From $0 to $100 Million: Dale Wills Shares His Private Money Success Story

In the ever-evolving world of real estate investing, understanding how to effectively raise and leverage private money can make or break your success. In a recent episode of Raising Private Money, Jay Conner, an authority on private lending, sat down with Dale Wills, a real estate investor who has successfully raised over $100 million in private capital. Their discussion illuminated key strategies, and nuances between investing in single-family versus multi-family properties, and even explored ways to maximize your IRA for real estate investments.

The Jargon of Private Money: Making the Rules

Investing in real estate with private money is fundamentally different from traditional bank financing. Jay Conner initiated the conversation by stressing the importance of realizing that in the private capital realm, investors make the rules. Unlike conventional banking, where terms are rigid and largely non-negotiable, private money lending offers an open playground to set interest rates and define terms that best suit your investment needs.

Dale Wills highlighted that this shift in mindset is crucial. Many novice investors might initially feel intimidated by this newfound control and might be tempted to relinquish autonomy back to the lender. However, Dale emphasized that belief in one's value proposition is vital. Standing firm and trusting in your offering can significantly boost confidence and, in turn, attract more private lenders.

Single-Family vs. Multi-Family Investments: Core Differences

One of the standout segments of the podcast was the discussion around the differences between investing in single-family homes versus multi-family apartments. Dale Wills, who specializes in single-family projects, provided some fascinating insights. While multi-family units offer value, they sometimes remain under-utilized due to evolving living conditions, such as consolidated households.

Dale’s focus on single-family homes, particularly entry-level, first-time buyer products, aligns well with current market dynamics. Even in economic downturns, the demand for these affordable housing options remains steadfast. Second or third-time homebuyers might hold off on purchasing during uncertain times, but first-time buyers typically continue to enter the market. This resilience makes the entry-level housing market a strategic focus.

Boosting Wealth with IRAs: A Hidden Gem

For many investors, leveraging retirement funds can be a game-changer. Jay Conner noted that a significant portion of his private lenders utilize their IRAs to invest, seeking better returns than traditional retirement accounts provide. Dale Wills backed this by highlighting Centra’s partnership with Equity Trust, a platform that facilitates the efficient transfer and investment of IRA funds into real estate.

Dale shared that transferring IRA funds for investment is straightforward and can offer significantly better returns compared to traditional investments like stocks or money markets. Real estate investments provide tangible assets that investors can see and feel, which is a considerable advantage over digital or paper assets which can sometimes feel intangible.

Helping First-Time Homebuyers

Another significant point of discussion was the various ways Centra helps first-time homebuyers. In today's challenging economic climate, making homes affordable without compromising quality is paramount. Centra's approach includes allowing employees to buy houses at cost, thereby helping them build personal wealth. 

Centra focuses heavily on entry-level housing, ensuring it is affordable while maintaining high standards. They also facilitate access to programs like USDA loans, which offer down payment assistance and interest-rate buy-downs. This multi-faceted approach makes homes more accessible and bridges the housing gap for both first-time homebuyers and empty nesters looking to do