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REW Kaaren Hall | Self-Directed IRA

Self-Directed IRA: How To Keep Your Retirement Funds Secure And Invest In Anything You Want With Kaaren Hall

REW Kaaren Hall | Self-Directed IRA

 

Self-directed IRAs have grown in popularity over recent years. They offer more flexibility, including the ability to use your IRA funds to invest in things other than stocks and bonds. However, they are not as common as 401Ks, and there’s yet a lot to understand about them. That’s why in this episode, Kaaren Hall shares her expertise in self-directed IRAs and how women like her can thrive in real estate investment. Kaaren is a Self-Directed IRA Expert and CEO at uDirect IRA Services and OCREIA. Tune in now and learn how to start self-directed IRAs!

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Self-Directed IRA: How To Keep Your Retirement Funds Secure And Invest In Anything You Want With Kaaren Hall

Real Estate Investing For Women

I am excited to welcome back to the show for the third time, Kaaren Hall. For those of you who have not checked out her shows before, let me give you a reminder of her bio. This is what we have. Despite being in the midst of a recession and mortgage market collapse, Kaaren Hall founded and made a resounding success of uDirect IRA Services. She discovered a strategic way to put her twenty-plus years in mortgage banking, real estate, and property management to use.

The solution was an untapped market for both her skills and for investors, which is self-directed IRAs. Through uDirect IRA, she has guided tens of thousands of Americans through the process of diversifying their investments using self-directed IRAs with $1 billion plus under management. Learn more about Kaaren and its thriving company at UDirectIRA.com. Kaaren, you are very distracting.

I’m so sorry. You have to have fun because it’s serious business. We like to keep it light.

How are you?

I’m doing super well. I saw you. That was lovely. All is well.

Kaaren is incredibly generous with her time in her business as well as in her personal life. She has been putting together these boss lady retreats. For some of us ladies that don’t have the time to do stuff, she puts it all together. We show up and have this luxurious time with all these powerful women. We don’t talk business. We are not there to talk shop. We hang out and get to know each other’s hearts. It has been so much fun to hang out with Kaaren and some of the other ladies that were there. She also invited me to this formal event where I got to dress up in a beautiful gown. Who gets to do that? It was so much Fun.

How many gowns do you have? People don’t do gowns but it was so much fun.

There was so much eye can be there with all the men in tuxedos. It was so good. We had a great time. That was not too long ago. It’s so nice to connect with you again.

I’m happy we can be talking because the IRAs have always been a hot thing. There is some stuff on the griddle, if you will, coming up. It’s a good time to talk about it.

Why don’t you start with that? That’s a great lead-in.

When you read my bio, and you talked about an untapped market in 2009, it was an untapped market. Many people had no idea what a self-directed IRA was. These things were created. The IRA, in general, was created in 1975. It has been around for so long. It’s tried and true. In 2009, all of a sudden, it was recession time. There was money. You can’t get a loan from a bank, especially for real estate investing, because it was such a tough time. That’s when I opened uDirect. People discovered the self-directed IRA as they know it. That’s when they discovered it because they could tap into other people’s IRAs to raise money for their deals.

I want to interject one thing here that I’ve done. Every single time you talk about this, I want to put it in here, too. A lot of people say, “I’ve got a self-directed IRA,” because they’ve got it with Fidelity, Vanguard or whatever. “They let me direct as much as I want.” They let you direct on certain vehicles, usually mutual funds. They will let you do some REITs if you are interested in real estate. They will mostly stock.

They are stock market-type vehicles. They won’t let you invest, for instance, in real estate. What Kaaren is talking about is a true self-directed IRA because you can invest in other things that are not stock-based. That’s the big differentiating factor between a true self-directed IRA and a, “I’ve got a self-directed IRA in my 401(k).”

It is self-directed. IRAs are IRAs. An IRA is like a bucket that holds assets. What makes it self-directed is the asset you choose. When you talk to your financial advisor, they are licensed. You know this. You are licensed. If you are licensed to sell market-correlated assets, that’s it. You can advise on that but you can’t advise outside of the stock market. We are all about the alternative asset. What makes it self-directed is that you are choosing the asset. We are not telling you what to invest in. We don’t offer anything for sale. It’s truly self-directed.

REW Kaaren Hall | Self-Directed IRA

Self-Directed IRA: IRA is like a bucket that holds assets. What makes it self-directed is the asset you choose.

 

Back to the recession, it was great to see and witness the grassroots level of capital raise. There was a huge need for capital and projects. There were so many houses that needed to be rehabbed and fixed. One of the solutions was IRAs. IRAs were a grassroots person-to-person way to rebuild our economy. In retirement accounts altogether, there is nearly $40 trillion in retirement. That’s an enormous amount.

Let’s put that money to work, making everything better. My IRA loans your business some money. Your business pays my IRA back the loan. My IRA purchases a house. The renters pay the rent to my IRA. There are private placements and precious metals. There are so many different kinds of assets. That’s when it came to the forefront of most people’s minds.

Self-directing has been around for a long time. As you and I were chatting about off-camera, not a lot has changed in the years since I have been in the industry. A few things have. A couple of Case Laws have passed, drawing lines because the IRS doesn’t always make things clear. With the IRs, it’s always, “It depends.” We’ve received, in many years, a skosh of clarity from them but hardly any. It’s largely unchanged.

We are looking at a couple of possible changes again on that griddle of IRAs. One of them, and this has got bipartisan support called the Secure Act 2.0. The biggest thing that we will see coming out of this Secure Act 2.0 is an increase in the RMDA or Required Minimum Distribution Age. Why do you care? It’s not a big deal. This is why you care. If you were at a level where you needed to take money out of your IRA, that’s fine.

REW Kaaren Hall | Self-Directed IRA

Self-Directed IRA: The biggest thing we’ll see coming out of this Secure Act 2.0 is an increase in the RMD, a required minimum distribution age.

 

If you were at a level where, “I’m doing good. I want to leave my money in my retirement account, so it could continue to grow because I don’t need it now,” it was 70 and a half, and then Secure Act 2.0 passed, and it became 72. It’s going to go to 75. Your money can keep continuing to grow all those years before you are required to take it out. Isn’t that great?

Yeah. This is the key. We get a little bit confused about it but people don’t realize that in IRAs, there is a required age. If you are 70 and still working, you don’t need all that money. You are still required to take out a portion at 72. I have known many people who are like, “I don’t want to take it out yet. I’m not ready. I want it to keep growing.” Yay on them at 72 that they are like, “I’m still going strong,” but the government didn’t give them any option. It sounds like there’s a possibility of a new option, which I love. That means you can take it out younger than 70. Is it 59? What is the lowest?

59 and a half is when you can take it out without penalty.

That’s a good start if you want to.

The required minimum distribution is you have to. That brings up another good point about the Secure Act 2.0. If you forget your RMD and don’t take it, the penalty is 50% of what that RMD would have been. It’s so big. It’s bad. What the 2.0 is looking to do, and it’s in writing. We will see how it comes out. Secure Act 2.0 would lessen that penalty to probably 25%. That’s what they are talking about. I know RMDs are probably far off for a lot of people but this is important, maybe for your parents or your other family members that have to take this money out. It’s good to know that things are going to become more lenient in that regard. I’m happy about that.

When you are deciding where to put your savings money or you are investing money away, those are things that you are going to consider. If I want full liquidity and full control, I may not want to put it in an IRA of any sort. IRAs have limits on how much you can put in and all of that stuff too. As you are making your financial plan for your future, some of it you are planning for retirement, for cashflow, for now, for vacations, and for life happening. Which portion do you continue to put into your IRA, and how do you decide to utilize that? How much are you going to prioritize? The more flexibility we have on that, the more likely we are to prioritize that as a possibility. Wouldn’t you agree?

Completely. What you said brought up a point. You are using that money. When you are investing using an IRA, why do you do it? Why would you use an IRA? It’s because of its tax-protected status. If it’s like a SEP, a traditional IRA or a 401(k), chances are it is tax-deferred. You are not paying tax until you take the money out. If it’s a Roth, it’s tax-free, assuming you need two qualifying conditions like being 59 and a half and having a Roth for five years.

It’s the tax treatment. That’s the reason you use an IRA to invest. You are not going to pay the tax in a typical IRA, the traditional or SEP IRA, for example, until you take the money out. You can make a huge killing. Maybe you bought a building, and 1 year or 10 years later, you sell it. Maybe you made $100,000. We don’t need $100,000. You need $10,000. You want to take up $10,000, so you don’t have to pay tax on that whole cashflow experience. It’s the amount that you need. You pay the tax as you direct per diem.

When you are putting your financial plan together, it gives you more control. For me, I’m all about choice. I want control over my money. That’s what it’s all about for me. Choice in my money gives me a choice in life.

Plus, when you contribute, unless you make too much and hit a certain amount, you can also perhaps take a tax deduction for your contribution. This 2022 or coming up in 2023, the contribution limits went up because we see inflation. We saw the biggest increase. If you have a solo 401(k) in 2022, the cap is either 25% of your income or $61,000, the lesser of. In 2022, the contribution limit was a lesser of 25% of your income or $61,000. You can make that 2022 contribution all the way until your tax filing deadline. There’s an end to that but you can do that and make a prior year contribution.

For 2023, here’s where the contribution limits had a very surprising increase. It went up $5,000, which is very unusual in this arena. It’s 25% of your income or $66,000, the lesser of. If you have a solo 401(k), that is a huge advantage to you to be able to contribute $5,000 more and, hopefully, most likely get a tax break on that.

I know a lot of people reading do not remember what a solo 401(k) is. Could you define that really quickly?

Sure. We know what a 401(k) is at work. It’s a savings plan. Unlike an IRA, this is a 401(k). It’s a different animal. It’s the same purpose but a different animal. An IRA is one thing like a SEP, which is a Simplified Employee Pension. An IRA is one thing but the solo 401(k) is two things. It’s an employer portion and an employee portion. It’s two buckets.

If you are self-employed with no full-time employees in any of the companies that you own, then you can have a solo 401(k). You qualify for it, and you can contribute more. It has two buckets. Those are the employer and the employee bucket or we call it the plan and the participant. In the participant portion, which is the smaller portion, that can be all Roth. That’s one of the great things about the solo 401(k).

Another great thing about a solo 401(k), if you qualify for it, is that you can take out a plan loan. You can borrow from your solo 401(k) for your personal use. That is maybe to buy a personal home, take a vacation, pay for college or whatever. You must pay your 401(k) back over a five-year period, either monthly or quarterly, at a market rate. It’s like a little investment. The loan turns out to be an investment for your plan. You can have that for personal use. It’s huge. You can’t do that in an IRA.

There are other benefits. If you have an IRA and want to invest in real estate, that’s great. Many people do. If you have a solo 401(k) and invest in real estate, that’s also great. If one of these accounts wants to take a loan, it’s a solo 401(k) that is not subject to the UDFI tax for an acquisition loan. We all love the power of leverage. In our personal lives, leverage is yay. In an IRA or 401(k), typically, the proceeds that the account earns because of leverage are subject to this UDFI tax. If it’s for acquisition, then this solo 401(k) has an exemption. That’s another great thing about the solo 401(k).

Tell me about that tax.

We will break off solo 401(k) for a second because it’s a great account if you are self-employed and have no full-time employees. It’s the bomb. There are two times an IRA can be taxed. We use IRAs, 401(k)s, and all these plans to save on tax. It’s not income tax. It’s UDFI and UBIT tax. That is what it is. If you want to jot something down for our readers, it’s IRS.Gov Publication 598. You can go deep there on Pub 598.

We will use simple numbers. Your IRA purchases a house, and it’s $100,000. That’s great. In your IRA, you only had $70,000 to put in, so you borrowed $30,000. Thirty percent of that acquisition cost is leveraged. Your renters pay the $1,000 rent on that $100,000 house. 30% of that $1,000 was earned because of leverage. That 30% that was earned due to leverage is subject to the UDFI tax or Unrelated Debt Financed Income Tax.

We are talking about your IRA owning a house and a renter. Here’s another situation where the UDFI tax comes into play and catches people by surprise. That’s private equity. If your IRA loans money to a private equity capital razor, that’s different. If your IRA has an equity position and ownership position in private equity and that asset sponsor is taking leverage in the deal, then part of the money your IRA earns is because of the leverage the asset sponsor took. You are going to owe UDFI, and you might not know it. That’s one of the things when you do your due diligence on a private placement. Always read it. Always have your attorney review it. Take a look and see whether this asset sponsor is taking on cap or taking on leverage.

REW Kaaren Hall | Self-Directed IRA

Self-Directed IRA: When you do your due diligence on a private placement, always read it and have your attorney review it.

 

It’s not the end of the world when you file a 990-T, which is the tax form. You get to take a deduction, so maybe there will be no tax at all. You still have to file. Maybe it’s a wash, and it’s not a big deal but you want to know. That’s because if you need to file the 990-T and you don’t, the IRS will come knocking eventually and say, “Why didn’t you file a 990-T?” They are going to know because the asset sponsor is going to issue a K-1 to you. They share that K-1 with the IRS, and the IRS knows, “Red light here. This is what we should expect. We should expect a 990-T because there was income earned because of leverage.” A lot of people don’t know that.

That was an awful lot of good information. It blew up my brain. Can I ask some questions?

Please do.

We have a lot of boss ladies that do syndication. Let’s say, for instance, we invest with one of our ladies. For many of them, their minimum is $50,000. My audience, you know what we are talking about. Let’s say you put $50,000 in a syndication deal, and it’s got a five-year span. Your preferred rate is 7%. Your IRR is supposed to be whatever it is. We get our K-1 every year. Let’s get specific. How does that work? I know you explained it to me but let’s break it down a little bit more, so I can understand what you said. Is that okay? I know you are not a tax consultant. I’m clear about that. What you said was interesting, and I’m afraid I missed something because I’m in that situation.

Some of our friends, I invested with them too but I’ve invested as a note investor like a lender. I don’t have to worry about these taxes because my IRA doesn’t have an equity position. My IRA is the lender. It’s different.

You are not a preferred partner. You are just carrying a note.

That’s correct. I like to think I’m preferred.

There’s something. Your preferred rate is 7%, 9% or 10%, and then they are going to refinance and give you back your capital and then some. You get part of the rent every month, and then eventually, they are going to sell, and you are going to get some of that equity. You then have a gain because you’ve taken depreciation. There’s all this good stuff.

That’s the beauty of making money right there.

That was pretty cool. When you say that you are just carrying a note, is that not the same as what I said?

It is similar but I don’t have an equity state. I’m a lender, not an equity owner.

That’s also interesting. As an equity owner, for instance, like what I’ve got going on, how does that translate? Do you know?

If your IRA is an equity owner and your IRA earns money because of leverage, then it kicks in this UDFI tax. It’s a tax on unrelated income tax. It is related to investing. I don’t quite get that definition because you are investing but that’s what it’s called. It’s the IRS. Go figure. The thing about it is that if your IRA earns capital due to leverage. It’s not money that you contributed. It’s not money you saved. You are not earning a certain percentage of that return because of your savings. You earn that return because of the leverage that the asset sponsor took out. It’s subject to tax. You would talk to your tax advisor, show them the K-1, and have them file a 990-T.

REW Kaaren Hall | Self-Directed IRA

Self-Directed IRA: If your IRA earns capital due to leverage, you’re not earning a certain percentage of that return because of your savings. You earned that return because of the leverage that the asset sponsor took out.

 

That’s only if it’s invested with an IRA.

With a retirement account. That’s correct. I’m all in the bubble of retirement accounts. That’s all I speak on. It is inside the bubble.

That’s interesting. I didn’t know all that. That’s cool.

It’s a good thing to look for because so many people are caught unaware.

What were some of the other things you were headed towards?

It’s hard to remember but we talked about the Secure Act, what’s happening with RMDs, and the possible changes. When you and I were at this event, we heard economists speaking about what’s on the horizon. Nobody has a crystal ball but it certainly could lead to perhaps lower-priced real estate again. We might see that again. If we do, that might be a good time to acquire real estate again. Buy low, sell high, I don’t think that’s giving investment advice. Everybody knows that. We may have an uptake in people investing in brick and mortar and sticks and bricks real estate again, having tenants, and going through that. Why don’t I talk a little bit about what it’s like to own real estate in an IRA?

Please, that’s what I was going to ask. Tell us how that works.

Do you know how we buy a stock where we go online? That’s what I do anyway. I click and I’m like, “I want this many shares,” and it’s there. There’s no problem. The first is buying a house. Let’s say that’s what we are doing here. You got to go through escrow. You got to do all that title. You can’t get away from that part. Your IRA comes in with the money.

If you need leverage, we talked about the non-recourse loan that your IRA would take to borrow money. We are there. We are at the closing table. The offer has been made in the name of the IRA, either you have leverage or you don’t. Maybe you’ve got two partners buying it together concurrently and are ready to close. That’s great. You then close on real estate.

I want to clarify. Let’s say, for instance, we are talking $50,000 again. You are buying a $200,000 piece of property. You put in the $50,000 from your account but that controls much more. Your 25% controls four times as much in the asset. That’s the way real estate leverage works. There’s a special kind of loan that can be given to an IRA that’s not given to the rest of us. That’s what she was referring to when she said non-recourse loan. Those are the loans that you can get if you’ve only got a certain amount of the value of the property to invest.

It threw me off but that’s true. You’ve got this property, and you are buying it. We could go off on so many rabbit holes but I’m going to stick with it. Your IRA, let’s say, owns 100%. You didn’t use leverage. It bought the building straight out with your savings, whatever building it is. What do you do with it? There are things called prohibited transactions. One of the things is that you cannot offer what’s called “over-contribution of sweat equity.” You don’t want to offer an over-contribution of sweat equity because it’s prohibited.

You’ve got this property in your IRA but what you can’t do is hammer the nails. You can’t do the work yourself because it’s called an over-contribution of sweat equity. It’s a prohibited transaction, which is something you want to avoid. That’s why we always talk to people. We give a free consultation so we can talk to you and say, “Tell us about your deal. We will help you learn how to avoid prohibited transactions, so you are not going to do that.” What you can do is you can still hire third-party vendors. You can select the property, close on it, and do all that without it being sweat equity. You can vet the renters in the property and hire third parties to do the work without it being considered sweat equity.

You are allowed to property-manage. What you cannot do is take any fee from your IRA for anything, including property management for an IRA on property. That’s great because your IRA is there. You’ve got tenants. You’ve done your homework. You’ve got a cashflow going. You can use that cashflow to build your retirement. All expenses must be paid for by the IRA, and all proceeds must go back to the IRA that owns that asset. That’s how that works.

For instance, let’s say you put in all the money from your IRA, and suddenly, you’ve got some maintenance things. A fridge goes out. The sprinkler system breaks. Something happens. All the money from the rent has been going into that IRA, so you’ve got this extra money that you can utilize for these other things that you have to do. It comes up with real estate.

That’s why we ask our account holders to leave a 10% pad in their account because you don’t know what you are going to need. There are the closing costs, the rehab, the property tax or that new refrigerator that you need for your rental. It has to be a rental property. You can’t have any personal use of it. All those expenses have to be paid for by the IRA. You need to leave a pad. Let’s talk about what happens if you don’t have enough money.

Let’s talk about that because that’s what everybody is thinking.

There are a few things you can do. You can write a check and contribute to your account. That’s probably everyone’s first go-to. Your contribution depends upon your age, your income, and your account type. You can then write a check and contribute. Maybe you already made your contribution, so what can you do then? Maybe you’ve got another IRA someplace. You will liquidate that to cash, send the cash over to the self-directed IRA, and make it up.

You could take on a debt partner. That’s somebody to give you a non-recourse loan to your IRA account so that you could then come up with the money to do what you needed to do if you had to. If all else fails, you would need to sell the asset. If you didn’t have enough to cover the expenses, you would need to sell the asset because you can’t pay for those things personally.

When someone gives you a non-recourse loan to make up the difference, are there certain percentage restrictions? Does it have to be another IRA that’s making that loan? Tell me a little bit about what that other loan might do because that’s interesting. I’ve never heard that before. How can you utilize that?

If anybody would like a copy of my list of non-recourse lenders, and it’s not the people I necessarily endorse because it’s as a courtesy but if you want that list, I would be very happy to send it to you. You can reach me at [email protected]. That is my email address. You could also go to UDirectIRA.com. There you go. I will send you the list. It could be an individual. It could be a bank. I don’t know if a bank would make a loan if you are in a hard place but it doesn’t have to be IRA money. It could be somebody else’s personal money.

What it can’t be is a disallowed person. It’s not going to be a lineal ascendant or descendant. That is parents, grandparents, you and your spouse, children, and grandchildren. They are not going to be making this loan. It’s also not going to be a 50/50 business partner. They are disallowed or any fiduciary like your real estate agent or your CPA. That’s somebody who has a fiduciary duty to your calendar and this asset. They would be barred from doing that. You could have a third party make a non-recourse loan to your IRA.

That’s interesting because that gets us out of trouble in a situation like that.

It might be the final straw. That would be my last go-to but it’s available. We are in real estate. We bought the property. It’s the whole lifespan. Let’s talk about the timing of the lifespan of something like this because that’s something people always wonder, “How long will it take?” We know how long real estate takes. Let’s put it there. Real estate is an imperfect world. It’s always, “I’m sorry, but.” It can also have a glorious outcome. In some way, there is going to be a train wreck at some point along the way because it’s a house.

Real estate is an imperfect world. It can have a glorious outcome, but it can also be a train wreck at some point along the way. Click To Tweet

It happens. I don’t like to call it a train wreck. There are challenges and tears.

Challenges and opportunities, that’s what it’s. It’s to say that you are going to have a pitfall, so you want to know what to expect. First, you open an account. That’s the first thing. How long does it take? It may be a day. You fill out a form, give us a setup fee and your ID, and there you go. You’ve got an account. It takes one day max.

The second step is putting money in that account or funding it so you can make a contribution. You can do a rollover from a previous employer plan like you are moving the money from that previous employer’s 401(k), 457(b) or 403(b). That takes about two weeks if it’s a previous employer plan. You transfer an IRA-to-IRA transfer, which usually is much faster than a rollover. It usually takes a week tops.

When it’s open and funded, then you invest. You select the asset that you want to invest in. It could be precious metals, private equity or a loan. There are many different things. You give us what we call the supporting documentation, which is a general way of saying the contract. There’s some agreement, even if it’s an invoice to pay a vendor or it’s the actual note and deed of trust for a secured loan.

Whatever the documentation is for that asset, give that to us along with a simple, quick form like who you are, what you want to do, how much, and all that. We then review it. It goes through a review process. We say 3 to 5 business days to make that happen but oftentimes, it happens a lot faster. The majority of the time, it happens a lot faster. Sometimes more but mostly a lot faster than that.

You open the account. It might take two weeks to fund it. While we are waiting for that money to come in, we are reviewing your documents and getting everything all queued up so that you are ready to pull the trigger when the money comes in. We will send a check or a wire, and you’ve self-direct. That’s how that works.

That’s true for real estate, too. I’ve heard that to buy real estate. You have to open up an LLC in the name of the IRA.

That’s an excellent topic. I’ve got a lot to say about that. That’s called the IRA-owned LLC. You probably heard it called the checkbook IRA. It’s not what it is. People get the misconception that when they open a self-directed account that a checking account comes with it. That is a misconception. That is not how it works. You have a retirement account that’s self-directed. You open it, fund it, then you have a third party create a special-purpose LLC. You are not going to do this yourself.

People get the misconception that when they open a self-directed account, a checking account comes with it. Click To Tweet

People will say, “I have a 401(k). We will put it in there.” You can’t use the LLC that you created yourself because you own it. Your IRA cannot purchase an asset you own. It has to be a third party that creates this special purpose LLC. The IRA is open and has money in it. The IRA buys 100% of the initial units of that special purpose LLC. The money goes from the IRA into the LLC’s checking account. Your IRA is like the umbrella, and your LLC sits under the umbrella. The IRA owns the LLC. That’s how you can have checkbook control of your IRA funds. It can be handy in some situations, especially when you are investing in tax liens that are transaction-intensive.

When you are buying properties at an auction where you have to have the money, there are some useful purposes. You don’t have to have an LLC to purchase real estate. You will hear some attorneys say, “It gives you great asset protection. It does this and that.” That all may be true. I’m not a lawyer and can’t give legal advice but people will do it for that reason too and to separate out their assets. There are a lot of reasons to do that.

I live in the State of California. Every single LLC gets taxed $800 every single year. That continues. It’s not like it’s exempt from that because it’s owned by an IRA.

It’s for the privileged. Nobody else has that high tax as an annual fee. That’s another good point. If you think, “I don’t like this $800 in California. I’m going to open a Delaware LLC for my IRA,” you still have to register it in California. You would still pay in Delaware and California.

I found that out the hard way.

Sometimes, it’s worth it to people that do that. A lot of people do that to protect their assets. That’s a great conversation to have with your asset protection attorney.

One of the questions or comments that I get from my ladies is, “I don’t understand it.” When people are confused, they don’t move. They get stuck. Some of this stuff helps us to mitigate that feeling of not knowing. What would you say to people that are hesitating? For instance, my husband is like, “I’m going to keep it all in the 401(k). I understand it. I’m good.” He’s got some rollover money. We were talking about self-directing it. He’s like, “I want to do it this way.” There are a lot of people out there that are like that. They don’t understand it. They are afraid to move everything over or roll it all over. What would you say to those people?

I would say that you probably want to have a return on your investment. You want your money to grow. You take a look and say, “How can I make my money grow?” Let’s say you decide you are going to invest in it. You were like, “Maybe I will throw it out to a private equity like a Reg D offering.” Whether you do it personally or in an IRA, you can still make the same return. If you do it in an IRA, then that return is either tax-free or tax-deferred. That’s one reason to use a self-directed IRA.

Let’s assume you’ve got those two buckets of money, which are personal money and retirement money. If you only have retirement money, you have a different question to ask yourself, “I want to invest in these assets that I know best.” In this case, we are using an example of private equity. You are like, “I know private equity better than the stock market. Do I want to invest in market-correlated assets, or do I want to invest in alternative assets?” We are assuming that those are the assets that you understand and have your head wrapped around.

That’s a different question. Is it the stock market or alternative assets? Are you going to invest personally, with your IRA or with your retirement account? These are questions you need to ask yourself. Where are you going to get the best bang for the buck tax-wise? Sometimes, in real estate, you get the most bang for the buck buying it personally because there are so many write-offs to buying real estate personally. That could be the case but you don’t know if you don’t pencil it out. Meet with your CPA and get some financial advice.

There are some people that would say this, “I don’t want to put my retirement stuff in anything that would be a high risk that I could lose money because that’s my retirement money. I don’t want to risk it with that.” I would love to hear your feedback on this. If you think that there’s a high probability of losing money, it’s probably not a good thing to put in your IRA. It may also not be a good thing to be investing in personally unless it’s your play money or only a certain percentage.

If you are having that conversation with yourself, you might reconsider. I’m super conservative, so if I’m having that conversation with myself, I’m not going to invest it in anything. If I feel like I can invest in it, then it’s something I could do in my IRA. The stock market is not a guarantee, either. People lose money in the stock market every day of the week, unfortunately. It’s not because it’s in the stock market that it’s something that people understand or it’s something where you have quick liquidity. Making decisions with the push of a button doesn’t necessarily mean that it’s protecting your money.

You have to make wise choices about investing, to begin with, and then it’s what vehicle you are going to use, what your tax situation is, and whether your tax benefits are going one way or the other. You want to pencil it out with pros and cons. You can simplify your decision-making process that way.

You have to make wise choices about investing, to begin with. Pencil out the pros and cons; you can simplify your decision-making process that way. Click To Tweet

Kareen, that was so amazing. Thank you much for all that you’ve offered so far in the show. That was awesome.

Thank you. It’s a privilege to be able to share this information so that people can grow their retirement. That’s what we want.

You are so amazing. We all love you. How can people reach you?

The best way is UDirectIra.com, our website. You can click and schedule a consultation. You can read our free report that’s out there to learn about some different asset classes. There is a lot of information there. You can also email us at [email protected]. We will give you a free consultation. We will say, “Tell us about your deal. What are you looking to do?” We will discuss that with you, and then you can make your decisions if that’s the right thing for you.

You also offered earlier that if you go to [email protected], you will give us a list of non-recourse lenders. You could ask for that, too. Thank you for that. I’m excited. We are going to talk at EXTRA about how to do your due diligence on investments that you want to do in your self-directed IRA. Stay tuned for that in EXTRA.

If you are already subscribed, you are going to get it right after this. If you are not and would like to be, go to RealEstateInvestingForWomenExtra.com, and then you can get all that information on doing your due diligence. It’s a little bit different from the way that Kaaren talks about it because she’s talking about it as far as putting it in a self-directed IRA. I’m excited about that conversation.

For those of you that are leaving us, thank you so much for spending this time with Kaaren and me. You know how much I appreciate you. I look forward to seeing you next time. Until then, remember, goals without action are just dreams. Get out there, take action, and create the life your heart deeply desires. I will talk to you soon. Bye.

 

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REW 104 | Private Money

Get Unlimited Private Money With Amy Mahjoory – Real Estate Women

REW 104 | Private Money

 

Raising capital is an important part of starting a business. And private money is one way to get your real estate investments financed. In this episode, we examine how as Moneeka Sawyer deep dives into raising money with real estate investor and educator, Amy Mahjoory. Amy has helped thousands of real estate investors with private money, walking us through each step. From building relationships to crafting your pitch, Amy lets us have a look at her process. Tune in and learn more about building a real estate business right here.

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Watch the episode here

 

Listen to the podcast here

 

Get Unlimited Private Money With Amy Mahjoory – Real Estate Women

The Golden Rule For Raising Capital

I am excited to welcome to the show, Amy Mahjoory. She is a real estate investor and educator, HGTV personality, bestselling author, and keynote speaker. Her life didn’t start in real estate. After fourteen years in Corporate America, she had her fill working for other people. Although she was a highly recognized global leader in procurement, logistics, and operations management for Dell Computers, she decided that a traditional education combined with the false security of a 9:00 to 5:00 was not producing the results she wanted.

Real estate was the game-changer. She has been investing in real estate over the last several years. During that time, she has raised well over $20 million in private money. As a result of her immediate success, she went on to resign from her corporate job to pursue her passion for real estate. Shortly thereafter, she signed a contract with HGTV and began coaching real estate investors all over the country on the same creative rapport and trust-building strategies, systems and scripts that she still uses in her business now. Here is the best part, all of this can be done without having to depend on friends and family members for private money. This is her new passion and focus.

She helps her students transform their minds so that they can feel confident raising private money. She takes the fear out of raising capital and breaks her systems down into a methodical and easy-to-follow system. Her greatest achievements go beyond what she has accomplished herself. Many people become successful in real estate, but her talent is helping others become successful themselves. She has a genuine interest in helping others succeed. Most of her success originates from her streamlined operations and proven systems. She changes people’s lives. Amy, welcome to the show.

How are you? It’s great to be here with that warm welcome.

This is what I love about you. Your bio is so much more about what you’ve done for others. It’s not all about, “I’ve accomplished that,” because you’ve accomplished quite a lot. It’s pretty amazing. Thank you for that. Can you talk a little bit about your story? How did you transition from corporate to entrepreneurship?

Surround yourself with people on a similar path. Believe in yourself, and you will do great things.

My background is very traditional. Like many people out there, I was raised to go to school and get good grades, get a job at a secured stable company, and collect my paycheck for the next 25 years until I retired. The transition for me was easy because once I realized real estate was my new path, I had goals and was committed. I invested in coaching and mentorship. Where it became challenging was the lack of support from my friends and family members, specifically my dad. That’s a whole other conversation.

For me, I’m a product of the system. A lot of people out there can relate to similar situations and losing friendships along the way. It’s always like, “Perseverance will prevail. Keep your head down. Surround yourself with people who are on a similar path. Believe in yourself and you will do great things.” For me, it was an easy transition because I knew I was going to do it. I was committed to doing it.

Some people are committed but they second guess. I love the power of, “I’m committed, even if my dad doesn’t like it.” Many of us are influenced by our families. “People may not like it. It doesn’t matter. I’m doing it.”

Once you know your role and you’re confident in who you are and what you’re doing, it makes that decision-making process so much easier. At the end of the day, I still have to do what’s right for me and my family while respecting my dad, for example. That’s why I believe so much in coaching. The reason I had so much immediate success was because of my coach. If I didn’t know what I was doing, I worked at the corporate for fourteen years, but they helped me with that fast track to success which was cool.

Talk to me a little bit more about overcoming the roadblocks that maybe family and friends put in front of you. A lot of us women are susceptible to that and experience that.

The hard part for me was I’m very sensitive. I wear my heart on my sleeve and I don’t like disappointing my parents, even as an adult. I always seek out my parents’ approval. I want them to be proud of me. They are now. My dad is my biggest cheerleader now. It was very hard for me, more so losing my two best girlfriends during that transition because I was so excited and passionate. I know real estate can be a game-changer for everyone. That’s why I coach and preach it. They didn’t want to hear it. Until this day, I still believe that I drove them away from me.

It was very hard. I cried for years. Even when I speak on stage, I share this example and I get emotional. However, I’ve also learned that friendships are seasonal. People come in and out of our lives for a reason and their purpose was served. I made a bunch of amazing friendships along the way. I never expected my entire inner and outer circle now to be other real estate investors, entrepreneurs and business owners. Our girls’ trips are masterminds. Don’t get me wrong, I still have my OGs. We have fun and go out. It’s just different.

For me, it’s the same way. When I do ladies’ weekend away, we’re ten real estate investors and professionals in that industry. Not a single one of us is an agent. Just because you’re in real estate does not mean that you need to be an agent. I want to emphasize that again. There are a lot of people in the industry that do a lot of this stuff around what we do. It’s so interesting because I remember when I got started with this show, I’m so passionate about real estate anyways, but it’s always been my side hustle. This is what brought me into this fear of learning more about real estate, expanding my own influence, and also my own learning. That’s why I keep going because I learned so much.

REW 104 | Private Money

Private Money: Once you know your role and are confident in who you are and what you’re doing, the decision-making process becomes much easier.

 

Suddenly, I’m having these real estate conversations with all my friends. That’s not what we used to talk about before. People are getting a little bit uncomfortable. I had several friends that were like, “I’m totally inspired by you. I’m going to go get my real estate agent license.” I’m like, “No, that’s not what we’re talking about. We’re not talking about getting another job and not investing and not growing your own wealth, and doing that for other people. We’re talking about this.”

Over and over again, “Don’t get your license. Don’t spend all your time on a license. Go get a mentor, learn to be an investor.” I lost so many friends because they got tired of hearing, “Don’t spend all your time and money becoming an agent,” because I was pretty bullheaded about it. I can see what happens when you spend all that time and money doing that. It does not grow your wealth and freedom. In a lot of cases, it takes away your freedom. Some people want to do that. That’s great, but that’s not the strategy for becoming an investor necessarily. I had the same experience, lots of nights crying because people dumped me.

It’s part of the process and journey. We’re going to have the highs, lows, wins, losses, make money and lose it all. I had this conversation with a girl who was at my LA event. She was like, “I’m going to go get my license,” and I was like, “Why?” She said, “Don’t I need to?” I’m like, “No. Don’t get your license.”

For those of you who may not already know this, there are so many ways where we can still generate referral fees and additional income without being a realtor by referring people to realtors. I always believe in working smarter, not harder. I’m not going to spend time getting a license when I don’t need it to list my own properties. I don’t want to list someone else’s properties because that’s another job to your point.

The other thing is once you have a license, you have to hang it. You’re legally obligated to hang it. You have an obligation now to a broker. That broker is going to have expectations. Every year, you have to do your education to renew and to get your hours. You have to renew your license every four years. It’s been a long time since I had my license, so these numbers may be different and they’re different in different states, but there’s a lot involved in that.

In California and a lot of states, you have to disclose that you’re a realtor, which means you often lose offers because people don’t trust a realtor-buyer sometimes. I found that to be the case for me too. It was a complete hindrance in my business and took all this time and energy. I want to work 4 to 10 hours a month. That was a lot more time and energy that was getting put into my business that wasn’t necessary. Talk to us about your transition to HGTV. How did that happen? What did that do for you?

I did have a goal when I first started to be on TV. I didn’t share it with many people. I wanted my own show. I was in the middle of hiring a virtual assistant. She was 21 years old. I was surprised when she asked me, “What are your short and long-term goals?” I was like, “Who is this girl?” I loved it and appreciated it. I ended up hiring her and I said, “One of my goals is to get on TV,” and by having a voice. I always talk about word of mouth going a very long way. She responds with, “My mom knows a producer at HGTV, would you like an introduction?”

I said, “What show?” She said, “House Hunters,” which many of us know that show. I respectfully declined her offer because I thought to myself, “I don’t want to be on House Hunters. I want my own show.” Two days later, I thought to myself, “Amy, what are you doing? You wrote a book on networking. Get your foot into the door with this lady and see what happens.” That’s what I did. I had a snowball effect. I hit it off. I was on House Hunters. We did a four-part mini-series, but it’s cool because they broke the mold with me.

Everyone you encounter is a prospective private money lender.

In the 12 or 15 years at that time that they had been filming, they had never had an investor on the show. They showed my transition out of Corporate America into real estate on the show. My contractor walked through projects before, during and after. That was cool and it was great for credibility. The relationships, I still have and cherish until this day. I realized I don’t want my own show because it is a lot of work and that’s not a priority for me anymore.

For a long time, I thought I wanted my own show and then I realized there’s this thing. Ladies, this is relevant to you too. How many times are you shooting for something because you think it would be cool? You’re afraid of missing out. You want to have that credibility and whatever it is in your life that you’re looking for that lifts you, but so much that we drive towards is not serving our core values or serving our dreams. This is something that I’m focusing on now on the backside of the pandemic where I’ve been sitting at home for two years. I’ve had so much time to think about, “What is it that makes my heart sing?”

Traveling and speaking, I was gone every single weekend. I remember the year before the pandemic, I was home for six weekends out of the entire year because I was traveling. I miss my husband, my little dog, my family and my life, but I was doing it because it was what was expected, it gave me more credibility, got my voice and message out there, and all of those things, but it wasn’t doing it in a way that supported the bliss of my own life.

As we move forward, I’ve realized, “No, I don’t want a television show. I don’t want to be working that hard. I want to be working hard on the things that are going to reach my goals and are aligned with my own core values and the things that make me happy.” I love that you mentioned that because we can have so many opportunities. Which ones do we choose?

I hear you talking and I hear myself. We were the exact same. That’s the only reason I wrote the book. I wrote this bestselling book because all my friends were writing a book and I’m like, “That’s the next thing to do. I got to beat my friends. I got to be bigger and better.” Now, I love what I do and it’s the only thing I want to do. I’ve cut back on speaking and all these other things. I don’t care anymore. I want to do genuinely what makes me happy, but I also treat it as a business and capitalize on it. How do we do that?

Talk about what you do.

I never thought I would be a nationwide coach showing other investors all over the country how to raise private money. That’s what I do now. I was a leader at Dell, but I was never a manager of people. I was always an individual contributor. When I got into real estate, I never thought I would be hiring a team of twenty people and getting on stage and being on TV. I was super shy growing up. For the first eight years of my real estate career, investors kept saying, “How did you raise all this capital? You must have asked your friends and family.” I was like, “No, it’s the opposite because I’m so stubborn.”

Once they heard that out, they were like, “What list did you buy?” I have never bought a list to target private money lenders. If you have, great. I would love to hear how your experience was. I launched a coaching program a few years ago, once my daughter turned one because I wanted to be a soccer mom. Now, I get to still stay connected with investors all over the country from the comfort of my own home while changing their lives and showing them how to raise capital to get 100% funding for their deals. That’s my main focus now. I’m still an active investor so is my husband, commercial, residential and all that stuff, but now I’m a coach myself and it’s on one topic.

REW 104 | Private Money

Private Money: We just want to do what genuinely makes us happy, but also treat it as a business and capitalize off it.

 

The topic that you focus on specifically is private money. I want you to dive a little bit deeper because the very first time that you and I connected, everything you said was like magic. I was like, “That’s so cool.” That’s why I wanted to bring you on. Tell us a little bit more about the private money angle. I know that the way that you approach it is different. You’re not going after friends and family. At least, in the beginning, you opted out of that.

I still don’t because I’m stubborn. If you guys get out there and you listen to podcasts and read books, you take other coaching programs, the majority, if not every real estate educator out there will say, “Raising capital is easy. Go ask your friends and family members.” What if you don’t want to? What if they’re not supportive? What if they’re not in a position to invest? How do we get out there and build rapport and trust with strangers?

I’m talking about your Uber driver, cashiers at a grocery store, people at airports, church communities, sporting events, happy hour, anyone and everyone you encounter is a perspective private money lender. How do we make those mindset shifts? Start planting seeds to open up those conversations to coffee talks where you get them to ultimately invest with you. What I teach is raising capital from people who aren’t even a part of your inner circle. I have students who want to target their friends and family members, and I show them how to have those conversations as well.

I have taken her online course. It’s phenomenal. Ladies, you know that I will not recommend a course unless I’ve vetted and liked it. Many of you asked me, “Moneeka, if you’re only working 4 to 10 hours a month on your real estate business, what’s all this other time? Why are you always so busy?” First of all, this show takes a huge amount of my time because I want it to be the very best for you, but the other thing is I will not recommend anything to you that I have not been through myself.

I take a lot of coursework, not that I need it. I’m not doing this for me. I’ve got my business, but I do love to learn and I do want to get to know the people that I am doing business and partnering with, so I vet their courses. Over the last few years, I’ve vetted twenty courses and only two that I have recommended. It’s a lot of work that goes into that. I’ve never shared this before, but this is what I do. If I’m going to recommend it to you, I’ve been through it or one of you have been through it.

I meet with some of you and you tell me, “I have this great coach. I’ve got a great program.” That’s how I met Mark Willis. Someone else recommended him to me because they loved working with him. You’ve heard from him a few times. A lot of it is recommendations and coursework. Many times, I’ve done the investing with them before I’ll recommend them. I don’t vet everybody that’s on the show and that we do courses for, but I will tell you if I’ve gone through their coursework and I have with Amy. That allows you to feel a little bit more comfortable about the recommendation. I do want to be clear, I don’t vet everybody on the show.

Some of the people out there who know me or many of you who may not know me, I’m raw, real and direct. I’m very approachable and easy to talk to. I am not scripted. It’s a proven system. It’s stuff that I’ve been doing for many years. I’m tested and fine-tuned. If you are coachable and can follow steps, I’ll hand you everything you need on a silver platter, “Do this, call this person, say that. Call me back when they do this.” You will have success and can raise unlimited capital if that’s aligned with your goals. All of our goals are different.

Having money is a good problem to have.

It’s cool because, with private money, there are endless opportunities. You don’t have to flip or wholesale. Buy five rental properties tomorrow with private money. Start a fund and invest in commercial syndication.  Invest in a multifamily deal. There is so much we can do. I’ve got mortgage brokers and realtors who learn how to raise capital because all they want to do is generate referral fees for their investor clients. Having money is a good problem to have. Let’s educate people on why they should invest with us.

Do you find that when you raise the money, you should have some idea of where it’s going to go before you raise the money? They’re excited about giving you money and then you stalled.

The answer is no, we do not need to have a deal right now. We don’t want to wait until we have a deal. For those of you who are looking for a deal, whatever your strategy is, we want to be looking for deals and raising money at the same time. Even though I’m telling you that you’re going to raise money from your Uber driver, which is what I did and what you can do as well, it is rapport-based lending. We’re building a relationship and developing trust. You can do this in as little as three weeks, but you don’t want to wait until you have a property under contract. You want to be proactive in that skillset.

You’ve told us a little bit about what makes your course different. You’re talking about not going to friends and family, and doing the fundraise simultaneously. There are some other special things about your course.

I know a lot of big and small name educators out there and nobody teaches private money the way I do. No one teaches how to get creative and think outside the box. I have over 54 different creative trust and rapport-building strategies scripts and templates. My course is a done for you system. I give you all twelve of my credibility pieces, all my contracts, and my list of FAQs. What’s cool about the program is the online portion is eight different modules. Each module is built upon the previous one. In order to have success, you want to come and watch the videos, and do the action items in order of priority because it all means to one another.

I don’t guarantee success and I never will. I have a 90-day money-back guarantee because I can and it works if you follow the system. What’s also unique about my program is I give you lifelong access. Not just to your online curriculum which I’m also fine-tuning and tweaking because I’m still an active investor, but you get lifelong coaching with me that does not expire. I’m not going to call you six months later and be like, “Your coaching is expired. Would you like to reinvest?” That’s it. One investment, lifetime access. It’s a no-brainer.

It’s unheard of. While we’re talking about the course and since you ladies already know a little bit about it, Amy and I are doing a few things together for you. We want to do a webinar. We’re calling the webinar Grow and Scale Your Real Estate Empire with Private Money. We’re going to be doing that together so you can meet Amy, ask questions live, and all of that stuff. If you want to join us, go to BlissfulInvestor.com/PMWebinar. The webinar is going to be held on Thursday, April 7th, 2022 from 1:00 to 2:30 Pacific time. Let’s talk about that a little bit more. What are we going to be covering, then I’ll talk more about the coursework.

My webinars are pretty insightful and eye-opening. People are walking away mind blown, which is cool. We have plenty of time in the end for Q and A so I got you. I always keep it simple and to the point. I always focus on three things. Number one, what is private money? Who are we targeting? Who aren’t we targeting? Where is it? Number three, how do we obtain it? How do we get our hands on it?

REW 104 | Private Money

Private Money: Follow proven systems, be coachable, and you will have success.

 

When you understand all three of those points, you can obtain 100% funding for your deals moving forward. This is regardless of your experience, credit, and whether or not you’re doing this part-time or full-time. None of that matters. Follow these proven systems, be coachable, and you will have success. We’ll get into some of those strategies during the webinars, so make sure you guys attend.

Grow and Scale Your Real Estate Empire with Private Money, Thursday, April 7th, 2022, 1:00 to 2:30. Go to BlissfulInvestor.com/PMWebinar. Some of you may be like, “I’m all-in. I want to do the course,” join us for the webinar also. If you want to do that, Amy’s already shared a little bit about the coursework. Do you want to give us a few more details before I give them some links?

One of the first things I have my students do is start building our foundation and getting ready to raise capital as early as module one. One of the key takeaways from module one is what I refer to as our Four-Second Power Pitch. In four seconds, you are going to explain to anyone and everyone, the minute you leave your house, who you are and what you do by dangling that carrot and getting them to ask you more questions about it.

The Four-Second Power Pitch is how I got Larry, a retired physician who was my Uber driver to become my money lender. That’s going to be step one. As we build our foundation, and there are a lot of things that go with building a foundation, how do we start to take action? It’s with your Four-Second Power Pitch. The minute you leave your house, anyone you encounter is a prospective private money lender. What do you say? It’s your Four-Second Power Pitch.

For our ladies that are subscribed to EXTRA, she’s going to give us a Four-Second Power Pitch in EXTRA. In that first module, she’ll be covering that. That’s the foundational building block. That’s where we start. From there, there’s a world of information in the course.

That’s opening up the door to having ongoing conversations with each of your private money lenders. Step two is, how do we take action? How do we find the people to book these coffee talks with? At these coffee talks, what do we even say to them? That’s going to get into all your credibility pieces and all the content that I give you. Don’t worry about what that looks like.

If you are in and ready to go, you can get her course. Go to BlissfulInvestor.com/PrivateMoney. That’s for the full-pay option. Her courses are insanely inexpensive. I can’t believe that she offers all this information for this little amount. It’s a good deal. If you can’t make the full payments right away, you want to do a payment plan, she offers that. She wants to make sure that everybody can get the advantages of this coursework. If you want to do a payment plan, go to BlissfulInvestor.com/PrivateMoneyEasy. Is there anything else you wanted to add?

I don’t think so. It’s a lot of fun. It’s a tight-knit community. It’s like a family. We got each other’s backs. A lot of us develop friendships and end up hanging out outside of our work and coaching environment, but you think about what if you could raise six figures in as little as 21 days. If you can raise six figures, how much more can you raise? What would your business and life look like?

You never know who you’re talking to. You never know who is standing in front of you. Be respectful, and follow the golden rule.

You can sit out there and go read a bunch of books and listen to a hundred podcasts, but why not leverage from my years of experience, lessons learned and mistakes? Stop posting desperately on Facebook groups. I see this all the time. Get the system in place and position yourself as a polished professional poised for aggressive growth. Get out there and do everything you’ve ever dreamed of when it comes to growing your real estate business. You can do it.

That’s the thing. Us real estate investors, what is it that we love? Leverage. Leverage when we’re purchasing and other people’s information. I love that you said it that way. Leverage her years of experience to fast-track yourself. Thank you so much for all that you offered in this part of the show.

It was great being here. Thank you so much for the opportunity to chat with you and your audience. I look forward to coming back.

We got more on EXTRA but before we move on to that, let’s talk about our three Rapid-fire questions. The first one is, what is the super tip on getting started investing in real estate?

Number one is to commit to it and decide that, whether or not it’s for you. Commit and then set your goals up.

What is number two? What is the strategy for being successful in real estate investing?

Once we have our goal, because thoughts expand, number two is to get after it. Get out there and take action. For example, take my Four-Second Power Pitch and start implementing it every single day. Practice it at home. Don’t just sit there and talk about it and do it. That’s why I could do a lot of these implementation workshops. We can sit here and talk about it and take a bunch of notes that you’re going to throw in the garbage, or we can meet up live and start taking action and see results. Just do it.

What is one daily practice that you use that you would say contributes to your personal success?

For me, it was treating anyone and everyone I encounter the minute I leave my house as an equal and specifically private money lender. I have struggled in the past with anger management. I had an anger management journal. I had a very low tolerance for poor customer service regardless of the industry. I’m comfortable saying no. I would go off on people. I would be rude to them if they were rude back.

REW 104 | Private Money

Private Money: Anyone and everyone you encounter, treat them as equals or better yet, target them as private money lenders.

 

Once I decided to commit to being a real estate investor and a business owner, I said to myself, “You can’t talk to people this way. You never know who you’re talking to. You never know who is standing in front of you.” Be respectful, the golden rule from here on out. Anyone and everyone you encounter, treat them as equal and better yet, target them as private money lenders. How do you do that? My Four-Second Power Pitch. Everything is very closely linked to one another.

One of the things is that how we do anything is how we do everything. If you have to improve yourself or your business, you’re improving yourself for your life. That’s what blissful investing is all about. It’s who are you getting to become as you’re building your wealth because that’s the person that you are going to be when you’re wealthy. As you improve yourself, you’re treating people with a little bit more respect or a lot more respect whatever. That’s going to show up in every area of your life.

It’s going to show up in how you bring up your children. Our businesses help us to grow. They help us to become a better version of ourselves. I love that example. Nobody has ever admitted something like that on this show but it’s so amazing. Being vulnerable and allowing people to see that we all grow is a perfect example of that.

Thank you. I had a therapy session. I got personal and professional coaches. I’m like all of you. I’m still an investor and a student. All I’m doing with you is sharing the secrets behind some of my success. I’ve had plenty of failures too. What you choose to do with it is on you. I invite you to consider taking action, invest in coaching whether it’s with me or someone else, and start seeing results sooner than later.

Join us for our webinar. You can get to know Amy more. I always love meeting with you, Ladies. I’m trying to do this once a month. It’s like a community. Let’s get together. Several of you come to every single webinar, so I’m getting to know you. I’m loving that. Again, it’s on Thursday, April 7th, 2022 from 1:00 to 2:30 Pacific time, go to BlissfulInvestor.com/PMWebinar. Come join us for that. We’ve got more.

Stay tuned for EXTRA. We’re going to be talking about the Four-Second Power Pitch. You get that for free if you are subscribed to EXTRA. If you’re not subscribed to EXTRA, but would like to be, this might be the time. Go to RealEstateInvestingForWomenEXTRA.com. You get the first seven days for free. For those of you that are leaving Amy and me now, thank you so much for joining us. I always love spending time with you and I look forward to next time. Until then, remember, goals without action are just dreams. Get out there, take action, and create the life your heart deeply desires. I’ll see you soon.

 

Important Links

 

About Amy Mahjoory

REW 104 | Private MoneyI’m a Real Estate Investor & Educator, Best Selling Author, HGTV Personality & Keynote Speaker who built my business by Networking w/ A Purpose!

I am lucky to be able to travel the country, doing what I want – when I want, with who I want.

After building multiple businesses and through many lessons learned, I am able to enjoy my time coaching and mentoring real estate investors all over the country on how they too can grow and scale their real estate business by CONFIDENTLY raising private money!

The most important concept I teach is that with the right attitude, anything is possible.

I was born and raised in the midwest in one of the tightest families you’ll ever meet!

My mom and her two sisters married my dad and his two brothers before immigrating to America and no, none of it was arranged. They decided to buy homes within three miles of one another which is where they raised all of us! Although I technically have one brother, I always say that I am one of seven since I have five double cousins, we all look the same and we grew up within three miles of one another.

After attending undergrad at Michigan State University, I moved away from home for the first time to Austin, Texas where I landed a job working for Dell Inc. After working in Corporate America for over fourteen years, I was doing well, but felt like my true potential was elsewhere. I was completely burnt out and had no passion for the work I was doing. I knew I needed a change.

During my spare time, I was glued to all of those home renovation shows. I absolutely loved the idea of taking an old dumpy house and turning it into something new and modern!

Although it may have sounded a bit ambitious and even unrealistic, especially since I had no previous knowledge of the real estate market, my mind was set! I was on a brand new mission prepared to learn how I too could learn how to buy, renovate and then sell distressed properties.

In my hunt for quality real estate investing education, I found mentors Than Merrill, Paul Esajian and JD Esajian from A&E’s hit TV show, Flip This House. With their ongoing support, guidance and trust, my very first company was born.

 

 

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