***Guest Appearance
Credits to:
https://www.youtube.com/@larryshakman
“The Real Estate Radio Show | Jay Conner | The Private Money Authority”
https://www.youtube.com/watch?v=PdyWho_RwPg&t=244s
In the world of real estate investing, access to funding is crucial. Jay Conner, a seasoned expert in private money lending, brings a wealth of knowledge to those looking to elevate their investing game. On a recent episode of the Raising Private Money podcast, Jay Conners joined Larry Shakman on the Real Estate Radio Show and shared how private money transforms the landscape for investors and why it could be a game-changer for those looking to enter the market without depending on traditional bank loans.
The Concept of Private Money
Private money in real estate revolves around securing funds from individual investors rather than institutional lenders like banks. Jay explains that this approach provides unparalleled flexibility. As a borrower, you can set the terms and conditions, including interest rates, loan periods, and the loan-to-value ratio. This power dynamic shift is significant compared to the traditional loan process, where banks dictate terms.
Why Choose Private Money?
Jay outlines several strategic advantages of using private money:
- Control Over Terms: As the borrower, you establish the rules—eliminating the tedious approval processes and credit checks typically required by banks.
- Fast Access to Funds: Investors can close deals quickly, often within seven days, making their offers more competitive in fast-moving markets.
- Unlimited Potential: Because there is no limit to the number of private lenders you can work with, there’s also no cap on the amount you can borrow. This provides a pathway to scaling your investment portfolio more aggressively.
Building Relationships with Lenders
Jay emphasizes the importance of cultivating relationships with potential lenders, often within one’s personal or professional network. Many individuals are not aware of the benefits of shifting their investments from traditional savings to real estate through self-directed IRAs or liquid capital. By educating them, investors open up new avenues for funding. Jay shares an anecdote about raising over $2 million in less than 90 days just by teaching his network about private lending.
Finding Motivated Sellers
Understanding where to find deals is as crucial as having the funds to purchase them. Jay discussed how he connects with motivated sellers, focusing on for-sale-by-owners (FSBOs) and properties not listed on the traditional market. He leverages Google pay-per-lead vendors, ensuring that potential sellers reach out to him, creating warmer and more fruitful conversations. This proactive approach not only saves time but also enhances negotiation power by making investors a welcome guest rather than an unsolicited cold caller.
Structuring Deals for Maximum Profit
Jay outlines a threefold strategy for maximizing profits on deals:
- Buying Right: Use private money to purchase at a discount and always aim to buy a property at 50% or below the after-repaired value.
- Efficient Selling: Whether flipping or opting for a rent-to-own agreement, the goal is to secure a substantial return on investment quickly.
- Receiving Multiple Checks: Jay’s method ensures investors receive payments at different stages—when buying, holding, and selling. This flow of funds supports the cash flow and adds to the profitability of each transaction.
Conclusion
Jay Conner’s insights on private money reveal a blueprint for real estate success that goes beyond traditional financing methods. By tapping into private money and strategically approaching deals, investors can achieve greater control, speed, and profitability. For those eager to explore this exciting avenue, Jay offers resources and guidance to get started.
Whether you’re a seasoned investor or just stepping into the expansive world of real estate, understanding private money could be the key to unlocking a future of exponential growth and opportunity. Jay Conner’s expertise is a valuable resource for transforming your approach to real estate investing.
10 Discussion Questions from this Episode:
- How does Jay Conner’s approach to using private money in real estate investing differ from traditional methods of obtaining funding?
- What are some of the key benefits of using private money for real estate transactions, as outlined by Jay Conner in this episode?
- How does the concept of self-directed IRAs contribute to the effectiveness of raising private money for real estate investments?
- In what ways does Jay Conner suggest establishing terms with private lenders, and how can this benefit real estate investors?
- What are some of the strategies Jay uses to find motivated sellers for his real estate deals, and how do these strategies contribute to the success of his investments?
- Jay mentions that he offers potential private money lenders an opportunity rather than having to apply for a loan. How does this approach impact the investor-lender relationship?
- How does Jay Conner ensure that he maintains good relationships with his private money lenders, especially in terms of handling unexpected situations?
- What role does empathy play in Jay Conner’s interactions with potential property sellers, and how does this impact his success in the real estate market?
- How does the process of receiving multiple checks in a real estate deal work according to Jay Conner, and what strategic benefits does it offer to investors?
- Discuss the importance of having a diversified approach to finding private money lenders and motivated sellers, as highlighted by Jay Conner in this episode.
Fun facts that were revealed in the episode:
- Jay Conner and his wife Carol Joy experienced a significant snowstorm in North Carolina, getting nine inches of snow — something that hadn’t happened in over thirty years!
- Jay Conner mentions that in North Carolina, they still use handsets with cords, highlighting a regional charm.
- Private money allows investors to create their own lending rules, making the borrower effectively “the underwriter” of the deal. This unconventional approach contrasts sharply with traditional bank lending.
Timestamps:
00:01 Exploring Private Money Lending
08:53 Financial Crisis Reflection
11:34 Self-Directed IRAs: An Overview
13:21 Investing in Real Estate via IRA
17:35 Leveraging FSBO for Real Estate Gains
19:27 Assessing For-Sale-By-Owner Homes
24:40 Pay Per Lead for Qualified Leads
28:48 Housing Issues and Financial Hardships
30:03 Empathy in Property Dealings
32:55 Earning Multiple Checks Explained
36:21 Real Estate Financial Planning
41:41 Consistent Private Lending Rates
44:32 Private Lending Fundamentals Explained
47:32 House Flipping Timelines and Strategy
50:30 Investor Assurance and Flexibility
55:45 Passive Real Estate Investment Strategies
56:32 Insights from Jay on Real Estate
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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