***Guest Appearance
Credits to:
https://www.youtube.com/@thekatebarryteam3281
“The Private Money Powerhouse: Funding Fortunes to High Returns with Jay Conner – EP 14”
https://www.youtube.com/watch?v=5iTULXZJROE
In the world of real estate investing, setbacks are almost a rite of passage. But for those determined enough, each obstacle is simply a stepping stone toward bigger success. This is the resounding message from the latest episode of the Raising Private Money podcast!
From Traditional Lending to Private Money
Jay Conner’s real estate journey is a testament to adaptability and resilience. Like many investors, Jay started his career relying on traditional bank financing. For six years, this approach worked—until 2009’s global financial crisis abruptly shut down his line of credit, leaving two profitable deals suddenly unfunded. “The only opportunity I had at that moment was to solve a problem,” Jay recalls. And solve it he did.
Rather than wallow, Jay reached out to contacts, sought advice, and quickly discovered the concept of raising private money. This method involves borrowing capital from everyday individuals—friends, neighbors, even fellow church members—who are looking for higher, safer returns on their investments than the stock market or a typical savings account.
Educating, Not Pitching
One of the secrets to Jay’s success lies in his approach to fundraising. Instead of hard-selling investment opportunities or begging for money, Jay led with education. “I never asked for money. I simply explained the opportunity, how private lending works, and the kinds of returns people could achieve,” he says. By positioning himself as a teacher and problem-solver, Jay attracted investors who already knew, liked, and trusted him—and who appreciated the clarity and transparency.
As Jay explains to Kate Barry, none of his first 47 private lenders had ever heard of private money or self-directed IRAs before he taught them about it. Separating the act of building investor relationships from pitching individual deals allowed him to grow trust and raise over $8 million, solely through “good news” phone calls inviting investors to put their money to work, not funding requests.
Protecting Investors and Building Trust
A cornerstone of Jay’s longevity is his diligent protection of private investors’ interests. He never borrows more than 75% of a property’s after-repair value, ensuring a 25% equity cushion and added security for his lenders. All investments are strictly tied to real property, secured with promissory notes and deeds of trust, and lenders are named on insurance policies.
Jay’s systematic, risk-conscious approach allows him to promise—and deliver—competitive, consistent returns to investors, regardless of market conditions. Even when renovation budgets go over (as they so often do), these safeguards insulate investors from losses and keep their confidence high.
Systems, Teams, and Consistency
Jay’s growth wasn’t built on volume but on quality. He and his wife, Carol Joy, run a high-margin operation, taking on two to three deals a month in a relatively small market. A key to their efficiency is a well-coordinated team of acquisition specialists, general contractors, and support staff. This lets them run up to six renovations simultaneously, execute projects smoothly, and bring homes to market quickly, often marketing through coming-soon listings and professional music videos to generate demand before a property is even available for showings.
Lessons for Aspiring Investors
If Jay could go back to his earliest days, his advice would be this: Don’t go it alone. Get a mentor, connect with your local real estate investing association, and continually surround yourself with people actively engaged in the business. The world of private money, he insists, is open to everyone willing to start conversations, educate others, and build trust.
Turning Failures into Fortunes
Jay Conner’s story is a powerful reminder that real estate’s biggest breakthroughs often follow its harshest setbacks. By choosing education, relationships, and ethical funding over desperation or short-term wins, Jay transformed financial disaster into an enduring real estate legacy—one built as much on community as on cash flow.
Want to dive deeper into Jay Conner’s approach to private money and real estate investing? You can check out his book, “Where to Get the Money Now,” and his podcast “Raising Private Money” for actionable tips and inspiring stories. Remember, in real estate, every failure can be the seed of your greatest success.
10 Discussion Questions from this Episode:
- Jay talked about the distinction between private money and hard money. How did he explain the differences, and why does he believe private money has had the biggest impact on his business?
- What circumstances in January 2009 forced Jay to pivot from traditional bank funding to raising private money? How did this challenge ultimately benefit his business?
- Jay mentions the importance of “leading with education” when raising private money. What are the specific strategies he uses to educate potential lenders, and why does he avoid directly asking for money?
- Reflect on Jay’s story at Bible study with Wayne. How does his approach to building relationships and networking help him attract private money investors?
- Jay emphasizes “never pitching a deal” but instead using the “good news phone call” approach. What does this process look like, and why is it effective?
- Discuss the key systems Jay has in place for acquiring, renovating, and selling properties in a small market. How does having a reliable team contribute to his success?
- Jay states that he never borrows more than 75% of the after-repaired value (ARV) of a property. Why does he set this limit, and how does it protect both him and his investors, especially in volatile markets?
- Kate and Jay both agree on the advice to “raise the money first, then find the deal.” Why do they caution against the popular advice to lock up deals first, and what are the risks of doing so?
- Jay stresses the importance of mentorship, masterminds, and networking for new investors. How did his early mistakes shape this advice, and what pitfalls does he warn against when seeking learning or mentorship opportunities?
- Looking at the broader market, Jay shared that tighter markets “clear the deck” of less prepared investors. How do resiliency and adaptability play a role in long-term investing success, according to Jay’s experience?
Fun facts that were revealed in the episode:
- Jay Conner Never Asks for Money Directly
Jay has raised over $8.5 million in private money without ever directly asking anyone for money. Instead, he focuses on educating people about private lending and sharing opportunities, which leads them to want to invest with him. - Jay’s Real Estate Investing Career Started in a Small Town
Jay operates out of Morehead City, North Carolina—a town with a population of just 40,000. Despite the small market size, he and his wife have completed over 500 real estate deals and built a thriving investing business with impressive average profits per deal. - Jay’s First Million-Dollar Revelation Happened at Bible Study
One of Jay’s first major private money investors was a fellow church member. By simply asking for help spreading the word, not for money directly, Jay was able to raise $250,000 in a single conversation after Bible study. That initial investment later grew to $500,000 from the same individual!
Timestamps:
00:01 Real Estate Failures to Fortunes
06:07 Credit Line Closure Crisis
08:46 Teaching Private Money Investment
11:38 Raise Money Before Deals: Insight
14:53 High Return Investment Referral Request
18:19 75% Rule for Safe Borrowing
20:41 Efficient Investment Systems Inquiry
25:17 Real Estate Success Mindset
26:18 The Kitty Sisters’ Investment Strategy
29:30 Time Kills Real Estate Deals
34:28 Cash Leverage for Quick Flips
37:01 Sharing Real Estate Investing Insights
40:01 Build Foundations Before Success
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
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcasts:
Facebook:
https://www.facebook.com/jay.conner.marketing
Listen to our Podcast:
Comments