're getting those high rates of return. So anyway, yes, same program, same system. Everybody's treated equal.

Love it.

Yeah, very clear, Rich. Well, I, I want to thank you for, for coming on the program, Jay.

It's not over, is it? It's not already over, is it?

Time flies. You, you, you mentioned we're going out.

For fried chicken after.

Yeah, fried chicken.

I thought it was going on that.

Now when, when you said that, you know, everything's the same for each dude. I, I heard in back of my head one of our mentors, the late R. Nelson Nash, saying samey.

That's how you would describe it. And so, you know, how's the deal for that guy? Oh, Sammy. Sammy, right. And, and I, the nice thing about this, that that language is very simple. It is comical and it gets people to connect with the, with, with what you're doing. And so again, those are, that's just one thing that we learned from one mentor, just in how he exercises verbiage and communication. And when you're talking about the ability to communicate and teach these deals, that's some of the skill set and the learning that you're going to be doing as you go out there and do it. But if you don't have the conversation, you're not going to learn squat. So you got to start having those conversations, I think is a key takeaway. And make sure to get a copy of James Download there. We're going to get. We'll put the link down in the show notes. What our final question for you is, Jay and I really want to just, you know, have you open up on this a little bit. You know, although you showed up today without a cape on, you are wearing an unemployable shirt, which is just almost as cool. And so you may not, you know, you know, show up to your podcast studio every day and think, I'm a superhero today. But every time that someone downloads your ebook, every time that someone reads your other book, where to get the money. Now, anytime that someone does those things, you're showing up as a hero for them in their world because you're teaching them a way to create more freedom in their life and to share a bigger impact. So our question for you is, who do you most want to be a hero to?

I want to be a hero to a person that wants to serve and give back. This game of and it's not a game, it's a business. But this business of real estate investing, it's not first about the money. And I'll tell you why it's not first about the money.

Every time I've been involved in an opportunity or a business and my primary focus, or my only focus was making money, I failed miserably. In fact, I failed so miserable, I never got off the ground. I never got it launched right. Because when it's only focused on the money, who are you focusing on? You're focusing on yourself when you're only focusing on the money. This business is not primarily about the money. This business is a people business. And for goodness sakes, there's so many people to serve. And when you put serve first out, there you go. You ain't got to worry about yourself. If you've got a smart business plan, of course you got to have a smart business plan right for it to work. But when your focus is on the other person, everything else falls into place. Who am I talking about? Well, we ain't buying nothing these days in the multiple listing service from Realtors because ain't nothing in there. We're buying all of our deals and we have since inside of COVID from for sale by owners. Those are people. Those are real people. And those real people have got problems or they wouldn't be responding to your marketing that you can offer a solution. Right? It's about understanding where are they coming From. I mean, they wouldn't be reaching out to you unless there was some kind of distress going on, you know, most of the time. So you're there to help these people.

That's right.

For example, I was talking to. I wasn't. My acquisitionist was talking to a seller a couple of weeks ago at 123 Paradise Circle is where their house is located. And she was talking to him and come to find out, just lost the spouse. The spouse had just died. They got financial stress coming on, but for other reasons, they can't move out of the house until August. So they said, but we can't sell to August. I said, yeah, we can. Do you want to sell now and still stay in your house for free with no rent for the next few months? So we fixed the problem by understanding what the problem was. Right. This is a people business, private lenders, Right. They're looking for a safe place to put their money. Those are real people that you better be looking after and taken care of. Right. And then there's all the other people that you work with, you know, your contractors, your assistants, you know, and so who am I looking to make an impact with and to serve somebody that is interested in the other person first. I was riding down the road the other day with a dear friend of mine. We've been going to church together for over 20 years. We're running down the road, and he says, jay, I'm confused. I said, what are you confused about, Neil? He said, when is enough enough? I said, I think I know what you mean by that question, but tell me what you mean. He says, well, how do you reconcile the scripture in the Bible that says when the apostle Paul says to be content? I said, oh, now I understand the question. I said, neil, enough is never enough when it's not about you.

Yeah, so well said.

Beautiful. Love it.

Great.

And to all of our viewers watching the episode on YouTube's playlists just showed up. Thanks to our amazing editing team, whom we give all the credit to in every episode. And make sure you click that next video. Continue that journey of learning. That's really what this is all about. And we can't thank Jay enough for being with us. And we'll certainly definitely going to have him back. Have an expanded conversation on fried chicken and. And we can talk about some of the points in the book while we're eating.

We might. We might even raise some private money to buy a chicken joint.

And so, Jay, thank you, sincerely. And to all our viewers and listeners, make the rest of your week outstanding. This was fantastic. Thanks Jay.

Thank you.

Thanks for listening to the Wealth Without Bay Street Podcast where your wealth matters. Be sure to check out our social media channels for more great content. Hit subscribe on your favorite podcast player and be sure to rate the show. We definitely appreciate it. And don't forget to share this episode with someone you care about. Join us on the next episode where we continue to uncover the financial tools, strategies and the mindsets that maximize your wealth.