***Guest Appearance
Credits to:
https://www.youtube.com/@creativefinanceplaybook
“Private Money Mastery: How Jay Conner Transformed Real Estate Investing”
https://www.youtube.com/watch?v=R9yBCTSMkZU
If you’re a real estate investor (or striving to become one), the challenge isn’t always about finding the right property. More often, it’s about finding the money to fund your deals, especially when traditional financing decides to turn off the tap, and that can happen faster than you think.
On a recent podcast episode, seasoned investor Jay Conner sat down with Jenn and Joe Delle Fave to peel back the curtain on the game-changing role private money played in his real estate business—an approach that not only rescued his investing career but tripled his business during one of the most trying economic times in recent history.
The Moment Everything Changed
Jay Conner, along with his wife Carol Joy, had been successfully investing in single-family homes in Morehead City, North Carolina, since 2003. Like many, he relied on the steady comfort of a bank line of credit to fund his deals. That all changed in January 2009 at the height of the financial crisis. Without warning, his bank (and trusted banker, Steve) pulled the plug: his line of credit was closed, and new loans to real estate investors dried up overnight.
Faced with two lucrative deals under contract and no way to close them, Jay’s back was against the wall. But rather than seeing an insurmountable problem, he asked the transformative question: “Who do I know that can help me with this problem?” That question led him to an introduction to private money—and ultimately, to financial freedom.
What Is Private Money Lending?
Private money in real estate refers to funds lent by individuals (not institutions) to investors, typically secured by real estate. These individuals often don’t even know they want to be lenders until someone shows them what’s possible, like using their retirement accounts (self-directed IRAs) to earn outsized, secure returns.
For Jay, learning about private money meant a total mindset shift. Instead of begging the bank, he became the one offering an opportunity. He began teaching people in his network—friends, church members, business contacts—about private lending. No hard selling, no desperate asks. Just education and a willingness to be transparent about how the process worked and the secure, solid returns they could earn.
The Power of Private Money: How It Changed the Game
When Jay started implementing private money strategies, the results were immediate and dramatic. He raised over $2 million in new funding in under 90 days. Within a year, his business had tripled, even as many other real estate investors were leaving the business entirely due to a lack of financing.
Jay explained that private money brought several advantages:
- Flexibility: The investor sets the terms, not the bank. That includes interest rates, payment schedules, and what deals get funded.
- No Limits: Unlike bank lines of credit, private lenders are only limited by their comfort and resources, not an arbitrary ceiling.
- Speed: Jay has closed deals in as little as five days, a feat impossible with institutional lenders.
- Profitability: In his market, he achieved average profits of $82,000 per deal, doing only two to three deals a month, thanks largely to the reliability and ease of private funding.
Teaching, Not Selling
Jay’s secret sauce is in his approach: separate the teaching about private money from pitching a specific deal. He positions himself as a guide and trusted resource, only calling interested lenders when he has an actual investment for their funds. “Desperation has a smell,” Jay says—and investors can sense it. Education first, deal second.
Final Thoughts
Jay’s story is both an inspiration and a clear roadmap for investors who want to scale their business on their terms. Private money isn’t just for the pros or the well-connected; it’s a learnable, repeatable skill that anyone can cultivate. As Jay puts it, “Work on the real estate between your ears”—change your mindset, and you’ll unlock the money, the deals, and the freedom you’re after.
10 Discussion Questions from this Episode:
- Jay Conner describes a “pivotal moment” in his business back in 2009 when the banks stopped lending—how do you think adversity or sudden changes in the market can become opportunities for investors?
- Jay emphasizes the importance of “teaching, not asking” when attracting private lenders. Why do you think this approach is more effective than simply pitching for money?
- The episode outlines the benefits of investing in smaller markets versus large cities. Do you agree with Jay’s “big fish in a small pond” strategy? Why or why not?
- What misconceptions about private money do Jen, Joe, and Jay address during this conversation?
- Jay shares that he typically borrows up to 75% of the after-repair value (ARV) of a property. What are the advantages and potential risks of this approach?
- The discussion highlights the importance of separating the conversations about educating potential lenders and discussing specific deals. How might combining these conversations backfire?
- Jen mentions that private money sounds intimidating, but Jay breaks it down simply. After hearing this, what mental barriers do you think investors commonly face, and how can they overcome them?
- The hosts ask about how Jay structures deals to bring home a check at closing. How does this compare to traditional bank-financed deals, and what impact could this have on cash flow?
- Jay mentions that about 47 of his private lenders had never heard of concepts like self-directed IRAs before he educated them. What does this suggest about the potential pool of private money lenders?
- Reflecting on Jay’s story about the recent oceanfront condo deal, what are the key factors that enabled such a fast and profitable turnaround, and how crucial was private money to making it happen?
Fun facts that were revealed in the episode:
- Small Town, Big Profits:
Jay Conner and his wife, Carol Joy, run their real estate investing business out of Morehead City, North Carolina—a town with only 8,000 people! Their entire target market is just 40,000 people, yet they still achieve average profits of $82,000 per deal. - The Power of Private Money:
Jay and Carol Joy have 47 private lenders (real people, not institutions!) funding their real estate deals. Every single one of these lenders first learned what private lending was through Jay’s “teacher hat.” - Business Tripled with Private Money:
Jay’s switch from relying on traditional bank loans to private money in 2009 resulted in his business tripling in just one year. The shift wasn’t planned—it was forced when his bank unexpectedly closed his line of credit with no notice.
Timestamps:
00:01 Introduces topic: raising private money for real estate deals.
00:29 Jay Conner, The Private Money Authority
00:50 Jay Conner Shares how private money tripled his business after 2009.
03:01 High profits are possible even in small markets.
05:18 The biggest blessing in disguise.
10:22 Mindset shift: borrowers set loan terms.
11:42 Educate contacts, never directly ask for money.
13:18 The “Good News” phone call.
19:43 “E + R = O” mindset (Event + Response = Outcome).
23:01 500+ flips, steady profits, mostly flips with some creative deals.
24:40 Explains getting paid at both purchase and sale.
29:54 Jay Conner’s 7-Day Private Money Challenge.
https://www.ThePrivateMoneyChallenge.com
37:22 Jay Conner’s Recent deal: $170k profit on an oceanfront condo flip using private money.
46:41 Jay Conner’s Free Money Guide
https://www.JayConner.com/MoneyGuide
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