***Guest Appearance
Credits to:
https://www.youtube.com/@CommercialRealEstateProNetwork
“Raising Private Money with Jay Conner – CRE PN #481”
https://www.youtube.com/watch?v=MrWWFWU5eGs
Are you a real estate investor struggling to secure funding for your deals? Maybe the banks have gotten a little too picky with their lending criteria, or perhaps you’re just tired of jumping through endless hoops for a loan. Jay Conner, affectionately known as “The Private Money Authority,” has walked this road and came out on the other side with a strategy anyone in real estate can leverage: raising private money.
Jay Conner once again joined Darrin Gross on the CREPN Radio podcast. Jay shared his story, a compelling blend of humble beginnings, tough pivots, and the ability to turn problems into powerful opportunities.
From Bank Roadblocks to Opportunity
Jay’s journey in real estate began like many others: he visited the local bank, applied for funding, and went through the usual song and dance of credit checks, financial statements, and asset reviews. For several years, this status quo worked fine. But in 2009, everything changed. Without warning, his line of credit was closed, leaving him with two properties under contract and nowhere to turn. As Jay recalls, “Desperation has a smell to it. I had a problem, not an opportunity.”
Faced with a true financial crisis (not just another “opportunity in disguise” quote people love to share), Jay leaned into his relationships and asked, “Who do I know that can help me solve this problem?” That question led him to a colleague who introduced him to the concept of private money and self-directed IRAs, sparking a complete transformation in his approach to deal funding.
The Private Money Blueprint
Jay’s method is refreshingly straightforward and, perhaps most importantly, approachable for both seasoned and new investors. Rather than chasing after people and desperately pitching deals, Jay puts on his “teacher hat.” He focuses on educating potential private lenders—often people in his existing network or local community—about what private money is, how it works, and why it’s a win-win opportunity.
He explains, “Not one of my 47 private lenders had ever heard of private money or self-directed IRAs. I simply taught them.” By presenting a clear, safe, and attractive program to would-be lenders, Jay flips the script, positioning himself not as a beggar but as a provider of opportunity.
The three things lenders care about most?
- Attractive Return: Private lenders are often frustrated with the low interest rates on traditional vehicles like CDs. Jay offers up to 8% or 10%—well above what banks are paying.
- Security and Safety: Every loan is collateralized with a mortgage or deed of trust, up to 75% of after-repair value, giving substantial equity protection.
- No Volatility: Unlike the unpredictable stock market, lenders know exactly what their return will be for the life of the loan.
The No-Sell Approach
One point Jay hammered home was the importance of separating “raising money” from pitching specific deals. The worst time to ask for money is when you need it for a deal. By building the relationship and educating potential lenders ahead of time, when the right opportunity comes along, it’s not a hard sell—it’s just a “good news phone call:” “I have a deal ready for you, here’s the terms, here’s the timeline.” No pressure, no awkward conversations. Just a smooth transaction.
Mindset Matters
For those interested in starting their journey with private money, Jay stresses the importance of mindset. See yourself not as a borrower, but as someone leading with a servant’s heart, helping people get better returns safely. “Until you own the real estate between your ears, it’s going to be hard to own real estate in reality,” he notes.
Jay’s story is proof positive that private money isn’t just for big national players or those with the flashiest portfolios. If you’re willing to learn, educate, and lead with transparency and value, you can build a business that funds itself reliably, safely, and with far less stress.
Ready to Raise Your Own Private Money?
If you’re inspired, Jay recommends his free “Private Money Challenge,” a series of short videos guiding you through the process step by step at www.PrivateMoneyChallenge.com.
When banks say no, maybe it’s time you say yes to a better way of funding your real estate future.
10 Discussion Questions from this Episode:
- Jay Conner emphasizes the importance of “teaching” potential private lenders rather than asking them for money. How do you think this educational approach changes the dynamic between investor and lender?
- The transcript highlights that none of Jay’s 47 private lenders had ever heard of private money or self-directed IRAs before he educated them. Why do you think so few people are aware of these private lending opportunities, and how might wider awareness impact the real estate investing landscape?
- Jay talks about separating the process of securing private lenders from pitching specific deals to avoid appearing “desperate.” Why do you think this separation is important for building trust and credibility with lenders?
- According to Jay, there are three key things private lenders are looking for: a good return, safety/security, and no volatility. Which of these do you think is most important to the average private lender, and why?
- The conversation points out that success is a “lousy teacher” and that failure is where we learn the most. Can you share an example from your own experience where failure taught you more than success?
- Jay discusses using self-directed IRAs to invest in private lending opportunities. How can investors benefit from using self-directed IRAs, and what are some challenges or considerations to be aware of?
- The “good news phone call” script Jay shares is a practical tool for putting a lender’s money to work. How might having scripts or templates affect one’s confidence and professionalism in raising private money?
- Jay mentions that desperation “has a smell” in this business. Discuss some signs that might indicate desperation to a lender and strategies to avoid them.
- In the episode, Jay says he’s been paying his private lenders 8–10% since 2009, regardless of market fluctuations. What are the pros and cons for both the lender and the investor in offering a fixed interest rate over time?
- Jay’s Mastermind group and emphasis on networking with other investors are highlighted as key to growth. How important do you think community and peer learning are in real estate investing, especially in areas like raising private capital?
Fun facts that were revealed in the episode:
- Jay Conner Raised Over $2 Million in Less Than 90 Days Without Asking for Money
After being cut off by his bank in 2009, Jay learned about private money lending and was able to attract over $2 million in funding for his deals, without ever directly asking anyone for money. - Jay Has 47 Private Lenders—But None Had Ever Heard of Private Lending Before
All 47 of Jay’s current private lenders originally knew nothing about private money or self-directed IRAs. Jay simply taught people in his network about the opportunity, showing that education and sharing can be more powerful than a hard sell. - Jay Conner Lives in a Town of Only 8,000 People and Still Does Massive Deals
Despite being based in Morehead City, North Carolina—a small town of just 8,000 residents—Jay regularly completes real estate deals with average profits of around $82,000 per transaction, proving you don’t need to live in a big city to be successful in real estate investing.
Timestamps:
00:01 Insurance Offers & Private Money
05:56 Credit Crisis and Self-Help Strategy
07:25 Discovering Private Money Lending
12:17 Private Money Investment Strategy
16:29 Lenders’ Top 3 Investment Criteria
17:28 Consistent Private Lending Rates
20:29 Equity Cushion in Property Deals
24:49 Accrued Interest on IRA Loans
28:43 Mindset for Real Estate Success
31:29 Growth Risks: Complacency & Stagnation
34:48 Connect with Jay Conner:
https://www.PrivateMoneyChallenge.com
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:
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https://www.facebook.com/jay.conner.marketing
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