On today’s episode of the Forever Cash Life Real Estate Podcast, we’re going to talk about something that’s super useful to everyone: where to get the money.
Jay Conner and I met in a high-caliber Mastermind group not too long ago, and he’s an expert on private money. I think you’ll find our conversation very valuable.
Why Investors Need Private Money Instead of Just Using Banks
One of the great things about land flipping is that you can do some amazing deals without needing much cash upfront. But sometimes you’ll have a larger land deal where the closing happens fast, and you need a big chunk of cash. This is where private money comes in.
Jay and his wife live in eastern North Carolina, where Jay was raised in the mobile home business. He’s been helping people get a home his whole life. In 2003, he knew he wanted to get into single family housing. From 2003 to 2009, he relied on the local banks and mortgage companies to fund his deals. He really didn’t know any other way.
In 2009, he had two deals under contract to purchase when he found out he had lost his lines of credit. He hung up the phone with his banker and had no idea what to do next. He called a friend who told him about private money, and he learned about it fast. He put his private money program together, educated people about it, and he was able to raise over $2 million dollars in 90 days for his real estate business. And he never looked back.
When Is the Right Time to Ask for Private Money?
Don’t wait until 10 days before you need the private money to get it lined up. Then the other party will have the advantage, the leverage. Jay says to get several people lined up, so they’ll be ready to go when you do need them.
Right now, he and his wife have 45 private lenders (individuals) investing in them and lending them money for deals. They have between 7 and 8 million dollars just rotating between properties. Often, they’ll refer to private money as “relationship money.”
Jay makes his own rules. He sets the interest rates he’s going to pay his lenders. And he’s put together a powerful presentation called, “How to Raise Money for Your Real Estate Deals Without Asking for Money.”
How to Talk to Your Lenders About a Deal
Jay says he learned the hard way never to teach people about his private lending program and talk about a deal he needs funded in the same conversation. You have to separate those two, or you’ll sound desperate. First, teach your program. Tell people you can put their money to work for them in 30 to 60 days. Then they’re sitting there just waiting for you to give them an opportunity.
Let’s say Steve is waiting for Jay’s call. When Jay finds a deal where he can put Steve’s money to work, he calls Steve and says, “Hey, Steve. Great news! I can now put your money to work for you.” He tells Steve four things about the deal. “I’ve got a house under contract here in Newport. It’s worth x amount of money, and I need y amount of money from you. We close next Friday. Wire the money to my agent. Here are the instructions.”
Jay doesn’t ask Steve if he wants to do the deal. Then he’s just planted a seed in Steve’s mind that he shouldn’t do the deal. He just states it matter of factly. It’s all in the positioning and your level of confidence. And of course you’re confident. Of course it’s a good deal. You wouldn’t be doing it if it wasn’t. After the first or second deal, when you’ve built up your track record, people only want to know two things: how much and when do you need it?
Where Do You Find the Individuals to Loan You Private Money?
Starting the conversation is one of the biggest hurdles, but the first hurdle you’ll actually get to is: who do you ask? How do you find these people? There are three categories of lenders:
Make a list of people you’re going to ask. Jay starts with retired folks, or people getting ready to retire. You can try a direct approach with this magic question: Do you have investment capital or retirement funds not paying you a high rate of return safely and securely?
Or you can do an indirect approach, where you ask someone at work, at church, in your social organization, “Hey, do you know of some people who are sitting on a lot of money and would like to invest it in this really great opportunity with a high ROI and very little risk?”
Jay talks about deals he’s done, and often that person is like, “ Wow, how can I get in on that?” And right there you’ve got another lender.
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On today’s episode of the Forever Cash Podcast, I’m going to answer a question that’s on a lot of people’s minds right now: is hyper-inflation something we need to be worried about in the near future?
I don’t have a crystal ball, but I do have an extensive background in economics and finance, and I’m absolutely passionate about it. I’m constantly putting myself in a position to figure out what the market is thinking. So let’s dive in!
What Happens When You Keep Printing Money
A large number of people right now think that hyper-inflation is inevitable. Others are saying, “America is good. We’ll be fine. We’ve always been fine.” But one thing we can all agree on is this: inflation is coming, one way or the other.
Here’s the deal. You can’t expect to constantly print money without inflation happening in the near future. Now, the question is: will it be hyper-inflation or more like the 1970s where we had what we call a “stagflation?” A stagflation is where interest rates go up, prices go up, people don’t have money, and we have stagnation and inflation together.
Let Me Take You Back to Germany
Most of you know I’m an immigrant from Germany. In the 1920s, Germany started World War I, lost WWI, and then Peace Accords were held in Versailles. The other countries forced Germany to pay huge amounts of reparations. We’re talking the equivalent of trillions of dollars in today’s money. As a result, Germany started to sell off everything they could—their reserves of gold, whatever buildings were left standing, but it wasn’t enough.
So, they decided to just print more money. At first, the other countries didn’t notice. The population didn’t notice. But then they did. All of a sudden, Germans had a bunch of money. They had just survived the war and weren’t going on buying sprees, but there’s a point at which that balance tilts. They start realizing that they have enough money and they’re safe.
Or they start realizing that the government is printing money like crazy and their money is quickly losing value. Germans started spending their money and prices started going up fast
The Velocity of Money
If I have a hundred dollar bill in my pocket and keep it there, it’s basically taken out of circulation. If the government prints a trillion dollars, and everyone receives a $1400 stimulus check and everyone keeps it in their bank account, then nothing happens.
However, let’s say I take this $100 bill and spend it today at the grocery store, then the grocer spends it at the bakery, and so on. In the matter of a week, this $100 bill changes hands 20 times. Then it behaves like $2000 in the economy. As the velocity of money increases, it behaves as if it was more money than is in the market. That’s where the danger comes in. Once the velocity of money increases, the economy starts spiraling. Prices go up immediately.
During the 2008-2009 recession, there was a big bailout. Now, with Covid in 2020-2021, it’s going up again. Since the U.S. dollar was introduced, 30% of all the money that has ever been printed has been printed in the past 12-14 months (multiple trillions of dollars).
The big question mark of how much and how fast inflation increases: what are people going to do with the money from the government? If they start believing that the government is printing too much money, and the value of their money is going to decrease, and they spend all the money, we’ll go into an inflationary cycle. If they save the money for a rainy day, then we won’t see much inflation.
What the Rest of the World Thinks of Us
The U.S. dollar is still the number one reserve currency in the world. Ninety percent of all the reserves in the world that are not held with gold are held with the U.S. dollar. This will not change overnight. But, if the U.S. keeps printing money, soon these other governments will lose trust in the U.S. dollar and convert back to silver and gold. If they send U.S. dollars back, we’ll have hyper-inflation.
Definitely keep an eye on this, but I don’t see it happening any time soon. Our status in the eyes of other countries is safe for now.
What This Means for You
We don’t have to fear hyper-inflation, but is a 5%-10% inflation possible in the next 12-18 months? Absolutely.
How to protect yourself:
The outlook for land continues to be great, very bullish. People have money to spend, and they’ll buy land—for recreation or as an investment. This is good news for us in the land flipping business.
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On today’s episode of the Forever Cash Podcast, I’m handing over the reins to David Van Ginhoven, a valuable member of our Land Profit Generator team. He’s passionate about helping those with no experience in real estate transform their lives using our powerful business model. And he does a great job of it.
How It All Started
Why does David love helping people with zero land flipping experience? Because he was in their shoes a few short years ago. He was driving a FedEx truck, making decent money, but he soon realized he wanted more from life. His first thought was real estate, until he realized what a saturated market Dallas was (65,000 registered realtors).
He didn’t give up though. He started researching the easiest, fastest, cheapest, safest way to make money in real estate. Of course he came up with LAND. Land is the primordial essence of real estate, he says. It’s literally the building blocks, the foundation. Thankfully, the foundation is the end product for us. It’s not complicated.
When he started, he had a lot of insecurities and fears. He was scared to talk to sellers. He felt like they would see him as an impostor because of his lack of experience. He says he knew immediately that, if he was going to commit to land flipping, he needed the right instructions and guidance and support. He didn’t want to rely on luck.
He discovered the Land Profit Generator Program and community, and it was exactly what he needed. And now he gets to work with us, being part of the solution for people who want to get out of the rat race.
That First Deal
David’s very first deal was a piece of land in Nevada that he bought for $2000. He calls it a desert square of nothing. Doing that deal gave him an exponential amount of energy and confidence. It validated that he could do this. “This is the system and the process, and it works,” he says, “and it’s even easier than I thought. It changed my life forever.”
The Land Profit Generator process is simple.
David believes that your commitment to that process determines your success. When he first got started, he says, “I watched as many YouTube videos and podcasts of Jack’s as I could.” Then he jumped right in, and when he made mistakes (like a mailer that completely flopped because the data for the county wasn’t up-to-date), he got back up and kept going.
Land Is Here to Stay
David quickly learned that land investing is here to stay. It’s not a gimmick or a trend. It’s a consistent model that will change your life forever.
People need land. The beautiful thing for us is that not everyone is using it. If someone owns a car, a truck, a boat, a house, and some land, and they need some money, they’re going to sell the land. If they’re not using the land, then selling it won’t change their lifestyle. People don’t want to change their lifestyle.
No two land flippers are exactly the same. David doesn’t like the steep competition that goes along with bigger deals (some people do). He likes low-priced deals and a lot of volume. Typically, he goes for $5k deals and sells them for $17k or $10k deals he sells for $30k. And he’s been very successful at it.
He also loves the passive income of land flipping. He’ll buy a piece of land for $1000 and sell it for $5000. He takes $1000 on deposit, and gets $200/month for the rest. That $200/month is pure cash flow. No more worrying about bills.
Join the LPG Facebook Community
David tells everyone he meets about the Land Profit Generator community on Facebook. “There are 16,000 people in there meeting each other and getting their questions answered,” he says. “It’s amazing. There is so much support waiting for you here. Just plug in. I love meeting people. I’m so curious about you and your story and how you got here and what your dreams are.”
He wants to answer your questions, calm your fears, and help you transform your life.
Thank you, David, for taking the time to share with us today.
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