*** Guest Appearance
Credits to:
https://www.youtube.com/@moneywithmission3142
“Money is Everywhere with Jay Conner”
https://www.youtube.com/watch?v=FgTaMJjHOYY
Exploring the Power of Private Money Lending for Real Estate Investments
Jay Conner, renowned as the “Private Money Authority,” recently graced the “Money with Mission” podcast hosted by Dr. Felicia Froe. During the episode, Jay delved into the transformative power of private money lending, sharing his journey from relying on traditional bank loans to becoming a successful advocate and educator in private money. This blog post unpacks the wisdom shared by Jay Conner, offering actionable insights for real estate investors and potential private lenders alike.
A Turning Point in Jay Conner’s Journey
The Bank Collapse and a Search for Solutions
Jay Conner’s real estate career, which began in 2003, took a dramatic turn after the 2008 financial crisis. By January 2009, Jay faced an abrupt financial dilemma: his bank unexpectedly severed his line of credit. With two houses under contract and no traditional financing available, Jay found himself questioning how to overcome this seemingly insurmountable obstacle. It wasn’t about “how” he would resolve it, but “who” could assist him.
Discovering Private Money Lending
A pivotal conversation with his friend Jeff Blankenship introduced Jay to the concept of private money, including the use of self-directed IRAs. This option allowed individuals to lend their retirement funds for investments. Jay’s curiosity led him to research and ultimately master the private money lending model, paving the way for his remarkable success in raising funds.
Crafting a New Financial Path
The Power of Raising Private Money
Jay’s in-depth understanding and strategy for private money paid off quickly. Within 90 days, he raised $2,150,000, far surpassing his previous $1 million bank credit. This success was a game-changer during a time when conventional loans were nearly impossible to secure.
Shifting from Borrower to Educator
Acknowledging the transformative effect private money lending had on his business, Jay transitioned into a teaching role. By focusing on education rather than solicitation, he attracted investments organically. He emphasized the importance of leading with a servant’s heart and sharing knowledge about private money lending’s benefits to potential investors.
Strategies and Practices for Real Estate Investors
Practical Approaches to Real Estate Deals
Jay leverages private money to fund fix-and-flip deals, averaging a profit of $82,000 per deal. He typically conducts two to three deals per month, amounting to approximately 30 deals annually. Additionally, Jay employs creative financing techniques, purchasing single-family homes on terms and then offering them on lease purchase or rent-to-own agreements.
Navigating the Market Landscape
Jay’s strategy involves acquiring off-market properties, crucial amidst low inventory scenarios. The speed of acquisition, facilitated by private funding, often leads to substantial profits. He cited a recent condo flip netting $160,000, showcasing the effectiveness of his methods.
The Dual Roles in Real Estate: Lenders and Investors
Opportunities for Private Lenders
Dr. Felicia Froe highlighted the significance of financial independence, especially for women, advocating for investments in cash-flowing assets. Jay further explained that self-directed IRAs, an IRS-approved entity, enable individuals to diversify their investments and achieve higher returns compared to traditional retirement funds. Since 2009, Jay has consistently offered returns of 8%-10% to his lenders.
The Role of Networking and Education
Both speakers underscored the importance of networking and education in real estate. Jay noted that 99% of people, including financial advisors, are unaware of self-directed IRAs and private money lending. Educating potential investors using conversation starters like “Did you know?” questions can pique interest and open up new financial avenues.
Personal Stories and Ethical Investing
A Relational Approach to Networking
Jay shared a personal story about leveraging community ties to engage potential investors without directly asking for money. His approach involves educating and building relationships, which organically leads to investment opportunities. This strategy not only lowers the ask but also fosters ethical responsibility in sharing financial knowledge.
Fulfilling Financial Goals through Service
Reflecting on his motivations, Jay stressed the importance of pursuing endeavors that extend beyond personal gain. A money-only focus often leads to dissatisfaction, whereas a purpose-driven approach, aiming to help others, naturally brings about personal and financial fulfillment.
Conclusion: Embracing Private Money Lending
Jay Conner’s insights on private money lending offer a roadmap for securing financial independence and making impactful real estate investments. By learning and leveraging private money, investors can navigate unpredictable financial landscapes with greater confidence and success. Engaging in private money challenges, like Jay’s “7 Day Private Money Challenge,” provides an educational platform for both potential private lenders and investors to begin their journey toward financial freedom.
For more information on Jay Conner’s strategies, resources, and contact details, visit https://www.JayConner.com and the private money challenge at https://www.PrivateMoneyChallenge.com. Additionally, explore the educational materials available at https://www.MoneyWithMission.com for comprehensive insights into fostering social impact through real estate investments.
10 Discussion Questions from this Episode:
- Jay Conner’s Journey:
- How did Jay Conner’s upbringing and his father’s entrepreneurial influence shape his approach to real estate investing and private money lending?
- The 2008 Financial Crisis:
- What were the critical steps Jay Conner took after his bank cut off his line of credit post-2008 crash, and how did this situation lead him to discover private money lending?
- Private Money Lending System:
- Can you describe Jay Conner’s method for successfully raising over $2,100,000 in private money within a short period and the core principles behind this strategy?
- Self-Directed IRAs:
- What are self-directed IRAs, and why does Jay Conner advocate for their use in the context of private money lending for real estate investments?
- Educational Approach:
- How does Jay Conner’s method of educating potential investors differ from directly asking for money, and why does he believe this educational approach is more effective?
- Overcoming Fear:
- For new investors, how does focusing on education help overcome the fear associated with raising private money, according to Jay Conner?
- Financial Independence for Women:
- From Dr. Felicia Froe’s perspective, why is it essential for women to achieve financial independence through investing in cash-flowing assets, and what role does private money play in this?
- Long-term Success:
- Jay Conner speaks about the importance of not appearing desperate when seeking investments. How does maintaining a “servant’s heart” contribute to long-term success in real estate?
- Creative Financing:
- Can you discuss some of the creative financing techniques Jay Conner uses, such as purchasing single-family homes on terms and selling them on lease-purchase agreements? How do private funds facilitate these deals?
- Community and Networking:
- How does building strong community relationships and networks contribute to Jay Conner’s success in attracting private lenders, and what ethical considerations should one keep in mind when utilizing these networks?
Fun facts that were revealed in the episode:
- Jay Conner successfully raised $2,150,000 in private money within 90 days, during a time when conventional loans were scarce.
- Jay Conner’s father, Wallace Conner, now 91, remains active in real estate development, influencing Jay’s entrepreneurial mindset.
- Jay’s introduction to private money came through a conversation with his friend Jeff Blankenship, exploring the concept of self-directed IRAs.
Timestamps:
00:01 Transitioned from traditional loans to private money.
05:03 Early job taught communication; money perspective shifted.
09:17 Line of credit closed; can’t fund deals.
10:47 Learning about private money for real estate.
14:31 Share investment opportunities; let them express interest.
16:55 Networking is crucial for real estate success.
22:18 Private lending offers higher interest than CDs.
25:30 Unlimited tax-free income: self-directed Roth IRA.
29:51 Seeking referrals for real estate investment program.
32:50 Creative financing enables profitable real estate investments.
34:30 Help others succeed; then you’ll succeed.
39:22 New 7-day private money challenge launched.
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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