***Guest Appearance
Credits to:
https://www.youtube.com/@ROIClear
“Jay Conner: Teaching & Leading with a Servant’s Heart”
https://www.youtube.com/watch?v=kqCmL7b5mYE&t=46s
Introduction: Reimagining Real Estate Financing
In the latest episode of the Real Estate Investing podcast, we delve into an enlightening discussion on private money and private lending with Jay Conner, affectionately known as the “private money authority.” Having embarked on his real estate journey in 2003 alongside his wife, Carol Joy in Eastern North Carolina, Jay has amassed invaluable experience and developed a unique approach to real estate financing — one that eschews traditional banks and lenders in favor of private money. Here’s how Jay’s innovative strategies can revolutionize your approach to real estate investment.
The Genesis: Jay Conner’s Real Estate Journey
Jay Conner’s foray into real estate investment began in 2003. Like many new investors, Jay initially relied on local banks for funding his deals. However, the global financial crisis in January 2009 marked a pivotal turning point. When his bank line of credit was abruptly closed, Jay faced a financial dilemma that could have derailed his investment ventures.
Instead of succumbing to financial pressure, Jay asked himself a crucial question: “Who do I know that can help?” This quest led him to discover the world of private money and self-directed IRAs, thanks to Jeff Blankenship, who had also been affected by bank funding cuts. This newfound knowledge fueled Jay’s development of a comprehensive private lending program.
The Approach: Educating with a Servant’s Heart
One of Jay Conner’s core strategies is educating potential lenders without directly soliciting funds. This creates a trusting environment where investors feel comfortable and informed. Jay, positioning himself as a “private money teacher,” shares his extensive knowledge of private lending, emphasizing the safety and profitability of such investments.
Jay’s method revolves around hosting educational sessions where he teaches individuals about private lending. For example, Jay often organizes luncheons and community presentations, sharing insights about earning tax-free and tax-deferred returns through self-directed IRAs. By leading with a servant’s heart and focusing on education, Jay removes the pressure and desperation often associated with funding requests. This strategy fosters organic interest and investment, underlining the notion that people lend to those they trust and respect.
The Mechanics: Engaging Private Lenders
Jay Conner’s private lenders fall into three categories: personal network contacts, expanded warm market contacts, and existing private lenders. By leveraging these connections, Jay has engaged 47 private lenders who invest anywhere from $30,000 to over a million dollars each.
A practical example of Jay’s method involves using PowerPoint presentations during luncheons to educate attendees on private lending opportunities. This includes an emphasis on self-directed IRAs’ advantages, such as tax benefits. Attendees are provided with interest forms to express their willingness to participate, eliminating the need for hard selling.
Follow-up calls are crucial in Jay’s approach, focusing on gathering feedback rather than persuasively asking for investments. This subtle, respectful method often leads attendees to express their interest in investing voluntarily, underscoring the effectiveness of Jay’s educational focus.
Single Family vs. Commercial Real Estate Funding
Private money’s application varies based on the type of real estate deal. For single-family homes, Jay explains that funding often involves individual promissory notes and collateralization — relatively straightforward processes compared to commercial projects. Commercial real estate ventures, on the other hand, typically necessitate more complex arrangements such as securities and private placement memorandums.
Jay advises new real estate investors to first educate potential investors about private money. This allays fears of rejection and grants them confidence in their investment knowledge. By separating the teaching phase from the actual funding requests, investors are more likely to engage positively and willingly.
Real-Life Impact: Success Stories and Takeaways
Jay Conner’s methods are not merely theoretical; they come with proven success stories. He recounts his experience with the first private lender secured through a Bible study group. By highlighting the opportunity for high returns compared to traditional markets, Jay successfully tripled the initial investment offer within days. Such experiences testify to the potential and effectiveness of leading with trust and education.
Additional Resources: Jay Conner’s Book and Podcast
For those eager to delve deeper into private money strategies, Jay Conner’s book “Where to Get the Money Now” serves as an invaluable resource. Providing a step-by-step guide on securing real estate funding without depending on institutional money, this book is available for free on Jay’s website (covering just the postage) or for purchase on Amazon.
Listeners are also encouraged to tune into Jay’s podcast, “Raising Private Money with Jay Conner,” which features interviews and insights on raising private funds for real estate deals.
Conclusion: Transform Challenges into Opportunities
Jay Conner’s journey and methodologies serve as a testament to the power of resourcefulness and education in the realm of real estate investing. By transforming a potential setback into an opportunity for innovation, Jay provides a roadmap for investors to achieve financial independence and success through private money.
Embrace the lessons from Jay’s experience, lead with education and trust, and discover how private money can unlock new pathways in your real estate investment journey.
10 Discussion Questions from this Episode:
- Early Beginnings: How did Jay Conner and his wife start their real estate investing journey, and what motivated them to rely on private money rather than traditional bank loans?
- Private Money Strategies: What does Jay Conner mean by becoming a “private money teacher,” and how does this approach reduce apprehension from potential private lenders?
- Network Building: Can you discuss the three categories of private lenders identified by Jay Conner? How might these categories be applicable to someone starting out in real estate investment?
- Educational Approach: How does separating education about private lending from direct funding requests encourage potential lenders to invest without feeling pressured?
- Private Lender Luncheons: What are the key elements that make Jay Conner’s private lender luncheons effective, and why does he focus on education rather than hard selling?
- Real Estate Funding Differences: What are the fundamental differences between funding single-family home projects and commercial real estate ventures that Jay Conner outlines?
- Follow-Up Techniques: Discuss the importance of Jay Conner’s follow-up approach with potential investors. How does gathering feedback instead of immediately asking for investment help build trust?
- Educational Presentations: What role do educational presentations at community organizations play in Jay Conner’s strategy for raising private money, and how do they appeal to potential investors?
- Influential Books: How did “University of Success” by Og Mandino and “The Go-Giver” by Bob Burg influence Jay Conner’s philosophy and approach towards real estate investment and private money lending?
- Crisis to Opportunity: Reflect on how a significant funding crisis in 2009 led Jay Conner to pivot towards private money. What lessons can be drawn about turning challenges into opportunities?
Fun facts that were revealed in the episode:
- Jay Conner and his wife started their real estate investing career in Eastern North Carolina in 2003, avoiding traditional lenders from the outset.
- Jay secured his first private lender after approaching someone from his Bible study and landed a $250,000 commitment that doubled within 24 hours.
- Jay offers a free copy of his book, “Where to Get the Money Now,” to listeners who cover the postage, detailing how to fund real estate deals without traditional loans.
Timestamps
00:01 Secure real estate funding by educating private lenders.
03:35 Teaching regular people about private lending opportunities.
09:22 $969,000 raised teaching private money at luncheons.
12:28 No selling, begging needed; private lender assured.
14:39 Teaching using retirement funds for real estate investment.
19:39 Banker Steve is silent about funding two houses.
22:44 Start raising private money: mindset, teaching, serving.
24:48 Seeking real estate referrals for high returns.
29:11 “The University of Success” helped me during hardship.
31:23 Download free guide at 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 money or credit.
What is Real Estate Investing? Live Private Money Academy Conference
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