Property Growth: How Banjo and Erica Raised $3.3 Million in Private Money

Raising Private Money with Jay Conner

In the challenging realm of real estate investing, Banjo, and Erica Camardelle have emerged as a dynamic duo. As guests on Jay Conner's popular podcast, "Raising Private Money," they shared their remarkable journey of raising $3.3 million through private money lenders. Their story is a testament to determination, innovation, and strategic networking, providing invaluable insights for both novice and seasoned investors.

Struggling with Cash Flow and Early Challenges

When Banjo and Erica launched their business in 2018, they faced the same obstacle many entrepreneurs encountered: a lack of capital. Despite their innovative approach to creative deals, which often involved offering existing note owner financing instead of cash payments upfront, they soon found themselves constrained by financial limitations. With scarce capital, their ability to purchase new properties dwindled, leading to a temporary halt in their business activities.

Additionally, the couple encountered operational challenges. The absence of robust systems and processes meant that most of their time was consumed with property rehabbing, diverting their focus from closing new deals. These initial setbacks underscored the necessity of securing a reliable source of funds to sustain and grow their venture.

The Breakthrough: Learning to Raise Private Money

A game-changer for Banjo and Erica was discovering the art of raising private money. By tapping into a network of private lenders, they managed to secure funding for their real estate transactions without relying on their own capital. Their first private lender marked a significant milestone, allowing them to navigate the market with newfound confidence and financial backing.

Their strategy revolved around understanding the mutually beneficial nature of private lending. Private lenders could enjoy predictable, high rates of return, while Banjo and Erica leveraged their funds to acquire and rehab properties efficiently. This symbiotic relationship became the cornerstone of their successful business model.

Private Lender Luncheons: A Networking Masterstroke

One of the duo's most effective strategies for attracting private lenders has been hosting Private Lender Luncheons. Initially intimidating, these luncheons have now become a preferred method for Banjo and Erica to introduce their private lending program. By gathering around 25 acquaintances—including team members, friends, and family—and providing an overview rather than a pitch for specific deals, they created a low-pressure environment conducive to discussion and education.

The luncheons emphasized key aspects such as protection and the benefits of partnership, making prospective lenders feel secure and valued. Attendees were given forms to express their interest levels, which Banjo and Erica later followed up on through phone calls. This non-direct approach allowed potential lenders to express interest without feeling pressured, fostering genuine connections and trust.

The Impact of Networking and Community Engagement

Banjo attributes a significant portion of their success to the power of networking. Regularly engaging with potential contacts in places like gyms, clubs, and social gatherings has been instrumental in building a broad base of private lenders. These interactions often began with casual conversations, evolving into educational sessions about private money lending.

Addressing the educational gap, Banjo and Erica found that many of their prospective lenders (around 90-95%) were initially unaware of private lending's benefits. By positioning themselves as educators, they effectively demystified the process and attracted a diverse pool of investors.

Educational Outreach and Consistent Communication

Their approach to private money lending is deeply rooted in education and transparent communication. Banjo and Erica focus on providing