***Guest Appearance
Credits to:
https://www.youtube.com/@EG_Developer
“The Art of Raising Capital”
https://www.youtube.com/watch?v=oo0HNrZOvtI
If you’re a real estate investor or developer wrestling with the age-old question—how do I find funding for my deals?—You’re not alone. Most of us start in the same place: we turn to banks, endure rigorous credit checks, and cross our fingers that the funds come through. But as veteran investor Jay Conner shared in his interview with Eugene Gershman, there’s a better way: Raising Private Money.
In this episode, we’ll break down Jay’s method for leveraging private lenders—a system that not only allows you to fund deals quickly but puts you firmly in the driver’s seat.
The Bank Shutdown That Sparked a Change
Jay’s journey into private money began out of necessity. For years, he’d relied on banks, but in 2009, his line of credit was abruptly closed. With deals under contract and no financing in sight, he asked himself, “Who do I know that can help?” That call led him to the world of private money, where individuals, often using their retirement funds, can invest in real estate for higher, safer returns.
Don’t Beg for Money: Teach Instead
One of Jay’s core philosophies? Don’t chase money—attract it by teaching. Instead of pitching individual deals with desperation, Jay developed a private money “program.” He educated potential lenders on what private money is, how it works, and why it’s mutually beneficial—all before bringing any specific investment opportunity to the table.
By wearing his “teacher hat,” he positioned himself as a knowledgeable, trustworthy guide rather than someone begging for help. This simple shift allowed him to raise over $2 million in 90 days.
The Secret: Separate the Funding Conversation from the Deal
Jay Conner emphasizes that the worst time to raise money is when you need it urgently for a deal; desperation has a scent that savvy investors can detect. Instead, he recommends cultivating interest in your program beforehand. Explain your investment approach, outline your terms (like 8-10% interest, first or second lien position, borrowing up to 75% of after-repair value), and show potential lenders how their money is protected.
When a deal arises, you call with “great news”—not a desperate plea. The money is already pledged, and investors are ready and waiting.
Indirect Outreach: Ask for Referrals, Not Funds
A genius part of Jay’s approach is the indirect ask. Rather than pitching investments directly, he’d connect with well-networked locals (like the town’s original Zenith TV dealer!), share that he’s helping people earn high rates of return, and ask for referrals. More often than not, people would express interest themselves or spread the word to their circles.
This reflective, relationship-driven technique allowed Jay to build a network of 47 private lenders, most of whom had never even heard of private money lending before he educated them.
Scaling Up: From Small Deals to Millions
Is this approach scalable? Absolutely. Whether you need $500,000 or $10 million, Jay’s model works by adapting your outreach. For example, he’s raised nearly a million dollars in a single luncheon by teaching his program to a room of community influencers. He regularly uses presentations, podcasts, and word-of-mouth to reach potential lenders, rather than relying solely on one-on-one conversations.
The Role of Self-Directed IRAs
A powerful hack in the private money world is using self-directed IRAs. Many investors have retirement funds languishing with low returns. By educating them on how to use these funds for private lending, Jay unlocks a huge pool of capital, often tax-advantaged for the lender.
Final Tips
- Lead with value. Teach, don’t pitch.
- Build relationships ahead of time. Don’t wait until you’re desperate for funding.
- Leverage influencers and referrals. Your next lender is often just one introduction away.
- Emphasize safety and security. Collateral, insurance, and clear terms build trust.
Private money isn’t a “get rich quick” tactic, but with consistent education and relationship-building, it can transform your real estate business, regardless of your market size.
Interested in learning more? Jay offers a free Private Money Challenge at www.PrivateMoneyChallenge.com, with bite-sized videos explaining the basics, alongside his long-running podcast, “Raising Private Money.”
10 Discussion Questions from this Episode:
- How does Jay Conner suggest approaching potential private lenders when trying to raise funds for real estate investments?
- What key lesson did Jay Conner learn when his bank line of credit was unexpectedly closed in 2009?
- Discuss the importance of putting on a “teacher hat” in the context of raising private money, as mentioned by Jay Conner.
- What does Jay Conner mean by the “worst time to be raising private money is when you need it for a deal”?
- How does Jay Conner differentiate between direct and indirect methods of attracting private lenders?
- Analyze the concept of using self-directed IRAs for private lending and how it can benefit real estate investors.
- What are some key elements of the private lending program that Jay Conner offers to his lenders?
- How can leveraging relationships and networking be effective in scaling private money raising efforts, according to Jay Conner’s experience?
- In what ways does Jay Conner suggest ensuring that private lenders are comfortable and secure in their investments?
- Reflect on how the global financial crisis affected Jay Conner’s perspective and strategy in real estate investment funding. What changes did he implement?
Fun facts that were revealed in the episode:
- Jay Conner Raised Over $2 Million in Private Money in Less Than 90 Days: After being cut off by his bank in 2009, Jay quickly pivoted and developed a system to attract private lenders, raising over $2 million in less than three months—without ever pitching a deal or asking for money directly.
- Jay Uses a “Teacher Hat” Approach to Raising Money: Instead of begging for loans or pitching investments to friends and contacts, Jay focuses on educating people about private lending and self-directed IRAs. By teaching his program, he inspires potential investors to come to him, making them eager to get involved.
- Jay Once Raised Nearly $1 Million at a Single Luncheon: By inviting about 20 local influencers to a lunch where he shared his private lending program (without pitching any specific deal), Jay was able to raise almost a million dollars in one sitting—demonstrating the power of networking and education when raising capital.
Timestamps:
00:01 Raising Private Money Strategy
03:22 Problem-Solving Through Networking
07:49 Prepare Investors in Advance
10:11 Private Money Investment Timeframes
14:18 Referral-Based Real Estate Opportunity
19:09 Private Lender Protection Strategies
21:59 Million-Dollar Luncheon Strategy
22:55 Civic Group IRA Strategy Insights
26:33 Navigating Passive Real Estate Investment
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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