***Guest Appearance
Credits to:
https://www.youtube.com/@howtoscalecommercialreales334
“How to Get Money for Real Estate Deals Without Relying on Traditional Money Lenders”
https://www.youtube.com/watch?v=H_uMlzuazUA
If you’re a real estate investor, few things matter more than having access to funding on your terms. While hard money loans or bank financing can work, they’re often inflexible or disappear just when you need them most. This is the exact challenge that propelled Jay Conner into becoming a passionate advocate for private money lending. His insights not only reveal how to raise and leverage private capital but also why building the right team and systems is essential for growing your investment business.
The Turning Point: From Institutional Reliance to Private Money
Jay’s journey started in the family mobile home business, but took off when he transitioned to single-family and commercial real estate. Like many investors, Jay initially relied on banks and institutional lenders to fund his deals. That changed dramatically in 2009, when his bank suddenly revoked his line of credit, with no warning. Deals in the pipeline were now at risk, and Jay needed a solution. Enter private money.
Within 90 days, Jay raised over $2.1 million from private individuals. The key was leveraging his contacts and offering them a safe, high-return investment opportunity secured by real estate. Importantly, private lenders hold a promissory note and are named on the deed of trust or mortgage, granting them protection typically enjoyed by banks.
This isn’t joint venturing or selling equity. Instead, it’s about structuring deals so that the private lender acts exactly like the bank, and the investor, like Jay’s company, owns the property.
Demystifying Private Money: Education Over Persuasion
One of Jay’s most powerful points is the difference in mindset when raising private money. Too often, new investors feel like they’re begging or imposing when asking for funds. Jay flips this script entirely.
“I’ve never asked anyone for money,” he says. “Instead, I simply teach people about the opportunity.”
He holds private lender luncheons, presents the investment structure, explains the safety and returns, and lets the program speak for itself. By operating as an educator—rather than a salesperson—Jay not only makes the process more comfortable, but also attracts motivated, informed lenders. This partnership mentality means that when it’s time to fund a deal, Jay simply calls to let the ready lender know their money can be put to work. There’s no awkward “pitch”—just the progress of a win-win relationship.
Systems and Team: The Engine Behind the Deals
Raising capital is only one part of the scaling equation. Jay emphasizes the importance of great team members: a trusted real estate attorney, reliable realtors, acquisitionists, project managers, and a personal assistant. These specialists ensure that transactions run smoothly, repairs are managed efficiently, and leads are always coming in. Jay’s commitment to delegating and systemizing allowed him to scale back his workload to under 10 hours a week, focusing solely on high-value decisions and strategy.
This didn’t happen overnight. Jay learned—often the hard way—that doing everything himself was not sustainable. By joining mastermind groups with other active investors, he gained critical advice and support. These peer groups, he asserts, have been instrumental in propelling his business forward.
Mindset: The Most Profitable Asset
Ultimately, Jay’s success comes down to mindset. Private money is about offering, not asking. It’s about educating your network, structuring attractive, secure deals, and having confidence in the value you bring. Many of Jay’s private lenders had never heard of private lending or self-directed IRAs before he taught them. The result? Dozens of everyday people now earn attractive returns investing in his real estate deals, and Jay never misses out on an opportunity because of funding.
Take Action: Learn from Jay
Whether you invest in single-family homes or commercial assets, the principles Jay shares are universal. Prioritize education, treat your lenders like valued partners, and build a team and systems to support your growth. For those wanting to dive deeper, Jay offers a free copy of his book, “Where to Get the Money Now,” filled with step-by-step strategies to raise private capital and scale your investing—and, as he reminds us, the money truly does come first.
10 Discussion Questions from this Episode:
- Jay talks about how joining mastermind groups helped his business “skyrocket overnight.” What do you think are the advantages of mastermind groups for real estate investors, and have you ever participated in one?
- Jay switched from institutional funding to private money after his bank unexpectedly closed his line of credit. How prepared do you feel to pivot funding sources if your primary source dried up?
- Jay explains the difference between private money lenders and institutional lenders, especially regarding how deals are protected. In your opinion, what are the main benefits and potential risks of working with private lenders?
- Sam notes that the private lending model used for single-family homes can apply to commercial real estate as well. Can you think of creative ways this model could be implemented outside of residential deals?
- Jay says his “most important team member” is his real estate attorney. Who is the most valuable member of your team (or who would you prioritize hiring first if you were starting)?
- Jay emphasizes the importance of automating and delegating tasks to scale his business. What are some tasks in your business or life that you feel could be delegated or automated more effectively?
- Both Jay and Sam discuss the importance of building a strong team and robust systems. At what point in your investing journey do you think it’s vital to start focusing on building systems?
- Jay describes himself as a “private money educator” rather than a salesperson. How do you think reframing your approach to raising capital as education rather than selling might affect your success rate?
- The episode explores using self-directed IRAs for private lending. What are your thoughts on tapping into retirement funds for real estate investments, either as an investor or as a lender?
- Jay shares his mindset shift from “begging” for money to “offering” an opportunity. How powerful do you think mindset is in the fundraising process, and can you share an example where your mindset made a difference in your success?
Fun facts that were revealed in the episode:
- Jay Conner raised over $2.15 million in private money in less than 90 days after his line of credit was suddenly closed, simply by educating individuals about private lending and not by asking for money directly.
- Despite operating in a relatively small town of just 40,000 people, Jay’s real estate business averages $78,000 profit per deal and has rehabbed over 475 houses with over $118 million in transactions.
- Many of Jay’s private lenders had never even heard of private lending or self-directed IRAs before he taught them, and more than half now use their retirement funds to invest in his deals, earning safe and significant returns.
Private Money Academy Conference:
Free Report:
https://www.jayconner.com/MoneyReport
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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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