Posted on: September 03, 2018

Need to do a double close but don’t have the money? Looking for transitional money while waiting for that full-time loan to be approved? If you’re a wholesaler, it is likely that you’ve encountered one or both scenarios at one point or another.

Undoubtedly, having sufficient money to fund your deals will play a pivotal role in your wholesaling success. That’s why on this special episode, Cody talked to “The Private Money Authority” himself, Jay Conner.

Jay didn’t get the moniker “The Private Money Authority” by chance. Apart from being in the private money business for 15 years now, he’s also done something truly impressive—he raised over $2, 150, 000 in less than 90 days after the banks cut him off!

If you’re looking for groundbreaking information that can dramatically change your wholesaling game for the better, this episode is for you!

Key Takeaways

  • How he funded his deals when he first started
  • The E + R = O formula (Event + Response = Outcome)
  • What a private lender is
  • Three categories of private lenders
  • What a self-directed IRA is
  • How private money can help wholesalers in general
  • How private money can help those who are building their rental portfolio
  • Where and how you can connect with him
  • Game-changing book he recommends
  • Advice he’d give to those who are starting out

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

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Episode Transcription

Cody Hofhine: Whoo we. Welcome to another episode here on Wholesaling Inc. My name is Cody Hofhine. I’ll be hosting today’s podcast episode. And I’m super excited because today is a little bit different than a standard podcast that we release every single week. Where typically what we do is we interview our students that have gone through our program and they’ve done their first deal and now they’re sharing with you step by step how they just did their deal.
Today’s going to be a little bit different because instead of bringing on a student, what we’re doing is bringing on the private money authority. So this individual is super successful at raising capital and lends money to plenty of people to do a lot of deals.
And today we have Jay Connor. He resides in North Carolina. He’s been doing private money for 15 years now. And this will help, why we have him on the show today is because there’s so many times that we either have to double close on a property or we really want to take down a property, but we need some transitional money, some transactional money, before we either get a full-time loan or whatever it may be that you’re needing to do.
So he’s going to break this down really on when is a good fit to have private money, when should you use it? How do you use it, how do you obtain it? But he’s going to really break this down for us so that it’s not so confusing. And realizing that there is so many good benefits to having private money and even borrowing this private money. So Jay, my friend, how the heck are you? Let’s start filling in the gaps where I just, what I just talked about.

Jay Connor: Absolutely Cody. I’m doing fantastic. As you said, I’m here in North Carolina. I’m actually right here on the coast of North Carolina, Atlantic Beach, North Carolina.

Cody Hofhine: Nice.

Jay Connor: But I share all across the nation, you know, how I do the private money and et cetera. And so thank you so much for inviting me to be on the show.

Cody Hofhine: Well, you’re such a go-giver first and foremost. You’ve got such a good personality about you. But Tom and I have absolutely loved knowing you and Tom has even a better relationship with you than I, I don’t even have the close relationship. I just watch your Facebook lives, and I’m just like, man, I love this guy. I feel like we’re brothers.

Jay Connor: Well thank you so much. I appreciate it.

Cody Hofhine: Well help us understand a little bit, maybe a little bit what about, what does your real estate investing business look like? And fill us in a little bit about you and your business.

Jay Connor: Sure. So I have a, my wife, Carol Joy and I, we started investing and single family houses 15 years ago. And for the first six years I was buying houses and funding them the old, traditional way. I was borrowing money at the local bank and I mean my lands, when I started in the business 15 years ago, you know, if you could fog a mirror, you could walk into the bank and get money. Right.

Cody Hofhine: If you had a heartbeat.

Jay Connor: So you know, so I went to the local bank. Cody I got a $250,000 unsecured line of credit, which I mean, you know here in our area, the median price of a house is $223,000. So I could only do one deal or maybe, depending on what I was buying, two deals simultaneously, depending on how good I was buying them. But the first six years that’s how I funded my deals. And I had lines of credit and more than one bank.
And Oh my lands, I know you and your listeners know, remembers what happened. 2008, 2009, I mean it’s like the spigot turned off overnight. And so I called up my banker, his name was Steve, the operative word being was. So I called him up. I called him up and I and I’m telling you Cody, I had this kind of conversation, short conversation, with Steve many, many, many times for six years. Called him up, told him I had two deals under contract. The profits were over a $100,000 combined between these two deals. And told him I wanted to close in you know 30 days and where they were located. And that’s, that’s all I ever told Steve about my deals once we’d established the relationship.
Well Steve went quiet on me on the other end of the line, which is never a good sign with your banker or your significant other, right?
So Steve clears his throat and he says, Jay, I’m sorry but the bank has collapsed your line of credit. And I mean I had an 800 credit score, never late on payments. I was like the ideal, you know client.
So anyway, my first thought was well I wish I had known that before I put earnest money down on those two deals. And a second thought I had is, what am I going to do? You know?
And so I called my buddy Jeff in Greensboro, North Carolina, and I told him what had just happened. He says, welcome to the club. The bank cut me off too. So it’s like you all remember, I mean, no funding for real estate investors, et cetera.
And so my definition of coincidence Cody, is God’s way of staying anonymous. And so in less than two weeks, I was introduced to this wonderful world of private money. And after getting introduced to it, I mean I had big motivation with those two deals. In less than 90 days I raised, attracted $2,150,000 in new fresh funding from private lenders. And since that day, I have never missed out on a deal because I did not have the money.

Cody Hofhine: Oh, Jay so here’s the one thing I really love, and this resonates so strongly with me. Many times we don’t realize that our biggest growth and our biggest potential and our biggest opportunity for new successes lies within the obstacle that is placed in front of us. And sometimes we can let that really knock us out and knock us on our back and say oh, maybe this isn’t meant for me to do. I don’t, maybe I shouldn’t be in investing and maybe I shouldn’t be buying rentals.
Or you can look at, and one of my favorite books is called The Obstacle Is the Way by Ryan Holiday. But he talks about this exact same thing. Like, no when these obstacles, they’re meant to make us stronger, tougher, and find a new way. And then realizing sometimes these new ways, is actually the way we should have been doing it and the better way and the more successful way. And it sounds like you did exactly that. The obstacle is placed in front of you, but you didn’t let it kick you down. You let that make you realize that you’ve just got to find a new way. And now realizing looking back, it was the better way anyways.

Jay Connor: Oh my lands. Absolutely. I mean you know, since that experience, I mean it’s because, and when I say it’s a blessing in disguise, it’s multiple blessings in disguise. I mean that first year that I got turned onto private money, in that down market when the spigot was turned off, our business tripled because I had now access to all this funding that I didn’t before.
And so I wouldn’t be on your show with you today, you know, if I hadn’t I had that obstacle. And so since that time, I have coined a saying or a phrase that is, and here’s what exactly what I say to my students that I trained. And that is it is impossible for you to fail until you decide to quit. Because we are, and a lot of people don’t understand this, but one of my favorite formulas is E plus R equals O, which stands for event plus response equals the outcome.
So you know there’s events that happened in our life that we really didn’t have any control over. But if we’re not enjoying the outcome of that event, we’re 100% responsible for the R, which is the response. Event plus our response to that event dictates or equals what outcome we are now experiencing today.
And so just change your response to whatever you’re being faced with or obstacle and you’ll change your outcome.

Cody Hofhine: Oh, so true. I’m like jotting this down. I already love the golden nuggets shared so far and we’re not even but a few minutes into this my friend. Here I know. I love this feature.

Jay Connor: We’re not even to the private money yet.

Cody Hofhine: So let’s go into this like, let’s break it down. Really, really simple. I have some beginners that get on the podcast that are brand new to this and they’re really trying to like absorb everything you’re saying. So let’s break it down as if this was like so granular. Something that even if my 10 year old listened to this podcast. Simply, what is private money? If you had to give a definition?

Jay Connor: That’s a good place to start. So the definition of a private loan, a lender, private lender is … Oh by the way, after I got cut off from the banks. So guess what? I don’t have one lender today or two or three. I have 47 private lenders that are funding our deals. And by all means, I mean someone just starting out, you don’t need 47 private lenders. All you need is like one, you know, or two.

Cody Hofhine: That’s right. That is absolutely right.

Jay Connor: So a private lender is an individual just like you, just like me, that loans their money from either their investment capital or their retirement funds.
So here’s another big part of attracting the private money. By the way, we’re not chasing money. We’re not chasing people. We’re not begging, we’re not trying to talk anybody into doing anything. As a matter of fact Cody, to this day, I have yet to ask anybody for money in the way I do it. I don’t ask.

Cody Hofhine: The beautiful thing is because you attract it. You attract people.

Jay Connor: Exactly.

Cody Hofhine: They see what you’re doing and they just want to be involved.

Jay Connor: Yeah. I just put the information-

Cody Hofhine: Is that correct?

Jay Connor: That’s correct. I put the information up. So there’s three categories of private lenders. There are people that you already know that you are, I call that your warm market. You know people in your cell phone, your email, your Facebook friends. And I don’t mean your fake Facebook friends, but your real Facebook friends. All right.
So you know if you’re over 50 years old, you still got a Christmas card list, right? So there’s that category. Then another category is existing private lenders. And I’m not talking hard money. By the way folks, this has got nothing to do with hard money. So if you’re a newbie, you may not have heard of hard money.
If you’re a seasoned investor, you definitely know what hard money is. And I don’t know Cody, you’ll decide if we have time for me to give the differences, big differences between hard money and private money.
And then there’s the other category of private money which are people that have got money that they would love to get a high rate of return safely and securely. And I don’t mean hard money at 14% or 16% with points of four points and you know extension fees, 20% per year. I’m talking 8% money. But they don’t know about … They don’t know what private money is. You know all 47 of my private lenders that loan to me, I’m a private lender myself. I loan out from my retirement funds. They never heard of private money or knew what private money is until I expose them to the information.
So back to those self directed, back to retirement funds for a quick second. That’s huge. So I learned about a self directed IRAs nine and a half years ago. The same time I learned about private money. And so a self directed IRA is an IRS approved, it’s called a third party custodian, to where people can take their retirement funds and actually transfer them over tax-free, penalty free and to a self directed IRA company.
Now they can loan to you as a real estate investor and get unlimited returns on that know loan to you and other people. Unlimited every year tax-free and penalty free.
So about half of my private lenders loan to me, I got one private lender that’s making $65,000 a year tax-free using his retirement funds that he transferred to a separate IRA. So a big part of being successful with private money is having a relationship with a self directed IRA company and representative.
But anyway all that was to answer your question, what is private money? I gave you a long answer. So we’re back to individuals. We’re not doing business with banks or institutions. We’re doing business with individuals. And of course that’s what I teach and that’s what I do. Is how do you locate these individuals and you know, how does the conversation go if you’re not begging and chasing and trying to talk people into it?

Cody Hofhine: That’s awesome. And I’m sitting here looking at this, and obviously this in a full circle, is and just from knowing you I already know this answer. But in general it’s because ultimately it’s just a win-win. It’s a win for you. You can get private money lent to you so you can do the deals that you want to do. But ultimately, it’s a win to them because maybe their IRA was paying them 2% or 3%. Or worst case scenario, it was sitting in a bank and we always loved the words from a Kiyosaki as harsh as they are, but he says savers are losers. And what he means by that is if you’re saving your money in a bank account, man, you are making nothing on your money. In fact, you’re losing money because of just how the cost of life is going up.
And so you got people that are making maybe 1% or 2% or 3% of the money, but they can be lending it to you for a better return, what ends up being a win-win all the way around.

Jay Connor: Absolutely. And so you know, I talk a lot about that and how I do the real estate business is if all parties are not winning, then I don’t want to be a part of it.
So the four pillars of my personal real estate investing business is how we find them? About 25% of my business actually comes from my foreclosure system is to how I find them before all the real estate investors even know they exist.
So let’s say that I invest in a foreclosure. I buy a house and these people are in foreclosure. Well the people that are in distress and financially struggling, that’s a win for them. If they get to the foreclosure process, the bank sure ain’t going to give them any money.
So when we help people in foreclosure, we are actually helping them move, helping them get back on their feet, you know, put some cash in their account to help them start over. If I’m funding-

Cody Hofhine: And avoid bankruptcy, which can attack their credit for seven years.

Jay Connor: Oh exactly. Exactly. My lands. And we are part of giving them hope for the future, you know. And so when I fund that deal with private money, now the private lender’s winning. They’re getting a high rate of return safely and securely. If I sell it on rent to own, now those people are winning because there’s no other way they could get a mortgage and we help put them in credit repair and get them ready, you know, for getting ready for a mortgage in six to nine months. And then the fourth winner is myself, Carol Joy my wife, my company by orchestrating all these pieces, you know, together. So win-win, win-win.

Cody Hofhine: I love it. Now tell us this because we are, we are heavily focused on this podcast on helping individuals become successful wholesalers. How can private money help a wholesaler in general?

Jay Connor: Oh my lands. Well, when I first got to know Tom, which was I want to say about seven or eight months ago. Man what a gem of a guy he is too. I see why you all are in business together, Cody. Because well as you’ve heard me say, opposites do not attract. Like attracts like and people like to hang around people that are like them. But anyway, when I was first visiting with Tom and learning what you all do in the business, wholesaling and also what your students were saying. Tom told me, he says, Jay, after my students get that one or two or three deals underneath their belt. And they see what the profits are that the real estate investor is making when they fully take down the property. I mean my average profits right now and my total target market is only 40,000 people. 40,000 people in this market. And I do two to three transactions a month. But listen, my average profit is $67,000 per deal. Okay.

Cody Hofhine: I love everything about this. This is awesome. Because I think so many times we’re thinking oh, but I live in a small town. And you’re like, no I’ve got 40,000 people here.

Jay Connor: Exactly.

Cody Hofhine: Keep going.

Jay Connor: Oh by the way, I’ve never wholesaled a deal in my life Cody. And it’s not because I don’t know how it’s just I like $67,000 better than five or 10, right. And don’t get me wrong-

Cody Hofhine: I can’t imagine why you would like that my friend.

Jay Connor: I mean of course, I mean there’s nothing wrong with wholesaling starting out. It’s a great way to have, you know, little to no risk and all that kind of stuff.
So anyway Tom was saying Jay, one of the most common requests that we get from our students, they get that first deal, second deal, third deal. Now they want to be making, you know, of course the average profit on a deal across the nation is probably $30 grand, maybe $35 grand, $40 grand, et cetera. Except California. I mean, you know, you can’t even buy an outhouse in California for $100 grand.

Cody Hofhine: That’s a fact.

Jay Connor: But anyway, Tom said is they want to know, well how can I get the funding and I want to stay in the deal? Well here’s where private money comes in everybody. Private money comes in, as I said, it’s got nothing to do with your credit and nothing to do with your verification of income like hard money does.
And so if you want to stay in the deal and not just get an assignment fee from the real estate investor that you’re assigning that deal to. Then look, you can stay in the deal regardless of your credit, regardless of your income, regardless of your experience.
Because in this world of private money, like the way I do it and my students do it is it’s a collateral loan. Your credit, your verification of income, the how long you’ve been doing the business, has got nothing to do with how much private money you can get.
So where does private money play in? It lets you stay in the deal for much bigger profits if you want to.

Cody Hofhine: I love that. What about even like, let’s say people don’t want to do the fix and flip game and maybe you’re covering all by saying staying in the game longer. Let’s say they don’t want to do a fix and flip, but they want to start buying rental portfolio. And maybe because of, you know how crazy it is with self employed people. Maybe a traditional loan is like, well you don’t qualify right now. But how can private money I guess help people acquire rental portfolio without paying high, high on the money as well?

Jay Connor: Yes.

Cody Hofhine: I mean is private money also very affordable? I mean what does this look like as someone trying to build a rental portfolio?

Jay Connor: Sure. So private money works for rental portfolio. Private money works for, if you want to buy your own house. You know your primary residence, you can use private money for it. I’ve got a friend that’s in a $2 million, owns a $2 million office that he, I mean that’s his office building, funded with private money. So the only difference is that the notes are longer.
So if you’re wanting to say, and by the way, I want to make this point Cody, I’m glad you brought, brought it up. You don’t just use private money for houses that need rehab. Okay? Here’s when you use private money. When the seller and I’m talking about, of course you got to use private money if you’re buying out of the multiple listing service, right? They’re going to require all the money, whether it’s an individual that’s listed their house or if it’s a bank owned property or et cetera , if you’re going to an auction.
But anytime the seller, whether it’s a pretty house, needs no rehab or it does need some renovations, none of that matters. Here’s the bottom line. When the seller requires all cash, they want all the money at closing, all right? Then you use private money. So like here’s the deal. You know, if you’re buying houses … So 87% of fisbos, for sale by owners, 87% will not sell creatively. Like you know, they’re not going to sell least purchase or subject to the existing note.
Now they going to want all the money, right? So it works on the wholesaling. I mean your students are getting houses under contract and then assigning that out. And Tom has told me some of the methods that you all teach your students on finding deals. Wow, I’m good at it. You all are really good at it.
I mean you all got some methods of finding the deals out there that Tom told me about that I mean you all have got that dialed in big time. Finding the deals before other real estate investors even know they exist. But anyway, you asked me a question and I forgot what it was. What was it?

Cody Hofhine: I say with the rental portfolio? Is that mainly where you’re going?

Jay Connor: Oh yeah. Yes thank you. So here’s the deal. Typically when we borrow money from people that have just investment capital and it’s not retirement funds, we’ll typically do those terms for two years. However they can be longer. When we borrow money from people with the retirement funds, the term of that or the length of the note, is five years.
So here is the way you do it. You borrow the private money for the buy and hold. Okay. Or it can be duplexes or triplexes or complexes or small apartments, whatever. You know, up to like 30 units, you know 40 doors, that kind of thing.
So you can structure that term of the loan, the length of the note, for five years. That will give you plenty of time if the commercial or if the house needs renovating, plenty of time to do that. And that will be more than enough time to season the property. And of course I know you know Cody, but season the property for all your listeners, that means that you’ve had a, you’ve got a rental history of one to two years of what that property is producing.
Now it’s very easy to go to a traditional lender and get it refinanced because you’ve got history with that property. Refinance the property, cash out the private lender and go do more deals.
So private lending is a great way to get the property bought, if it needs renovation, plenty of time to season it and refinance out. It will cash flow with the private money. Okay. When you buy the commercial properties or the wanting to be a landlord and hold it longer. But of course after you have it seasoned and you refinance with a traditional lender, it will cash flow a little bit better.

Cody Hofhine: I love it. So Jay it really is true. Like I hear this saying all of the time. The money, I mean yes the money is in the deal. You got to find the great deal. But overlooking that, the money is in the money. And so many times we get caught up thinking I have to have the money, I have to … Oh I can’t buy another rental this year because I don’t have 20% to put down. I can’t buy another rental this year because I can’t qualify for another loan or whatever. There’s so many limitations when we think about our own money. But this is why it’s so crucial to have access to this private money so that you don’t have to say no to these deals. You don’t have to listen to a traditional loan or traditional bank that says, sorry you’ve got 10 loans, we can’t give you anymore. Like these are now don’t even exist because you have access to other people’s money that they want you to put work for them.

Jay Connor: Absolutely. And you know, you just triggered in my mind, my favorite, well I got lots of reasons. But my favorite reason for private money besides, you know being able to do as many deals as I want to, whereas I couldn’t do more than say 10 deals like you just said. But I get multiple checks on every transaction.
So using the private money, I get 100% of the purchase price upfront and I always borrow more than I need to do the deal, whether I’m going to rehab it or not. Because there’s marketing costs, there’s taxes, there’s insurance, there’s carrying costs.
So I’ll get 100% of the purchase price, I always borrow at least $10,000 more than I need to buy it because I want some cushion there. And I will in most cases get 100% of the rehab costs as well. Well, you know, you compare that to when I was borrowing from the banks, the most I was going to get from the banks was 80% of purchase price, right?

Cody Hofhine: That’s correct.

Jay Connor: Hard money lender’s only going to give you a 65% to 80% of the purchase price. Well whose got to come up with the rest of the money doing it that way just to buy the property? And whose got to come up with the money for the rehabbing, you know?
So private money, it’s not unusual for me to get a $30,000, $40,000 check when I buy the property and bring none of my own money to the table. And of course I get another big check. The difference between what I owe the private lender and what I’ll sell it for, when I sell the house. If I’m selling it on rent to own, I get three checks. A check when I buy, a check when I sell it on a rent to own with a nonrefundable option fee, and then a check when they’re ready to cash out. I mean yes, I am excited about private money.

Cody Hofhine: How many W’s, how many wins are out there for you? It sounds like you definitely got your hands on so many different ways you can win. I love that.

Jay Connor: Absolutely.

Cody Hofhine: So if people want to learn more about private money and what I think you’ve done a great job at doing is A, you do attract the right people. People attract they’re like. They’re the same kind, right? And so I appreciate for who you are and who you stand up for. I just I love that you’re someone I can trust. But if someone wanted to learn more about that and they felt like, man, Jay has got something that I just have never felt before in any other kind of private raising, private money raising. Like how do I connect more with Jay and how do I learn more and what else could I do to learn more about private money?

Jay Connor: Sure. Thank you Cody. So what I have done Cody for you and Tom and your all listeners here to your podcast show. I’ve put together a free online class. It’s an on demand ready to go. It’s a free online class. And the URL to go to that is www.wholesalinginc.com/privatemoney. And so you know here on the show we can only cover so much stuff. But anyway, that free online class I’m able to go over some more details on that online class so that’s there for your folks Cody.

Cody Hofhine: I appreciate you doing that. I always love when someone’s willing to be such an abundant mindset. That’s something Tom and I always believe in and even as part of the tribe we tell everyone there is no such thing as competition. Like we are here as an abundant mindset, we’re go givers, so I appreciate you doing that. But something I think that’s going to be even to add even topping to that cake is here he is offering a free class to to learn more about this private funding again at wholesalinginc.com/privatemoney.
But something that I want to announce on this podcast that I’m super excited about because I’ll actually get to meet now Jay for myself in person, just like many of you, is he is going to be speaking at our live event in North Carolina, in Asheville on October, the event is 15th, 16th, and 17th. And he is going to be speaking to each one of you so over and above this free course that he’s allowing for you guys, the listeners.
Something that’s really special is when he speaks live at this event, there is going to be a Q&A section where people are going to raise hand. And so it’s really now on the spot, real time with your questions that you have. This would be something I would tell you without fail, if it was just Jay speaking, I would be booking that ticket ASAP and coming to listen to him. Because he’s going to add so much value to that event because the money truly is in the money.
If you know how to raise private money, you’re able to take down a lot more deals and you’ll have a lot more ways to make wins, to make money. And Jay has shared just a few that he’s going to deep dive on that stage in Asheville, North Carolina.

Jay Connor: Absolutely. I’m so excited to come, and my lands, I think Tom told me you all only do this event like once a year, right?

Cody Hofhine: That is correct. So we kind of make a big push for it. This is going to fill out fast just like our past ones. But every event just continues to get stronger and better. And you are one of those reasons Jay, as well as why this event is going to be so good is because we’re adding so much value, we add so much free content, really like gold nuggets, where people would pay thousands and thousands and thousands of dollars. We bring it all on one stage for a very, very, very small fee to get in to listen to the caliber of individuals like yourself.

Jay Connor: Wow that’s exciting.
So how do your listeners register for the upcoming live event?

Cody Hofhine: Upcoming live event guys, this is why I love Jay. He is my wing pilot man right here. Help me understand that we need to tell you that website. And that’s wholesalingsummit2018.com, so www.wholesalingsummit2018.com. That’s how you can book your seat to this event so that you can come and listen to many members of the tribe and then individuals just like Jay Connor, that is going to give you that much more arsenal to your business that you can go out there and succeed and take down more deals.

Jay Connor: That’s awesome Cody. So what would you say is the average, and you may not know the average, but maybe you do. What would you say is the average assignment fee that you’re wholesaling students get per deal?

Cody Hofhine: If it was like on a national level, I would have to say probably between like the $7,000 to $13,000 range is probably like a national, probably a good assignment, national average statistic.

Jay Connor: Right.
So if I just say, if I go in the middle of that, if I raise it three from seven and lower and three from 13 so if it’s $10,000. So here’s the deal, at your upcoming live event that you and Tom are putting on, I guarantee, yes, I guarantee, and I promise that at the event, after you hear me talk and we visit in person, if you need to, you will know exactly how to get plugged into the money very quickly. I mean my students are getting easily $500,000 in private money in less than 30 days. So at the event, I guarantee and promise you, you will know how to raise your profits from $10,000 to at least $30,000 or $40,000 which is the national average on real estate profits for people that stay in the deals. I am excited.

Cody Hofhine: I love it Jay. Thank you so much for being with us today. Maybe one thing that I want to just end that we always try to end with that I would love to have your insight on. We always ask each one of our guests that we interview on the podcast two things.
So the first one is a great book that you’re currently reading or have read in the past that has just been game changing to you, that’s been an inspiration to you and helping you become who you are today.

Jay Connor: Absolutely. Well you’ve already used the phrase on the show here, but you haven’t referred to the book. So my favorite most recent book that I’ve read, I don’t know how many I’ve given away. Man it speaks to me, and that is the Go-Giver, the Go-Giver. And I imagine you’re familiar with that book, yes Cody?

Cody Hofhine: We love that. Yes. In fact, we had him on our podcast just a couple months ago.

Jay Connor: Oh my lands.

Cody Hofhine: So Bob Burg was on our … He’s a great, great guy.

Jay Connor: Oh man. And what a wonderful and beautiful parable that this book is. It’s not a long book. And of course many, many of your listeners probably have heard that show, but it’s derived from the old phrase. Most people say, Oh man, he or she is a go getter, a go getter. And this is all about giving and I can see why you and Tom had him on your show. Because I mean you and Tom are all about giving as well. That’s my filter and my perspective as to how I look at business. My wife, Carol Joy, that’s how she looks at the business. We are here to serve and if I’m serving others with no strings attached whatsoever, we don’t have to worry about ourselves.

Cody Hofhine: I love it. That is so true. Secondly, Jay to end the show, the last question would be, hindsight’s always 20/20. If you were starting at the very beginning, and a lot of our listeners right now are at the beginning, they’re wondering how to get into wholesaling or how to get into real estate. If you’re going back to square one, what’s something that you would make sure that you would let them know to do right out of the gates?

Jay Connor: Absolutely. I’m so glad you asked. I didn’t even have to think about the answer.
Actually I got two answers. One is important, but the last answer to that question is paramount. So when I started in the business, I made a mistake on three properties. The same mistake. And the mistake was I bought the properties with the intention of flipping the properties and not renting them out. But back to 2008, 2009, the market turned quickly and by the time I had them ready for market, the prices had already started coming down. So I ended up having to rent out those three condominiums on the beach. But guess what? The rent did not cover the underlying carrying cost.
So the lesson learned on that, the lesson learned on that is no matter what your intention is on your exit strategy, do run the numbers to make sure that if you do have to rent it out, that the rental will cover the carrying costs and of course have a positive cashflow.
But the really big answer is don’t begin this business, I don’t matter what kind you want to do, wholesaling, you know, rehab and flipping, whatever it is. Do not begin in this business as I newbie without a mentor and coach. And my lands there’s none better on the planet than you know, Tom and Cody and their team. Yeah sign up with the mentoring coach that knows what they’re doing. They’ve been through the landmines. And here’s what I say to folks, you’re going to pay for your education one way or the other, right?

Cody Hofhine: That’s so true.

Jay Connor: You’re either going to pay for it by getting with a mentor and coach that can show you. And I promise you, getting with a mentor or coach up front, is going to be a whole lot less on your cashflow then going out there and making critical mistakes. So yes-

Cody Hofhine: That’s so crucial.

Jay Connor: … sign up with these guys they know what they’re doing.

Cody Hofhine: That’s so crucial. Jay, thank you so much. And for those listening to this podcast, I hope you had a pen and a paper and multiple pieces of paper to write down all the value and gold nuggets that were just shared with us by Jay Conner. I love this guy. I appreciate this guy. I’m excited to meet him in person.
So for the record again, if you want to hear more about and learn more about the private money raising, go to wholesalinginc.com/private money. That’s where you can get that free online class through Jay Connor.
And then secondly, book your seat now as they are going quick for the wholesaling summit and that’s found at wholesalingsummit2018.com where you can reserve your seat to hear Jay live and all the amazing guests that are going to be on that stage. Until next time guys, God bless and we’ll see you back on this podcast. See you later.

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