November 25, 2024 • 59 mins
Unlock the secrets of real estate success as Jill Jensen, the Chief Investment Officer at Sonos Capital, shares her remarkable journey from selling door-to-door to leading a nationwide pest control company, and finally finding her niche in real estate investments. Jill's story is one of transformation and insight, offering listeners a chance to learn how the power of private capital can outshine traditional bank loans. With practical advice on building strategic partnerships and utilizing other people's money, Jill reveals the mindset shifts needed to seize real estate opportunities and create lasting financial freedom.
Journey into the world of mobile home parks and discover why private capital is a game-changer in real estate investing. Drawing lessons from industry giants like Pace Morby and Grant Cardone, we explore how to leverage external funds to maximize growth and reduce risk. Jill provides a masterclass on the nuances of private lending versus partnership, and the benefits of syndication and funds, offering a roadmap for newcomers and seasoned investors alike to secure high returns with minimal hassle.
Learn how to captivate investors through the powerful combination of storytelling and urgency. Inspired by public figures like Taylor Swift, Jill emphasizes the importance of creating trust and FOMO (Fear of Missing Out) to encourage investment. This episode is filled with practical tips for engaging with potential investors, understanding their needs, and turning them into partners on your journey to real estate success. Before we sign off, get ready to connect with Jill on Instagram and stay tuned for more insights into the world of private capital in our upcoming episodes.
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Episode Transcript
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Joseph Marohn (00:12):
What up everyone and welcome back to the Real
Estate Unlocked podcast.
I am your host, Joseph Marohn,and today we're going to be
covering arguably one of themost important skills to learn
in your real estate business.
One of the most powerful waysto fund deals no money out of
pocket, a guaranteed way toscale up your real estate empire
(00:34):
.
Today we're going to becovering the topic of raising
private capital.
Raising private capital ismoney not raised from a bank or
a financial institution, butrather an individual investor,
(00:54):
family and friends or a wealthyindividual, Meaning you can
structure your own terms basedon the investment opportunity
presented, as well as thepersonal relationship built with
that private money lender.
Raising private capital forreal estate is vital because the
advantages and opportunities inreal estate are amplified by
simply using other people'smoney.
Now, if raising private capitalis a skill you want to master
(01:17):
and develop, then stay tuned,because we're going to show you
exactly how to structure theseopportunities, where to find
these wealthy individuals andwhy you should no longer be
limited by the amount of capitalthat you currently have in your
bank account.
Now you know how we do it onthe Real Estate Unlocked podcast
(01:38):
.
If we're going to do it, we gotto do it right.
We can't just bring on anyoneto speak about raising private
capital.
We gotta bring on the queen ofraising private capital.
Today, our special guest on thepodcast is Ms Jill Jensen.
Jill is a real estate investorwho, in 2022, skipped single
(02:02):
family homes and jumped directlyinto purchasing mobile home
parks.
Her entrepreneurial journeybegan with her doing
door-to-door sales that led herto start a nationwide pest
control company that generatedmillions of dollars annually.
She is now the Chief InvestmentOfficer at Sonos Capital,
(02:22):
raising capital to invest inlarge mobile home parks,
providing passive incomeopportunities for individuals
seeking to capitalize on theirmoney and building a team of
capital raisers to workalongside her.
Jill joins us today to shareher knowledge and expertise in
raising private capital and willgive us valuable insights on
(02:44):
how you can also start raisingcapital today.
So, without further ado I'vebeen talking long enough,
Everyone if you will, pleaseallow me to formally introduce
to you Jill Jensen.
Jill, what's up?
How are you doing today?
Jill Jensen (03:04):
Joseph, thank you for having me.
I just, I guess I can say, I'mliving the dream out here in
Utah.
Joseph Marohn (03:12):
You absolutely are.
How's everything going with youtoday?
Jill Jensen (03:15):
Good I was.
I've been traveling quite a bitand just got back last week
doing some fly fishing inMontana with some business
partners.
So now back at it Mondaymorning.
I saw that you did a littlefishing with Montana with some
business partners, so now backat it Monday morning.
Joseph Marohn (03:26):
I saw that you did a little fishing with Pace
Morby himself.
How was that?
Jill Jensen (03:31):
It was one of those days when you're on the lake
and it's a work week for otherpeople and I was like this is
why I do what I do, so that Ican have days like this, not
with my phone, in the mountainsfishing with a bunch of people I
do business with, and I guessyou could call that's what's
(03:51):
living the dream.
Joseph Marohn (03:52):
That is, living the dream.
I was a little jealous.
I was watching all the videosand the pictures.
I said, man, I wish I was outthere on that lake right now
with you guys.
Jill Jensen (04:00):
I only caught 18 fish and I was not the top
person, but I'll take it.
Joseph Marohn (04:06):
Oh yeah, You're a professional out there.
Jill Jensen (04:10):
They took us to a good, good lake with a lot of
fish, awesome.
Joseph Marohn (04:15):
Well, jill, welcome to the Real Estate
Unlocked podcast.
We really appreciate yourvaluable time here today.
I know you've been extremelybusy with your latest mobile
home park.
You could be at a million ofother places right now, but you
chose to be here instead andallow us to really pick your
brain on how you're raising allthis private capital and sharing
(04:35):
knowledge with us all on one ofthe most important skills to
learning your real estatebusiness.
So thank you you are verywelcome.
Thank you for having me.
Okay, so for the people thatdon't know who Jill Jensen is,
tell us who you are.
Walk us through that earlyjourney into becoming an
entrepreneur.
What was it that attracted youto real estate and at what point
(04:57):
did you decide this is it.
This is what I want to put allmy focus in.
This is what I want to do,moving forward.
Jill Jensen (05:05):
Well, I asked myself the question what do all
wealthy people have in common?
They hold real estate.
Joseph Marohn (05:14):
And I was like.
Jill Jensen (05:15):
I don't know how to do that, but I'm going to
figure it out.
I became highly successful inthe door-to-door industry
selling pest control, and it'sreally simple.
All I did was found the topsales rep in the company and I
asked him all the questions whatdo you say?
What do you do?
What do you wear?
(05:35):
How do you overcome theobjectives?
What state do I move to?
How do I knock a door?
How do I pick a neighborhood?
How many hours, how many monthsof the year do I knock a door?
How do I pick a neighborhood?
How many hours, how many monthsof the year?
Joseph Marohn (05:51):
All the things.
Jill Jensen (05:53):
I knew if I did the same things, I'm going to have
similar results.
Then I did well, so startedrecruiting other sales reps,
created teams, and then myformer husband and I decided why
are we putting on accounts foranother company?
Let's go start our own pestcontrol company.
So we had hundreds of salesreps putting on accounts for our
(06:14):
company and that's where itkind of clicked with the
residual income, because wewould go service someone's house
every three months, which meansmoney was coming in every three
months without going out andfinding a new client or a new
customer.
After that I got bought out ofthat company and I was left with
(06:36):
some money.
And this was a problem, a goodproblem.
Just how do I get my money,making me money?
And that's where that questioncame into my mind that I just
said what do all wealthy peoplehave in common?
Real estate.
Then it was kind of likethrowing spaghetti on the wall,
(06:57):
because the people in my circleof influence were not in real
estate and I wasn't telling thembecause I didn't want them to
talk me out of it.
I was on the internet, I wassneaking into the local
university because they had anentrepreneur class and they were
teaching about real estateinvesting.
(07:18):
So I was like I just got to gomeet the teachers, I got to get
my foot in the door.
Long story short, I came acrossPace Morby on social media and
it was pretty much instant.
I was like this is the thingI've been manifesting, like this
is the thing I'm looking for.
I joined sub two and then I hadthe same mindset of when I
(07:40):
became successful at pestcontrol.
I need to find the top personlending their money, not someone
who needs my money.
I don't want to learn how tounderwrite, I don't want to find
the deal, I just want my moneymaking me money.
And so, same thing, otherpeople get on the phone and call
(08:04):
sellers all day, and I justcalled sub two students every
day and Pace taught me to asktwo questions, and these two
questions have transformed mybusiness completely and to this
day, I still use these twoquestions.
Joseph Marohn (08:22):
Okay.
Jill Jensen (08:23):
What do you have to offer and what do you need?
Do you have to offer and whatdo you need?
And when I say what do you need, it's also like I asked them
where are you currently in realestate and where do you
ultimately want to be?
Majority people wanted to havepassive income.
I was like perfect.
(08:43):
I got to go solve that problembecause that's what everybody is
wanting Fast forward.
I found someone who was kind oflike my middleman.
People had deals, they broughtthem to him and he did all the
negotiating, the underwriting.
He had the TCs and then came tome and said, hey, this much
(09:05):
money I need for this long, andthe biggest thing was loan to
own.
Don't lend on a deal if you'renot willing to own the worst
case scenario.
I love that the worst casescenario.
(09:28):
I love that.
So, as a person that doesn'tknow how to underwrite or find
deals, still to this day I waslike, okay, how do I overcome
this problem?
It's about being creative andwe over collateralize on all of
our deals and what that means isI'm holding let's say it's a
(09:48):
fix and flip, and they run outof money and the fix and flip
flops.
Well, I was holding collateralon a different property they had
that was cash flowing, so nowI'm able to take over or
foreclose on that home.
And I actually went biggerbecause my collateral was worth
(10:12):
more than my loan.
So for me, my worst casescenario if it happened, it was
pretty secure.
I also had that middleman andhe's getting a part of the deal,
so if we had to, like, acquireour collateral, he's the one
that takes care of it.
So that's kind of how I got inthe door and found out how to
(10:37):
figure out to private money lendmyself, but not having to learn
how to do it all.
Joseph Marohn (10:44):
Yeah, it's amazing because, you know, I
think a lot of people theyovercomplicate things and you're
like I don't need to knoweverything, I just got to go
find the right people and askthe right questions.
And then a lot of people whenthey first get into real estate,
they think, oh, I have to bethe one doing all the phone
calls.
I got to be talking to thesellers, I got to be talking to
the agents and you're likethat's not what I want to be
(11:06):
doing.
You know, like I just want toget into the sub two group.
I want to find these peoplethat need money or need deals
and opportunities, and I'llleverage that and make those
opportunities work.
So that's amazing.
You know, that's a great storyand I really love your
background, your background,doing the right things there.
So, absolutely so.
(11:28):
Something I want to dive intohere is most people understand
when we say we're raisingprivate capital.
They know that we're simplysaying that we are raising money
for some sort of investment,right.
But Jill, you know firsthandthat there's a lot more to it
than that.
Let's talk about it.
What does raising privatecapital mean to you, and what
(11:50):
does that process even look like?
Jill Jensen (11:53):
Raising private capital is just serving and
solving a problem.
For a wealthy person or someonethat has money or a retirement
account, it's as simple asserving or helping someone else
get their money working for them.
Joseph Marohn (12:14):
Awesome.
So can we raise capital for anytype of investment, or what
type of investments are youtypically looking at that will
require raising private capital?
Jill Jensen (12:25):
investments are you typically looking at?
That will require raisingprivate capital.
You can raise capital for justabout anything that you're
working on.
I personally took raisingcapital as a stream to lead me
to real estate.
And my story is what is solvingthe problem for someone else,
(12:47):
and what I mean by that ispeople are like oh, raising
capital can be tricky, it's allin the mind, it's just a mindset
.
And there are so many peoplethat have money or retirement
account or money in a CD that'sjust stagnant, it's just sitting
(13:07):
there, and you're actuallydoing them a disservice by not
providing them an opportunity togo have passive income or
acquire more real estateproperties, or if it's in
something outside of real estate.
I have done a few deals thathave actually been outside of
real estate, but it all cameback to people that I've done
(13:29):
business in within real estate.
Joseph Marohn (13:32):
Yeah, I'm glad you brought that up because I
remember watching one of yourvideos where you were talking
about, you know, having tools ina pile, you know.
Do you remember that?
Can you tell everybody what yousaid in that video?
Jill Jensen (13:45):
I love what you said in there it's the analogy
of someone building a boat witha butter knife and I'm like, hey
, what are you doing?
and they're like I'm building aboat and I'm like, well, there's
a heaping pile of tools next toyou right why aren't you using
the tools and they're like, oh,because I'm just saving it, it's
(14:06):
better to just sit therebecause I might need it for an
emergency one day, or I mightneed it to build something, but
not right now.
And so it's the analogy of Ihave money sitting in a bank
account, I have money sittingsomewhere for something someday,
but I don't want to use it yet.
Joseph Marohn (14:27):
You know that's so funny because I think a lot
of people think like that, youknow, and like even me, like I'm
guilty, you know, coming intothis business when I would find
deals that I wanted to hold onto my business partner and I
would just use our own capitalto fund entry fees, renovations
and furnishings or whatever wehad.
You know, lack of knowledge orexperience of you know why would
(14:49):
we borrow money at 10 to 12%,you know, when we could just
fund it ourselves with our owncapital, right so, which made a
lot of sense then.
But knowing what I know now, Ijust can't stop thinking about
all the missed opportunities andmoney I've left on the table.
The compound effect of lendingis nuts.
Now someone might say, well, Idon't understand.
That is smart.
(15:10):
Why would you borrow someoneelse's money and pay interest
when you could just use your ownand not pay any interest?
Jill you mind explaining toeveryone why I was actually
losing money and opportunitieswith this mindset?
Jill Jensen (15:22):
You were thinking small.
Absolutely, you were looking atwhat's right in front of you
Pace Morby, grant Cardone, codySanchez.
They're not using their ownmoney.
Why?
Because they're thinking muchbigger.
If you want to think big, justlook at the people and follow
what they're doing.
Okay, yeah, pace could go usehis own money, but why is he
(15:45):
doing it that way?
Maybe I don't need to figureout all the answers.
I'm just going to go model whatsomeone else successful has
already done.
Joseph Marohn (15:55):
I know it's so funny and you're absolutely
right.
I was thinking small becausewhen I first came in I'm like I
don't get it.
Like these people have money.
Why are they using otherpeople's money?
You know they have their own.
But yeah, I realized after thatmy money is it could be making
way more.
Instead of tying it into oneproject, I can put it in
something else, another vehicle,that will make me a larger
(16:18):
return on my money.
So it took a little while forme to wrap my mind around that,
but absolutely.
Jill Jensen (16:23):
And that's exactly where I was and I still am.
I have money in my own fund, Ihave money in partnering in
smaller mobile home parks andI'm also a private money lender
in other areas also because Ilike doing some of it, I like
being active and being in otherpeople's deals and for me it's
(16:47):
also being strategic, becauseyou reap what you sow, and if I
can serve someone else in theirdeal and I know that they're
financially stable guess what?
They might need some taxadvantages or they might need an
opportunity, or they might knowsomeone that's accredited, and
then they'll be one of myinvestors.
Joseph Marohn (17:07):
Absolutely Now, let's say, somebody is watching
this podcast today and they findthis topic very interesting and
they want to start raisingcapital too.
How do they jump into the pool?
Are they just going to localmeetups and networking?
Are they reaching out to peopleon social media, or are they
just waiting for Thanksgivingdinner to come around so they
can hit up big money?
Uncle Louie, what are some ofthe first steps to finding these
(17:30):
wealthy individuals?
Jill Jensen (17:32):
First of all, it's finding the person with the
deals.
Your reputation is on the linebecause if a deal goes south,
that lender is going to look atyou, not the person that's using
or leveraging that money.
Your reputation is also on theline if it goes well, because
(17:54):
people love to talk about howthey're making money and then
their friends are like I wentone in on that too.
So for me personally, the firstthing I did was I was in a
position to lend my money, so Ilearned what it was like to be
in the shoes of an investor.
So, asking an investor okay,like myself, what are the things
(18:19):
you're looking for?
What are the things you'renervous about?
Then it's about finding thedeal, because what are you
raising capital for?
You can go find money, but whywould they trust you?
What do you need?
What are my returns?
It's more about who, notfiguring out how In my case, I
(18:39):
partnered with someone whoalready had established a fund
and a process, something that Ifelt highly confident in the
person and how they're acquiringtheir deals.
Then it was just reverseengineering and figuring out how
much money do you want to raise?
How much money do I need forthat deal?
(19:02):
Okay, I need to go raise $2million on my first deal.
Now, how many people is thatgoing to take?
Okay, that's four people athalf a million dollars.
Or let's say I want to raise amillion dollars in a month.
I'm like, okay, that's fourpeople at 250K.
Okay, or 10 people at 100K, ifI'm raising a million in a month
(19:25):
.
Now, where do I find thosepeople?
I need accredited investors,and accredited investor is
someone who has a net worth ofover a million dollars, or they
make over $200,000 in a year.
Now I'm going to take it onestep further.
(19:52):
How do I get in rooms withthose types of people?
I'm going to real estatenetworking events.
I'm getting in real estategroups.
And here's something huge thatI learned at a place called
Raise Fest.
A gentleman got on stage and hesaid people have avatars in all
(20:19):
these different areas of realestate, and what he was
referring to was someone doesfix and flip, Someone else does
mobile home parks, someone is awholesaler, and they all get
good at their one avenue.
And he was teaching us how toraise money and he said this
(20:44):
find your avatar investor.
You can go acquire all thesedifferent types of properties or
you can get really good at one.
You can go raise capital fromall these different types of
people, or you can find oneavenue of people you know that
have money.
Now I'm going to give you someexamples of those people Someone
(21:05):
that helps people with theirretirement accounts.
Okay, I'm going to justunderstand retirement accounts,
how to speak that language, postabout it on social media and
that's just what you're going tohit on the head over and over
and over.
Talk about retirement accounts.
You're going to go toconferences about retirement
accounts.
You're going to go to thesedinners for retirement accounts.
(21:27):
You're going to become friendswith people who help people with
their self-directed accounts,because there's trillions of
dollars in that one area.
Okay, there was a gentleman.
He got on stage and he was apre.
Previously he was a dentist andnow he's a full-time real
(21:47):
estate investor.
His avatar is other dentists,because you can relate to them
and say hey, look, I was in yourshoes.
I was working nine to five, Iwas a dentist making money.
Here's what I was doing with mymoney.
I can help you.
Okay, I have someone else who'sin life insurance these whole
(22:08):
life policies in the cash valueaccount on your infinite banking
.
Now where do I put it?
Or are you going to work withaccountants?
I personally work with investorgroups that's my avatar People
who that are already investingand my oh wait, go ahead.
Joseph Marohn (22:29):
No, no, I was just going to say, you know, I
was just thinking about it rightnow because I know somebody
listening to this and be like,okay, that's great.
You know you're showing uswhere to find these individuals
that have the money, but youknow where do you find these
opportunities?
And I and you also touched onthe on the fact about avatars.
So I think anyone, no matterwhat your avatar is, can benefit
from raising private capital.
(22:50):
I don't care if you're awholesaler, fix and flipper,
realtor, buy and hold investor,whatever.
Raising private capital is apowerful skill.
To understand why?
Because everyone in thisbusiness needs money.
If you have access to thosefunds at your disposal, deals
and opportunities will come toyou.
You don't need to go out thereand find them, because you have
(23:10):
the keys to a door that everyoneis trying to open.
Jill Jensen (23:20):
Totally.
And I also think, if you'regoing to think bigger, it's
partnering with someone thatfocuses on raising capital.
People are trying to do dealsand also raising capital where
it's like, hey look, let'spartner, let's JV on this thing.
I'm going to focus on raisingcapital, you focus on the deals.
Joseph Marohn (23:42):
I like that.
That's great, all right, so youknow one of the what are the
advantage advantages of usingprivate capital for real estate
investments compared to othertypes of funding, like why not
just use a bank or get a hardmoney loan?
Jill Jensen (23:50):
There's more leverage working with
individuals than going straightto the bank and you can close
quickly.
You don't have to get qualifiedand some of the deals are short
term.
I only need money for threemonths.
I only need a month for the 30days where the bank is like.
(24:11):
That's a process and being ableto raise money quickly by
leveraging people who arealready seeing the value in
lending in private money lending.
Joseph Marohn (24:22):
And not only that , you can also negotiate your
own terms, right when a bank hastheir set terms that you have
to you know accept or you knowdecline Whereas if you have a
private money lender of somesort that you've built a good
relationship with, the terms canbe negotiated just based off
your relationship alone.
Totally Now.
(24:43):
So why would an individualchoose to invest their private
capital in real estate projects?
What are the benefits for them?
Jill Jensen (24:50):
Here's the thing when it comes to lending,
there's two different avenues.
Well, there's more, but in mycase it was first being a
private money lender.
I was getting high returns.
I can get money quickly and Ican take advantage of not having
to wait a long time to see mymoney or my returns come back.
(25:10):
Another avenue is being aprivate money partner and
investing in real estate deals.
You can get equity on thesedeals.
So an example of mine was andthis is coming from a private
money lenders my situation, andit helps being able to talk to
(25:33):
lenders to understand theirstory of what's going on in
their head and why would thislender?
I want to learn from peoplelike go ask questions to people
that are lending their money.
Be like what are your deals?
What are you doing?
Why did you pick that?
Because all you have to do isovercome the story that the
(25:56):
investor is telling themselves.
Joseph Marohn (25:59):
I like that.
Jill Jensen (26:01):
It's not about your agenda and it's not about your
deal.
It's about whatever's going onin their head.
Joseph Marohn (26:09):
I think that's the secret sauce right there.
Jill Jensen (26:13):
I'll give you an example.
In the same week I raised$100,000 from two different
people.
It was about 48 hours and whenI go through, it's called a
pitch deck or an investor deck.
When I have a project or aproperty, I have a PowerPoint
and I go through it with themand I go through why?
Mobile home parks, this iswhere I'm going to be spending
(26:35):
the money, these are yourreturns, this is the time frame
and so forth.
These two different individuals,the way I pitched them in 45
minutes was completely differenton the exact same deal and they
both invested.
Why?
Because the first individualwas a gentleman who had lent his
(26:58):
money over 10 times.
He wanted to know the numbers,he wanted to know the time frame
and he wanted to know hissecurity.
Awesome, he already understandsreal estate.
He was in.
Another woman saw me postsomething on social media and
said hey, you said somethingabout a cash value account in a
(27:19):
real, in a whole life policy.
My husband has an account, butI don't know how to use it and
I've never lent on somethinglike this before.
So her story I'm not going tobe using the jargon and the
terminology I used with thefirst guy.
Joseph Marohn (27:35):
Right.
Jill Jensen (27:36):
I needed to overcome her concerns of being
like hey, I actually know how touse the life insurance policies
because I'm actually a licensedlife insurance agent, so I
guide you through how to do thatpart.
These are the reasons why I'minvesting.
I was just like you.
I had a problem of having money.
(27:59):
I didn't know how to get itworking for me, and this is how
I went and I basically figuredit out for us.
I'm just going to guide youthrough it.
Okay, this is how you're goingto sign the documents.
We're going to go through it onthe phone.
This is how you wire your money.
I'm going to help you becomeaccredited because I have a
third party.
(28:20):
And then, after you invest,this is what happens.
You're going to get monthlyupdates.
I'm going to send you an emailif you're around and you want to
see the park, overcoming all ofthe process and the steps for
this woman of what it looks liketoday, why we're using mobile
home parks or leveraging them inreal estate, how you literally
(28:43):
wire your money.
And then what happens after yourmoney.
And overcoming being like I'mgoing to hold your hand, I'm not
going to disappear.
She's like what's worst casescenario?
I'm going to invest a hundredthousand dollars.
But like, remember how I waslike, if you can loan to own, if
you're okay, lending on worstcase scenario, and that way I
(29:05):
was able to overcome that wasthis thing has been cash flowing
since before I was born, soit's only uphill from here.
We are only going to find dealsthat are increasing value from
where they are.
We're not going to go negativebefore we go up.
So then she was like okay, youovercame my concern, I'll at
(29:26):
least get my money back.
And so it's all aboutovercoming what they're thinking
, not you.
So it's all about overcomingwhat they're thinking, not you.
Joseph Marohn (29:35):
Yeah, I love that because you're putting yourself
in their shoes and you're like,hey look, I was in the same
situation and now this is whatI'm doing.
Let me show you how I do it,Let me hold your hand through
the process and then that reallyjust eases up their, their
biggest concerns.
Right, Because they're I meanthey may still have their, their
concerns of it up their biggestconcerns.
(29:55):
Right, Because they're I meanthey may still have their
concerns of it, but you know,you walking them through that
and holding their hand, it justmakes them feel a lot more
secure than they originally didand you're speaking their
language, right.
So now something I was justthinking about, like, as you're
securing these funds, are youputting them in an account or
are you just keeping the fundson standby?
Jill Jensen (30:11):
That's a great question.
A lot of people do what'scalled a syndication and they go
find a deal and then they raisecapital and they're trying to
raise capital quickly beforethey close on the property.
My position is with a companycalled Sonos Capital and it's a
fund, and a fund is where youcan raise capital and have it
(30:35):
sitting in a bank account andit's ready to go.
So when you find a deal, youcan close on it fast.
You have leverage over someonethat's doing a syndication,
trying to raise capital.
I'm able to just take down thedeal.
It's also more secure becausewhen you're doing a syndication
(30:55):
deal, a lot of times you'recreating an LLC with other
people.
You're sending JV agreementsthrough email where, in our case
, you have to work with the SEC.
There's a lot of legalitiesbehind it, but it's much more
secure when you're placing yourmoney in a fund.
So, personally, we have aninvestor portal.
(31:17):
They're able to log on and fillout their information From
there.
All of the documents are inthere that they're going to sign
.
They upload an accreditationform they need to be accredited
investors and then it has thewiring instructions In their
investor portal.
They're able to log on at anytime and we do ACH transactions,
(31:41):
so we just deposit everyquarter into their bank account.
On this portal they're able topull it up, see every time
they've been paid.
Their K-1 is in there.
Other investment opportunitiespop up and then I always just
make sure that I'm constantlyfollowing up and keeping that
connection with my investors.
Joseph Marohn (32:03):
Now, are you only working with accredited
investors?
Do you ever work withnon-accredited?
Because I'm just thinking like,let's say, someone's not at
that level to get to anaccredited level, but they want
to start investing.
Do you have any recommendationsfor them on how they can get
rolling?
Jill Jensen (32:20):
Perfect.
I find, like I mentioned before, highly successful people that
are lending their own money andpartnering with them, saying hey
, if I bring $100,000 becauseI'm not accredited to the deals
that you're doing, I'll share.
I'll give you a piece of mypercentage because I'm trusting
(32:41):
someone that's doing this withtheir own money.
I personally have people cometo me all the time wanting to
invest that aren't accredited,and so if someone is interested,
I personally have people that Irefer them to.
Once again, my reputation is onthe line, and so I will only
refer people that I have donebusiness with personally and
(33:04):
gotten my funds back.
Joseph Marohn (33:06):
Great, and so, as we all know, there's risk with
any type of investment.
I know we touched a little biton that earlier, but my question
is how are we mitigating theserisks?
What are we doing to protectour investors?
Are there contracts in place,lien positions?
Talk to us about that.
Jill Jensen (33:24):
I mentioned a few of the things that I do.
You definitely have differenttype of JV agreements.
You want to work with TCs ortransition coordinators, the
legal documents.
If you need an attorneyinvolved that can oversee the
documents that you're signing sothat if someone's late on their
payments, what's going tohappen, when is your time frame,
(33:46):
what is your collateral, whatis your worst case scenario.
All of those things need to bedocumented and signed before any
lending happens.
Also, you do not want to wiremoney to an individual.
It needs to go through a titlecompany or an attorney,
depending upon the deal or howyou're lending your money.
Joseph Marohn (34:11):
Okay, are there any legal considerations that
investors need to be aware ofwhen raising private capital?
Jill Jensen (34:17):
I think you need to work those out with your
attorney or who you've beenworking with, because every
situation is different.
Joseph Marohn (34:26):
Right.
Jill Jensen (34:26):
And a big part of it comes down to the documents
and the paperwork and makingsure you're doing your due
diligence on the person, andthat's why I go back to who are
the people that have been doingthis a while and their process.
Also asking people that havelent money to them.
(34:46):
I need some referrals on.
Who's worked with you before isanother avenue that I've gone
down.
Joseph Marohn (34:54):
Yeah, great response there.
Now, Jill, how important arerelationships in the private
capital world and what are someeffective strategies you use to
build these relationships?
Jill Jensen (35:06):
I am all about business and I can build.
It's interesting because peopleare like you got to nourish
these relationships and you gotto build friendships, so people
trust you, and I actually amlike, hey, I'm down to business.
I want to know what you'redoing in real estate, where
you're going and why you want toget there.
(35:26):
We can talk about our friendsand our families later, but what
is your process?
And that's just how Ipersonally work, where I'm like
I want to see how serious youare with your numbers and your
strategies and my businesspartner the reason why I joined
Sonos Capital was because of howstrategic he is and we jumped
(35:49):
into business being like, okay,look, he is a dealer for mobile
homes.
The reason this is a big deal isbecause he can get these houses
at wholesale.
He can get them at significantdiscount.
He had to go take a test, hehad to do all of these things
and it's so when we bring inthese homes, we're getting them
(36:11):
at a discount.
We put in 40 homes on thisproperty we just closed on and
we're selling them at cost,which means we're going to be
able to sell them faster, whichmeans we're going to be
acquiring rent on our pad evenquicker, which means we're going
to just be cash flowing evenmore.
He's a board member foraffordable housing in Arizona
(36:36):
and that's where we're currentlypurchasing mobile homes.
So people are coming to himtrying to get approved for
different affordable housingprojects in the state we're
buying, which means he knows alot of information that a lot of
other investors don't.
He knows where big box storesare coming in, where's Walmart,
(36:58):
where are job opportunitiespopping up.
So he's very strategic and it'sbecause he talked a lot about
okay, this is why I'm doing whatI'm doing.
And then from there I got toknow him as an individual.
I'm like what are your morals,what are your values?
What do you?
What is your life like?
(37:19):
What?
How do you, you know, presentyourself, who do you associate
with?
Um?
And so mine stemmed from howare you doing business?
And then let's get to know eachother on a personal level,
where a lot of people are like,hey, let's become friends, um.
But I personally am like, hey,let's get to the point and then
see if this is a good fit.
Joseph Marohn (37:39):
Yeah, I like that because you know, instead of
being on the phone, you know,hey, how's your day going?
You're kind of like, hey, look,this is what we do with our
business.
I'll let that build thecredibility with you and then,
as we start working together,then we'll become friends.
Jill Jensen (37:53):
Totally.
And that's as a woman.
So women raising capital, menget confused when you're like
overly nice.
They're like is this girl intome?
Like what's?
Joseph Marohn (38:03):
going on.
Jill Jensen (38:04):
It's just human nature.
That's why, every time I get ona call, I also do this thing
called hold the frame.
You want to stay in control ofthe conversations because it
gives you authority and theyrespect you more.
When I get on a call, I say,hey, I have 45 minutes, I have
another call and so let's jumpinto it.
(38:26):
I want to know where you are inreal estate and where you
ultimately want to be.
I'm going to tell you what I'mdoing and then we're going to
see if we can collaborate.
If not, let's refer each otherto someone else we know Ready Go
.
Joseph Marohn (38:40):
I love that Straight down to business.
I know, and it's true, I thinkthey'll respect that a lot more.
I'm sure they do.
Jill Jensen (38:48):
Yeah, it's worked so well so far.
Joseph Marohn (38:51):
Now, I'm not sure if you experienced this yet,
but let's say, the deal doesn'tgo as planned or, even worse,
you end up taking a loss and nowyou're having a difficult time
to pay back your lender.
It happens.
What's your backup plan?
How do you pivot?
Jill Jensen (39:04):
Mine.
I haven't lost a dollar yet.
Perfect and like I said, I tookmy time.
Pace taught me I'd rather youpass on a hundred deals before
you do one, and it came down tothe person and their process.
Remember how I told you how Ihave a middleman who's been
doing this for years.
(39:24):
He's kind of my lifeline.
I don't know much about mydeals as a lender, he's the one
taking care of those things andit's interesting because now I'm
that middleman for my investors.
Now I know what it's like to beon one side, being like I just
(39:50):
want my money making me moneyand not have to worry about it.
I went and found the person andhe.
One of the ways is we leverage,having timeframes, so let's
just take a fix and flip.
You don't?
It's hard to say exactly whenyou're going to get your money
back.
Contractors don't show up,things get prolonged.
(40:13):
You know there's unknowns.
So how I've done that is I willlend you $125,000 at 13% for
three months.
If it takes four months, it's14%.
If it takes five months, it's15%.
Joseph Marohn (40:30):
Every day after that there's a late fee for a
month Every day after thatthere's a late fee for a month
and by six months I'm acquiringyour, my collateral.
(40:50):
So there's this buffer on thetime frame, but there's also
kind of consequences.
So we're communicating to theseprivate capital sources, but
when you're speaking to them,what kind of information are
these investors typicallyinterested in?
What kind of terms are theyasking about?
Can you run us through some ofthose type of questions?
Jill Jensen (41:09):
That is a perfect question, because every person
is in a different spot.
You're going to have people whowant quick turnarounds and high
returns, where someone with aretirement account they're like,
okay, it's in there for fiveyears, what do I do after the
five years?
And I'm like I'll have anotherdeal, we'll just put it in
(41:29):
another, in another deal.
I personally, when I startedout, I didn't need a high return
because I was just trying tolearn the ropes.
I'm like, look, eight, 10%,that's more than double than
what's in my CD and if my deal'ssecure, awesome, okay.
Last week I did a deal and itwas 18%.
Cool, I'm 10% higher than I waswhen I started.
(41:53):
So I'm going in the rightdirection.
So it kind of depends upon yourcaliber of like, your risk and
tolerance too.
Joseph Marohn (42:06):
And I know you're really good at raising private
capital.
Can you give us an example oflike a pitch that you typically
do?
Not to put you on the spot oranything, but I just think
people can really learn fromyour skillset here.
Jill Jensen (42:17):
This is like my favorite part.
Remember how I talked aboutbeing the guide First.
It's about telling your storyand how you are going to help
them.
Joseph Marohn (42:29):
So, myself.
Jill Jensen (42:30):
I'm like look, this is my problem.
You want to talk a lot aboutproblems and they were my
problems, but I know they're thesame problems that they're
having, so I'm using my problemsat what I know their story is.
Joseph Marohn (42:49):
Right, that makes sense.
Jill Jensen (42:51):
And so then they're like oh my gosh, I can totally
relate to you.
I was like I had money and Ididn't know what to do with it.
Here's the process I wentthrough.
Now I'm building credibility intheir head of okay, why should
I trust this person?
And it's because I said I wentout and I found the right people
.
Basically, I just told them youfound the right person because
(43:13):
I went and did the work for us.
And then I show them I gothrough an investor deck.
Let's just jump on a call.
I'm going to go through thedeck.
I explain why I'm pickingmobile home parks.
I elevate my team.
I want to be on the same pageas them.
I'm their friend.
If you notice Pace Morby whenhe speaks, do you ever see him
(43:37):
on the stand or do you see him?
Joseph Marohn (43:41):
walking around, he's walking the room and he's
just like pointing people out,he's telling like life stories
about them.
It's amazing like that that manhas the greatest memory.
I can't even remember likesomeone's name like 10 minutes
ago, let alone a backstory onhim no, that's right.
Jill Jensen (43:56):
So grant cardone, he's on stage.
Did anyone see him after?
Has anyone ever talked to him?
Joseph Marohn (44:03):
no, he was gone on and shit does he have a
community of people?
Jill Jensen (44:07):
does he have people that trust him as much?
Another example taylor swift.
You feel like she's the girlnext door.
You feel like she's your bestfriend.
She interacts with the people,her fans, where beyonce is just
on stage and then she bounces.
Joseph Marohn (44:23):
Yeah.
Jill Jensen (44:23):
Just notice how people are interacting.
So it's like becoming friendson their level, not trying to be
better at them and looking atthem of okay, this is how I'm
going to make money off of you,but this is how I'm going to
help you solve your problem andgetting your money, making you
money.
I want to be very direct onwhat I'm doing with the money.
(44:47):
The more you can show them ofbeing like, this is how much
this thing is cash flowing.
This is our projections and whyand how we got those
projections.
Let me show you the comps.
Let me show you how far away ahospital and a Walmart is.
We did test ads on how quicklyare these mobile homes
(45:09):
themselves going to sell.
Well, we put out an ad thatsaid mobile home for sale,
$72,000 in this area.
How many people were calling?
We were getting 21 calls in aweek, four to six people that
were qualifying.
So now we're able to calculateokay, this is going to take
about two to three years to sell40 homes.
(45:31):
Because of the research we did,the strategies behind it, I'm
elevating my team and then Igive them exactly what they're
going to get.
People are like just tell mewhat it is and I show them if
you invest $100,000 on this dealover five years, you will
(45:52):
profit $239,000.
We pay quarterly distributions.
So I show them by the end ofyear one you'll get paid 9,000.
The end of year two, you'llmake 20,000.
End of year three, we refinance.
I'm just creating them thestory of exactly the steps of
(46:12):
what's going to happen.
People don't like to be soldbut they want to buy and they
hate FOMO and the fear ofmissing out and I'm going to
explain at the end exactly howto get that.
But it's the tipping point atthe end because people can get
through the deck or theiropportunity.
(46:35):
But then how do I get them towire money?
Like there's just that gap.
Like, do you want the deal?
Are you interested?
I'm just following up is theworst line you can say.
Don't say I'm just following up, sorry.
Joseph Marohn (46:46):
Yeah, I like, no, I like the fact that you're
laying it all out of them, outfor them, because you're
removing the unknown, right,they actually get to see these
numbers, they get to see whattheir returns are going to be.
Then you kind of talk aboutcreating FOMO, which is a great
way of doing it, because youknow some people.
They may walk up to somebodyand they're like hey, you know,
would you mind lending 100 grandon this, on this deal, where
(47:10):
instead you're probablyrestructuring the way you say
that and you're like, hey, look,I got this awesome opportunity.
This is how you're going tomake this much money.
This is what's going to be likeyear one, two, three and four,
and you don't want to miss outon this opportunity.
Is that kind of like whatyou're doing?
Jill Jensen (47:24):
Yeah, are you ready for that tipping point at the?
Joseph Marohn (47:26):
end.
I'm ready for it.
Jill Jensen (47:28):
I do this every time and I say the same words.
I go through the deck, I showthem these are the tax
advantages you're going to get.
You invest a hundred K.
Over the five years, you'regoing to be able to write off
122 K.
So I'm creating the story ofyou're an investor.
You're going to have taxes.
This is how we are going tosolve your problem, which means
(47:50):
I want them to be the hero oftheir own story.
I'm not.
They are here.
It is the very end.
I say let me just show you howit works.
And then that's when I gothrough the process of what
happens with signing thedocuments.
This is what happens.
(48:11):
And I pull up our website.
You log on to SonosCapitalcom,click join now.
You're gonna fill out theinformation.
We're gonna jump on a call.
I'm gonna walk you through thedocuments, upload the
accreditation form and wire yourfunds From here.
You're going to get quarterlydistributions, you're going to
(48:32):
get a quarterly update and youcan come visit the park whenever
you desire.
Then they say this here it is.
I'm going to send you thisinformation, this pitch deck and
our website.
I'm going to give you 24 hoursto send me all of your questions
, but I need an answer in 48hours because I got to finish
raising the capital, so I needto know if you're in or not.
Joseph Marohn (48:55):
Damn, that's good they're like.
No, I don't want to miss thisopportunity.
Jill Jensen (48:59):
But I'm not going to sell you on it.
I don't need your money.
Joseph Marohn (49:02):
Right, I don't need you.
Jill Jensen (49:03):
But I'm not going to sell you on it.
I don't need your money, right,I don't need you, but here's an
awesome opportunity that I justexplained to you.
They also don't want to be sold, so here's the information.
You go, make a decision, sendme your questions.
I just need an answer in 48hours.
Does that work?
Great Talk to you in two days.
Joseph Marohn (49:21):
Now you reversed it.
Jill Jensen (49:24):
Now it's almost like they need you, yeah.
And then they have 24 hours,because people always say let me
just think about it.
Joseph Marohn (49:35):
Well, let me think about it.
Jill Jensen (49:40):
Yeah, it takes out the procrastination of it.
And yeah, that's awesome.
Thanks for sharing that.
I'm giving them permission togo think about it here.
Go think about it 24 hours.
Send me all your hard questions.
I just need to know in 48 hoursbecause I got to finish raising
the capital.
Joseph Marohn (49:50):
Yeah, you got to be careful, because now people
are going to start using yourline here.
Jill Jensen (49:53):
It works.
And then guess what?
Do you want to know the bestpart about this?
Joseph Marohn (49:58):
What's that when?
Jill Jensen (49:58):
I was at Raise Fest and the gentleman was talking
about finding your avatar of whoyou want to raise capital from.
Here's where Jill'sentrepreneur brain goes.
As soon as I figured out whatmine was, my second thought was
I'm going to go find 10 avatarsto raise capital for me.
Avatars to raise capital for me.
(50:20):
I'm going to go find 10 peoplethat have those network of
people and I'm going to justclone myself.
I can raise a million in amonth.
I'm going to go find 10 peoplethat can also raise a million
dollars in a month.
So then guess how much moneyI'm raising in a year?
120 million, and that's justbecause I found people who can
(50:45):
have that avatar.
So, like right now I havesomeone that works on retirement
accounts.
I have another gentleman that'sinterested and all he does is
train pilots, and I was like ohcool, you're just sitting next
to people who have a lot ofmoney, kind of like the guy
that's a dentist.
Someone else is a fishermanwith other rich fishermen.
Joseph Marohn (51:03):
Someone else is on the golf course with all
these retired gentlemen thatgolf, like all these random
avatars of people that havethese networks it's funny you
say that because I was watchinga video where pace was talking
about he thought he had to goand find all these rich people
at the golf course and so he gota golf membership and he said
(51:31):
10 years later he has neverfound one person to raise money
on that.
Jill Jensen (51:33):
but he became a better golfer and it's the
person that has the group ofpeople that they all already
golf with.
Joseph Marohn (51:39):
Right oh.
Jill Jensen (51:40):
I'm the guy that goes with the people.
Or here's another one MLMs, howthey have.
Go find some of the people thatare at the top of doTERRA or
these door-to-door companies, orsomeone at the top that has a
group of followers that havemoney.
Joseph Marohn (52:02):
Yeah, that's awesome.
Now, is there ever a pointwhere you're looking for a
private money partner ratherthan a loan?
Jill Jensen (52:09):
Well, when you become an LP in our group, in
our fund, you're becoming apartner, you are acquiring this
property with us and so you'regetting.
You get tax advantages, notjust interest returns.
(52:31):
So it's like, okay, I'm apartner in this fund and now,
like I mentioned, you invest$100,000.
And on our last deal you'll beable to write off 122.
And so that was a problem forme that I had to overcome,
because as a private moneylender, you get hit with taxes
if you don't hold assets.
(52:52):
Where a mobile home parkdepreciates over 15 years, where
a single family home, it's 27.
And in year one we can do abonus depreciation and we share
that with our LPs just thepeople who are lending so
they're able to write off ontheir taxes, yet they don't have
(53:15):
to do anything with the parkitself.
Joseph Marohn (53:18):
That's awesome.
Now, Jill, are there any books,courses or videos you could
recommend for someone who wantsto learn more about this?
Jill Jensen (53:26):
Yes, great question .
First, who, not how, find thepeople who already know how to
do it.
And then another line that Ilike after that is it's not who
you know, but who knows you.
I love that it's about yourself.
A book, I would suggest PitchAnything, and that helps teach
(53:52):
you what I was kind ofexplaining about holding the
frame and staying in control ofthe conversation with you and
the potential investor.
Joseph Marohn (53:59):
There's also another book.
I forget the author off the topof my head, but it's called
Raising Private Capital, justRaising Private Capital.
Do you know who the author is,by the way?
On that I don't.
Yeah, that's a book I've seenPace recommend and I know he had
the gentleman on his podcast.
I just can't think of the nameoff the top of the head.
But yeah, great, great advicethere.
And then, lastly, I guess couldyou just share like a case
(54:23):
study or an example whereprivate capital was successfully
raised for one of your realestate projects.
Jill Jensen (54:29):
Yes, I was able to raise $2 million for our last
mobile home park.
The gentleman was 84.
He was just ready to retire.
We were able to get it onseller finance 84.
He was just ready to retire.
We were able to get it onseller finance.
So our down payment was prettylow and the capital that I was
raising was to update theamenities and bring in new homes
(54:51):
.
And what I love about ourcompany is we are also genuinely
solving a problem foraffordable housing, being able
to sell these homes at cost.
We're not trying to make moneyoff of the homes themselves and
there's a high demand for it,which is also a selling point
for my investors of mobile homeparks.
(55:12):
There's a high demand and whenwe are not taking care of the
homes which means no tenants, notoilets, no termites that means
low overhead.
Average person stays in amobile home for 14 years, so
there's low turnover and there'shigh cash flow and high tax
advantages, and these are allselling points that I always
(55:36):
share with my potentialinvestors.
Joseph Marohn (55:39):
That's amazing.
I just remembered the name ofthat author.
His name is Matt Faircloth.
Raising Private Capital by MattFaircloth.
I just purchased it.
It's actually on its way.
I'm waiting to get that and I'mexcited to start reading that.
But any final words of advicefor someone who's just starting
to explore the option of raisingprivate capital.
(56:00):
Who's just starting to explorethe option of raising private
capital?
Jill Jensen (56:02):
Find the right people to learn from, don't be
afraid to ask questions andultimately, in the end, you're
just helping solve a richperson's problem by getting
their money, making them money.
So it's more about the mindsetthan it is being afraid of
actually raising the capital.
Joseph Marohn (56:23):
I love that Awesome.
Well, jill, you've been greatGlad to have you here today.
You come in here dropping bombs, giving valuable gems to us all
.
I'm sure everyone watching thistoday now have a clear
understanding of what raisingprivate capital is and how it
can tremendously benefit theirbusiness.
You're doing one hell of a jobraising capital.
(56:44):
You're killing it in the mobilehome space and I'm excited to
see where Jill Jensen is headeda year from now.
Thanks, joseph, and wedefinitely got to bring you back
on because I know you have aton of knowledge on talking
about mobile home parks,investments, on that, and that's
a topic we have not covered onthe podcast yet and I would love
(57:05):
to bring you back to talk aboutthat.
If you're open to it, perfect,let's do it.
Awesome.
Now, jill, where can people getahold of you?
Jill Jensen (57:13):
I am Jill, actually on Instagram.
Are you ready for my tag name?
Joseph Marohn (57:19):
I'm ready, we're going to plug it in anyways, but
go ahead and tell them what itis.
Jill Jensen (57:22):
I am a Jillian air.
I love that.
How far out will this um air?
Because I am going to have alanding page and it's
jillsonoscapitalcom and you'regoing to be able to just book a
call with me.
Joseph Marohn (57:42):
Awesome, well, well, it generally takes about a
few days, so I would sayprobably about Wednesday or
Thursday ish.
I don't know if you have itready by then, but that's when
we'll have it ready.
Now, if you guys are findingvalue from this podcast, don't
forget to show your voice oflove.
Subscribe to the channel andhit that bell icon so you can
stay updated on all futureepisodes.
Smash that like button and dropa comment down below on what
(58:06):
Raising Private Capital wouldcurrently do for your business.
Appreciate all the continuedsupport and, guys, stay tuned,
because we're bringing theseepisodes to you every two weeks.
I've got some exciting topicscoming up next that you
definitely don't want to missout on.
Best believe, I'm going to keepbringing you that fire.
Thank you, jill.
Jill Jensen (58:27):
See ya.
(58:54):
Thanks for watching.
What up everyone and welcome back to the Real
Estate Unlocked podcast.
I am your host, Joseph Marohn,and today we're going to be
covering arguably one of themost important skills to learn
in your real estate business.
One of the most powerful waysto fund deals no money out of
pocket, a guaranteed way toscale up your real estate empire
(00:34):
.
Today we're going to becovering the topic of raising
private capital.
Raising private capital ismoney not raised from a bank or
a financial institution, butrather an individual investor,
(00:54):
family and friends or a wealthyindividual, Meaning you can
structure your own terms basedon the investment opportunity
presented, as well as thepersonal relationship built with
that private money lender.
Raising private capital forreal estate is vital because the
advantages and opportunities inreal estate are amplified by
simply using other people'smoney.
Now, if raising private capitalis a skill you want to master
(01:17):
and develop, then stay tuned,because we're going to show you
exactly how to structure theseopportunities, where to find
these wealthy individuals andwhy you should no longer be
limited by the amount of capitalthat you currently have in your
bank account.
Now you know how we do it onthe Real Estate Unlocked podcast
(01:38):
.
If we're going to do it, we gotto do it right.
We can't just bring on anyoneto speak about raising private
capital.
We gotta bring on the queen ofraising private capital.
Today, our special guest on thepodcast is Ms Jill Jensen.
Jill is a real estate investorwho, in 2022, skipped single
(02:02):
family homes and jumped directlyinto purchasing mobile home
parks.
Her entrepreneurial journeybegan with her doing
door-to-door sales that led herto start a nationwide pest
control company that generatedmillions of dollars annually.
She is now the Chief InvestmentOfficer at Sonos Capital,
(02:22):
raising capital to invest inlarge mobile home parks,
providing passive incomeopportunities for individuals
seeking to capitalize on theirmoney and building a team of
capital raisers to workalongside her.
Jill joins us today to shareher knowledge and expertise in
raising private capital and willgive us valuable insights on
(02:44):
how you can also start raisingcapital today.
So, without further ado I'vebeen talking long enough,
Everyone if you will, pleaseallow me to formally introduce
to you Jill Jensen.
Jill, what's up?
How are you doing today?
Jill Jensen (03:04):
Joseph, thank you for having me.
I just, I guess I can say, I'mliving the dream out here in
Utah.
Joseph Marohn (03:12):
You absolutely are.
How's everything going with youtoday?
Jill Jensen (03:15):
Good I was.
I've been traveling quite a bitand just got back last week
doing some fly fishing inMontana with some business
partners.
So now back at it Mondaymorning.
I saw that you did a littlefishing with Montana with some
business partners, so now backat it Monday morning.
Joseph Marohn (03:26):
I saw that you did a little fishing with Pace
Morby himself.
How was that?
Jill Jensen (03:31):
It was one of those days when you're on the lake
and it's a work week for otherpeople and I was like this is
why I do what I do, so that Ican have days like this, not
with my phone, in the mountainsfishing with a bunch of people I
do business with, and I guessyou could call that's what's
(03:51):
living the dream.
Joseph Marohn (03:52):
That is, living the dream.
I was a little jealous.
I was watching all the videosand the pictures.
I said, man, I wish I was outthere on that lake right now
with you guys.
Jill Jensen (04:00):
I only caught 18 fish and I was not the top
person, but I'll take it.
Joseph Marohn (04:06):
Oh yeah, You're a professional out there.
Jill Jensen (04:10):
They took us to a good, good lake with a lot of
fish, awesome.
Joseph Marohn (04:15):
Well, jill, welcome to the Real Estate
Unlocked podcast.
We really appreciate yourvaluable time here today.
I know you've been extremelybusy with your latest mobile
home park.
You could be at a million ofother places right now, but you
chose to be here instead andallow us to really pick your
brain on how you're raising allthis private capital and sharing
(04:35):
knowledge with us all on one ofthe most important skills to
learning your real estatebusiness.
So thank you you are verywelcome.
Thank you for having me.
Okay, so for the people thatdon't know who Jill Jensen is,
tell us who you are.
Walk us through that earlyjourney into becoming an
entrepreneur.
What was it that attracted youto real estate and at what point
(04:57):
did you decide this is it.
This is what I want to put allmy focus in.
This is what I want to do,moving forward.
Jill Jensen (05:05):
Well, I asked myself the question what do all
wealthy people have in common?
They hold real estate.
Joseph Marohn (05:14):
And I was like.
Jill Jensen (05:15):
I don't know how to do that, but I'm going to
figure it out.
I became highly successful inthe door-to-door industry
selling pest control, and it'sreally simple.
All I did was found the topsales rep in the company and I
asked him all the questions whatdo you say?
What do you do?
What do you wear?
(05:35):
How do you overcome theobjectives?
What state do I move to?
How do I knock a door?
How do I pick a neighborhood?
How many hours, how many monthsof the year do I knock a door?
How do I pick a neighborhood?
How many hours, how many monthsof the year?
Joseph Marohn (05:51):
All the things.
Jill Jensen (05:53):
I knew if I did the same things, I'm going to have
similar results.
Then I did well, so startedrecruiting other sales reps,
created teams, and then myformer husband and I decided why
are we putting on accounts foranother company?
Let's go start our own pestcontrol company.
So we had hundreds of salesreps putting on accounts for our
(06:14):
company and that's where itkind of clicked with the
residual income, because wewould go service someone's house
every three months, which meansmoney was coming in every three
months without going out andfinding a new client or a new
customer.
After that I got bought out ofthat company and I was left with
(06:36):
some money.
And this was a problem, a goodproblem.
Just how do I get my money,making me money?
And that's where that questioncame into my mind that I just
said what do all wealthy peoplehave in common?
Real estate.
Then it was kind of likethrowing spaghetti on the wall,
(06:57):
because the people in my circleof influence were not in real
estate and I wasn't telling thembecause I didn't want them to
talk me out of it.
I was on the internet, I wassneaking into the local
university because they had anentrepreneur class and they were
teaching about real estateinvesting.
(07:18):
So I was like I just got to gomeet the teachers, I got to get
my foot in the door.
Long story short, I came acrossPace Morby on social media and
it was pretty much instant.
I was like this is the thingI've been manifesting, like this
is the thing I'm looking for.
I joined sub two and then I hadthe same mindset of when I
(07:40):
became successful at pestcontrol.
I need to find the top personlending their money, not someone
who needs my money.
I don't want to learn how tounderwrite, I don't want to find
the deal, I just want my moneymaking me money.
And so, same thing, otherpeople get on the phone and call
(08:04):
sellers all day, and I justcalled sub two students every
day and Pace taught me to asktwo questions, and these two
questions have transformed mybusiness completely and to this
day, I still use these twoquestions.
Joseph Marohn (08:22):
Okay.
Jill Jensen (08:23):
What do you have to offer and what do you need?
Do you have to offer and whatdo you need?
And when I say what do you need, it's also like I asked them
where are you currently in realestate and where do you
ultimately want to be?
Majority people wanted to havepassive income.
I was like perfect.
(08:43):
I got to go solve that problembecause that's what everybody is
wanting Fast forward.
I found someone who was kind oflike my middleman.
People had deals, they broughtthem to him and he did all the
negotiating, the underwriting.
He had the TCs and then came tome and said, hey, this much
(09:05):
money I need for this long, andthe biggest thing was loan to
own.
Don't lend on a deal if you'renot willing to own the worst
case scenario.
I love that the worst casescenario.
(09:28):
I love that.
So, as a person that doesn'tknow how to underwrite or find
deals, still to this day I waslike, okay, how do I overcome
this problem?
It's about being creative andwe over collateralize on all of
our deals and what that means isI'm holding let's say it's a
(09:48):
fix and flip, and they run outof money and the fix and flip
flops.
Well, I was holding collateralon a different property they had
that was cash flowing, so nowI'm able to take over or
foreclose on that home.
And I actually went biggerbecause my collateral was worth
(10:12):
more than my loan.
So for me, my worst casescenario if it happened, it was
pretty secure.
I also had that middleman andhe's getting a part of the deal,
so if we had to, like, acquireour collateral, he's the one
that takes care of it.
So that's kind of how I got inthe door and found out how to
(10:37):
figure out to private money lendmyself, but not having to learn
how to do it all.
Joseph Marohn (10:44):
Yeah, it's amazing because, you know, I
think a lot of people theyovercomplicate things and you're
like I don't need to knoweverything, I just got to go
find the right people and askthe right questions.
And then a lot of people whenthey first get into real estate,
they think, oh, I have to bethe one doing all the phone
calls.
I got to be talking to thesellers, I got to be talking to
the agents and you're likethat's not what I want to be
(11:06):
doing.
You know, like I just want toget into the sub two group.
I want to find these peoplethat need money or need deals
and opportunities, and I'llleverage that and make those
opportunities work.
So that's amazing.
You know, that's a great storyand I really love your
background, your background,doing the right things there.
So, absolutely so.
(11:28):
Something I want to dive intohere is most people understand
when we say we're raisingprivate capital.
They know that we're simplysaying that we are raising money
for some sort of investment,right.
But Jill, you know firsthandthat there's a lot more to it
than that.
Let's talk about it.
What does raising privatecapital mean to you, and what
(11:50):
does that process even look like?
Jill Jensen (11:53):
Raising private capital is just serving and
solving a problem.
For a wealthy person or someonethat has money or a retirement
account, it's as simple asserving or helping someone else
get their money working for them.
Joseph Marohn (12:14):
Awesome.
So can we raise capital for anytype of investment, or what
type of investments are youtypically looking at that will
require raising private capital?
Jill Jensen (12:25):
investments are you typically looking at?
That will require raisingprivate capital.
You can raise capital for justabout anything that you're
working on.
I personally took raisingcapital as a stream to lead me
to real estate.
And my story is what is solvingthe problem for someone else,
(12:47):
and what I mean by that ispeople are like oh, raising
capital can be tricky, it's allin the mind, it's just a mindset
.
And there are so many peoplethat have money or retirement
account or money in a CD that'sjust stagnant, it's just sitting
(13:07):
there, and you're actuallydoing them a disservice by not
providing them an opportunity togo have passive income or
acquire more real estateproperties, or if it's in
something outside of real estate.
I have done a few deals thathave actually been outside of
real estate, but it all cameback to people that I've done
(13:29):
business in within real estate.
Joseph Marohn (13:32):
Yeah, I'm glad you brought that up because I
remember watching one of yourvideos where you were talking
about, you know, having tools ina pile, you know.
Do you remember that?
Can you tell everybody what yousaid in that video?
Jill Jensen (13:45):
I love what you said in there it's the analogy
of someone building a boat witha butter knife and I'm like, hey
, what are you doing?
and they're like I'm building aboat and I'm like, well, there's
a heaping pile of tools next toyou right why aren't you using
the tools and they're like, oh,because I'm just saving it, it's
(14:06):
better to just sit therebecause I might need it for an
emergency one day, or I mightneed it to build something, but
not right now.
And so it's the analogy of Ihave money sitting in a bank
account, I have money sittingsomewhere for something someday,
but I don't want to use it yet.
Joseph Marohn (14:27):
You know that's so funny because I think a lot
of people think like that, youknow, and like even me, like I'm
guilty, you know, coming intothis business when I would find
deals that I wanted to hold onto my business partner and I
would just use our own capitalto fund entry fees, renovations
and furnishings or whatever wehad.
You know, lack of knowledge orexperience of you know why would
(14:49):
we borrow money at 10 to 12%,you know, when we could just
fund it ourselves with our owncapital, right so, which made a
lot of sense then.
But knowing what I know now, Ijust can't stop thinking about
all the missed opportunities andmoney I've left on the table.
The compound effect of lendingis nuts.
Now someone might say, well, Idon't understand.
That is smart.
(15:10):
Why would you borrow someoneelse's money and pay interest
when you could just use your ownand not pay any interest?
Jill you mind explaining toeveryone why I was actually
losing money and opportunitieswith this mindset?
Jill Jensen (15:22):
You were thinking small.
Absolutely, you were looking atwhat's right in front of you
Pace Morby, grant Cardone, codySanchez.
They're not using their ownmoney.
Why?
Because they're thinking muchbigger.
If you want to think big, justlook at the people and follow
what they're doing.
Okay, yeah, pace could go usehis own money, but why is he
(15:45):
doing it that way?
Maybe I don't need to figureout all the answers.
I'm just going to go model whatsomeone else successful has
already done.
Joseph Marohn (15:55):
I know it's so funny and you're absolutely
right.
I was thinking small becausewhen I first came in I'm like I
don't get it.
Like these people have money.
Why are they using otherpeople's money?
You know they have their own.
But yeah, I realized after thatmy money is it could be making
way more.
Instead of tying it into oneproject, I can put it in
something else, another vehicle,that will make me a larger
(16:18):
return on my money.
So it took a little while forme to wrap my mind around that,
but absolutely.
Jill Jensen (16:23):
And that's exactly where I was and I still am.
I have money in my own fund, Ihave money in partnering in
smaller mobile home parks andI'm also a private money lender
in other areas also because Ilike doing some of it, I like
being active and being in otherpeople's deals and for me it's
(16:47):
also being strategic, becauseyou reap what you sow, and if I
can serve someone else in theirdeal and I know that they're
financially stable guess what?
They might need some taxadvantages or they might need an
opportunity, or they might knowsomeone that's accredited, and
then they'll be one of myinvestors.
Joseph Marohn (17:07):
Absolutely Now, let's say, somebody is watching
this podcast today and they findthis topic very interesting and
they want to start raisingcapital too.
How do they jump into the pool?
Are they just going to localmeetups and networking?
Are they reaching out to peopleon social media, or are they
just waiting for Thanksgivingdinner to come around so they
can hit up big money?
Uncle Louie, what are some ofthe first steps to finding these
(17:30):
wealthy individuals?
Jill Jensen (17:32):
First of all, it's finding the person with the
deals.
Your reputation is on the linebecause if a deal goes south,
that lender is going to look atyou, not the person that's using
or leveraging that money.
Your reputation is also on theline if it goes well, because
(17:54):
people love to talk about howthey're making money and then
their friends are like I wentone in on that too.
So for me personally, the firstthing I did was I was in a
position to lend my money, so Ilearned what it was like to be
in the shoes of an investor.
So, asking an investor okay,like myself, what are the things
(18:19):
you're looking for?
What are the things you'renervous about?
Then it's about finding thedeal, because what are you
raising capital for?
You can go find money, but whywould they trust you?
What do you need?
What are my returns?
It's more about who, notfiguring out how In my case, I
(18:39):
partnered with someone whoalready had established a fund
and a process, something that Ifelt highly confident in the
person and how they're acquiringtheir deals.
Then it was just reverseengineering and figuring out how
much money do you want to raise?
How much money do I need forthat deal?
(19:02):
Okay, I need to go raise $2million on my first deal.
Now, how many people is thatgoing to take?
Okay, that's four people athalf a million dollars.
Or let's say I want to raise amillion dollars in a month.
I'm like, okay, that's fourpeople at 250K.
Okay, or 10 people at 100K, ifI'm raising a million in a month
(19:25):
.
Now, where do I find thosepeople?
I need accredited investors,and accredited investor is
someone who has a net worth ofover a million dollars, or they
make over $200,000 in a year.
Now I'm going to take it onestep further.
(19:52):
How do I get in rooms withthose types of people?
I'm going to real estatenetworking events.
I'm getting in real estategroups.
And here's something huge thatI learned at a place called
Raise Fest.
A gentleman got on stage and hesaid people have avatars in all
(20:19):
these different areas of realestate, and what he was
referring to was someone doesfix and flip, Someone else does
mobile home parks, someone is awholesaler, and they all get
good at their one avenue.
And he was teaching us how toraise money and he said this
(20:44):
find your avatar investor.
You can go acquire all thesedifferent types of properties or
you can get really good at one.
You can go raise capital fromall these different types of
people, or you can find oneavenue of people you know that
have money.
Now I'm going to give you someexamples of those people Someone
(21:05):
that helps people with theirretirement accounts.
Okay, I'm going to justunderstand retirement accounts,
how to speak that language, postabout it on social media and
that's just what you're going tohit on the head over and over
and over.
Talk about retirement accounts.
You're going to go toconferences about retirement
accounts.
You're going to go to thesedinners for retirement accounts.
(21:27):
You're going to become friendswith people who help people with
their self-directed accounts,because there's trillions of
dollars in that one area.
Okay, there was a gentleman.
He got on stage and he was apre.
Previously he was a dentist andnow he's a full-time real
(21:47):
estate investor.
His avatar is other dentists,because you can relate to them
and say hey, look, I was in yourshoes.
I was working nine to five, Iwas a dentist making money.
Here's what I was doing with mymoney.
I can help you.
Okay, I have someone else who'sin life insurance these whole
(22:08):
life policies in the cash valueaccount on your infinite banking
.
Now where do I put it?
Or are you going to work withaccountants?
I personally work with investorgroups that's my avatar People
who that are already investingand my oh wait, go ahead.
Joseph Marohn (22:29):
No, no, I was just going to say, you know, I
was just thinking about it rightnow because I know somebody
listening to this and be like,okay, that's great.
You know you're showing uswhere to find these individuals
that have the money, but youknow where do you find these
opportunities?
And I and you also touched onthe on the fact about avatars.
So I think anyone, no matterwhat your avatar is, can benefit
from raising private capital.
(22:50):
I don't care if you're awholesaler, fix and flipper,
realtor, buy and hold investor,whatever.
Raising private capital is apowerful skill.
To understand why?
Because everyone in thisbusiness needs money.
If you have access to thosefunds at your disposal, deals
and opportunities will come toyou.
You don't need to go out thereand find them, because you have
(23:10):
the keys to a door that everyoneis trying to open.
Jill Jensen (23:20):
Totally.
And I also think, if you'regoing to think bigger, it's
partnering with someone thatfocuses on raising capital.
People are trying to do dealsand also raising capital where
it's like, hey look, let'spartner, let's JV on this thing.
I'm going to focus on raisingcapital, you focus on the deals.
Joseph Marohn (23:42):
I like that.
That's great, all right, so youknow one of the what are the
advantage advantages of usingprivate capital for real estate
investments compared to othertypes of funding, like why not
just use a bank or get a hardmoney loan?
Jill Jensen (23:50):
There's more leverage working with
individuals than going straightto the bank and you can close
quickly.
You don't have to get qualifiedand some of the deals are short
term.
I only need money for threemonths.
I only need a month for the 30days where the bank is like.
(24:11):
That's a process and being ableto raise money quickly by
leveraging people who arealready seeing the value in
lending in private money lending.
Joseph Marohn (24:22):
And not only that , you can also negotiate your
own terms, right when a bank hastheir set terms that you have
to you know accept or you knowdecline Whereas if you have a
private money lender of somesort that you've built a good
relationship with, the terms canbe negotiated just based off
your relationship alone.
Totally Now.
(24:43):
So why would an individualchoose to invest their private
capital in real estate projects?
What are the benefits for them?
Jill Jensen (24:50):
Here's the thing when it comes to lending,
there's two different avenues.
Well, there's more, but in mycase it was first being a
private money lender.
I was getting high returns.
I can get money quickly and Ican take advantage of not having
to wait a long time to see mymoney or my returns come back.
(25:10):
Another avenue is being aprivate money partner and
investing in real estate deals.
You can get equity on thesedeals.
So an example of mine was andthis is coming from a private
money lenders my situation, andit helps being able to talk to
(25:33):
lenders to understand theirstory of what's going on in
their head and why would thislender?
I want to learn from peoplelike go ask questions to people
that are lending their money.
Be like what are your deals?
What are you doing?
Why did you pick that?
Because all you have to do isovercome the story that the
(25:56):
investor is telling themselves.
Joseph Marohn (25:59):
I like that.
Jill Jensen (26:01):
It's not about your agenda and it's not about your
deal.
It's about whatever's going onin their head.
Joseph Marohn (26:09):
I think that's the secret sauce right there.
Jill Jensen (26:13):
I'll give you an example.
In the same week I raised$100,000 from two different
people.
It was about 48 hours and whenI go through, it's called a
pitch deck or an investor deck.
When I have a project or aproperty, I have a PowerPoint
and I go through it with themand I go through why?
Mobile home parks, this iswhere I'm going to be spending
(26:35):
the money, these are yourreturns, this is the time frame
and so forth.
These two different individuals,the way I pitched them in 45
minutes was completely differenton the exact same deal and they
both invested.
Why?
Because the first individualwas a gentleman who had lent his
(26:58):
money over 10 times.
He wanted to know the numbers,he wanted to know the time frame
and he wanted to know hissecurity.
Awesome, he already understandsreal estate.
He was in.
Another woman saw me postsomething on social media and
said hey, you said somethingabout a cash value account in a
(27:19):
real, in a whole life policy.
My husband has an account, butI don't know how to use it and
I've never lent on somethinglike this before.
So her story I'm not going tobe using the jargon and the
terminology I used with thefirst guy.
Joseph Marohn (27:35):
Right.
Jill Jensen (27:36):
I needed to overcome her concerns of being
like hey, I actually know how touse the life insurance policies
because I'm actually a licensedlife insurance agent, so I
guide you through how to do thatpart.
These are the reasons why I'minvesting.
I was just like you.
I had a problem of having money.
(27:59):
I didn't know how to get itworking for me, and this is how
I went and I basically figuredit out for us.
I'm just going to guide youthrough it.
Okay, this is how you're goingto sign the documents.
We're going to go through it onthe phone.
This is how you wire your money.
I'm going to help you becomeaccredited because I have a
third party.
(28:20):
And then, after you invest,this is what happens.
You're going to get monthlyupdates.
I'm going to send you an emailif you're around and you want to
see the park, overcoming all ofthe process and the steps for
this woman of what it looks liketoday, why we're using mobile
home parks or leveraging them inreal estate, how you literally
(28:43):
wire your money.
And then what happens after yourmoney.
And overcoming being like I'mgoing to hold your hand, I'm not
going to disappear.
She's like what's worst casescenario?
I'm going to invest a hundredthousand dollars.
But like, remember how I waslike, if you can loan to own, if
you're okay, lending on worstcase scenario, and that way I
(29:05):
was able to overcome that wasthis thing has been cash flowing
since before I was born, soit's only uphill from here.
We are only going to find dealsthat are increasing value from
where they are.
We're not going to go negativebefore we go up.
So then she was like okay, youovercame my concern, I'll at
(29:26):
least get my money back.
And so it's all aboutovercoming what they're thinking
, not you.
So it's all about overcomingwhat they're thinking, not you.
Joseph Marohn (29:35):
Yeah, I love that because you're putting yourself
in their shoes and you're like,hey look, I was in the same
situation and now this is whatI'm doing.
Let me show you how I do it,Let me hold your hand through
the process and then that reallyjust eases up their, their
biggest concerns.
Right, Because they're I meanthey may still have their, their
concerns of it up their biggestconcerns.
(29:55):
Right, Because they're I meanthey may still have their
concerns of it, but you know,you walking them through that
and holding their hand, it justmakes them feel a lot more
secure than they originally didand you're speaking their
language, right.
So now something I was justthinking about, like, as you're
securing these funds, are youputting them in an account or
are you just keeping the fundson standby?
Jill Jensen (30:11):
That's a great question.
A lot of people do what'scalled a syndication and they go
find a deal and then they raisecapital and they're trying to
raise capital quickly beforethey close on the property.
My position is with a companycalled Sonos Capital and it's a
fund, and a fund is where youcan raise capital and have it
(30:35):
sitting in a bank account andit's ready to go.
So when you find a deal, youcan close on it fast.
You have leverage over someonethat's doing a syndication,
trying to raise capital.
I'm able to just take down thedeal.
It's also more secure becausewhen you're doing a syndication
(30:55):
deal, a lot of times you'recreating an LLC with other
people.
You're sending JV agreementsthrough email where, in our case
, you have to work with the SEC.
There's a lot of legalitiesbehind it, but it's much more
secure when you're placing yourmoney in a fund.
So, personally, we have aninvestor portal.
(31:17):
They're able to log on and fillout their information From
there.
All of the documents are inthere that they're going to sign
.
They upload an accreditationform they need to be accredited
investors and then it has thewiring instructions In their
investor portal.
They're able to log on at anytime and we do ACH transactions,
(31:41):
so we just deposit everyquarter into their bank account.
On this portal they're able topull it up, see every time
they've been paid.
Their K-1 is in there.
Other investment opportunitiespop up and then I always just
make sure that I'm constantlyfollowing up and keeping that
connection with my investors.
Joseph Marohn (32:03):
Now, are you only working with accredited
investors?
Do you ever work withnon-accredited?
Because I'm just thinking like,let's say, someone's not at
that level to get to anaccredited level, but they want
to start investing.
Do you have any recommendationsfor them on how they can get
rolling?
Jill Jensen (32:20):
Perfect.
I find, like I mentioned before, highly successful people that
are lending their own money andpartnering with them, saying hey
, if I bring $100,000 becauseI'm not accredited to the deals
that you're doing, I'll share.
I'll give you a piece of mypercentage because I'm trusting
(32:41):
someone that's doing this withtheir own money.
I personally have people cometo me all the time wanting to
invest that aren't accredited,and so if someone is interested,
I personally have people that Irefer them to.
Once again, my reputation is onthe line, and so I will only
refer people that I have donebusiness with personally and
(33:04):
gotten my funds back.
Joseph Marohn (33:06):
Great, and so, as we all know, there's risk with
any type of investment.
I know we touched a little biton that earlier, but my question
is how are we mitigating theserisks?
What are we doing to protectour investors?
Are there contracts in place,lien positions?
Talk to us about that.
Jill Jensen (33:24):
I mentioned a few of the things that I do.
You definitely have differenttype of JV agreements.
You want to work with TCs ortransition coordinators, the
legal documents.
If you need an attorneyinvolved that can oversee the
documents that you're signing sothat if someone's late on their
payments, what's going tohappen, when is your time frame,
(33:46):
what is your collateral, whatis your worst case scenario.
All of those things need to bedocumented and signed before any
lending happens.
Also, you do not want to wiremoney to an individual.
It needs to go through a titlecompany or an attorney,
depending upon the deal or howyou're lending your money.
Joseph Marohn (34:11):
Okay, are there any legal considerations that
investors need to be aware ofwhen raising private capital?
Jill Jensen (34:17):
I think you need to work those out with your
attorney or who you've beenworking with, because every
situation is different.
Joseph Marohn (34:26):
Right.
Jill Jensen (34:26):
And a big part of it comes down to the documents
and the paperwork and makingsure you're doing your due
diligence on the person, andthat's why I go back to who are
the people that have been doingthis a while and their process.
Also asking people that havelent money to them.
(34:46):
I need some referrals on.
Who's worked with you before isanother avenue that I've gone
down.
Joseph Marohn (34:54):
Yeah, great response there.
Now, Jill, how important arerelationships in the private
capital world and what are someeffective strategies you use to
build these relationships?
Jill Jensen (35:06):
I am all about business and I can build.
It's interesting because peopleare like you got to nourish
these relationships and you gotto build friendships, so people
trust you, and I actually amlike, hey, I'm down to business.
I want to know what you'redoing in real estate, where
you're going and why you want toget there.
(35:26):
We can talk about our friendsand our families later, but what
is your process?
And that's just how Ipersonally work, where I'm like
I want to see how serious youare with your numbers and your
strategies and my businesspartner the reason why I joined
Sonos Capital was because of howstrategic he is and we jumped
(35:49):
into business being like, okay,look, he is a dealer for mobile
homes.
The reason this is a big deal isbecause he can get these houses
at wholesale.
He can get them at significantdiscount.
He had to go take a test, hehad to do all of these things
and it's so when we bring inthese homes, we're getting them
(36:11):
at a discount.
We put in 40 homes on thisproperty we just closed on and
we're selling them at cost,which means we're going to be
able to sell them faster, whichmeans we're going to be
acquiring rent on our pad evenquicker, which means we're going
to just be cash flowing evenmore.
He's a board member foraffordable housing in Arizona
(36:36):
and that's where we're currentlypurchasing mobile homes.
So people are coming to himtrying to get approved for
different affordable housingprojects in the state we're
buying, which means he knows alot of information that a lot of
other investors don't.
He knows where big box storesare coming in, where's Walmart,
(36:58):
where are job opportunitiespopping up.
So he's very strategic and it'sbecause he talked a lot about
okay, this is why I'm doing whatI'm doing.
And then from there I got toknow him as an individual.
I'm like what are your morals,what are your values?
What do you?
What is your life like?
(37:19):
What?
How do you, you know, presentyourself, who do you associate
with?
Um?
And so mine stemmed from howare you doing business?
And then let's get to know eachother on a personal level,
where a lot of people are like,hey, let's become friends, um.
But I personally am like, hey,let's get to the point and then
see if this is a good fit.
Joseph Marohn (37:39):
Yeah, I like that because you know, instead of
being on the phone, you know,hey, how's your day going?
You're kind of like, hey, look,this is what we do with our
business.
I'll let that build thecredibility with you and then,
as we start working together,then we'll become friends.
Jill Jensen (37:53):
Totally.
And that's as a woman.
So women raising capital, menget confused when you're like
overly nice.
They're like is this girl intome?
Like what's?
Joseph Marohn (38:03):
going on.
Jill Jensen (38:04):
It's just human nature.
That's why, every time I get ona call, I also do this thing
called hold the frame.
You want to stay in control ofthe conversations because it
gives you authority and theyrespect you more.
When I get on a call, I say,hey, I have 45 minutes, I have
another call and so let's jumpinto it.
(38:26):
I want to know where you are inreal estate and where you
ultimately want to be.
I'm going to tell you what I'mdoing and then we're going to
see if we can collaborate.
If not, let's refer each otherto someone else we know Ready Go
.
Joseph Marohn (38:40):
I love that Straight down to business.
I know, and it's true, I thinkthey'll respect that a lot more.
I'm sure they do.
Jill Jensen (38:48):
Yeah, it's worked so well so far.
Joseph Marohn (38:51):
Now, I'm not sure if you experienced this yet,
but let's say, the deal doesn'tgo as planned or, even worse,
you end up taking a loss and nowyou're having a difficult time
to pay back your lender.
It happens.
What's your backup plan?
How do you pivot?
Jill Jensen (39:04):
Mine.
I haven't lost a dollar yet.
Perfect and like I said, I tookmy time.
Pace taught me I'd rather youpass on a hundred deals before
you do one, and it came down tothe person and their process.
Remember how I told you how Ihave a middleman who's been
doing this for years.
(39:24):
He's kind of my lifeline.
I don't know much about mydeals as a lender, he's the one
taking care of those things andit's interesting because now I'm
that middleman for my investors.
Now I know what it's like to beon one side, being like I just
(39:50):
want my money making me moneyand not have to worry about it.
I went and found the person andhe.
One of the ways is we leverage,having timeframes, so let's
just take a fix and flip.
You don't?
It's hard to say exactly whenyou're going to get your money
back.
Contractors don't show up,things get prolonged.
(40:13):
You know there's unknowns.
So how I've done that is I willlend you $125,000 at 13% for
three months.
If it takes four months, it's14%.
If it takes five months, it's15%.
Joseph Marohn (40:30):
Every day after that there's a late fee for a
month Every day after thatthere's a late fee for a month
and by six months I'm acquiringyour, my collateral.
(40:50):
So there's this buffer on thetime frame, but there's also
kind of consequences.
So we're communicating to theseprivate capital sources, but
when you're speaking to them,what kind of information are
these investors typicallyinterested in?
What kind of terms are theyasking about?
Can you run us through some ofthose type of questions?
Jill Jensen (41:09):
That is a perfect question, because every person
is in a different spot.
You're going to have people whowant quick turnarounds and high
returns, where someone with aretirement account they're like,
okay, it's in there for fiveyears, what do I do after the
five years?
And I'm like I'll have anotherdeal, we'll just put it in
(41:29):
another, in another deal.
I personally, when I startedout, I didn't need a high return
because I was just trying tolearn the ropes.
I'm like, look, eight, 10%,that's more than double than
what's in my CD and if my deal'ssecure, awesome, okay.
Last week I did a deal and itwas 18%.
Cool, I'm 10% higher than I waswhen I started.
(41:53):
So I'm going in the rightdirection.
So it kind of depends upon yourcaliber of like, your risk and
tolerance too.
Joseph Marohn (42:06):
And I know you're really good at raising private
capital.
Can you give us an example oflike a pitch that you typically
do?
Not to put you on the spot oranything, but I just think
people can really learn fromyour skillset here.
Jill Jensen (42:17):
This is like my favorite part.
Remember how I talked aboutbeing the guide First.
It's about telling your storyand how you are going to help
them.
Joseph Marohn (42:29):
So, myself.
Jill Jensen (42:30):
I'm like look, this is my problem.
You want to talk a lot aboutproblems and they were my
problems, but I know they're thesame problems that they're
having, so I'm using my problemsat what I know their story is.
Joseph Marohn (42:49):
Right, that makes sense.
Jill Jensen (42:51):
And so then they're like oh my gosh, I can totally
relate to you.
I was like I had money and Ididn't know what to do with it.
Here's the process I wentthrough.
Now I'm building credibility intheir head of okay, why should
I trust this person?
And it's because I said I wentout and I found the right people
.
Basically, I just told them youfound the right person because
(43:13):
I went and did the work for us.
And then I show them I gothrough an investor deck.
Let's just jump on a call.
I'm going to go through thedeck.
I explain why I'm pickingmobile home parks.
I elevate my team.
I want to be on the same pageas them.
I'm their friend.
If you notice Pace Morby whenhe speaks, do you ever see him
(43:37):
on the stand or do you see him?
Joseph Marohn (43:41):
walking around, he's walking the room and he's
just like pointing people out,he's telling like life stories
about them.
It's amazing like that that manhas the greatest memory.
I can't even remember likesomeone's name like 10 minutes
ago, let alone a backstory onhim no, that's right.
Jill Jensen (43:56):
So grant cardone, he's on stage.
Did anyone see him after?
Has anyone ever talked to him?
Joseph Marohn (44:03):
no, he was gone on and shit does he have a
community of people?
Jill Jensen (44:07):
does he have people that trust him as much?
Another example taylor swift.
You feel like she's the girlnext door.
You feel like she's your bestfriend.
She interacts with the people,her fans, where beyonce is just
on stage and then she bounces.
Joseph Marohn (44:23):
Yeah.
Jill Jensen (44:23):
Just notice how people are interacting.
So it's like becoming friendson their level, not trying to be
better at them and looking atthem of okay, this is how I'm
going to make money off of you,but this is how I'm going to
help you solve your problem andgetting your money, making you
money.
I want to be very direct onwhat I'm doing with the money.
(44:47):
The more you can show them ofbeing like, this is how much
this thing is cash flowing.
This is our projections and whyand how we got those
projections.
Let me show you the comps.
Let me show you how far away ahospital and a Walmart is.
We did test ads on how quicklyare these mobile homes
(45:09):
themselves going to sell.
Well, we put out an ad thatsaid mobile home for sale,
$72,000 in this area.
How many people were calling?
We were getting 21 calls in aweek, four to six people that
were qualifying.
So now we're able to calculateokay, this is going to take
about two to three years to sell40 homes.
(45:31):
Because of the research we did,the strategies behind it, I'm
elevating my team and then Igive them exactly what they're
going to get.
People are like just tell mewhat it is and I show them if
you invest $100,000 on this dealover five years, you will
(45:52):
profit $239,000.
We pay quarterly distributions.
So I show them by the end ofyear one you'll get paid 9,000.
The end of year two, you'llmake 20,000.
End of year three, we refinance.
I'm just creating them thestory of exactly the steps of
(46:12):
what's going to happen.
People don't like to be soldbut they want to buy and they
hate FOMO and the fear ofmissing out and I'm going to
explain at the end exactly howto get that.
But it's the tipping point atthe end because people can get
through the deck or theiropportunity.
(46:35):
But then how do I get them towire money?
Like there's just that gap.
Like, do you want the deal?
Are you interested?
I'm just following up is theworst line you can say.
Don't say I'm just following up, sorry.
Joseph Marohn (46:46):
Yeah, I like, no, I like the fact that you're
laying it all out of them, outfor them, because you're
removing the unknown, right,they actually get to see these
numbers, they get to see whattheir returns are going to be.
Then you kind of talk aboutcreating FOMO, which is a great
way of doing it, because youknow some people.
They may walk up to somebodyand they're like hey, you know,
would you mind lending 100 grandon this, on this deal, where
(47:10):
instead you're probablyrestructuring the way you say
that and you're like, hey, look,I got this awesome opportunity.
This is how you're going tomake this much money.
This is what's going to be likeyear one, two, three and four,
and you don't want to miss outon this opportunity.
Is that kind of like whatyou're doing?
Jill Jensen (47:24):
Yeah, are you ready for that tipping point at the?
Joseph Marohn (47:26):
end.
I'm ready for it.
Jill Jensen (47:28):
I do this every time and I say the same words.
I go through the deck, I showthem these are the tax
advantages you're going to get.
You invest a hundred K.
Over the five years, you'regoing to be able to write off
122 K.
So I'm creating the story ofyou're an investor.
You're going to have taxes.
This is how we are going tosolve your problem, which means
(47:50):
I want them to be the hero oftheir own story.
I'm not.
They are here.
It is the very end.
I say let me just show you howit works.
And then that's when I gothrough the process of what
happens with signing thedocuments.
This is what happens.
(48:11):
And I pull up our website.
You log on to SonosCapitalcom,click join now.
You're gonna fill out theinformation.
We're gonna jump on a call.
I'm gonna walk you through thedocuments, upload the
accreditation form and wire yourfunds From here.
You're going to get quarterlydistributions, you're going to
(48:32):
get a quarterly update and youcan come visit the park whenever
you desire.
Then they say this here it is.
I'm going to send you thisinformation, this pitch deck and
our website.
I'm going to give you 24 hoursto send me all of your questions
, but I need an answer in 48hours because I got to finish
raising the capital, so I needto know if you're in or not.
Joseph Marohn (48:55):
Damn, that's good they're like.
No, I don't want to miss thisopportunity.
Jill Jensen (48:59):
But I'm not going to sell you on it.
I don't need your money.
Joseph Marohn (49:02):
Right, I don't need you.
Jill Jensen (49:03):
But I'm not going to sell you on it.
I don't need your money, right,I don't need you, but here's an
awesome opportunity that I justexplained to you.
They also don't want to be sold, so here's the information.
You go, make a decision, sendme your questions.
I just need an answer in 48hours.
Does that work?
Great Talk to you in two days.
Joseph Marohn (49:21):
Now you reversed it.
Jill Jensen (49:24):
Now it's almost like they need you, yeah.
And then they have 24 hours,because people always say let me
just think about it.
Joseph Marohn (49:35):
Well, let me think about it.
Jill Jensen (49:40):
Yeah, it takes out the procrastination of it.
And yeah, that's awesome.
Thanks for sharing that.
I'm giving them permission togo think about it here.
Go think about it 24 hours.
Send me all your hard questions.
I just need to know in 48 hoursbecause I got to finish raising
the capital.
Joseph Marohn (49:50):
Yeah, you got to be careful, because now people
are going to start using yourline here.
Jill Jensen (49:53):
It works.
And then guess what?
Do you want to know the bestpart about this?
Joseph Marohn (49:58):
What's that when?
Jill Jensen (49:58):
I was at Raise Fest and the gentleman was talking
about finding your avatar of whoyou want to raise capital from.
Here's where Jill'sentrepreneur brain goes.
As soon as I figured out whatmine was, my second thought was
I'm going to go find 10 avatarsto raise capital for me.
Avatars to raise capital for me.
(50:20):
I'm going to go find 10 peoplethat have those network of
people and I'm going to justclone myself.
I can raise a million in amonth.
I'm going to go find 10 peoplethat can also raise a million
dollars in a month.
So then guess how much moneyI'm raising in a year?
120 million, and that's justbecause I found people who can
(50:45):
have that avatar.
So, like right now I havesomeone that works on retirement
accounts.
I have another gentleman that'sinterested and all he does is
train pilots, and I was like ohcool, you're just sitting next
to people who have a lot ofmoney, kind of like the guy
that's a dentist.
Someone else is a fishermanwith other rich fishermen.
Joseph Marohn (51:03):
Someone else is on the golf course with all
these retired gentlemen thatgolf, like all these random
avatars of people that havethese networks it's funny you
say that because I was watchinga video where pace was talking
about he thought he had to goand find all these rich people
at the golf course and so he gota golf membership and he said
(51:31):
10 years later he has neverfound one person to raise money
on that.
Jill Jensen (51:33):
but he became a better golfer and it's the
person that has the group ofpeople that they all already
golf with.
Joseph Marohn (51:39):
Right oh.
Jill Jensen (51:40):
I'm the guy that goes with the people.
Or here's another one MLMs, howthey have.
Go find some of the people thatare at the top of doTERRA or
these door-to-door companies, orsomeone at the top that has a
group of followers that havemoney.
Joseph Marohn (52:02):
Yeah, that's awesome.
Now, is there ever a pointwhere you're looking for a
private money partner ratherthan a loan?
Jill Jensen (52:09):
Well, when you become an LP in our group, in
our fund, you're becoming apartner, you are acquiring this
property with us and so you'regetting.
You get tax advantages, notjust interest returns.
(52:31):
So it's like, okay, I'm apartner in this fund and now,
like I mentioned, you invest$100,000.
And on our last deal you'll beable to write off 122.
And so that was a problem forme that I had to overcome,
because as a private moneylender, you get hit with taxes
if you don't hold assets.
(52:52):
Where a mobile home parkdepreciates over 15 years, where
a single family home, it's 27.
And in year one we can do abonus depreciation and we share
that with our LPs just thepeople who are lending so
they're able to write off ontheir taxes, yet they don't have
(53:15):
to do anything with the parkitself.
Joseph Marohn (53:18):
That's awesome.
Now, Jill, are there any books,courses or videos you could
recommend for someone who wantsto learn more about this?
Jill Jensen (53:26):
Yes, great question .
First, who, not how, find thepeople who already know how to
do it.
And then another line that Ilike after that is it's not who
you know, but who knows you.
I love that it's about yourself.
A book, I would suggest PitchAnything, and that helps teach
(53:52):
you what I was kind ofexplaining about holding the
frame and staying in control ofthe conversation with you and
the potential investor.
Joseph Marohn (53:59):
There's also another book.
I forget the author off the topof my head, but it's called
Raising Private Capital, justRaising Private Capital.
Do you know who the author is,by the way?
On that I don't.
Yeah, that's a book I've seenPace recommend and I know he had
the gentleman on his podcast.
I just can't think of the nameoff the top of the head.
But yeah, great, great advicethere.
And then, lastly, I guess couldyou just share like a case
(54:23):
study or an example whereprivate capital was successfully
raised for one of your realestate projects.
Jill Jensen (54:29):
Yes, I was able to raise $2 million for our last
mobile home park.
The gentleman was 84.
He was just ready to retire.
We were able to get it onseller finance 84.
He was just ready to retire.
We were able to get it onseller finance.
So our down payment was prettylow and the capital that I was
raising was to update theamenities and bring in new homes
(54:51):
.
And what I love about ourcompany is we are also genuinely
solving a problem foraffordable housing, being able
to sell these homes at cost.
We're not trying to make moneyoff of the homes themselves and
there's a high demand for it,which is also a selling point
for my investors of mobile homeparks.
(55:12):
There's a high demand and whenwe are not taking care of the
homes which means no tenants, notoilets, no termites that means
low overhead.
Average person stays in amobile home for 14 years, so
there's low turnover and there'shigh cash flow and high tax
advantages, and these are allselling points that I always
(55:36):
share with my potentialinvestors.
Joseph Marohn (55:39):
That's amazing.
I just remembered the name ofthat author.
His name is Matt Faircloth.
Raising Private Capital by MattFaircloth.
I just purchased it.
It's actually on its way.
I'm waiting to get that and I'mexcited to start reading that.
But any final words of advicefor someone who's just starting
to explore the option of raisingprivate capital.
(56:00):
Who's just starting to explorethe option of raising private
capital?
Jill Jensen (56:02):
Find the right people to learn from, don't be
afraid to ask questions andultimately, in the end, you're
just helping solve a richperson's problem by getting
their money, making them money.
So it's more about the mindsetthan it is being afraid of
actually raising the capital.
Joseph Marohn (56:23):
I love that Awesome.
Well, jill, you've been greatGlad to have you here today.
You come in here dropping bombs, giving valuable gems to us all
.
I'm sure everyone watching thistoday now have a clear
understanding of what raisingprivate capital is and how it
can tremendously benefit theirbusiness.
You're doing one hell of a jobraising capital.
(56:44):
You're killing it in the mobilehome space and I'm excited to
see where Jill Jensen is headeda year from now.
Thanks, joseph, and wedefinitely got to bring you back
on because I know you have aton of knowledge on talking
about mobile home parks,investments, on that, and that's
a topic we have not covered onthe podcast yet and I would love
(57:05):
to bring you back to talk aboutthat.
If you're open to it, perfect,let's do it.
Awesome.
Now, jill, where can people getahold of you?
Jill Jensen (57:13):
I am Jill, actually on Instagram.
Are you ready for my tag name?
Joseph Marohn (57:19):
I'm ready, we're going to plug it in anyways, but
go ahead and tell them what itis.
Jill Jensen (57:22):
I am a Jillian air.
I love that.
How far out will this um air?
Because I am going to have alanding page and it's
jillsonoscapitalcom and you'regoing to be able to just book a
call with me.
Joseph Marohn (57:42):
Awesome, well, well, it generally takes about a
few days, so I would sayprobably about Wednesday or
Thursday ish.
I don't know if you have itready by then, but that's when
we'll have it ready.
Now, if you guys are findingvalue from this podcast, don't
forget to show your voice oflove.
Subscribe to the channel andhit that bell icon so you can
stay updated on all futureepisodes.
Smash that like button and dropa comment down below on what
(58:06):
Raising Private Capital wouldcurrently do for your business.
Appreciate all the continuedsupport and, guys, stay tuned,
because we're bringing theseepisodes to you every two weeks.
I've got some exciting topicscoming up next that you
definitely don't want to missout on.
Best believe, I'm going to keepbringing you that fire.
Thank you, jill.
Jill Jensen (58:27):
See ya.
(58:54):
Thanks for watching.
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On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!