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Welcome to another insightful episode of Raising Private Money With Jay Conner!
Today, Jay Conner, The Private Money Authority joins Mike and Ligia Deaton on the Cashflow Fight Club Podcast where Jay shares his wealth of experience on how to flip houses using other people’s money!
Starting Out: A Lesson in Education
Jay Conner didn’t begin his journey in real estate investment following the beaten path. Coming from a background in manufactured housing, Jay initially bypassed formal education in the industry, a decision that would cost him dearly. He stressed the value of proper education and mentorship. Aspiring investors should learn from his story; the price of entering the real estate market unprepared can be unforgiving.
Attracting Private Lenders: The Power of Relationships
One of Jay’s crucial steps to success was raising private capital, especially when traditional bank lending became a bottleneck. He emphasizes the importance of assembling a list of potential private lenders from personal contacts, including retirees and community influencers. The goal is to educate, not to solicit directly, which he beautifully illustrates through his innovative approach to hosting private luncheon events.
Structuring the Deal: A Conservative Approach
Jay walks us through the mechanics of structuring a real estate deal, advocating for never borrowing more than 75% of the after-repaired value of a property. This conservative approach ensures an equity cushion for the lenders, mitigating risk and solidifying trust. He further explains the role of self-directed IRAs in funding and the significance of consistent seller leads for a robust real estate business.
Beyond the Money: Teamwork and Market Dominance
Operating in a small North Carolina market, Jay discusses his strategy to dominate rather than diversify. He champions the use of proprietary software for lead management and process automation. By building a reliable team and perfecting delegation, Jay has developed a seven-figure net business requiring less than 10 hours of his time each week.
Ensuring Sustainability: A Focus on Investor Relations
Jay Conner doesn’t just find private lenders; he maintains and grows relationships with them. Reinvestment of profits from his clients bolsters the sustainability of his operation, positioning his business model as a dependable alternative to the volatile cryptocurrency market.
Securing the Future: Educating and Protecting Investors
Mike Deaton recognizes the shared path in educating potential investors, highlighting the time and effort it takes to bring them into the fold. Jay accentuates the educational aspect of his private lender luncheons, with a clear focus on informing, not asking for money.
Real estate investment is as much about relationships and education as it is about the numbers. Jay Conner’s experience in flipping houses using other people’s money offers a blueprint for success that relies on trust, conservative funding strategies, and constant learning. Whether you’re a budding investor or a seasoned veteran, the insights from this episode are invaluable. Stay subscribed for more content that will help you up your game in the competitive world of real estate investing.
Real Estate Investment Protection:
“I’m giving you all the protection just like a bank. So, if you borrow money from the bank and get a mortgage, the bank’s name is the mortgagee. You, as the private lender, you’re named as the mortgagee on the insurance policy.” – Jay Conner
10 Questions Answered From This Episode:
1. How did Jay Conner’s upbringing and family involvement in the home-flipping business shape his approach to real estate investing?
2. Can you discuss the formula from Jack Canfield that influenced Jay Conner’s positive mindset and how it can be applied to real estate investing?
3. What are the advantages of using other people’s money to flip houses, and how does Jay Conner suggest approaching potential private lenders?
4. Jay Conner talks about the importance of mentorship and education in avoiding costly mistakes when starting in real estate. How can a new investor find a reliable mentor in this industry?
5. How does Jay Conner’s “Stress-Free Investing” audio tool help introduce the concept of private money investing to potential lenders without divulging too much information initially?
6. Can you explain how Jay Conner’s conservative approach of not borrowing more than 75% of the after-repaired value of a property helps in reducing risks for both investors and private lenders?
7. Jay Conner mentions nurturing relationships with private lenders as a key factor in his success. What strategies can investors apply to maintain and grow these relationships?
8. How does hosting private lender luncheons fit into Jay Conner’s overall strategy for educating potential investors, and what makes it an effective tool?
9. Jay Conner successfully operates in a small real estate market. What advice does he have for investors looking to dominate in similar-sized markets?
10. Discuss the role of proprietary software and a reliable team in scaling Jay Conner’s real estate business. What are some essential team roles and processes that he has automated?
Fun Facts:
1. Jay Conner was introduced to the idea of flipping houses for profit when his friends Craig and Kim made $30,000 in 90 days on a fixer-upper in 1993, igniting his interest in real estate over making $3,000 on a single-wide mobile home.
2. Jay shared an amusing anecdote about providing a stranger named Al with a 16-minute audio tool called ‘Stress-Free Investing,’ which led to Al becoming a private lender of $650,000, eventually increasing his investment to $1,000,000 and referring another couple who loaned over $400,000.
3. He humorously advised against wasting money on female hormone drops, intended for weight loss, which he encountered at a local pharmacy event.
Timestamps:
00:01 – Jay built a successful real estate business despite obstacles.
05:39 – Transition from mobile homes to single-family houses.
08:20 – Started business, sought mentor, minimized mistakes, accelerated.
11:37 – Teaching private money for real estate success.
15:26 – Interest form, no direct money requests. Follow-ups prompt action.
18:19 – Automated process for inviting retired people to the event.
21:56 – Introduction to private money investing for real estate.
25:22 – Scheduling a meeting leads to discovering the problem.
29:25 – Find a deal quickly to invest funds.
30:42 – Prepare consistent lead magnet for private money.
35:40 – Closing agent mails promissory note, mortgage, insurance.
37:54 – Discussing land business and hypothetical property purchase.
43:14 – Conservative borrowing, successful deals, and lender security.
46:21 – Software automation revolutionized real estate business operations.
47:50 – Generating leads, evaluating deals, and managing pipeline.
53:29 – Real estate industry journey from flipping to corporate.
55:43 – Choose your response, and shape your destiny positively.
59:00 – Champion’s corner: mindset, action, powerful results.
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What is Private Money? Real Estate Investing with Jay Conner
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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.
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