Skip to main content

Private Lenders vs Banks: Exploring the Benefits for Real Estate Investors



Are you interested in learning how to raise and leverage private money to make more profit on every real estate deal? If so, you’re in the right place! In today’s episode, we’ll be discussing the topic of real estate investing without the need for traditional banking institutions.

Jay Conner shares valuable insights on how private lenders can be your financial partners without demanding equity in your properties.

Jay explains that in the realm of single-family houses, private lenders function similarly to banks. They provide loans secured by the property and receive an interest rate just like a traditional lender would. However, private lenders do not hold any ownership of the property. Instead, it’s your entity, such as an LLC or land trust, that holds the ownership.

Jay also discusses how the math works when it comes to using Private Money. He emphasizes the importance of borrowing a maximum of 75% of the after-repaired value (ARV) of the property, as opposed to borrowing based on the purchase price alone. This strategy allows you to maximize your funding and potentially receive excess cash at closing.

Furthermore, Jay shares an example to illustrate how multiple private lenders can be involved in a deal. By securing funds from multiple lenders, you can diversify your financing sources and structure deals to meet your specific needs.

If you’re curious to dive deeper into real estate financing and how to unlock the power of Private Money, make sure to tune in to our podcast episode. Jay Conner, The Private Money Authority, offers unique insights and strategies to help you succeed in the real estate investing world.

Timestamps:

0:01 – The Private Lender Is The Bank

1:11 – How Much Equity Does A Private Lender Receive?

3:32 – What Is One-Off?

4:12 – How Do You Run The Math Based On The Number Of Investments?

9:12 – What Is Total Loan To Value?

10:05 – Jay Conner’s Free Money Guide: https://www.JayConner.com/MoneyGuide












Private Money Academy Conference:

https://www.JaysLiveEvent.com

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

https://youtu.be/QyeBbDOF4wo

YouTube Channel

https://www.youtube.com/c/RealEstateInvestingWithJayConner

Apple Podcasts:

https://podcasts.apple.com/us/podcast/private-money-academy-real-estate-investing-with-jay/id1377723034

Facebook:

https://www.facebook.com/jay.conner.marketing

Twitter:

https://twitter.com/JayConner01


Pinterest:

https://www.pinterest.com/JConner_PrivateMoneyAuthority


Listen to our Podcast:

https://www.buzzsprout.com/2025961/episodes/13762906

Comments

Popular posts from this blog

Conservative Strategies for Real Estate Wealth: Advice from Jay Conner

https://www.jayconner.com/podcast/episode-155-conservative-strategies-for-real-estate-wealth-advice-from-jay-conner/ Are you ready to unlock the keys to real estate success? Today,  Jay Conner, The Private Money Authority joins Jake Wiley on   The Limited Partner Podcast   and is here to help you transform the way you think about property investment. Jay Conner’s story begins with a crisis that became a catalyst for change. After unexpectedly losing his line of credit, Jay was propelled into the world of Private Money and private lending. His response was remarkable; he raised over $2 million within 90 days, pivoting from conventional banking to building a network of private investors. This turn of events not only salvaged his immediate transactions but also tripled his business by tapping into the surge of foreclosures that marked the period. Adapting to Market Shifts Jake Wiley and Jay Conner delve into the importance of flexibility in the face of market fluctuations. T...

How Jay Conner Raised $2.1 million of Private Money in 90 days

Private Money Academy Conference: https://www.JaysLiveEvent.com Free Report: https://www.jayconner.com/MoneyReport Join the Private Money Academy:  https://www.JayConner.com/trial/ 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 be...

Finding Purpose And Success with Brett Snodgrass and Jay Conner

Private Money Academy Conference: https://www.JaysLiveEvent.com Free Report: https://www.jayconner.com/MoneyReport Join the Private Money Academy:  https://www.JayConner.com/trial/ Brett Snodgrass is CEO of Simple Wholesaling and has been a full-time real estate investor for 10+ years. He specializes in wholesaling, wholetailing, creative financing, and scaling a business from a one-man band to an amazing full team running 100s of deals per year. Brett has extensive knowledge and firsthand experience in several facets of real estate investing. He is an investor in Indianapolis (who loves being a Hoosier) and works with investors all over the country who want to invest in one of the top-rated cash-flowing markets in the nation—that is Indy. Brett’s amazing team buys and sells 300+ properties per year and builds passive streams of income by creating 50+ creative financing deals per year. In a five-year timespan, Brett has gone from a one-person team to a full-time staff of 10+ te...