If You've Never Raised Private Money -- Here's How! | Raising Private Money With Jay Conner
Introduction to Private Money Investing
In this section, the speaker discusses how traditional bank financing was not scalable for their real estate investing business and how they transitioned to private money investing.
Traditional Bank Financing Was Not Scalable
- The speaker explains that relying on traditional bank financing was not scalable for their real estate investing business.
- The amount of administration required by banks, including providing income statements and financial statements, made it difficult to scale the business.
- After attending a live event in February, the speaker and his wife decided to migrate to doing real estate investing full-time under the private money model.
Introduction to Private Money Investing
- The speaker introduces his podcast "Raising Private Money" which aims to help real estate investors raise and leverage private money.
- The guest on the podcast has raised $200,000 in private money in just a few months and closed on his first deal using private money.
Interview with Christopher Cornett
In this section, Jay Connor interviews Christopher Cornett about his experience raising private money for real estate deals.
Background Information
- Christopher Cornett is a family man who served in the U.S Navy from 2001 to 2007 before beginning his career in real estate investing with his wife Caroline.
- Their business focuses on serving others through various means including giving back to Veterans organizations.
Transitioning from Bank Financing to Private Money Investing
- Jay Connor asks Christopher about his experience with traditional bank financing before transitioning to private money investing.
- Christopher explains that their real estate business was initially funded by banks, but they realized it would take a lot of capital to truly scale the business.
Raising Private Money
- Jay Connor asks Christopher about his experience raising private money for real estate deals.
- Christopher explains that he and his wife started raising private money a few months ago and have already closed on their first deal using private money.
- He discusses the benefits of using private money, including faster closings and less administrative work compared to traditional bank financing.
Private Money Lending
In this section, the speakers discuss private money lending and how it differs from traditional mortgage companies or brokerage firms. They also talk about their personal experiences with private money lending.
Private Money Lenders
- Private lenders are individuals who lend capital from their available investment capital or self-directed IRA to fund real estate collateralized by real estate.
- Capital is backed by individuals, not institutions.
- The speakers emphasize that they do business with people, not institutions.
Personal Experiences
- One speaker lost his line of credit in January 2009 and had a couple of deals under contract but no way to fund them. This was his "aha" moment that led him to look for alternative ways to fund his deals.
- Another speaker found dealing with two different banks for mortgages during the purchase of two properties within less than 30 days felt like a full-time job. She realized it wasn't scalable and decided to migrate to doing real estate investing under the private money model.
Transitioning to Full-Time Real Estate Investing
In this section, one of the speakers talks about her decision to transition into full-time real estate investing using private money lending.
Decision-Making Process
- The speaker realized that dealing with multiple mortgages through banks was not scalable and decided she wanted to do real estate investing full-time.
- After attending a live event in February, she made the decision to jump into the program and has already closed on a private money deal in less than 60 days.