Did you know there is a way for people to earn unlimited money tax-free?
How Jay Conner raised $2.1 million of private money in 90 days is never about asking or begging for money. Building trust is the key to making your private lender invest in you.
Discover Jay’s magic question that plays a big role in his Raising Private Money journey.
“God Created Us With The Desire To Help Other People” – Jay Conner
Learn the direct and indirect methods of initiating conversations with a potential private investor.
Revealed today! For the first time, Jay’s three Categories of private lenders and how to grow them so you never worry about funding your deals again.
Which problem do you want: “Where will I get funds for this deal?” Or “Where will I find a project to fund with my Private Money?”
Find out the benefits of having a business relationship with a “trusted” Self-Directed IRA company.
“When you get involved with organizations, keep in mind that it’s always about leading with service” – Jay Conner
Timestamps:
0:01 – Raising Private Money with Jay Conner
0:31 – The Beginning of An Amazing Story
6:25 – The Indirect Method
7:21 – The Magic Question
9:22 – Where To Find Private Lenders.
10:27 – 3 Categories To Find Private Lenders: Warm Market
11:17 – 3 Categories To Find Private Lenders: Expanded Warm Market
12:05 – How To Expand Your Warm Market
16:01 – 3 Categories To Find Private Lenders: Existing Private Lenders
20:37 – Benefits of Knowing the Best Self-Directed Company – https://www.QuestTrust.com
22:28 – What To Say To A Potential Private Lender
23:02 – The Direct Method
25:36 – Jay’s Favorite 3 Words To Open Up A Conversation
28:16 – Jay’s Free Money Guide: https://www.JayConner.com/MoneyGuide
Private Money Academy Conference:
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book: Where to Get The Money Now?
It is available FREE (all you pay is the shipping and handling) at
https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
https://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. He maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal without using his own money or credit.
What is Real Estate Investing? Live Private Money Academy Conference
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
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https://www.facebook.com/jay.conner.marketing
Listen to our Podcast:
https://www.buzzsprout.com/2025961/episodes/11433086
How Jay Conner Raised $2.1 million of Private Money in 90 days | Raising Private Money
Jay Conner
00:00:32
My wife Carol Joy and I were on our way to church on a Wednesday night for Bible study. This was in February 2009. And I had just lost my line of credit at the bank that I shared with you in episode number one. And so I had put my private lending program together and I’d put my list together that I talked about. And so there was a gentleman that was on my list of potential private lenders that I wanted to talk to. I had known him for many, many years. We’d gone to church together for many years. And so I planned to reach out to him at Bible study on this Wednesday evening. And here’s exactly what happened, what I said, and how it unfolded. We walked into the church building and got into the foyer, and I saw my friend, his name is Wayne.
Jay Conner
00:01:27
So I walked up to Wayne and you know, I said, Good evening. And I said, Wayne, I’ve got something that I want to confidentially talk with you about when we finish Bible St. Tonight. Would you have a few minutes to visit with me? He said, Well, sure Brother Jay. So we sat down, we had bible study, you know, sang a few songs, and, and that went on for about an hour. And we finished. Well, when bible study was over, I looked up and Wayne, he, and his wife sat on the other side of the auditorium in the church building. Well, Brother Wayne was, he was an older gentleman. He was doing a sort of fast trot to the back of the church building coming over to me. And I figured out pretty quickly, Well, you know, Wayne, this whole time has been wondering for the past hour, what is it that Jay wants to talk to him about that’s so confidential, right?
Jay Conner
00:02:19
So Wayne comes up to me, he says, Well, now Jay, what have you got in mind? And I said, Well, Wayne, let’s do this. Let’s go down to the nursery and shut the door, and have, a closed-door conversation for a moment. So Wayne followed me down to the nursery. We closed the door, and here’s exactly what I said to Wayne, who I was hoping would be my very first private lender. I said to Wayne the following, I said, Wayne, you know, everybody in this town here in Morehead City, you have put a television in everybody’s home. And he had, Wayne was the original Zenni television dealer here in Morehead City, and that’s dating Wayne right there, because that was prior to Walmart coming to town, right? So Wayne had sold hundreds and hundreds and hundreds of televisions. He’d put a television in every room in Carter General Hospital.
Jay Conner
00:03:15
He knew everybody in town because of that business. In addition to that, he was so involved in the Rotary Club for so many years. So I said to Wayne, I said, Wayne, you know, everybody in this town, you put a television in everybody’s house. You’re very, very involved in the Rotary Club. You’re so connected to our community. I need your help. Wow. Now that right there is a writer downer, that phrase I said to Wayne, I said, Wayne, I need your help. And you know why? That’s such a powerful phrase. Because I believe God created us with it already inside us and in our hearts. And that is we’re created wanting to help other people. So I said, Dwayne, I need your help. I have now opened up my real estate investing business by referring only to people that I know and trust and I’ve got some kind of relationship.
Jay Conner
00:04:12
And I’m now paying insane high rates of return to people that want to come and do business with me. But these high rates of return, depending on the deal that I do. And so, Wayne, here’s how I need your help. And that is when you run across someone that is complaining about the low interest that they’re getting in the local certificates of deposit the bank, or you run across someone that’s complaining about, you know, the volatility of the stock market, would you refer them to me? And I will tell them about my program that I have that’s paying high rates of return. And so Wayne looked at me and he says, Well, now Jay, what have you got in mind? And I said, Well, do you mean what kind of interest rate do I have in mind? And he says, Yeah. And I said, Well, it really depends on the deal.
Jay Conner
00:05:06
But then I looked at Wayne and I said, Wayne, are you saying that you and your wife might be interested in doing this? He says, Well, we might be. He says right now, Now this was back in 2009, he said, You know, we’re only getting about 3% in the local certificate of deposit, and the stock market is so volatile, it’s just making us lose sleep at night. And, and I, and then he asked me again, he said, Jay, why have you got in mind as far as the interest rate goes? And I repeated myself, I said, Well, Wayne, again, it depends on the type of deal. And then I said, Wayne, what sounds high to you? He says, Well, we’re getting about 3% in a cd. I guess a high rate of return would be like 5% or 6%. And I said to Wayne, Well, Wayne, I can’t pay you five or 6%, but I can pay you 8%.
Jay Conner
00:06:00
And then Wayne looked at me and he says, Put me down for $250,000. It was that easy and that quick. Now, the next day, I actually did go to Wayne and, and his wife’s home, and I went over the details of my private lending program and how they’re protected and how they can get their money back in, you know, less than 90 days if they’ve got some kind of emergency come up, taught ’em the interest rate and all that. Well, I tell you what, another lesson that I learned very, very quickly without, Wayne being my first private lender. I learned private lenders always have more money than they tell you, right? And so Wayne became my very, very first private lender. Now, in that story, you will want to take note that of course there’s a five-letter word that begins with T that played a big part in that happening, and that’s called trust, right?
Jay Conner
00:06:54
Wayne and I had known each other for a number of years. I mean, you’re not gonna trust anybody any more than if you go to church with them, right? So we’ve been going to church together for a number of years. Well, I didn’t know what I had done at the time, but I figured it out as time went on. What I had done in my conversation with Wayne in attracting that private money was I used what I now call the indirect method. So the name of this episode is about how I raised $250,000 from my very first private lender. Well, what goes along with that is now what is it that you say to potential private lenders? And where do you find private lenders? Well, I used what was called the indirect method. You see, I did not ask Wayne directly what I now call the magic question.
Jay Conner
00:07:47
Well, what is the magic question? The magic question is the following, Do you have investment capital or retirement funds not giving you a high rate of return safely and securely? That’s a question that you want to memorize and have come outta your mouth just as easily as it just did for me. The magic question and this is called the direct method, this is the direct method. The magic question is, do you have investment capital or retirement funds not giving you a high rate of return safely and securely? Well, you see, I didn’t ask that question directly to Wayne. Instead, I used the indirect method. And that is I asked for his help. I asked him to help me spread the word to his friends and his connections about my private lending program. Well, guess what? He had investment capital that was not, you know, giving him a high rate of return, and he wanted to get high rates of return.
Jay Conner
00:08:50
So, therefore, by me asking for his help and him having investment capital himself, he became my first private lender. Do you see how easy that is? You’re using the indirect method. You’re just asking somebody to help you. So I’m gonna talk more in a moment about what exactly to say to potential private lenders that you have some kind of connection with. But before I go over more scripting with you in this episode, I want to go ahead and identify with you where it is you find private lenders. Now, remember I went over this in detail in the last episode, episode number one, but remember, a private lender is not an institution, it’s not a brokerage. A private lender is an individual, a human being just like you, that loans you money for your real estate deals, either from their investment capital or their retirement funds.
Jay Conner
00:09:48
Okay? So there are three primary categories as to where you find private lenders. The first category is what I call your warm market. The second category of private lenders is what I call your expanded warm market. And the third category of private lenders is existing private lenders. These are individuals that are already loan and money out to real estate investors, and they are loaning the money out and it’s secured by the real estate. So let’s unpack these three categories for a moment and talk about ’em in detail. Number one is the warm market. What do I mean by the warm market? Where your warm market is people that have, you’ve got some kind of connection with them. So where do you find people in your warm market? Well, they’re either in your cell phone or they’re on your email list, or they are part of your social network.
Jay Conner
01:10:50
You know, Facebook, Instagram, et cetera, LinkedIn. They are people that you have some kind of social connection with, people that you go to church with, people that are, you may be in a civic group with. So that is your warm market right now. In episode number one, I went over the five steps as to how you reach out to your warm market right? Now, step number two, not step number two, but the second category of where you find private lenders are what I call your expanded market. You know, I have students say to me all the time, Jay, my warm market is broken. My people ain’t got no money. Well, first of all, I don’t believe ’em. But secondly, I think the real reason people think that, that their people are broke is because the people they do know that have money, they may be intimidated in approaching them and don’t know exactly what to say when I’m gonna get in exactly what to say here in just a moment.
Jay Conner
01:11:54
So what’s your expanded market? Well, your expanded more market is how you can grow your network, grow your network, grow your connections, right? So let me give you some specific suggestions as to how I have grown. My warm market has expanded my warm market, grown my network, and I’ve attracted even more private money into my world. First of all, as an organization called BNI, which stands for Business Networking International. I have raised and attracted a lot of private money by being a part in very involved in BNI. The way BNI works and contrasts to like a Civic group B and I is for the purpose, you become a member in your local chapter,, the purpose of becoming a member in the group is actually to give leads to your fellow members on where they can get more business. So n BNI, Business Networking International, actually only has one person, per category.
Jay Conner
01:12:58
They only have one real estate agent, one realtor, one real estate attorney, one mortgage broker, one plumber, one electrician, one general contractor, one financial planner, and on and on, one chiropractor and et cetera, et cetera. So when you join BNI like I have, and you just fill the seat of the real estate investor, I can almost guarantee you that in your local BNI, there is not another real estate investor that is holding that seat in the group. So you’ll be sure and want to check out BNI Business Networking International in your local area, join that group, and you will attract a lot of private money by establishing new relationships with those people. You see, I’m talking about how you expand your warm market, go get involved in BNI, and your warm market will expand very, very quickly. Well, where else can you expand your warm market and your connections?
Jay Conner
01:13:56
How about the Rotary Club? The Rotary Club is an example of a civic group. And I was raised in the Rotary Club. My granddaddy was very, very involved in the Rotary Club. Now, the Rotary Club is very different from business Networking International. The Rotary Club is a civic group, and its purpose is to serve the local community and also to serve actually the world. You know, for years, the Rotary Club, Rotary Club International had the goal of eradicating polio, and you might as well say they have. So it’s all about serving. In fact, the Rotary Club’s motto is service above self. And so you get involved in the Rotary Club, talk about expanding your connections and your network and be able to now do business with even more private lenders because now they’re in your warm market. It all comes down to, as I covered in episode number one, it all comes down to having your teacher hat on and teaching other people what private money is, what self-directed IRAs are, and attracting money from them.
Jay Conner
01:15:02
And so of course, another example of expanding your warm market and your network is getting involved in your local Chamber of commerce. Wow. Talk about expanding your network overnight. I mean, even in our local area here in Eastern North Carolina, in Morehead City, North Carolina, the chamber of Commerce has got hundreds of members. What a great way to expand your market. Now, remember, when you get involved in these organizations, it’s all about leading with service, going there to see what you can volunteer to do. So this strategy is a long play. This is a long play on getting private money. You’re not gonna be attracting private money overnight doing this strategy because you’ve got the first established relationship where these people were come to know you like you and trust you. So the first category is connections you already have. Secondly is your expanded more market that I just talked about, growing your network.
Jay Conner
01:16:01
And then the third category is what I call existing private lenders. These are individuals that are already loan and money out to real estate investors they know what private money is, right? So the question is, how do you find existing private lenders? Well, let me tell you how I started out. When I started out looking for existing private lenders in my local area, I hired my real estate attorneys paralegal to search public records at the courthouse, and I asked her to search for records of individuals that were loaning money out to other individuals or LLCs secured by real estate. Here in North Carolina, we don’t have mortgages. We have what’s called ADI of trust. It’s the same thing, ADI of trust and a mortgage are the documents and instruments that collateralize the promissory note that gives the lender the legal right to foreclose in case the borrower does not pay the note.
Jay Conner
01:17:03
So I had the paralegal search public records for individuals loaning money out on the real estate. Well, guess what? In 90 days she only found two people. I’m going, Man, there’s gotta be a faster way to do that. So I hired some software developers and developed what is now called my private lender data feed. We update the private lender data feed every month. There are over 12,000 private lender loans that are closed every month in the nation, and we get all their contact information, the interest rates that they’re getting on the notes, and the amount of money that they’re loaning out. So that private data feed has just saved us so much time. Now, in a moment, I’m gonna give you a free gift just for thanking you for showing up here in this episode. I’m gonna give you my free money guide private money guide that I just finished writing.
Jay Conner
01:17:55
I’m so excited about it. And the private lender data feed, when you download this money guide, it’ll give you details about that as well. Now, a third area to find, or a third place to find existing private lenders is the following. And boy, here’s a big secret, and that is to attend self-directed IRA company networking events. So first of all, before we talk about that, let me define what a self-directed IRA is. A self-directed IRA company is also known as a third-party custodian, okay? And what a self-directed IRA company is, is it is approved by the IRS so that people like you can transfer existing retirement funds over to the self-directed IRA company. So the retirement funds can be coming from a 401k, they can be coming from a pension, an existing employer’s 401k, you know, a previous employer’s 401k, any kind of IRS-approved retirement fund.
Jay Conner
01:19:04
Well, the reason it’s so important for you to learn and network and become acquainted and established a relationship with a self-directed IRA company, here’s why. You see, I now have 44 private lenders, individuals that are loaning money on my real estate deals, and over half of them, over 50% of them are using their retirement funds to loan to me on my real estate deals. Well, guess what? None of them, none of my private lenders that are using their retirement funds had ever heard of self-directed IRA companies. Well, let me tell you, the reason it’s so important is that once I found out they had retirement funds and they wanted to get higher rates of returns safely insecurely using their existing retirement funds while I introduced them to my self-directed IRA company that I have a relationship with. If I didn’t have that relationship with the self-directed IRA company, I would be missing out on over half of the private money I’ve got right now.
Jay Conner
02:20:08
I’ve got about eight, and I have million dollars in private money that I used from project to project to project. Well, I’d be missing out on over $4 million of that private money if I didn’t have a relationship established with a self-directed IRA company to that I can introduce my new private lenders that have retirement funds. Well, I know you may be asking, would Jay, which self-directed IRA company do you refer your new private lenders to? Well, I have done business with more than one self-directed IRA company. And I can tell you hands down, the best self-directed IRA company on the planet is quest trust.com. They’re based outta Houston, Texas, and they’re located on the internet at www.QuestTrust.com. That’s www.QuestTrust.com I get my deals funded within three business days. That’s right. I get my real estate deals funded within three business days when I have one of my private lenders that’s using their retirement funds to fund my deal.
Jay Conner
02:21:20
So you see, when your private lender, and of course this is coming from your warm market when you’re private lender is moving their funds over to the self-directed ira company, quest trusts.com, they can now truly self-direct those funds to you and your company to get high rates of return safely and securely. So back to existing private lenders, did you know that 70% of account holders at self-directed IRA companies are wanting to loan money from their retirement accounts to real estate investors like you? So my suggestion was to go and attend self-directed IRA company networking events. In fact, Quest Trust has got one from the date of this recording, has got a big networking event coming up, and there’s gonna be a thousand people there. Can you imagine networking with 700 people that are wanting to loan you money? So again, to recap, the three categories are the one market, your expanded, more market, and existing private lenders that are already loaning money out.
Jay Conner
02:22:29
So I promised you at the beginning of this episode, I would also cover with you exactly what to say to private lenders. Well, what I’m gonna share with you right now is some suggestions on what to say exactly to a new potential private lender that is in your warm market. Now, at the very beginning of this episode, I told you the story of exactly what I said to Wayne, my very first private lender that loaned me $250,000. That’s the indirect method. Now, let me share with you what I call the direct method and some scripting that I’ll share with you right now is what you could say to a new potential private lender in your warm market. And it goes like this. And I’m, I’m doing a little role play with you right now. Let’s say that you are one of my, somebody in my warm market I’ve got a relationship with, and now I’m talking with you about becoming a private lender for me.
Jay Conner
02:23:28
And here’s what I might say to you in our conversation. It could take place over the phone, it could take place in person. And I would say, as you may know, I am investing in real estate here in the local area, and I’m now positioning my company to take advantage of the tidal wave of foreclosures that are now opening up on this side of covid. I’ve now opened up my real estate investing business to people that I know and trust, and I’m paying insane high rates of return. But unless you answer yes to the following question, there’s no need for me to give you any information about my program. And that question is, do you have investment capital or retirement funds not paying you a high rate of return safely and securely? Now, that question that I just ask is again, what I call the magic question.
Jay Conner
02:24:27
Let me repeat that again because it’s a write-or-downer. And the question is, do you have investment capital or retirement funds not paying you a high rate of return safely and securely? And then I shut up, I let ’em answer the question. If they say no, I know they’re broke because, at the local certificate or deposit at the local bank, the average rate of return is a quarter of a percent. So when I come along and offer 8%, I know that’s gonna be a very, very high rate of return for them. But when they answer yes to that question, yes, I do have investment capital or retirement funds, that’s not paying me a high rate of return. If they say yes, then I go to step number three, which I taught you in episode number one of raising private money. I then give them my 16-minute audio called stress-free investing.
Jay Conner
02:25:19
So that’s one thing, and that’s a little bit of scripting that you could be saying to someone. Now, in addition to that, and I’m gonna wrap up this episode with this big tip, and then I’m gonna give you my private money guide for free that you can download right now. So here’s the big tip. How in the world do you start a conversation with a potential private lender in your warm market? Well, here’s how you start the conversation, and I love it. These are my favorite three words to start a conversation. And here are the three words. Did you know? Did you know? I mean, when you say to someone, did you know you’ve already got them, You’ve already got their attention? So here’s the exact question, and you’ll wanna write this down. This is a beautiful question to open up a conversation about private money, what private money is, and talking with someone in your warm market that could lead to them becoming a private lender for you in your real estate business.
Jay Conner
02:26:23
And here’s my favorite. Did you know the question? And here it is. Did you know there’s a way people can earn unlimited money? Tax-free? That’s the question. Let me repeat it. Did you know there’s a way people can earn money? Is unlimited money tax-free? So what in the world of, I mean, of course, they’re gonna answer, No, nobody knows how people can earn unlimited money tax-free. Well, here’s how they can, and here’s the answer. This is leading to a conversation about self-corrected IRAs. You see, when a person moves their retirement funds over to a self-directed IRA company like Quest Trust, then if their retirement funds are, are in the form of a Roth ira, well a Roth IRA is built on after-tax funds, which means they can invest that money from their Roth IRA inquest trust into your real estate deal. And again, they’re not owning any part of your deal.
Jay Conner
02:27:31
You own the property, your LLC, and your land trust. They are acting in the same capacity as a bank. The private lender is the lender. They don’t own any of the property. So depending on the type of retirement account they have, they can earn unlimited money, tax-free. And guess what? Even if their retirement funds are not a Roth ira, guess what? Even if it’s just a traditional IRA or a 401k, the money that they make off for you that you’re paying back to them is tax deferred. They’re not gonna be paying any taxes on that money until they take distributions. So there you have it, What to say, where they’re located. And as I promise, I want to give you right now absolutely free. I’m so excited about it. My brand new private money guide, I just finished writing it. It’s called Seven Reasons Why Private Money Will Skyrocket Your Real Estate Business and Help you build Incredible Wealth.
Jay Conner
02:28:32
You can download this My Money Guide right now at www.JayConner.com/MoneyGuide. Again, that’s www.JayConner.com/MoneyGuide. This will get you on the fast track if you’ve been trying to figure out how to get funding for your deals. If you are tired of missing out on deals or you’re still trying to get your first deal and you just didn’t know where you were gonna get the money, the Private Money Guide is for you. It’ll get you on the fast track to getting all the private money that you would ever want. I’m so excited that you decided to join me right at the end of this episode, and I can’t wait to see you here on the next upcoming episode of Raising Private Money. I’m Jay Conner, The Private Money Authority, wishing you all the best, and here’s to you having a very, very successful future by getting all the private money you’ll ever want. We’ll see you right here on the next episode of Raising Private Money.
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