***Guest Appearance
Credits to:
https://www.youtube.com/@WinningTheMoment
“Unveiling the Secrets of Real Estate Success with Jay Conner”
https://www.youtube.com/watch?v=AjPO4l7hsNg
Are you tired of jumping through hoops with banks, tedious paperwork, and red tape when funding your real estate deals? If so, you’re not alone. In a recent episode of the Raising Private Money podcast, together with Cody Adent, Jay Conner, widely known as “The Private Money Authority,” shared his transformative journey and actionable tips on leveraging private money to fuel real estate success.
From Banking Setbacks to Private Money Triumph
Jay Conner’s path to mastering private money began in 2009, amid the chaos of the global financial crisis. Despite a stellar credit score and a long-standing relationship with his banker, Jay suddenly found his line of credit revoked; banks simply weren’t loaning to real estate investors anymore. Stuck, but determined, he turned to private money: deals funded by regular individuals, using their investment or retirement funds to back real estate.
The result? Jay’s business tripled within a year. Today, he oversees more than 2,000 investors he’s coached and manages over $8 million in private funds, regularly averaging profits of $78,000 per deal—without a dollar of his own money in play.
What is Private Money, and Why Does It Matter?
Unlike hard money or traditional bank loans, private money comes from individuals, not institutions. Jay explains that this direct lender relationship allows you to “make the rules.” There’s no need to beg for funds or suffer harsh lending standards and rates. Instead, you negotiate mutually beneficial agreements, and your deals close in days, not weeks.
Crucially, Jay points out, private money thrives regardless of interest rate fluctuations or market instability. While the Federal Reserve hiked rates 11 times in 22 months, what Jay pays his private lenders holds steady, because the deal terms are set within his program, not by institutional whims.
How Does It Work? Bringing Home “Three Big Checks”
Jay’s system ensures he never uses his funds and always brings home a check at closing. By borrowing up to 75% of a property’s after-repair value (ARV), he can not only cover the purchase and rehab but often takes home a surplus to manage carrying costs.
Here’s how the “three big checks” come in on a typical deal:
- At Purchase: When using private money, Jay structures the loan so it covers the purchase price, rehab costs, and extra buffer, meaning he collects a check at the closing table.
- Option Fees or Rent-to-Own: If selling on a lease-purchase, he collects a large, non-refundable option fee from tenants aiming to buy.
- At Sale: When the property is sold or flips, he receives another large check, pocketing the difference after paying the private lender their flat annual interest (often 8%).
Building Win-Win Relationships
Over half of Jay’s private lenders invest through self-directed IRAs, earning steady, often tax-deferred or tax-free returns entirely collateralized by real estate. Jay is clear: these “sleep-at-night” deals are hands-off for the investor, no joint ventures or profit splits. The lenders earn more than a traditional CD or high-yield savings account and retain security by being listed on the deed or promissory note.
Scaling Without Limits
Today, Jay manages 47 private lenders, often with more money queued up than he has deals available—a “good problem” by any investor’s standard. Relationships are key, and personal referrals have fueled much of his lender network. For new investors, Jay insists the beauty of private money is that credit scores are irrelevant; it’s about the value and safety of the deal.
Start Today: Gaining Real Estate Freedom
If you’re looking to break free from bank limitations, scale your business, or simply want to learn how to make consistent, significant profits—even in a small market—private money is the answer. Jay offers his book, “Where to Get the Money Now,” for free (just cover shipping), and invites listeners to his Private Money Academy Conference at a steep discount.
Remember, as Jay encourages: “Stop thinking about what you want to do, and do it.” Mastering private money could be the pivot that launches your real estate journey into its most profitable chapter yet.
10 Discussion Questions from this Episode:
- Jay Conner describes private money as a game changer for his real estate business. What do you think are the biggest advantages and drawbacks of using private money over traditional bank loans?
- Jay mentions that private money puts the investor “in the driver’s seat” and allows them to make the rules. What are some potential risks or challenges that could come with this approach?
- The episode highlights how Jay’s business grew after being cut off from bank funding due to the 2008 financial crisis. How can adversity or industry changes serve as catalysts for innovation in business?
- Jay explains his strategy of borrowing up to 75% of the after-repair value (ARV) and always bringing home a check at closing. What are the pros and cons of this approach, and how does it impact the risk profile of his investments?
- Private money relies heavily on building trust with individual lenders. How important are personal relationships in business, according to Jay’s experience? Do you think this model is scalable? Why or why not?
- The use of self-directed IRAs to fund real estate deals is discussed as a major funding source. What are the benefits and potential complications of tapping into retirement funds for private lending?
- Jay says he pays his private lenders 8% interest per year, sometimes 10% for junior positions, but doesn’t offer equity or a share of profits. Why might some investors prefer this model, and what could make others want more involvement in the deal’s upside?
- Jay’s investment philosophy involves flipping homes in a relatively small market—Morehead City, NC—yet he reports high profits per deal. What factors might make a small market more advantageous or challenging for real estate investors?
- Both Jay and Cody share stories about being denied by banks despite solid track records. How can experiences like these inform our attitudes toward financial institutions and alternative funding sources?
- Near the end, Jay talks about his purpose being significance and impact, rather than chasing material goals. How might having a sense of purpose influence one’s approach to business and investing?
Fun facts that were revealed in the episode:
- Jay Conner’s Big Deals in a Small Town: Jay can average $78,000 in profit per real estate flip despite operating in a small area with only about 40,000 people. Remarkably, he completes about three deals each month in this small market!
- Private Money Over Banks: After being suddenly cut off from traditional bank financing in 2009—despite having an 800 credit score—Jay pivoted to raising private money. Within just 12 months of making the switch, he was able to attract over $2.1 million from private individuals, tripling his business.
- Multiple Paydays Per Deal: By strategically leveraging private money, Jay often brings home a check when he buys a property, gets another check if he sells with a rent-to-own strategy, and secures a final check when selling the property outright—sometimes getting paid three times on one deal!
Timestamps:
00:01 Real Estate Success with Private Money
09:16 Bank Loan Rejection Experience
15:01 High Profits Flipping Houses Locally
18:12 Buying Property with Private Money
23:08 Creative Real Estate Financing Explained
29:06 Interest and Collateral Flexibility
36:06 Maximizing Profits in Property Flips
40:27 Leveraging Self-Directed IRA Companies
46:13 Private Money for Wholesalers’ Leverage
51:44 Real Estate Math Cautionary Tale
55:38 Success Beyond Materialism
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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