Skip to main content

Fundamentals of Private Money and Real Estate Investment: Insights From Jay Conner


***Guest Appearance

Credits to:

https://www.youtube.com/@TheClosingTablePod 

“Jay Conner Discusses Private Money Raising”

https://www.youtube.com/watch?v=cNtgseDPZMk

Today, on the Raising Private Money podcast, Jay Conner had an amazing time joining Kat Schooler on The Closing Table Podcast. During the discussion, Jay elucidated the stability of private money lending compared to traditional investment avenues and shared invaluable insights on attracting private lenders. Here’s an in-depth look into the segments of their dialogue.

Stability of Private Money Lending vs. Stock Market

Jay Conner draws a clear distinction between private money lending and stock market investments. Unlike the stock market, where values fluctuate wildly, private money offers a more stable route. When lending private money, the principal amount remains constant until cash-out, behaving similarly to a bank CD. This stability allows for predictable returns, an invaluable feature for any investor looking to mitigate risk.

Finding Private Lenders: Three Essential Categories

Jay lays out a comprehensive strategy for finding private lenders, categorizing them into three pivotal groups:

  1. Personal Connections: Utilize your existing network. Family, friends, social media contacts, and community members are all potential sources of private money. Jay emphasizes that an active online presence, akin to his, can bolster these efforts significantly.
  2. Expanded Warm Market: Build and grow your connections by joining networking groups like Business Networking International (BNI). These groups offer a fertile ground for expanding your influence and tapping into broader financial resources.
  3. Existing Private Lenders: Seek out individuals who already have self-directed IRA accounts. These seasoned investors are often keen on private lending opportunities and understand the mechanism and benefits involved.

Leveraging Social Media to Attract Lenders

One of the significant revelations from the discussion is the compelling use of social media for attracting private lenders. Jay advises using platforms like Facebook and Instagram to showcase ongoing projects and successful deals. However, he cautions against directly mentioning terms like “private lending.” Instead, he advocates creating curiosity by inviting questions, which compels potential lenders to reach out for more information.

Personal Journey and Transition to Real Estate

Jay Conner’s journey from the mobile home industry to real estate investing is both inspiring and instructive. His transition was catalyzed by a significant disruption in 2002 when Wall Street funding for manufactured housing was cut off. By 2003, Jay had pivoted to flipping single-family homes, a venture that has seen him rehab over 500 homes with substantial average profits per deal.

A key challenge early in his career was assembling a reliable team. He underscores the importance of delegating tasks and avoiding the pitfalls of trying to handle everything alone. This realization led to automating his business operations, enabling him to work a lean 5-7 hours per week while focusing on education and teaching others through platforms like his podcast, “Raising Private Money.”

The Game Changer: Private Money Post-2008 Crisis

Jay recounts the 2008 financial crisis, which abruptly closed his line of credit. This crisis turned into an opportunity when fellow investor Jeff Blankenship introduced him to private money lending using self-directed IRAs. In an impressive feat, Jay raised $2,150,000 from private lenders within just 90 days without any direct solicitation for funds.

Jay underscores the importance of self-education and educating the community about private money. His motto is to lead with a servant’s heart and aim to inform individuals unaware of the profitable and secure nature of private investing.

Building Trust and Ensuring High Returns

Trust is the cornerstone of private money lending. Jay recommends offering an 8% interest rate to private lenders, aligning with industry standards set by hard money lenders. This rate, steady since 2009, makes private lending an attractive proposition even in fluctuating market conditions.

To build trust, Jay advises new lenders to leverage their track record, use secured investments, and maintain transparency. The focus should be on providing high returns safely and securely, thus attracting private lenders by demonstrating the trustworthiness and potential of their investments.

Educational Outreach and Private Money Challenge

Further emphasizing his dedication to education, Jay promotes his “Private Money Challenge,” a 7-day online course designed to teach participants how to raise significant private capital. This initiative is part of his broader mission to demystify private money lending and empower more people to harness its benefits.

In essence, whether you’re a seasoned investor or a newcomer, Jay Conner’s strategies and insights offer a roadmap to successfully utilizing private money lending to achieve financial stability and growth in real estate investment. For more information and to join the “Private Money Challenge,” visit https://www.PrivateMoneyChallenge.com,  and for a deeper dive, don’t miss out on Jay’s free money guide at https://www.JayConner.com/MoneyGuide

10 Discussion Questions from this Episode:

  1. Personal Insights: Jay, you started as a real estate investor after transitioning from the mobile home industry. How did your early experiences in your father’s business prepare you for the challenges of real estate investing?
  2. Private Money vs. Stock Market: Could you elaborate on why you believe investing in private money is more stable than the stock market, and provide examples from your own experiences?
  3. Private Lender Categories: You mentioned three categories for finding private lenders. Which category do you believe is the most effective for someone just starting out, and why?
  4. Social Media Strategy: You’ve successfully attracted private lenders through social media by creating curiosity. Can you share some specific examples of posts or strategies that have generated significant interest?
  5. Business Automation: How did automating your business impact your work-life balance, and what advice would you give to entrepreneurs looking to automate their operations?
  6. Team Building: One of your early challenges was assembling a reliable team. What key qualities do you look for when hiring members for your team, and how do you ensure they align with your business objectives?
  7. Educational Pursuits: How has focusing on education and creating resources like your podcast and the “Private Money Challenge” influenced your real estate business and personal growth?
  8. Interest Rates: You recommend paying private lenders an 8% interest rate. Can you discuss how you arrived at this figure and how it compares to other investment options available to private lenders?
  9. Trust Building: Trust is crucial in private lending. Can you share more about how you build and maintain trust with your private lenders, especially those you may not have a personal connection with?
  10. Ethical Responsibility: You emphasize the ethical responsibility towards investors. How do you ensure that the investments from your private lenders are put to work promptly and managed effectively?

Fun facts that were revealed in the episode:

  1. Church Connection and Magic Phrase: Jay secured his first $500,000 in private money by approaching a church acquaintance, using the phrase “I need your help” to gain interest without directly asking for funds.
  2. 7-Hour Work Week: Through delegation and automation, Jay now effectively runs his real estate business in just 5 to 7 hours per week, allowing him to focus on teaching and podcasting.
  3. Showcase Over Sell: Jay uses social media to attract private lenders by showcasing ongoing projects and successful deals, creating curiosity without directly mentioning “private lending.”

Timestamps:

00:01 Raising Private Money Without Asking For It

05:20 Struggles in scaling business, overwhelming workload.

10:05 Private money was the biggest game changer.

14:22 Using private money and self-directed IRAs.

17:35 Created a private lending program to secure funding.

20:08 Seeking referrals for profitable real estate investments.

25:06 Ethically bound to invest client’s retirement funds.

29:00 Trust yourself and leverage prior successes confidently.

30:03 Leverage business relationships; don’t start alone.

34:40 The stock market is volatile; private loans offer stability.

37:57 Network through BNI, local groups, and online.

40:51 Post projects on social media to attract lenders.

43:07 Join the private money challenge: https://www.PrivateMoneyChallenge.com 







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 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.jayconner.com/podcast/episode-233-fundamentals-of-private-money-and-real-estate-investment-insights-from-jay-conner/


Comments

Popular posts from this blog

From Hospital Executive to Real Estate Mogul: The Mason McDonald Transformation

https://www.jayconner.com/podcast/episode-163/ Mason McDonald, once deeply entrenched in the healthcare industry, found liberation and financial success in an unexpected venture: real estate investment. His professional life took a dramatic turn when the pressures and dissatisfaction of his hospital executive job spurred him to explore real estate, an interest sparked by his family’s background in the industry. Mason’s story is not just about change; it’s about strategic and bold decision-making, taking a calculated risk with just $60 and a course on land flipping, leading to significant professional and personal growth as discussed in a gripping episode with Jay Conner on the “Raising Private Money” podcast. Why Invest in Land? Choosing land over other forms of real estate investment might seem unconventional to some. However, Mason outlined compelling reasons for his focus during the podcast. The barriers to entry are relatively lower, and the tax advantages are particularly appealin...

Secure Real Estate Success Through Digital Marketing & Private Money with Jason Wright & Jay Conner

Private Money Academy Conference: https://www.JaysLiveEvent.com Free Report: https://www.jayconner.com/MoneyReport Jason Wright is a speaker, author, entrepreneur, limited partner real estate investor, podcast host, and digital marketing architect with a passion for helping other business owners with their sales funnels. Jason prides himself on his ability to connect with people and speak to them in a language they understand. Jason is able to design successful marketing automation machines all while keeping a positive attitude and sense of humor along the way. DIGITAL MARKETING AUTOMATION EXPERTISE ActiveCampaign Go HighLevel SalesMsg Zapier Digital Marketing Strategy & Architecture Email Deliverability ENTREPRENEURIAL ACCOLADES Author of the book, The Backward Route To Forward Progress: 7 Solutions For Crushing Fear, Self-Doubt, And Limiting Beliefs ActiveCampaign Certified Consultant for 6+ years Has worked on 600+ sales funnels and counting... He has been featured on 9...

Transform Your Financial Future: Eric Vogel’s Strategies and Jay Conner’s Real Estate Insights

https://www.jayconner.com/podcast/episode-175-transform-your-financial-future-eric-vogels-strategies-and-jay-conners-real-estate-insights/ In the latest episode of the Raising Private Money podcast, renowned private money authority Jay Conner sits down with Eric Vogel, a high school teacher turned real estate investor, who shares his incredible journey to financial independence and freedom. This episode is an eye-opener for anyone looking to achieve their own FIRE (Financial Independence, Retire Early) through real estate.   The Journey Begins: From High School to High Profits Eric Vogel and his wife were high school teachers who decided to pivot their careers toward real estate investment. Within just four years, they grew their business to seven figures—a testament to their dedication, strategic planning, and unwavering intention. Their story is a powerful example of how setting actionable goals and focusing on intention can accelerate your path to financial success.   The A...