Latest / Results Driven / Episode 175: How We've Raised Millions in Private Money to Fund Our Real Estate Deals

Transcript

Episode 175: How We've Raised Millions in Private Money to Fund Our Real Estate Deals · Results Driven

• 0:00
  SPEAKER_00: If you are new and have never flipped a house, doesn't matter.
• 0:03
  SPEAKER_00: Start educating people so that you're the trusted source.
• 0:06
  SPEAKER_00: That doesn't mean that you can't go Google top floor tiles in today's whatever, and you can go put screenshots of tiles on your post and be like, hey, in any of my upcoming flips, I'm thinking about one of these three tiles.
• 0:21
  SPEAKER_00: Which one do you like, A, B, or C.
• 0:28
  SPEAKER_00: Are you a driven real estate investor tired of inconsistent deal flow and ready to scale your business?
• 0:34
  SPEAKER_00: I'm Tiffany High and I'm Josh Hy.
• 0:36
  SPEAKER_00: And this is the Results Driven Podcast, where we share proven strategies to build systems that master sales, grow your team, and create a self-sustaining business with predictable income.
• 0:47
  SPEAKER_00: Whether you're a one-person operation or building a team, our mission is to give you the tools, support, and mindset shifts you need to succeed.
• 0:56
  SPEAKER_00: Let's dive in.
• 1:01
  SPEAKER_00: Over the last 10 to 15 years, I've raised millions of dollars in private money, especially off social media.
• 1:09
  SPEAKER_00: And guys, back then I didn't have a personal brand, I didn't have money, and I didn't know anyone in this business in general.
• 1:15
  SPEAKER_00: So if you're sitting there thinking, I don't have connections to raise private money, I promise you, that's not what's holding you back.
• 1:22
  SPEAKER_00: The biggest misconception about raising private money is that you have to convince people to invest with you.
• 1:27
  SPEAKER_00: You don't.
• 1:28
  SPEAKER_00: Your job is to educate people, build trust, and consistently show them what you do long before you ever make a deal to fund with them.
• 1:37
  SPEAKER_00: Okay.
• 1:38
  SPEAKER_00: So today I'm gonna show you the exact process we've used to raise millions of dollars in private money through social media.
• 1:45
  SPEAKER_00: So let's dive in.
• 1:46
  SPEAKER_00: Most people have money sitting in places that they don't even realize they can use.
• 1:50
  SPEAKER_00: So for example, they might have an old 401k that can be self-directed.
• 1:55
  SPEAKER_00: So if you're not aware of this, you can let's just say you're working for one employer over here, you quit that job and you go work for another employer.
• 2:04
  SPEAKER_00: You are then allowed to self-direct the old 401k that you had there.
• 2:08
  SPEAKER_00: And in self-directed accounts, you can lend money, flip houses, do lots of things, right?
• 2:15
  SPEAKER_00: Now, some other people might actually have equity in their house.
• 2:18
  SPEAKER_00: So let's say they bought it for 200 grand and they only owe 50 grand, right?
• 2:23
  SPEAKER_00: So they have equity that can be pulled out with a line of credit at cheap interest rates and they can arbitrage that to lend to you at double-digit interest rates.
• 2:32
  SPEAKER_00: Okay, most of the population just simply doesn't know that these things exist as options.
• 2:38
  SPEAKER_00: In addition, if you didn't know this, if you have a bunch of money in the stock market or you know someone that does, you can take a line of credit out against that at a very cheap interest rate and arbitrage that money.
• 2:50
  SPEAKER_00: So let's just say you put a million dollars in a very conservative fund that is in the stock market, you can say take a line of credit out for up to 500 grand and arbitrage that and then increase your spread on that money by arbitraging the interest rate over here.
• 3:07
  SPEAKER_00: Right.
• 3:07
  SPEAKER_00: So when you are the one that teaches them all of this, you start building the trust before you ever ask for anything.
• 3:14
  SPEAKER_00: So, how do I do that on social media?
• 3:17
  SPEAKER_00: Now, before I even dive into like my process on social media, whenever you meet someone that you might want to lend you money, I think you guys can all agree the world has changed.
• 3:28
  SPEAKER_00: So the first thing they're going to do is stalk you on social media, right?
• 3:32
  SPEAKER_00: They are going to look at all of your photos, your posts, they're gonna start following you, they're gonna look at all of it.
• 3:38
  SPEAKER_00: So if your social media accounts are full of crappy stuff that no one cares about, maybe you're partying, drinking, saying dumb things or whatever, right?
• 3:50
  SPEAKER_00: I want you to ask yourself if someone with five million dollars ready to invest was following you, would they want to lend you just by following you on social media?
• 3:58
  SPEAKER_00: Do an audit on your profile photos, everything.
• 4:01
  SPEAKER_00: Okay.
• 4:01
  SPEAKER_00: So go look at your page as an action item and say, if I had$5 million to lend myself, would I trust this person just by stalking them on social media?
• 4:10
  SPEAKER_00: So what should you be posting on social media that attracts money?
• 4:15
  SPEAKER_00: Okay.
• 4:15
  SPEAKER_00: So if you follow me or some folks in our community, one thing I want you to see is I'll post wins consistently.
• 4:21
  SPEAKER_00: Why?
• 4:22
  SPEAKER_00: I'm not posting wins to brag about them.
• 4:24
  SPEAKER_00: I'm posting wins because anybody with money is gonna want to make sure that I'm winning before they back me with their money.
• 4:30
  SPEAKER_00: Okay, so like I don't post the win for you to follow me and be like, she's bragging.
• 4:34
  SPEAKER_00: I'm doing it so someone with money over here wants to lend me money.
• 4:36
  SPEAKER_00: Okay.
• 4:37
  SPEAKER_00: Now, let's say you're a flipper.
• 4:39
  SPEAKER_00: I highly encourage you to post before and after photos of properties, your listings, what maybe you paid back a lender, what you projected to make.
• 4:49
  SPEAKER_00: So let me give you an example.
• 4:51
  SPEAKER_00: I have posts where I'll say, Hey, another property just hit the market, one, two, three, main street.
• 4:57
  SPEAKER_00: Check out the listing photos.
• 4:58
  SPEAKER_00: I'll attach the listing, or I can put before and afters, and I'll say, check out the numbers on this one.
• 5:04
  SPEAKER_00: Purchase price, repairs, estimated, sale price, estimated, or estimated projected profits.
• 5:11
  SPEAKER_00: Oh, and by the way, I paid my lender 1% a month on this.
• 5:15
  SPEAKER_00: They're projected to make whatever,$5,000 in interest on this within three months.
• 5:19
  SPEAKER_00: Okay.
• 5:20
  SPEAKER_00: Now, do you see how I'm not pitching money?
• 5:22
  SPEAKER_00: Because it's a gray area.
• 5:23
  SPEAKER_00: You can't really pitch private money on a public forum like that.
• 5:27
  SPEAKER_00: But if I have money sitting on the sideline and I'm seeing you post these all the time and I'm seeing you say you pay your lenders 1% a month, I'm eventually, if I have money to deploy, going to DM you and I'm gonna say, hey, like you've been talking about this thing called private money.
• 5:43
  SPEAKER_00: Tell me more about this.
• 5:45
  SPEAKER_00: So the first thing I'm gonna do if someone DMs me, now, some other quick tips you can do in your posts is you can be like, if you don't know what private money lending is and you want to learn, feel free to DM me.
• 5:55
  SPEAKER_00: Okay, because you're not pitching money, you're saying, do you want to learn about it?
• 5:59
  SPEAKER_00: So they'll DM me.
• 6:00
  SPEAKER_00: I get this all the time.
• 6:01
  SPEAKER_00: They'll DM me and they'll say, tell me more about this private lending.
• 6:04
  SPEAKER_00: So the first thing I'll do is say, sure, I'm happy to email you over a private lending packet.
• 6:09
  SPEAKER_00: It talks about what private money is one-on-one.
• 6:11
  SPEAKER_00: So how the process works, where you might have money sitting around that you don't really know about that you can arbitrage while you sleep, right?
• 6:18
  SPEAKER_00: Make money while you sleep.
• 6:19
  SPEAKER_00: Where can I, it has before and afters, frequently asked questions.
• 6:22
  SPEAKER_00: What's your email?
• 6:23
  SPEAKER_00: And I'll send that over.
• 6:24
  SPEAKER_00: They'll send me their email, right?
• 6:25
  SPEAKER_00: And I'll say, oh, by the way, do you want me to send you a recent deal that I sent a lender just so you can understand what it looks like?
• 6:31
  SPEAKER_00: They'll say yes.
• 6:32
  SPEAKER_00: And I have a deal packet, and I all my students use the same one.
• 6:36
  SPEAKER_00: Um, it has includes the email that I sent the lender saying 123 Main Street, lending opportunity, what the email says, the bullets that are included, et cetera.
• 6:45
  SPEAKER_00: Then I also then send them the deal analyzer of that deal.
• 6:48
  SPEAKER_00: So it breaks down the numbers and the profit I'm gonna make.
• 6:51
  SPEAKER_00: I also then send the comparable, so the CMA attached, and then I also attach the scope of work for that property from my contractor.
• 6:59
  SPEAKER_00: And I say, hey, here's the private money packet so you can understand private money 101.
• 7:03
  SPEAKER_00: And then here's an example deal along with the email that initiated to my lender with the deal numbers, the comps, and the scope of work.
• 7:10
  SPEAKER_00: And that's how we initiate a deal to a lender when we're looking to get one lended.
• 7:15
  SPEAKER_00: If it's cool with you, I'll follow up in a couple of weeks and just see if you have any questions.
• 7:18
  SPEAKER_00: Do you notice I'm not pitching money in this situation?
• 7:21
  SPEAKER_00: I'm just educating them still.
• 7:23
  SPEAKER_00: So on my social media, a few times a week, I'm posting educational stuff about private money.
• 7:29
  SPEAKER_00: So I'll put out reels, I'll put out posts.
• 7:32
  SPEAKER_00: I have a whole packet of posts made for my students in my community of like, hey, if you didn't know, if you've ever quit a job and have an old 401k, did you know that you could self-direct it and make double-digit interest rates?
• 7:44
  SPEAKER_00: Here's how, right?
• 7:45
  SPEAKER_00: And I have all these different posts that are educating.
• 7:48
  SPEAKER_00: Hey, did you know that if you have equity in your house, you can pull a line of credit out and arbitrage that to make money while you sleep?
• 7:54
  SPEAKER_00: Or, hey, did you know?
• 7:56
  SPEAKER_00: You know, or you can break down steps to raising money and then sprinkled in between that is wins with the business because you want them to constantly feel like you're flipping lots of houses and that you know what you're doing.
• 8:08
  SPEAKER_00: Now, if you're listening to this and you're like, I don't flip a lot of houses, that's okay.
• 8:11
  SPEAKER_00: That doesn't mean they can't make it look like that, right?
• 8:13
  SPEAKER_00: So, what do I mean by that?
• 8:15
  SPEAKER_00: If I'm flipping a house right now, what I would do is I would put before and afters, I'd take a photo of the bathroom and be like, hey guys, I'm thinking about this tile or this tile and label it A or B and say, tell me in the comments which one do you like the most?
• 8:27
  SPEAKER_00: The more posts that you put out there, hey, I like this floor or this floor, or I'm thinking about doing this house, black trim versus this, they then constantly see you're putting out stuff about flipping houses in their subconscious mind, they're gonna think, man, they're flipping a lot of houses when in reality all your posts might be about one flip.
• 8:43
  SPEAKER_00: Okay.
• 8:43
  SPEAKER_00: If you are new and have never flipped a house, doesn't matter.
• 8:47
  SPEAKER_00: Start educating people so that you're the trusted source.
• 8:50
  SPEAKER_00: That doesn't mean that you can't go Google top floor tiles in today's whatever, and you can go put screenshots of tiles on your post and be like, hey, in any of my upcoming flips, I'm thinking about one of these three tiles.
• 9:04
  SPEAKER_00: Which one do you like?
• 9:05
  SPEAKER_00: A, B, or C?
• 9:07
  SPEAKER_00: Did you notice I didn't say I'm flipping the property, but someone naturally following me is gonna be like, oh, they must be flipping houses.
• 9:13
  SPEAKER_00: They're talking about tile or floors or paint colors or window types or bushes or whatever.
• 9:18
  SPEAKER_00: It doesn't matter, okay?
• 9:19
  SPEAKER_00: And so ultimately you want to set the precedent for people following you and ask yourself, if someone following me with money, I eventually want them to want to lend me money, what should I be posting?
• 9:30
  SPEAKER_00: Now, once you send that lender the email with the packet, the deal, analyzer, comps, all that, then what I recommend is follow up with them in one to two weeks and just be soft and subtle through the DM for now, unless you've built a personal relationship with them.
• 9:44
  SPEAKER_00: And just say, hey, just following up, did you ever get a chance to read that packet I sent you?
• 9:48
  SPEAKER_00: And if they say no, then say, cool, I'll follow up in a couple of weeks.
• 9:50
  SPEAKER_00: If you have any questions, just let me know.
• 9:52
  SPEAKER_00: If they did read it, just be like, I'm just curious.
• 9:54
  SPEAKER_00: Like, I'd be happy to jump on a Zoom or a call, answer any questions you have.
• 9:57
  SPEAKER_00: So that way you can really start taking advantage of money you might not have realized you had sitting around that you can make money while you sleep, backed by a tangible asset.
• 10:05
  SPEAKER_00: Okay.
• 10:06
  SPEAKER_00: By the way, I just did an eight series of episodes on our results driven podcast on how to raise private money.
• 10:13
  SPEAKER_00: I'm also getting ready to drop an eight video series on YouTube.
• 10:17
  SPEAKER_00: But until then, I'm gonna link the podcast series in the description.
• 10:21
  SPEAKER_00: So feel free to go to the results driven podcast.
• 10:24
  SPEAKER_00: I will link the very first one and then it goes in order from there.
• 10:28
  SPEAKER_00: So, anyways, if you're serious about raising private money, don't just learn the concept, build the systems behind it.
• 10:34
  SPEAKER_00: That's exactly why we created our free community so that you guys could have the tools and resources to go do all this stuff.
• 10:39
  SPEAKER_00: So, inside of the community, we put together the actual credibility packet, the scripts, the process we've used to raise millions of dollars in private money over the last 10 to 15 years.
• 10:48
  SPEAKER_00: So I'm gonna drop the link, get in the community, it's in the description.
• 10:52
  SPEAKER_00: I'll see you inside.
• 10:54
  SPEAKER_00: This episode has come to an end, but your journey continues.
• 10:58
  SPEAKER_00: Subscribe to the podcast so you never miss an episode.
• 11:02
  SPEAKER_00: If you want direct help from us, join our free community by visiting the results driven podcast dot com.
• 11:08
  SPEAKER_00: That's the results driven podcast.com.
• 11:11
  SPEAKER_00: We'll see you next time on the results driven podcast.
• 11:14
  SPEAKER_00: We'll see you next time on the results driven podcast.