***Guest Appearance
Credits to:
https://www.youtube.com/@TheMHPExchange
“How To Find The Money To Finance Your Next Deal”
https://www.youtube.com/watch?v=FC635vBeyTA
Navigating the world of real estate can often feel like traversing a maze, especially when it comes to securing funding for your deals. For those feeling daunted by the hurdles of traditional banking, Jay Conner, renowned as the “Private Money Authority,” shares invaluable insights into how investors can break free from the constraints of conventional lending methods.
Jay’s journey into private money lending began out of necessity back in 2009, during the global financial crisis. Like many real estate investors at that time, Jay found himself in a bind when his reliable line of credit from the bank was abruptly closed.
However, rather than seeing this as a setback, Jay turned it into an opportunity to explore alternative funding sources. This exploration introduced him to the world of private money—a realm that would transform his real estate career.
Private money lending involves working with individuals who are willing to lend their personal investment capital in exchange for attractive returns. Unlike traditional banks, which often impose stringent credit checks and collateral requirements, private lenders offer flexibility, allowing you to make your own rules. Jay emphasizes that the cornerstone of his success in this arena has been education and relationship-building.
By wearing his “teacher hat,” he educates potential private lenders about the secure, high-return opportunities available through real estate investments.
One of the key insights Jay shared on the podcast is the importance of investing in your local community—an approach he prefers, as it allows him to maintain better oversight of his investments.
However, he notes that private money principles are versatile and can be applied across various real estate asset classes, from single-family homes to mobile home parks.
Jay’s strategy pivots around the concept of a “good news phone call,” a unique approach he uses to fund deals without ever explicitly asking for money. After educating individuals on private money, Jay simply calls them with news of a potential investment that matches their pre-discussed funding capability.
This approach is not just about maintaining control over investments but also about offering genuine value to lenders by securing their investments with real estate, therefore ensuring that both parties benefit.
The podcast also highlighted an often-overlooked avenue—self-directed IRAs. For those with retirement accounts, directing funds into real estate can yield higher returns compared to traditional investment vehicles. Jay reiterated the importance of establishing a relationship with a self-directed IRA company, thus providing an additional pathway for potential investors to engage in real estate funding.
Jay’s emphasis on mindset—”owning the real estate between your ears”—is pivotal. Many potential investors are held back by fear and a scarcity mindset, unaware of the abundant capital available for real estate deals. Jay’s narrative breaks these barriers, demonstrating that with confidence, knowledge, and the right network, securing private money can be a seamless process.
Entrepreneurs and real estate newcomers alike stand to gain from Jay’s wealth of knowledge, particularly those eager to explore non-traditional funding routes. His book, “Where to Get the Money Now,” which he generously offers for free (just cover shipping), is an excellent starting point for anyone looking to delve deeper into private money lending.
This episode is more than just a guide to securing funding—it’s an empowering call to action for investors looking to reclaim control of their financial destiny through private money lending. Whether you’re a seasoned veteran or a newcomer in the real estate space, embracing the principles shared by Jay can significantly enhance your investment journey.
10 Discussion Questions from this Episode:
- How do Frank Rizzo and Eric Busuttil’s approaches to capital raising differ from Jay Conner’s method, and what are the advantages of each strategy?
- Jay Conner discusses a “good news phone call” as part of his process for securing private money. How does this method build trust with potential investors?
- In the episode, Jay highlights the significance of teaching potential private lenders about private money as a separate conversation from the deal. How might this strategy benefit new real estate investors?
- Jay mentions that desperation has a “smell.” How important is mindset in successfully attracting private investors, according to the podcast discussion?
- The hosts discuss syndication versus Jay Conner’s single-family home strategy. What are the key differences and advantages of these two approaches to real estate investment?
- Jay Conner credits a significant portion of his success to switching from institutional lending to private money in 2009. How did this transition impact his business operations and growth?
- How does Jay Conner ensure security and safety for private lenders in his real estate deals, and what key documents are involved?
- Confidence and trust are recurring themes in the episode. How can new real estate investors build confidence when pitching to potential private lenders?
- Jay Conner emphasizes an abundance mindset in capital raising. How can this mindset shift influence a real estate investor’s success, as discussed in the episode?
- What role does education play in Jay Conner’s strategy for raising private money, and how does it differ from traditional methods of pitching a deal?
Fun facts that were revealed in the episode:
- Jay’s Enthusiasm and Unique Coffee Choice: Jay Conner’s vibrant enthusiasm during the podcast episode sparked curiosity about his morning routine. Interestingly, he attributes his energy not just to a positive mindset and meditation, but also to drinking mushroom coffee from a brand called “RYZE.”
- Family Background in Mobile Homes: Jay Conner has a familial connection to the mobile home industry. His father, Wallace Conner, was once the largest retailer of mobile homes in the United States through his company, Conner Corporation. Jay grew up in this business environment before transitioning to single-family homes.
- Real Estate Success in a Small Market: Despite operating in what Jay describes as a “very, very small market” with only 40,000 people, Jay Conner has managed to achieve remarkable success. He regularly completes two to three transactions per month with an impressive average profit of $86,000 per deal. This highlights his strategic approach and ability to dominate a small local market effectively.
Timestamps:
00:01 Pathway to Financial Freedom
05:13 Attracting Private Money in Real Estate
08:49 Finding Solutions Through Private Lending
12:49 Raising Capital Before Deals
15:18 Syndication Model for Investors
17:37 Mobile Home Mogul’s Journey
20:57 Top Reasons Investors Choose Us
23:41 Private Lending vs. Stock Market
29:33 Self-Directed IRA Transition Overview
31:32 Funding Obligation and Investment Assurance
36:37 Envisioning Success in Private Lending
37:24 Free Real Estate Financing Book Offer
41:51 Private Lending Insights Podcast
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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