Learning how to raise private capital in order to finance residential real estate
the investment quickly becomes overcomplicated without proper guidance.
That said, attracting investors who will share your vision, understand your portfolio and offer appropriate terms within the desired period of time can be difficult regardless of the property you are interested in purchasing, renovating, or retrofitting. It is particularly harrowing during real estate bubbles — when buyers and sellers are all engaging with the market. This type of market can result in unprecedented sales price jumps in certain neighborhoods and record lows in others.
Such a market makes the investment a more complex fare. Regardless, the fact remains that real estate is still the most surefire way to build wealth over time.
As investors prepare to diversify — or even cull — their portfolio of real estate investments, many consider how to raise private capital for their purchases. Strategies may vary depending on the type of investment and the type of cash flow following that investment — e.g. rental income earned or profit made post-sale at some point in the future. Follow below for Max Keller’s recommendations on exactly how to raise private capital for successful, profitable residential real estate investment. For full details, listen to the podcast.
Learning from Max Keller
Connected Investors’ speaker for this episode of the Exactly How podcast is Max
Keller, an innovator in real estate investing who began as an educator — and
continues to engage with his talent for teaching in the residential real estate sphere.
Keller currently lives and works in the Dallas-Fort Worth area of Texas, where his
interest in real estate blossomed after successful careers in corporate finance,
teaching school-level math, and coaching children’s sports. His focus turned to real
estate investing after a quest to make a bit more money to support his fulfilling —
but not particularly lucrative — jobs working with kids and to contribute to his
retirement. Keller began with a few residential rental units but was quickly “bitten by
the real estate bug.” After being “bitten”; he found a local mentor and started
wholesaling.
For those unfamiliar, wholesaling is a short-term real estate investment strategy that requires very little up-front capital. This is because the wholesaler functions as a middleman, aiding a seller in finding a buyer, particularly when the property owner has been listed under the current market value. After the sale is completed, the wholesaler receives a fee related to the sale price of the property.
To make a long story short, Keller found himself to be just as talented at real estate
investing as he was at teaching. He also found a surprising number of connections
and cross-overs between the two. Keller made an astonishing $16k on his first deal,
which allowed him to invest in a fix and flip. After a few successful
projects/investments, Keller left his previous jobs and committed to real estate
investing full-time. These days, Keller invests on his own and aids others in doing
so.
How To Raise Private Capital in a Targeted Way
Though Keller’s career in real estate investing has been enormously successful, he
found raising capital and finding deals to be incredibly time-consuming. From cold
calling to sifting through different websites, Keller’s strategies for finding leads were
effective but felt unpredictable. Chasing leads became a bit of a money pit, with
some working out and others floundering — particularly as competition grew fiercer.
It was during this period that Keller turned towards a more innovative approach to
finding leads and raising private capital in a targeted way.
Step #1: Attract the Right Investors as a Hunter or as a Trapper
Keller outlines two methods of attracting the right investors in your journey to
raising private capital for real estate investment. The first is hunting, which was
briefly outlined above and references basically “chasing people down,” as Keller puts
it. Hunting is very common but is also extremely time-consuming, expensive, and
difficult. Because selling people on one’s project takes a long time and feels a bit
artificial, this method is not Keller’s favorite. He recommends going the other
direction and approaching investors through the trapping method, which Keller
describes as “share and attract.” Educating others and sharing one’s expertise and
mindset allows potential investors to gain insight into the project — and the person
lauding it — without hard-selling. This will help you stand out in a crowd.
Step #2: Create a Program
Step two involves creating a checklist that identifies what your baseline minimum
expectations for each investment or project are. The list can be laid out as a series of
questions. For instance “How long should I know the investor before working with
them?” or “How much experience should my investor have?” Outlining your
expectations will prevent you from choosing the wrong lender and will make sure
your intentions remain top of mind.
Step #3: Retain the Best Private Lenders
Raising private capital should not be simply about a one-off deal. So much energy,
time, expertise, and money is spent attracting lenders that holding onto the great
ones is incredibly important. Part of lender retention — of course — is making good
on any deals done but another is establishing a quality, genuine relationship with
the lender. Retention also often means re-investing money made off previous
projects into new projects and keeping in touch after the deal has concluded. Keller
explains that “the longer a good relationship goes…the better it is, the more
responsive [the lender]” is. Establishing trust in this way also results in increased
flexibility for you as the person seeking private capital for future projects. Keller also
recommends being as honest about a property’s potential value or cash flow as
possible in order to avoid “over-promising.” Over-promising results is one of the
quickest ways to lose that hard-won trust.
Figure Out Your Niche & How to Market Yourself
If sellers and investors feel that you are within their niche — that they can relate to
you and feel that you offer valuable experience and commitment in a certain area —
they might be more inclined to work with you than others offering more lucrative
deals. After Max Keller identified that motivated sellers were his “niche” and
determined how to market his skills to the right people, he found that “folks…were
taking [his] offer, even though they were getting bigger offers from other people.”
Establishing trust — notes Keller — is key.
Summary
Before beginning your search for the right private lender, establish your own
expectations — both general expectations and those specific to each property or
project. Iron out exactly what you hope to get out of each project — be it a one-time
payout, long-term cash flow, the opportunity to build new relationships within the
industry or mixture. Establish your baseline for each project — including what you
expect from the lender themselves — and go from there. Next, determine whether
trapping or hunting — or a combination — is the right method of attraction for you.
Finally — after you have found one or more lenders — focus on creating the best
outcome for that(those) lender(s) in order to retain their business. Build a genuine
relationship based on trust and truth.
Transcript
Click Here to Read TranscriptMinimize Transcript
Speaker 1 (00:05):
No
Speaker 2 (00:06):
Exactly how podcasts and YouTube show Raji by connected investors. Now, during this episode, you’ll discover exactly how to raise private capital. Now, for those of you who are new, my name is Sean Young, today’s host and proud member of the connected investors community. Now, before I introduce you to our incredible guest speaker today, I want to make a request that if at any point in the show you like what you’re hearing, please give us a thumbs up to subscribe to the show so that you never miss an episode and make sure that looking at the description of this episode, as we’ve packed it with thousands of dollars in free resources,
Speaker 1 (00:42):
That’s cool.
Speaker 2 (00:46):
Today, we have the privilege to learn from someone who started out as a teacher and is now a successful investor and educator, and all that changed when he made his first real estate deal. I would describe our guests as an innovator. Hold on, let me that didn’t make sense. It started as a teacher, successful investor and educator. Okay. I’m going to cut that part off because I didn’t see that ahead of time. Apologies there today. We have the privilege to learn from someone who started out as a teacher, but all that changed when he made his first deal in real estate. Now I would describe our next guest as innovative, please. Welcome max Keller max. Thanks for being a guest on today’s show.
Speaker 3 (01:27):
Awesome. Hey, I’m excited. Glad to be here.
Speaker 2 (01:29):
Absolutely. Now, max, before we get started, can you tell the audience a little bit about where you’re from and you know, what market you’re in just a little bit about yourself?
Speaker 3 (01:38):
Uh, sure. Yeah, so, um, I live in the Dallas Fort worth area, you know, from Texas originally. And, um, you know, my background is pretty simple. I, you know, worked in corporate finance for a little while when I got out of college, uh, was a math teacher at an inner city school in, uh, football, basketball and track coach for seven years and loved it, loved working with the kids, loved helping. Um, but you know, like a lot of people out there, um, I just wanted a little bit more, I wanted to make a little more income. The fulfillment was there for sure. Like I loved every day of it. Um, but I want to make a little more money. So I started looking around at some opportunities, um, found real estate. My goal was just kind of to maybe get like one or two rentals a year, figure out how to do that.
Speaker 3 (02:22):
And so by the time I retired from teaching, you know, I’d have a nice nest egg. Some of them be paid off, things like that because I knew that my salary was pretty capped, you know, where I was, you know, being a teacher. And like I said, I wanted to do more and you know, like a lot of folks, um, the real estate bug just kind of bit me and, um, got a local mentor, started, um, wholesaling, you know, made 16 grand on my first deal then did a fix and flip a seller finance and then, um, you know, quit my job and it just, you know, went for it. And, you know, um, really when I joined, I’ve been full-time now for five years. Um, when I, you know, it was easier to find deals and I was noticing every year, you know, that was changing.
Speaker 3 (03:04):
And so for me, and just, you know, my example experience, I think the time was around maybe 2017 or so, you know, things were going okay. I mean, I was on track to flip, you know, 30 to 40 deals that year. I had participated in almost a hundred transactions up to that point, but I really felt like, you know, I was only as good as, as my next deal. And I needed a lot of leads in order to get my deals. And, you know, if I didn’t have leads, I basically didn’t have a business. And so, you know, I tried everything. I mean, I was using, you know, different websites. I was using bandit signs, you know, yellow letters, every list I could get my hand on, you know, um, cold calling, uh, you know, all the different tax delinquents, all the lists I could and everything was like working.
Speaker 3 (03:52):
I’m not complaining, but I was just noticing that it wasn’t predictable. And I felt like I was, I was wasting a lot of money and I was just sorta chasing people down. And, you know, the problem in my market was is, is these folks I was sending stuff to, they were getting the same message from everybody. Every wholesaler, every investor, you know, in my market competition was going up. There was more people like hedge funds that were paying more in the market and, um, you know, a lot more than I wanted to pay. And so I didn’t go down like the overpaying route being a math teacher. I know that wasn’t a way to build a business, but it was, I don’t know, just for me, it started to feel like a grind. And the whole reason I got into real estate was to escape the grind.
Speaker 3 (04:32):
So what I did, and this is maybe, maybe, maybe somebody who’s listening, this will help them. I don’t know is, um, I made a list of all the deals that I had done up to that point. And I, I thought about what’s important to me, you know, not what, you know, friends or family is important to them, not what, you know, people in my mastermind what’s important to them, but just what was important for me. And for me, I want to deals that had three qualities. Um, I wanted deals that made good profit. When I work, reach out to the seller, there was minimal resistance to my offer. Um, you know, they saw me as the consultant that was really like guiding them along the path. And then lastly, I wanted to have fun, you know, I missed having so much fun being a math teacher.
Speaker 3 (05:13):
And, um, and so the bad news was most of my deals when I did that exercise, they didn’t meet the criteria for all three, but the good news was there was a silver lining. Is that the ones that did, there was a very, very obvious pattern. And this pattern helped me identify my first niche, uh, for, for motivated sellers. And it was a, the pattern was senior homeowners. So I was noticing that the seniors, you know, their home, they weren’t on a lot of the typical lists. You know, they weren’t, they weren’t behind on their mortgage. They had their house paid off. Sometimes their house didn’t even have a lot of physical distress. It actually, um, you know, was in great shape. It just needed a cosmetic updates. Another thing I noticed was, and this is kind of what changed my whole marketing was finding this niche because what I did was, is I found this niche.
Speaker 3 (06:01):
And then because of this niche, I found a different way to market my real estate business for money and for deals. And so just to kind of close out on the niche that I found this niche, and they were amazing. And I was noticing that, you know, the folks, um, they, they were taking my offer, even though they were getting bigger offers from other people. I was helping them, not just figure out what to do with their house, but what to do, how to move into an S you know, different senior housing, you know, facility, all these questions that they had. I introduced them to probate attorneys and CPAs and, um, you know, so I wanted to get more of them and I wanted to figure out why they picked me. And this was like the big light bulb moment. I, I was a little nervous when I did it, but I called a previous seller who I knew had a higher offer with somebody else, but they sold the house to me.
Speaker 3 (06:52):
And I, it was actually the son that I called and I said, Hey, you know, do you remember me max, you know, save your home buyers. And he’s like, yeah, I remember you. I said, Hey, weird question. But you know, when we did our deal together, you had told me that you had a higher offer. He’s like, yeah, we did Mike, how much was it? And they’re like 10 grand more. Okay. And I’m like, why did you choose me? Like, I’m glad you did, but why? Um, and he said, you know, the reason is because, you know, we trusted you, you know, you didn’t, um, you know, you didn’t try to just, you know, you cared about us and get an and where, you know, my parents moved to and you, weren’t just trying to like hurry up and get the contract signed. So, you know, th the educating them along the way made the difference.
Speaker 3 (07:36):
It was a $10,000 difference. And so what happened was, you know, I just realized that it was really all about trust. And I wanted to establish more of that. The downside was, you know, I’m in these folks living rooms for like three or four hours, and I’m explaining them all their options, you know, and it takes a long time to do that. It’s hard to scale. And so when I got my big idea was not, I didn’t come up with it. One of my sellers did, I was over at, um, one of my motivated sellers house. And, um, you know, I was, um, I was closing the deal and get all the contracts signed. And it was actually the daughter of the motivated seller said, you know, you’ve helped our family out a ton. Um, you should write a book about all this stuff, you know?
Speaker 3 (08:20):
And I was like, no, I don’t think so. You know, I’m a house buyer. I was a math teacher. I wasn’t an English teacher. I think you got me confused with somebody else. And, um, but then I thought about it and I was like, you know, that’s actually a pretty good idea. You know, I could pivot in my market. I was already at this point known as the guy who knew a lot about senior housing, but I could be the guy who wrote the book on senior housing. So what I did was is I, I just wrote down all the questions that I was getting asked in these living rooms. And I, I did, you know, I had pros and cons and I answered the question and I put it in a format and it took a lot of time. I mean, it took a lot more time than if I had known how long it was going to take.
Speaker 3 (09:00):
Uh, I probably wouldn’t have done it, but I got it done. And, um, and I, and that was my first book home to home the step-by-step senior housing guide. And it’s a, how to book for my ideal prospect. And, and I just, I printed out a hundred copies and I started giving it out and it became my new ultimate business card. And I was getting referrals and I was getting asked to speak at places I’d never been asked before. And I was seen almost as like a celebrity in the eyes of my prospects, you know, I was going into
Speaker 2 (09:28):
Authority as well, because you’re your author now.
Speaker 3 (09:31):
Yeah, it was huge. So then I was like, well, okay, that’s cool for deals, but I need to get more money. Because at the time I was still using hard money to fund my deals. And I was like, well, okay, let’s think about this. You know, I was in some different groups and masterminds for private lenders and I’m like, okay, well really, okay. The financial situation on my private lenders is a lot different than my motivated sellers, but, but there’s a lot of things that are the same. And, and what I was noticing was is that the folks I was reaching out to, I don’t know, like for me, it felt a little awkward asking for money. And I felt like, you know, I was, I was back to interviewing, you know, pitching my deal and it felt, it felt weird and uncomfortable to me.
Speaker 3 (10:14):
So I was like, well, why don’t I just do the same thing that I’ve been doing with the motivated sellers, create a, how to book, give it to them, and then let them see me as, like you said, the authority, the celebrity, and just, you know, share and attract. And so w what I didn’t know was is one of my business partners now was doing the same thing with a, how to book. And so he joined our company, we put together some licensed content and, and we started using that. So, so now, instead of giving out a business card or a sales pitch, you know, we started giving out our book and, um, and started raising money with that. It’s all the questions that private lenders, you know, have, and, and now, you know, we have a company and we licensed this out and other people plug into it, but it was just a really, really different approach. I didn’t see anybody else doing it, and I want to do something different. And so it’s been working for me and for everybody on our team and our students, whether they’re trying to get more deals or they’re trying to get more dollars. Does that make sense?
Speaker 2 (11:14):
Absolutely, absolutely. Makes a lot of sense. And max, I mean, I really like a lot of things that you just said here in this introduction, which is basically, you know, you started out as a, as a teacher, which you had a passion for doing that, but it just, wasn’t there for you financially. So guys out there, you know, guys and gals were out there, listen, I mean, if you have a passion for something, know that you can still have a passion for that, but still do something that support the embedment of your financial future and enrichment as well. That might not be attainable in the field that you have the passion for. So I really liked how you said that and you really said, Hey, I had a passion for that. So I went to figure out how I could still teach somehow give back and look at it. I mean, you’re, you’re an author now, you you’re, you’re an authority, um, in these, in these areas, you’re, you’re the celebrity, just like you said. So, I mean, I love that. I love that. So, so max now, before we dive into exactly how to raise private capital, you contribute a lot of your success to your work ethic that you gained from previous teaching, from previous teaching jobs. You know, what grade did you teach and what do you think has played such a big role in your school?
Speaker 3 (12:23):
Oh yeah. Great question. Yeah. Teaching has been the best. It’s been the absolute highlight in my life. I mean, I’ve gotten to do things in real estate, you know, getting the innovator of the year award last year and getting to share a stage with Robert Kiyosaki. That was great. I mean, there’s been a million things, but teaching was, it changed my whole life. And there’s two parts of it. One was when I was going through business school and I was, you know, working in different corporate finance jobs. I really only cared about myself or it was very tit for tat, you know, so there’s three kinds of people there’s, um, takers they’ll take from you. They don’t care about you. There’s matchers. I’ll do this for you. If you do this for me. And then there’s givers. And so I may have thought I was a giver, but I wasn’t.
Speaker 3 (13:09):
And I was really just all about making me money and you know, what, I don’t, you know, what I didn’t mention earlier was is that this wasn’t my first time to start a business. So I started a business in Oh eight. Um, and when I was 28 and I thought I knew everything, I wasn’t reading, I didn’t have discipline. And, um, and it failed. And I mean, obviously the economy in Oh eight, it wasn’t a great time to start a financial recruiting company, but I don’t make excuses anymore back then I did. And so I didn’t think that I would have another opportunity to really start a business. And I thought that, um, you know, I just, I love working with kids. And so I just thought this would be the perfect place. So, um, you know, when you get that this place is, this world is just all about opportunities.
Speaker 3 (13:50):
And so when I took that next opportunity, it was huge, but teaching taught me how to give and the joy, the true joy, like nothing else of just giving and helping people. And I would work with these kids, I’ve taught seventh, eighth, and ninth grade, and some of the kids were accelerated and some of the kids were struggling. And so I got to see, you know, the power of consistency because every day we’d put in work, we put in effort and some of the kids, they could pass their end of year tests. The second day of school, they’re so smart. Right. And they just get it super quick. Some of them, it took to the last hour of the last day, but, um, and, and, you know, I had about 15, 20 barrels a day that, you know, tell me what to do all day.
Speaker 3 (14:32):
So I learned the power of staying on a schedule and being consistent and just having more discipline. So then when I started the real estate business, I was so much more successful because I was just naturally felt called spiritually and just in my heart to help and give. And, and when you do that, people like that, you know, people don’t like sales, presentations, they like people who are just trying to help them and people like folks that they can trust. And, um, and I don’t really know the secret to building that. Just be trustworthy, I guess. Um, and then let people figure it out for themselves. But yeah, teaching changed my whole life and, you know, ed, my let is a guy that I follow. I don’t know if you like him, but, um, he talked about his first two years and starting out, he, um, worked, kind of had a similar situation.
Speaker 3 (15:19):
You know, he worked at a, at a kind of like a boys camp and was helping these kids. And it really just opened his world up for him. Some people, you know, like you, you know, in the military, you know, learn a lot of great things there. So I tell people I’ve never been in the military. I loved everybody in the armed forces. I have a lot of family members that serve. Um, but I tell people that for me, teaching felt like being in the military cause I was so I was still coachable. You have to be coachable. If you already know everything, this, this episode ain’t going to help you. All the other episodes, aren’t going to help. But if you’re coachable and you’re, and you’re get plugged into a structure or a system that can show you step-by-step and you follow the steps, amazing things can happen. Does that answer your question?
Speaker 2 (16:03):
Absolutely. Max, it absolutely. 100% answers my question. And I mean, guys, are you, are you picking up these golden nuggets that max has laying out for you guys? I mean, this is some, some great stuff guys. Now what makes the exactly how financial freedom podcast and YouTube show unique is that each and every show comes with the detailed action plan. So we create a blueprint on how to implement exactly what we’re covering here today. All you actually have to do is go visit connected investors.com forward slash free to get the key takeaways, the resources, and the free gifts that max us generously allowed us to offer you guys today. Plus, you’re going to get to see our free training right now. All you have to do is text the word exactly to (910) 600-0630. To see for yourself. Now you can find properties in any town for pennies on the dollar with this software that I personally use each and every day now, as nearly a million people know that connected investors now, as nearly a million people know connected investors as a social network of real estate investors and a marketplace of investment properties. Now in the description of this video, I included a link to this episodes form in today’s discussion.
Speaker 2 (17:21):
Now, as nearly a million people know connected investors is a social network of real estate investors and a marketplace of investment properties. In this description of this video, I included a link to this episodes forum discussion. Okay, max, now let’s dive into the steps to raising private capital. Now, now, before the show, we broke it down into three steps where you actually broke it down into three steps and that first step was attracting the right private lenders. Can you dive into that a little bit more for us max?
Speaker 3 (17:54):
Sure. So I, there’s kind of two methods. You know, I feel like in sales, from my own experience, one is it’s the Hunter and the trapper. So a Hunter is somebody that goes and chases people down. They, they, you know, dry, it’s sort of like going deep sea fishing and spending like three hours, you know, getting a big fish on the boat. You can do that. People do it all the time. It’s just really hard. And what I found is is that when, when I, if I feel like I’m having to sell people into my program, um, I feel like I’m selling them forever. So I don’t like that method. It just doesn’t work for me. What I like is, uh, is I call share and attract. So that’s what we do with our education. We share it with people, we give it out, um, answers to their question.
Speaker 3 (18:38):
We let people know what we’re doing. We make ourselves aware in the, in the mindset, the mind share of others. And then we attract the people, you know, to us that are interested. So it’s just, especially with raising capital, finding, you know, money, you know, I found my own exam example. I don’t want to work with people that are unsure or that aren’t really bought in are all in. I don’t want to work with their money to fund my deals. So, but if I put, you know, the information out there, you know, to a hundred people and then, you know, five or six are like raising their hand, I’m like, man, I really want to take part in that. That’s huge. So how I do that is I success. I, I define exactly what it is that, um, I’m looking for and what it is that I do. And then two, as I put myself out there because as business owners, if people don’t know you exist, then you know, you’re going to be out of business. You know, you have to get people to know that you exist and, um, you know, do business with you. So, but the first step is attraction. And it’s just, like I said, uh, an approach that’s been working well for me.
Speaker 2 (19:40):
Awesome. Awesome. Now step two is having a program in place with checklists, right?
Speaker 3 (19:46):
Right. So you know what we do with our students and what we have for ourselves, if somebody is using some of our private lending content to start their own program, whatever it is, however you start a program, start a program, not just, Hey, do you want to fund my deal? Now a program can be a checklist. It doesn’t have to be, you know, really, really elaborate, but, but defining, you know, important questions like, well, what’s the minimum that you’ll take from somebody, right? How long do you need to know them? You know, how much experience do they have? What do they need to know? You know, what the expectations are, just, you know, a checklist or a program that I’m sure that, you know, you, you plug people into also is a really, really important part of the blueprint because it helps. It’s helped me, you know, let people know, okay, this is step one.
Speaker 3 (20:33):
This is step two. This is step three. Because some of folks that I work with, you know, they’ve been private lending for a long time. They work with other investors too, but some of them don’t, you know, I was the first one and, you know, the earlier people are in their private lending, usually the better rates they’re willing to take, right. As they get more experience, you know, they just, you know, maybe are looking for more. And so, um, so I’ve gotten a lot of value from being able to compress the yield on my private lending and getting, you know, the best rates possible by putting out a structured program that attracts people that are qualified, but not necessarily so seasoned that they could open their own hard money, you know, business, if that makes sense.
Speaker 2 (21:16):
Absolutely. I mean, this is great stuff, max, you know, a lot of our viewers out there are always asking, you know, how can I get funding? How can I get lending? You know, what should I get private lending? Should I get a hard money lender? You know? So this is great stuff for our listeners. So that brings us into step three, which is retaining. Yeah, yeah. In that little force.
Speaker 3 (21:36):
Yeah. So, you know, I think of really the private lender network, there’s a lot of work on the front end to attract and share and get people, show people the program. But what’s great about private lenders. What I love about them, we fund are myself and my business partner fund all of our deals exclusively through private money. Now it wasn’t always like that, but you know, it, it took steps. Right. And so I haven’t been doing this that long, you know, five years full time, you know, at the start when this airs. So it’s like, um, what’s great about this. I’ve bought homes from like two homes from the same seller or the same family, but it doesn’t happen a lot. Okay. Um, but with the private lending is totally different. You know, if you’ve done a good job and you give the money back to your lender, the first thing they’re going to want to say is, well, great.
Speaker 3 (22:24):
Put it back out. Right. Because they don’t want, and we do it again. Let’s do it again because if it’s not out, it’s not, you know, it’s not making money. So, so there’s an incredible opportunity to keep people and work with people. I have private lenders that I’ve worked with since I started. And, um, and so, and you know, what’s cool about that. Repeat businesses, you really get to know them, get to know their family. You get to know the relationship and it just keeps building. And the longer the re a good relationship goes, you know, the better it is, the more responsive they are. The, you know, usually the increased flexibility. And the reason is because it goes back to everything. Is trust, marketing, your program with your money lender, it’s all about trust. And one kind of side note that I would say about re retaining.
Speaker 3 (23:06):
It really goes back to the beginning. If people are asking, should I do hard money or private money? This is just from my own experience. I’m actually glad that I did hard money to start. I’m glad that I use a little bit of, you know, community credit union money to start because you know, they’re professionals and they know how to qualify these deals. And so if my deal didn’t qualify, they did. But if they didn’t, they would tell me one of the risks that, you know, we’ve seen new people kind of run into. Um, I’m just fortunate to avoid it is they go to the hard money lender or the community credit union, and they don’t qualify the deal. So they go to the private money lender or their friends and family, or they borrow the money from, you know, their cousin. And it’s like, well, wait a second.
Speaker 3 (23:48):
Did it not qualify because of what’s going on in the market or did not qualify because it’s not a good deal. And if it’s not a good deal and you go to a private money lender, that’s trusting you and they’re not experienced, and they don’t know how to vet a deal. And they don’t understand all of that. Then you’re, you’re not putting the odds in their favor, there’s risk in any transaction, but we want to do everything we can in our program. Step two, to put the odds in our lenders favor. So if something goes wrong or sideways, there’s protected as possible. And going to somebody new when you have a deal that doesn’t qualify, um, is not a good way to do that. So while you’re learning, you know, just that’s something that I was fortunate to avoid. I’ve heard horror stories from other people where it ruined a family relationship and they weren’t honestly trying to do anything wrong.
Speaker 3 (24:37):
They just were new. And they didn’t know. I mean, in my own experience, I, you know, I said, my first deal, I wholesale for 16 grand. Why didn’t tell you that, uh, that my second deal, I kinda got them on the same week. I had to release the contract because I bought it too high. And, you know, I couldn’t find a cash buyer and I was new and I didn’t, you know, I cost that person a couple of weeks. I didn’t really do any damage. They got to keep the option fee. So, you know, but that happens to everybody, no matter how hard you try, but there’s a big difference between releasing a contract and then finding somebody else to buy their home, or, you know, somebody’s not getting, you know, their money back or their interests. So just be real careful with that we don’t ever want to over promise. And, and that’s a real important part of, um, you know, when you build out your program to consider
Speaker 2 (25:24):
Great, great points to make max, and let me ask you, are your lenders mainly, are they, um, or do you pitch for, for your lenders to do local type of projects or are they open to do, you know, deals that are all across the country?
Speaker 3 (25:40):
Um, you know, I’m not exactly sure because all of our stuff is local. So, um, I don’t know, you know, I was doing some stuff at another state and they were okay with that. One of the things that I’ve found is if the relationship is about trust, which it is for our lenders, they trust me. So I could probably just propose a good deal anywhere. And they would be,
Speaker 2 (25:59):
If you can vary the money, right. There’s
Speaker 3 (26:01):
Very, there’s very minimal resistance. Um, everybody has their own philosophy. You know, for me, I don’t like to relend my private money, you know, my private lenders money. It’s just for the deals that me and my partner are participating in, but, you know, everybody has different approaches and that’s totally fine. I just like to have as much control as possible and the outcome, because, you know, I’m putting my name and the trust on the line. And so I want to, I want to have as much control as I can of the deal to, you know, get a good outcome.
Speaker 2 (26:30):
Great, understood, great, great stuff, max. Now guys out there listening and viewing as a reminder, if at any point in this show, you like what you’re hearing, which you should be today, please give us a thumbs up to subscribe this show so that you never miss an episode. Your engagement is what drives us to keep doing this for the community for free. Now, max, you know, what do you think your life would be like if you never started a career in real estate and you were still working as a teacher. Amazing.
Speaker 3 (26:59):
So amazing. You just can’t imagine what it’s like. It’s like every day was like heaven on earth. It’s the weirdest thing I literally, um, I literally would be like, sometimes I feel like I was the only person in the teacher’s lounge that wasn’t complaining and I’m the only one who left. It makes no sense. So it would be amazing. It’d be a different kind of amazing. Um, I, I know that we wouldn’t have been able, my wife wouldn’t be able to stay home with our kids. Um, you know, we wouldn’t have been able to move into this great house, you know, here, I’m looking around and you know, my neighbors before were, you know, plumbers and mechanics, which are great, you know, so are my family members, but now my neighbor is like a CEO of a, of a company and an orthopedic surgeon. So like, that’s really different if I stayed a teacher that wouldn’t have happened, we did learn quickly when the income increase, you know, dramatically real estate investing.
Speaker 3 (27:50):
If you do it right, can be a great lucrative business. It’s been that case for me. Um, but it does not, um, didn’t make me happy on its own. You know, a lot of the things that make me happy are the things that made me happy when I didn’t have a lot of money. Um, but it does make things, you know, money solves has solved all of our money problems, um, for sure. And it’s allowed to, uh, you know, different ways to fulfill. Uh, it’s also created like a bigger platform. So before, you know, I had a great impact with, you know, my 120 students or, you know, the 60 kids on my football team or the 15 kids on my basketball team or my track athletes. And so, you know, I was making an impact, but now through, you know, all of the books that I’ve given out that are educating motivated sellers, so they don’t make, they don’t get hooked up with somebody shady, all of the licensed content that we’ve given out to private lenders so that they don’t make the wrong move and they’re educated.
Speaker 3 (28:48):
And then our students, we have about 70 that distribute their local experts and they distribute our licensed content. You know, we create like a book for them. So if you add it up, it’s like tens of thousands of books. And so the impact is a, been a lot bigger. And so I just, I feel very blessed, you know, and I’m just very grateful for this opportunity to serve, um, this way. And it feels great, but teaching is, um, is great too. And I still feel like a teacher when I get on my weekly calls with my members, I teach them, we have a great mastermind community and we talked, everybody on there is using the licensed book content. We talk about, you know, what’s working, what’s not, we’re in different areas and I run that group. And so I get to teach them stuff tomorrow. I’m getting the stuff together for our Thursday call and I’m going to teach them how to promote their book online. And, and some of these folks are, you know, they don’t understand the online marketing world, you know, they’ve been doing just, you know, the direct mail and relationships, but they want to scale it up. So it’s been cool to learn these new skill sets, apply them in my business and then teach them to my students and they get, you know, gains. So, but teaching, uh, teaching rules,
Speaker 2 (29:59):
That is awesome. That is awesome. I’m looking forward to trying out some of your methods myself there, max. So, you know, that brings us to another point. How can folks out here reach you to take advantage of, you know, some of your great content and great offers that you have a bill? Yes.
Speaker 3 (30:12):
So we have a lot of free stuff. Um, check out our videos. We put our heart and soul into them, but you’re not, we know your time is valuable and it’s, um, just, you know, case studies of things that we’re actually doing. Um, and I have a giveaway. We created a book that I wish I had when I wrote my first book. And it’s, um, it’s called the real estate investor book, writing checklist. And it’s for somebody who wants to maybe write a, how to book somebody who wants to write an ebook or just somebody who wants to improve, you know, the messaging on their online or, you know, physical ads or on their website. And it really goes through step by step methodically, how to position the words and content in a way that will get you the most positive outcome. So, like I said, this book wasn’t there.
Speaker 3 (30:56):
If it was, it would have saved me probably a hundred or 150 hours. Um, so, you know, we sell the book for 1299, but for a limited time, if you go to a deals chasing you.com forward slash Ross, R O S S you can get a copy of the book for free, or we’re just going to put kind of a cap on the number. So just, you know, go ahead and download a copy there. And, um, it doesn’t do anything if you, unless you use it, but if you use it and go through it, it’s not very long. Um, I definitely believe it can, you know, make a difference and just help put the odds in your favor when you’re trying to attract whoever it is that you’re trying to attract, share your message, attract them, bring them into your program, and then keep them around for a long time. Whether they’re doing more private money deals with you, or they’re referring you houses, or they’re referring you, other people they know to lend you money. Those are all of the opportunities that I’ve experienced. And my students have experienced by kind of using this method of, you know, communicating our real estate investing business. So I hope it helps.
Speaker 2 (32:02):
That is awesome. I’ll definitely be checking that out myself. I recently put out my first book, um, over the summer of this past summer. So, I mean, I could have used the checklist myself, so I’ll be looking for that, uh, for my next book. Um, so man, that is great, great stuff. Now, max, that brings us to the next part of our show, which is called the rapid fire session. And this is where I ask you a question and you literally just give me the first answer that comes to mind.
Speaker 3 (32:28):
Oh my gosh. This is going to get crazy. Let’s do it.
Speaker 2 (32:32):
Yeah. Wow. This just going to get well folks. All right. Hello. Okay. Scale from one to 10. How strict were your parents ate? Okay. Get up early or stay up late. Both. How many hours of sleep do you get per night?
Speaker 3 (32:51):
Somewhere between two and 11. Okay. It varies.
Speaker 2 (32:56):
I was going to say that’s a wide range, but friend favorite or last book read
Speaker 3 (33:01):
Deep work. Cal Newport teaches you how to concentrate. Great for my ADHD, brothers and sisters out there.
Speaker 2 (33:09):
Love it. Love it. If you could be any superhero, max, who would it be?
Speaker 3 (33:15):
Is Jesus a superhero? I don’t want to be Jesus. That’s SAC religious. Uh, one of the apostles you want one of the apostles? I’m a good, I’m a good a wing man. So I’d be out there. I would, I would have done a really good job back then. Promoting. Yeah.
Speaker 2 (33:32):
Awesome. Awesome. Max is something everyone should do less of
Speaker 3 (33:38):
Plain. It doesn’t do anything. I agree. It doesn’t doesn’t help. You’re not helping it. Doesn’t help me
Speaker 2 (33:47):
Indeed. Something that everyone should do more of be grateful. Okay. Bitcoin bank or bus.
Speaker 3 (33:57):
I don’t know enough. I’ll let you decide. What do you think?
Speaker 2 (34:00):
Uh, well, I, I thought I’m thinking it’s going to be a bang just based upon how money works. It seems like it that’s headed that way. So for now, I’m going to say it’s going to be a bang.
Speaker 3 (34:09):
It seems like this online thing is kind of catching on I’m with you on that in the choice. I’ll go with that too. Thanks for helping me.
Speaker 2 (34:17):
Teamwork makes the dream work. Max. Now, will people live on Mars in your lifetime? Definitely. Awesome. Well guys, you’ve made it to the end of the show and most people never finished what they start. So all of you guys are special. Now, if you got any value out of this show, please share it with a friend on your Facebook page, like subscribe to our channel and make sure you send this topics that you want to learn more about. And like I said earlier, nearly a million people use the connected investors, social network and marketplace to connect. Now in the description of this video, we’ve included a link to this episodes, form discussion, a link to Max’s forum as well. All you have to do is tap that link, tap the connect and investor link, ask me and other pros questions and see what investors are saying about this particular episode. So max, thank you so much for being a guest on our show. I really do appreciate you taking the time out of your busy schedule, sharing this awesome knowledge with us and guys until next episode, you can catch me on the inside of connecting investors. See on the inside.
Speaker 2 (35:26):
All right. I really enjoyed that episode, max. I really enjoyed that. We definitely went over the normal time that we normally go and I usually have to kind of stretch it and push it. So I tried some different things. This is the first episode of season three. So, um, great. That’s going to start airing in January. Uh, we’ve got a bunch already recorded up until the end of the year. So this will actually air January the first week in January. And you’re the first
Speaker 3 (35:49):
Perfect time. Yeah, I hope I didn’t go too long. I tried my best
Speaker 2 (35:53):
That perfect. Perfect. 100%. I mean, I loved it. I’m sure the team will love it. And I’m the only thing we have to do now is I have to just record a quick brief introduction and it basically, I’m going to say on this episode of exactly how podcasts and YouTube show we uncover and what do you think will be a good headliner there. Okay.
Speaker 3 (36:12):
Oh, how do, um, how to stand out? Um, in a one possible idea, it could be how, how does cause it’s really private money focused. Is that right? Yeah. Yeah. So how do, how does stand out, um, in a crowded market to attract more private money or attracting more private money by standing out? Uh, like that could be something that is
Speaker 2 (36:37):
Great. I liked that. I liked that. Let’s see how this one sounds.
Speaker 3 (36:40):
Oh, good. Well, if it’s got your voice, it ain’t gonna be no problem. You could be talking nursery rhymes and people are going to listen to that. I wish I had
Speaker 2 (36:46):
A voice like yours, man. I appreciate it max. I appreciate it. And like I said, anything you need from me as well. I’m here to help a bit. Here we go. On this episode of the, exactly how podcasts and YouTube show we uncover exactly how to stand out in a crowded market to attract more private money. See you guys soon. That’s it? That was easy, easy peasy. Lemon squeezy.
About The CEO
Ross Hamilton is the CEO of Connectedinvestors.com an investment property marketplace and social network for real estate investors with close to a million members. Several years ago Ross launched a private funding portal (CiX.com) that disrupted the entire industry. His portal facilitates over 3 Billion in funding A MONTH.
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Connected Investors
Real estate investing professionals from around the world turn to Connected Investors for innovative resources and timely local information about the business. Known for its cutting-edge technology, social network and in-depth educational opportunities Connected Investors is the industry’s leading source of real estate investing information.
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