***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:
- 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.
- 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.
- 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:
- 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?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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:
- 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.
- 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.
- 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:
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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https://www.youtube.com/c/RealEstateInvestingWithJayConner
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