Transcripción completa de Episode 178: The Real Reason You’re Afraid to Raise Private Money

deals and just the lack of structure in how they send you a deal, the lack of the ability to come up with the proper ARVs, et cetera. 00:02:38.639 --> 00:02:40.800 But I give them credit for trying to raise money for me. 00:02:40.960 --> 00:02:45.280 That means that they overcame some type of fear and at least approach me about it. 00:02:45.599 --> 00:02:50.639 So these are all the reasons why people fear raising money. 00:02:50.800 --> 00:02:51.120 Okay. 00:02:51.360 --> 00:02:56.800 One is they think I'll owe someone, especially if it's a family, friend, et cetera. 00:02:56.960 --> 00:02:58.879 And what if I can't pay them back? 00:02:59.280 --> 00:03:05.919 So let's talk a little bit and maybe I'll move to some other slides on the PowerPoint around how we protect a lender. 00:03:06.240 --> 00:03:06.400 Okay. 00:03:06.560 --> 00:03:07.680 So I think that's important. 00:03:07.919 --> 00:03:13.759 But the only reason you would be nervous about not paying them back is if you're not confident in your systems and processes. 00:03:14.000 --> 00:03:25.599 So if that sounds like you, I would recommend that you get coaching because there's something broken inside the operation that you yourself are not even up like confident in your own ability to perform. 00:03:25.840 --> 00:03:32.879 And as long as you're buying it right and you've systemized how you do construction, even if there's blips that happen, it should be covered. 00:03:33.039 --> 00:03:45.280 And in addition, as long as you bought the house right, the lender itself, even if worst case scenario, they had to foreclose on the property, at least they have a tangible asset that they can go get. 00:03:45.439 --> 00:03:49.039 And a lot of times they still make money off the foreclosure or break even. 00:03:49.199 --> 00:03:49.520 Okay. 00:03:50.159 --> 00:03:52.960 The second one is I'm afraid to talk about money. 00:03:53.199 --> 00:03:54.960 This one was me for a little while. 00:03:55.120 --> 00:04:02.400 And what I've learned after coaching 10,000 people across the country over the last several years, guys, I've been in hundreds of these conversations. 00:04:02.560 --> 00:04:04.400 I've trained this topic forever. 00:04:04.560 --> 00:04:05.680 And this is a big one. 00:04:05.759 --> 00:04:08.560 And I actually want to give you an example of something that recently happened. 00:04:08.719 --> 00:04:16.399 I was at my lake house on Lake Erie, and I had some family friends visit who or teachers, and then they brought their kids with them. 00:04:16.560 --> 00:04:19.360 One of their kids was like 21, 22 years old. 00:04:19.600 --> 00:04:22.720 And ultimately she's like, Hey, like, I'm confused. 00:04:22.800 --> 00:04:24.240 What do you guys do in real estate? 00:04:24.399 --> 00:04:26.240 So she's asking us all these questions. 00:04:26.399 --> 00:04:29.040 And she's like, Wait, so how much money do you make on a deal? 00:04:29.199 --> 00:04:32.000 And I forget what I said, like 25,000 or something.

00:04:32.160 --> 00:04:34.240 And she's like,$25,000? 00:04:34.879 --> 00:04:39.839 And then her dad immediately shut her down and was like, honey, that's bad etiquette. 00:04:39.920 --> 00:04:40.959 We don't talk about money. 00:04:41.040 --> 00:04:42.160 We don't ask about money. 00:04:42.240 --> 00:04:43.839 And I'm like, no, no, no, it's okay. 00:04:44.000 --> 00:04:46.399 Like, I love talking about money, right? 00:04:46.480 --> 00:04:50.240 I love talking about making it, investing it, saving it, spending it, all of that. 00:04:50.480 --> 00:04:57.680 So I noticed in that household, there must be like a shun on talking about money, especially asking for money. 00:04:57.920 --> 00:05:01.040 And so we have to break that generational curse, right? 00:05:01.120 --> 00:05:11.040 I challenge you to break that curse because I doubt that you want your kids to be nervous about talking about money and how to invest it, how to multiply it, how to save it. 00:05:11.199 --> 00:05:14.399 And so if that's how you were raised, I was raised very similar. 00:05:14.639 --> 00:05:17.199 We have to break that curse and get comfortable. 00:05:17.360 --> 00:05:23.600 And so I've intentionally, as I meet with friends and family and all that, I bring up money on purpose. 00:05:23.759 --> 00:05:26.240 So that way it forces me to get out of my comfort zone. 00:05:26.399 --> 00:05:31.600 Another big one is like why I feel like I'm begging for money or asking for a favor. 00:05:31.920 --> 00:05:33.519 Let me give you an own personal story. 00:05:33.680 --> 00:05:40.879 When I was, I think 25 or 26 years old, I don't remember the age, I was in corporate America and I got my year-end bonus. 00:05:41.040 --> 00:05:42.399 And I don't remember how much it was. 00:05:42.560 --> 00:05:43.839 Let's just say it's$8,000. 00:05:44.079 --> 00:05:45.439 Like, you know, nothing crazy. 00:05:45.759 --> 00:05:54.560 My cousin, who was one of my mentors and he flipped houses, he said, Hey, I want you to understand the concept of making money while you sleep. 00:05:54.720 --> 00:05:57.759 So what I'm gonna do is teach you how to private lend. 00:05:58.000 --> 00:06:04.319 So he taught me what a mortgage was and first lien position, promissory note, how I earned the interest, all of that. 00:06:04.480 --> 00:06:06.560 He educated me and I said, Okay, cool. 00:06:06.720 --> 00:06:12.240 So I took that$8,000, I signed a mortgage and a prom note, and I don't remember how long, call it four or five months. 00:06:12.319 --> 00:06:14.079 I got the money back plus interest. 00:06:14.240 --> 00:06:16.879 And it changed my life forever since that day. 00:06:17.040 --> 00:06:22.639 Cause I was like, wait a second, I just made that money and did nothing other than write you a check. 00:06:22.879 --> 00:06:27.199 And so ever since that day, that's actually what got me really thinking about real estate. 00:06:27.279 --> 00:06:30.800 So I started buying rentals back then, and my life forever changed after that. 00:06:31.040 --> 00:06:36.959 And so we have to remember, guys, and let's get into a little bit about like stock market versus real estate. 00:06:37.199 --> 00:06:42.560 In the stock market, you can't, well, one, you're buying in at market value, right? 00:06:42.720 --> 00:06:47.759 Where at private lending, you're lending against a property that was bought at a 30 to 50 percent. 00:06:48.639 --> 00:06:54.240 In the stock market, any crazy politician can come out and say something stupid today and the stocks tank. 00:06:54.560 --> 00:06:57.199 In real estate, that doesn't really happen, right? 00:06:57.839 --> 00:07:00.959 In the stock market, you are not protected against anything. 00:07:01.120 --> 00:07:05.759 In real estate, you are protected with a lien against the property where you're paid first. 00:07:06.000 --> 00:07:09.120 You are protected by the investor having hazardous insurance. 00:07:09.199 --> 00:07:12.160 So if a tornado hits the house, it's you're still getting paid. 00:07:12.399 --> 00:07:19.279 But if you're backing a company in the stock market and a hurricane takes down their headquarters, you aren't protected. 00:07:19.519 --> 00:07:29.040 In real estate, you're backed by a lending policy, hazardous insurance, a lien against the property, equity cushion because you bought it at a discount. 00:07:29.120 --> 00:07:30.879 You can't get that in the stock market. 00:07:31.360 --> 00:07:36.319 And so as you start to get educated around how big of a deal private money is. 00:07:36.399 --> 00:07:40.160 Oh, and by the way, you get to negotiate fixed terms in the stock market. 00:07:40.240 --> 00:07:42.319 You have no idea if it's gonna go up or down every day. 00:07:42.480 --> 00:07:46.160 In real estate, you're negotiating double-digit fixed returns. 00:07:46.399 --> 00:07:52.399 So, hey, Billy, I agree to pay you principal plus 1% a month until the time I close this property. 00:07:52.560 --> 00:07:52.800 Okay. 00:07:52.959 --> 00:07:55.120 And if I don't pay it, you get to foreclose on me. 00:07:55.360 --> 00:07:58.959 Now, I've never in 10 years ever been in a foreclosure myself. 00:07:59.040 --> 00:08:01.600 I'm also a private lender and I've never had to foreclose anyone. 00:08:01.759 --> 00:08:05.600 So just keep in mind that is rare, but it is possible as long as you're buying right. 00:08:05.839 --> 00:08:16.000 So we have to start reframing things in our head because people are like, I'm afraid to go to my family and present this offer to them because, like, what if, what if? 00:08:16.160 --> 00:08:18.879 Or you could think, I want my family to thrive. 00:08:19.040 --> 00:08:23.040 I want them to succeed, I want them to do well, I want them to have double-digit returns. 00:08:23.199 --> 00:08:29.199 I don't want them backed by the stock market that's so volatile, especially when we're in war with Iran. 00:08:29.439 --> 00:08:39.919 Like, guys, this is a life-changing opportunity, and we have to change that up

here and change our self-leaned belief around it so that you attack that conversation with confidence. 00:08:40.159 --> 00:08:46.000 If you think you're gonna lose someone's money, that's surely out of your lack of confidence in your systems and processes. 00:08:46.159 --> 00:08:49.039 That's an easy gap to close by just getting coached. 00:08:49.200 --> 00:08:49.519 Okay. 00:08:49.919 --> 00:08:50.799 This is a big one. 00:08:50.960 --> 00:08:52.159 I don't know anyone with money. 00:08:52.320 --> 00:08:52.960 Yes, you do. 00:08:53.200 --> 00:08:56.240 So all of my private lenders are everyday people. 00:08:56.399 --> 00:09:02.080 They're corporate America employees, they're nurses, they're cops, lawyers, you know, whatever. 00:09:02.240 --> 00:09:11.279 I'm really good at finding people who maybe recently changed jobs and have an old 401k, and I educate them on how to self-direct their 401k, lend me in it. 00:09:11.360 --> 00:09:20.159 But guys, these are your everyday people that I personally educate about private money and raise money from them through their old 401ks typically. 00:09:20.320 --> 00:09:36.000 So I would challenge that you sit down and write down 20 people that you know, or you might know someone of a friend who works in corporate America, is a manager, is a nurse, is a cop, you know, anything like that, especially people who have recently changed jobs. 00:09:36.159 --> 00:09:36.480 Okay. 00:09:36.720 --> 00:09:44.720 And I want you to realize how many people in your life who are everyday people, teachers, I have tons of teachers that private lend me. 00:09:44.879 --> 00:09:46.960 Trying to think of, I mean, you guys get the point, right? 00:09:47.200 --> 00:09:48.799 Guys, they're not gonna think you're a scammer. 00:09:48.960 --> 00:09:55.919 When you handle the pitch and the process of sending them a deal packet professionally, they're not gonna think you're a scammer. 00:09:56.000 --> 00:09:58.720 But that's not as big of a self-laying belief that I hear out there. 00:09:58.879 --> 00:10:01.440 I don't want to be responsible for other people's retirement. 00:10:01.679 --> 00:10:04.159 Well, do you really want to be in real estate then? 00:10:04.320 --> 00:10:11.919 Because at the end of the day, if you're betting on yourself, then it's your job to educate yourself to feel like you're the expert in what you do. 00:10:12.080 --> 00:10:31.120 And if you genuinely think you're the expert in what you do, you're buying right, you're starting to systemize things, et cetera, then you would want those people to allow you to have control over them getting double-digit returns versus being in a stock market where someone comes out tomorrow, we just put a bomb on Iran and boom, everything tanks, right? 00:10:31.200 --> 00:10:32.720 Like they can't control that. 00:10:32.960 --> 00:10:43.120 And so if you're lacking confidence in that, again, I encourage you to get a coach because there is a gap that we have to close in order for you to bring that confidence level up. 00:10:43.279 --> 00:10:44.480 People will judge me if I ask. 00:10:44.559 --> 00:10:46.559 Guys, I've been asking for private money for years. 00:10:46.720 --> 00:10:47.759 No one judges you. 00:10:47.919 --> 00:10:51.120 And I think what I'll do another video on how the pitch works. 00:10:51.279 --> 00:10:57.120 And when you hear how simple it is, guys, you'll be like, oh wow, that was so easy and so natural. 00:10:57.279 --> 00:10:58.720 Like, why would they judge me on that? 00:10:58.879 --> 00:10:59.120 Okay. 00:10:59.279 --> 00:11:01.600 If anything, they should be like cheering you on. 00:11:01.759 --> 00:11:04.960 And if they're not, we really shouldn't be around them, anyways. 00:11:05.279 --> 00:11:10.879 So, anyways, these are the biggest cell phones beliefs that I see in people raising money. 00:11:11.120 --> 00:11:13.600 And then we can also talk about the process as well. 00:11:13.679 --> 00:11:21.200 And maybe I'll go a little bit deeper in another video around the stock market versus private lending and how people are protected inside the process. 00:11:21.440 --> 00:11:25.679 Until then, I do lots of free trainings, guys, inside of our free community. 00:11:25.840 --> 00:11:28.000 I'm gonna put the link in the description. 00:11:28.240 --> 00:11:30.799 I go live every Wednesday at 3 p.m. 00:11:30.960 --> 00:11:32.639 Eastern, join the community. 00:11:32.879 --> 00:11:39.120 I rotate topics of what is happening today in my real estate business that I think can add value to you today. 00:11:39.279 --> 00:11:40.720 See you on the next one. 00:11:41.519 --> 00:11:45.440 This episode has come to an end, but your journey continues. 00:11:45.600 --> 00:11:48.799 Subscribe to the podcast so you never miss an episode. 00:11:48.960 --> 00:11:54.960 If you want direct help from us, join our free community by visiting the results driven podcast dot com. 00:11:55.120 --> 00:11:57.919 That's the results driven podcast. 00:12:01.360 --> 00:12:04.399 We'll see you next time on the results driven podcast.