The One Thing
After coaching and consulting real estate entrepreneurs for nearly 10 years I’ve concluded that real estate investors need to do just ONE THING to be successful. Just One.
Two Main QUESTIONS
Without a doubt, the two main questions I get asked the most are 1) how do I find the deals? And 2) how do I find the money to fund my deals?
Why do real estate investors focus more on finding sellers and buyers and not on finding the funding?
As a investor and coach, I teach my students that in order to be a successful real estate investor, you need to lock down the funding first and THEN the deals will follow. If realtors and other real estate investors know that you are an active real estate investor who can perform and have the cash needed for deals, they will BRING THE DEALS TO YOU.
I get multiple calls on a weekly basis from realtors and wholesalers and potential partners who pitch properties to me because they know I have money. I can fund the deals.
This is the situation that you should want to be in. Get the funding first then make yourself a deal magnet where deals just come to you like a magnet.
If you have money, the deals will hunt for money. If you have no money, you can hunt for all the deals you want, but you can’t close without the cash.
Every good deal gets funded... as long as you have access to the money, because if you don’t have the funding someone else does. They will get that deal funded for their own account when you can’t.
A Winning Business Model
If you are actively marketing to potential investors, you are selling yourself to them.
Now, if you are a student of mine, you will get the opportunity to have the done-for-you lending solution that my company, Freeland Ventures, offers. But I encourage you to always be looking to recruit your own private lenders and investors.
Why would I say that?
Well, I’ll tell you a little secret… I know FOR SURE that investing with a private lender will be cheaper than what Freeland Lending can offer. I know FOR SURE that private lenders will be more flexible than I am with their terms.
Build a Personal Bank
When I am recruiting money from private lenders to fund my deals, I pay them 12% interest OR 15% of my profits, whichever is higher…as long as they fund the entire deal. If I flip a property quickly in 4-6 months or less, the 15% of the profit is almost always more.
There are regulations when working with a private lender. When an investor issues recruits money to fund their deals or their business and promises an investor to pay them back their principal plus interest or profit they are issuing a security. That arrangement is the PURE DEFINITION OF A SECURITY.
THERE’S NO WAY AROUND IT.
It’s a personal arrangement between you and them in the form of a security. When an investor issues these securities they are required to have a license to sell securities, be a broker dealer OR have a securities exemption.
That’s what we do. We register and qualify to issue and sell these securities under a Federal Securities Exemption. This is the proper way to do it. We have used REG D 506B and REG D 506C exemptions.
A lot of new investors just “fly under the radar” and recruit their first couple hundred thousand dollars of private money without a S.E.C. exemption registration.
I highly encourage any investors who are offering debt financing (notes and mortgages) or equity financing (part of the equity of the deal) to work with a good securities attorney and get a proper Federal Securities Exemption Registration. I’ve done several and I have 2 highly qualified securities attorneys I’ve worked with. I am currently working with Joe Carney and his lawyers at Brennan, Manna and Diamond out of Akron Ohio.
I got my very first private lender in 2004 and over the last 10 years or so, I have recruited a lot of private money. As our business started to grow, we were up to doing 15-20 deals at any one time and dozens of deals a year. My brother and I realized back in 2014 that we didn’t want the business to continue growing, we were happy with doing what we were doing and the lifestyle it provided us.
BUT THERE WAS A PROBLEM
The problem, if you really want to call it that, was that we had made a good name for ourselves in the real estate investing business and were continuing to raise private money. We couldn’t use it all in our own business, so in the summer of 2014, we decided to start a private equity fund and a direct lending business which is now Freeland Ventures.
The reason why private money is cheaper is because there is no middle man. If you have a friend, family member or business contact that decides to invest in your deal, 12% interest is an amazing return! With that, there is no middle man, no commissions and no fees.
Freeland goes out and recruits money from private lenders who invest with us. We have to generate a return for them and we have to pay our own bills and make a profit. Then we lend, and we lend to you, the student.
What I am telling you is that you can use Freeland to fund your deals FOR NOW, but over time, as you become better and better at it and get more experience under your belt, you will be able to cut out the middle man (me!).
I’M ENCOURAGING YOU TO CUT ME OUT!
Eventually, your goal as a real estate investor should be to build your own personal bank. Once you have case studies of successful flips to show potential investors, the money should start flowing in no problem.
Case Study – Ballash Road
A few years back, I had a house I was flipping on 7493 Ballash Road. How did I find the private lender to fund this deal? He was a real estate agent who had been receiving my newsletter every month. He came to me and said he had $300,000 that he was sitting on currently in a bank account and offered to give us the money in return for 12% interest or 15% of the profit.
My real estate attorney created a note and mortgage.
Imagine this – in one hand is your note, a loan or contract between you and your lender. In your other hand is the property you are interested inflipping. Smack those two together and you get a mortgage.
We bought Ballash for $52,000, rehabbed it for $30,000 and sold it for $142,000 in just 2 weeks!
Josh Cantwell Coaching
As a coach, these are the things I’m here to teach you and help you understand. I am not trying to pull the wool over your eyes. I’m being as direct as I can. I am here to teach you and here to help. I want you to succeed the same way I did…
But making less mistakes because I will teach you how to avoid them!
Over the last few days, we have been actively taking applications from new and experienced real estate investors want to work one-on-one with their own real estate coach.
The program will be totally customized to you – based on where you are in your business and what you want to learn. You will receive a personalized and tailor-made real estate investing business plan based entirely on your personality, strengths, passions and business goals.
6 Promises of SREC Platinum Coaching
- Clearly identify goals and objectives
- Develop and implement a strategic investment plan
- Expert enough to coach others
- Positive results = making money
- Customization of entire learning process to you
- Cementing the habits
To learn more about this unique opportunity, click here.
Coaching and Consulting is for SERIOUS investors only, so if you are looking for a get rich quick scheme you need not apply…
Funding, getting the funding, setting up the proper registrations and raising money “by the book” is a cornerstone of our coaching program and a absolute necessary must do for any real estate entrepreneur.
If doing it by the book and getting all the funding you need is important to you get the details and apply here.
CEO Strategic Real Estate Coach
CEO Freeland Ventures and Freeland Lending
CEO Yellow Jacket Properties