***Guest Appearance
Credits to:
https://www.youtube.com/@jmmbmedia
“The Untold Secrets of Private Lending Prosperity”
https://www.youtube.com/watch?v=cw5txrXj6Vs
In a recent episode of the Raising Private Money podcast, Jay Conner and Ida Crawford dive into the fascinating world of private money for real estate investments. The conversation unpacks the journey of Jay Conner, who successfully transitioned from traditional bank financing to the more flexible and profitable method of using private money, especially after the financial crisis of 2008.
The Transition from Traditional Bank Financing to Private Money
Initially, Jay Conner and his wife relied heavily on bank financing to fund their real estate ventures from 2003 to 2009. However, like many investors during the financial crisis, they faced a significant hurdle when banks tightened their loaning capabilities. Jay recounts the arduous moments when traditional financial institutions cut them off, compelling him to seek alternative funding options. This pivotal moment led him to discover private money, marking a transformation in his approach to real estate investing.
The Power of Private Money
Jay Conner’s introduction to private money came through a fellow investor who enlightened him about using self-directed IRAs. Within a strikingly short period of 90 days, Conner managed to raise over $2 million in private funding. This shift not only revitalized his business but also allowed him to set rules that worked in his favor.
Control and Benefits
One of the most significant advantages of private money is control. Unlike bank loans, where terms and conditions are strictly set by financial institutions, private money allows investors to negotiate favorable terms, making the deals more profitable and less stressful. Furthermore, private money is not limited by the same stringent guidelines that banks enforce, resulting in virtually unlimited funds and no constraints on the number of lenders or the amount they can contribute.
Quick Closings
Another notable benefit is the ability to close deals rapidly. Jay shared that his fastest closing, an oceanfront condominium, happened in a mere five days. This agility provides a competitive edge in the real estate market, enabling investors to capitalize on opportunities swiftly.
No Personal Investment Required
Using private money also often means that investors can secure additional funds at closing, which aids in improving cash flow without necessitating personal investment. This aspect liberates investors from the constraints of their financial standings, allowing them to pursue high-yield projects confidently.
Building Relationships and Educating Future Lenders
Jay Conner’s success with private money didn’t come from merely asking for investments; it thrived on building relationships and educating potential lenders. By focusing on a servant leadership approach, Jay was able to demystify private lending.
Educative Approach
Instead of directly soliciting funds, Jay educates individuals on the lucrative opportunities available through private lending. For instance, he uses a 16-minute audio introduction available on YouTube to outline private money’s benefits without divulging sensitive details. This approach reduces the fear of rejection and attracts genuine interest from potential lenders.
Leveraging Personal Connections
It’s noteworthy that Jay’s private lender network, which includes everyday people like retired school teachers and church acquaintances, was built entirely through word-of-mouth. In one recount, Jay shares how an 89-year-old friend, initially wary of private investments, was convinced, resulting in a significant lifestyle improvement.
Luncheons and Ethical Obligations
Jay Conner also organizes private lender luncheons as a strategy to educate multiple potential lenders simultaneously. Such an event managed to garner him $969,000 from attendees. He emphasizes the ethical obligation to ensure that funds transferred to self-directed IRA accounts by his lenders begin generating returns promptly, maintaining trust and transparency.
Private Lending through Retirement Funds
Highlighting the potent combination of private lending and retirement funds, Jay Conner reveals that over half of his 47 private lenders use their retirement savings for investments. Establishing relationships with self-directed IRA companies allows these individuals to invest their retirement funds in stable programs, offering consistent returns and no volatility since 2009.
Conclusion: An Invitation to Learn More
In wrapping up, Jay Conner extends his gratitude to the hosts and invites the audience to explore more through his private money challenge and dedicated podcast. Offering resources like a free guide on the benefits of private money and a 7-day video course, Conner encourages real estate enthusiasts to consider the profitability and stability of private lending.
Jay Conner’s transition to private money has not only sustained his business but also provided a method for others to achieve similar success. The insights shared during this podcast episode drive home the benefits of private money in real estate, emphasizing control, rapid deal execution, and the power of building genuine relationships.
10 Discussion Questions from this Episode:
- What were the main limitations Jay Conner faced with traditional bank financing, and how did the 2008 financial crisis influence his shift to private money?
- Discuss the advantages of using private money for real estate investments as outlined by Jay Conner. Which benefits do you consider the most impactful and why?
- How did Jay Conner’s approach to automation enhance his ability to work minimal hours while generating substantial profits in real estate investing?
- Jay Conner emphasizes the importance of maintaining control over business deals. In your opinion, how does private money facilitate this control compared to traditional financing?
- What strategies does Jay Conner use to attract private lenders, and how does his focus on education rather than direct solicitation contribute to his success?
- Jay Conner’s method includes the concept of the “good news phone call.” How does this approach differ from traditional funding requests, and what are its advantages?
- How does the ethical obligation to efficiently utilize funds from self-directed IRA accounts impact Jay Conner’s relationship with his private lenders?
- What misconceptions about private lending did Ida Crawford and Jay Conner address during the episode, and how do these misconceptions affect potential investors?
- Reflect on the story of the 89-year-old woman who became a private lender. What can this story teach us about the diverse backgrounds of private lenders and the potential for private lending to accommodate different needs?
- Discuss the role of self-directed IRAs in private lending as explained by Jay Conner. How do these accounts provide tax advantages for investors and what impact does this have on their investment strategy?
Fun facts that were revealed in the episode:
- Jay Conner raised over $2 million in private funding within 90 days after learning about private money post-bank cutoff.
- Jay once raised $969,000 in a single private lender luncheon.
- One of Jay’s private lenders is an 89-year-old woman who initially preferred stock investments.
Timestamps
00:01 Invested in real estate; relied on banks.
05:36 Controlled lending with unlimited private money potential.
06:33 Private money allows 75% after-repair value loans.
09:48 Seeking referrals for private lending program investors.
15:24 Offer to fund Newport house investment deal.
16:15 Urgent need to invest Ida’s retirement funds.
19:31 Join the 7-day Private Money Challenge for investors.
23:03 More cash than deals for real estate.
28:41 Transferred 50% of 401(k) funds tax-free.
30:53 Join the Private Money Challenge go to
https://www.PrivateMoneyChallenge.com or call.
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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 money or credit.
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