***Guest Appearance
Credits to:
https://www.youtube.com/@keithborie
“Episode#83: A Quick and Easy Way To Fund Your Real Estate Deals – Jay Conner”
https://www.youtube.com/watch?v=rdGt4Y2U4zg
Suppose you’ve ever wondered how seasoned real estate investors secure funding and scale their businesses, even when banks turn their backs. In that case, Jay Conner’s story is a masterclass in resourcefulness and strategic networking. Appearing on Keith Borie’s “The Wealth Flow” podcast, Jay Conner shared how losing his traditional lines of credit transformed his career and unlocked a world of private money lending that anyone, even beginners, can tap into with the right approach.
From Banks to Private Lenders: A Pivotal Shift
Jay Conner’s journey in real estate began like many others: relying on institutional money and local banks to finance deals. For six years, this strategy served him well until 2009, when his line of credit was abruptly cut off during the global financial crisis. Instead of calling it quits, Jay asked himself a simple but powerful question: “Who do I know who can help me with my problem?”
A quick call to a friend and fellow investor, Jeff Blankenship, introduced Jay to the concept of “private money”—capital lent by individuals outside the traditional banking system, often using investment funds or retirement accounts. For Jay, this was the game-changer. Within ninety days, he raised over $2.1 million in private money, laying the foundation for hundreds of future deals.
Teaching, Not Asking: The Secret Sauce
One key lesson Jay emphasizes is the importance of having the right mindset. Most new investors fear rejection when asking for money. Jay flips the script: he never “asks” for money—instead, he “offers” an opportunity. He approaches potential lenders as a teacher: educating them about how private lending works, what rates they can earn, and how their investment will be protected with promissory notes and first-position mortgages.
By separating the “teaching conversation” from the “deal conversation,” Jay removes the desperation (which, as he puts it, “has a smell to it”) and builds genuine relationships. When he has a deal ready, he calls existing interested lenders with what he calls the “good news phone call”—simply presenting the details and timeline, no begging or selling involved.
Why Private Lenders Jump In
Jay describes his network of 47 private lenders, none of whom had ever heard of private lending before meeting him. For many, the appeal is simple: higher, more consistent returns than stocks or CDs, backed by real estate collateral, with zero day-to-day management hassles. Whether it’s putting idle cash to work or leveraging retirement funds through self-directed IRAs, private lending offers passive income and strong security.
To make investing even easier, Jay handles everything: matching funds with deals, ensuring proper legal documentation, securing insurance, and, crucially, maintaining flexibility with terms. Lenders have options for monthly, quarterly, or semiannual payouts, and built-in clauses allow for early exits or substitutions if life circumstances change.
A Win-Win Mindset
What sets Jay apart is his win-win mentality. He firmly believes in putting the lender’s needs first, educating rather than selling, and building relationships that last for years. Most of his lenders have stayed with him since 2009—a testament to his integrity and the effectiveness of his system.
He also recommends that every serious investor establish a relationship with a reputable self-directed IRA company, such as Quest Trust, to unlock the vast pool of retirement funds waiting for better returns.
Getting Started: Jay’s Advice
For investors eager to follow his path, Jay’s advice is clear: Know your program, be confident, and start talking. Don’t worry about rejection—focus on educating your network, offering true value, and building trust. Host informational luncheons, tap into business groups, and always serve with a teacher’s heart.
To dive deeper into Jay Conner’s approach, real-life scripts, and step-by-step methods, check out his book, “Where To Get The Money Now,” and tune into his podcast “Raising Private Money.”
The Bottom Line
Private money isn’t just for the seasoned pro—it’s a creative, reliable way for investors at every stage to fund deals, build wealth, and transform lives (their own and their lenders’). As Jay’s story proves, with the right mindset and a willingness to educate, the money does come first.
10 Discussion Questions from this Episode:
- Jay Conner talks about the transition from relying on banks to using private money. What were the key factors that pushed him to pursue private lending instead of traditional bank loans?
- Jay mentions he never “asks” for money but instead “offers” the opportunity through education. How does this approach differ from the traditional fundraising or borrowing model? What are its advantages?
- Self-directed IRAs play a significant role in Jay’s strategy for raising private capital. For listeners unfamiliar with this, what are the main benefits and potential risks that come with using self-directed IRAs in real estate investing?
- Jay emphasizes building programs that make it “easy” and “passive” for private lenders. What are some specific steps he takes to ensure his investors are well-protected and their experience is seamless?
- Keith and Jay talk about the “desperation smell” in raising capital. Why is timing so important in the process of asking for investment, and how can investors maintain leverage when seeking funding?
- The episode covers how to educate your network about private lending opportunities. What are some effective methods Jay uses to introduce private investing concepts to potential lenders?
- What are some misconceptions about private lending that Jay encounters from both investors seeking money and potential private lenders themselves?
- Jay and Keith discuss the flexibility of private money, like the 90-day call option. How does this flexibility benefit both lenders and borrowers compared to more rigid traditional financing structures?
- Jay has built relationships with 47 private lenders. What strategies can newer investors use to start building a network of private lenders, even if they feel their network is currently limited?
- Towards the end of the episode, Jay highlights the importance of mentorship and community for real estate success. What do you think are the key elements in finding and maintaining beneficial professional relationships in your investing journey?
Fun facts that were revealed in the episode:
- Jay Conner rebuilt his real estate business overnight: When Jay lost his bank line of credit in January 2009, instead of panicking, he quickly pivoted to private money and raised over $2,150,000 in less than ninety days—all without ever directly “asking” for money.
- Jay’s private lending program has created a financial win-win: Jay teaches regular people, many who had never heard of private money investing before, how to earn steady, passive income by funding his real estate deals. Some of his private lenders have been working with him since 2009!
- Self-directed IRAs are a secret weapon: Over half of Jay’s 47 private lenders use self-directed IRAs to invest in his deals, allowing them to grow their retirement savings outside the volatile stock market and without the headaches of being a landlord.
Timestamps:
00:01 Fast-Track Wealth with The Wealth Flow
06:13 Credit Line Closure Shock
08:20 Introduction to Self-Directed IRAs
10:20 Raising Real Estate Funds Unasked
14:36 Effortless Private Lending Investment
19:19 Importance of Self-Directed IRA Relations
23:27 Flexible Loan Terms Explained
24:18 Flexible Lender Call Option Explained
30:01 Understanding Private Money Lending
31:38 Secure High-Return Investment Guide
37:28 Educational Program Presentation Strategy
38:36 Finding Private Lenders: Your Network
41:58 Raising Private Money: Getting Started
46:10 Real Estate Investment Syndication Basics
47:40 Apartment Investment Market Bloodbath
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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