***Guest Appearance
Credits to:
https://www.youtube.com/@serenaholmesofficial
“How To Raise Money For Real Estate WITHOUT Ever Asking For It!”
https://www.youtube.com/watch?v=05rF8IgJZWY
When it comes to building wealth through real estate, one of the biggest barriers for both new and seasoned investors is finding the funds to close deals. Traditional financing can be limiting, cumbersome, and unreliable, especially in volatile economic times. That’s why the insights shared by Jay Conner, a veteran real estate investor and private money expert, on the Inspire to Invest podcast are invaluable.
Jay’s story is both cautionary and inspiring, highlighting not just how to overcome financial roadblocks but how to future-proof your business for long-term success.
From Bank Crisis to Private Money Breakthrough
Jay Conner began his real estate career in 2003, working alongside his wife in Morehead City, North Carolina—a small market of just 40,000 people. For their first six years, the couple relied exclusively on bank loans to fund their deals, which worked—until it didn’t.
Everything changed in January 2009. The global financial crisis struck, and Jay received a call from his banker: his line of credit was gone overnight.
Suddenly, with deals under contract and no access to bank lending, Jay faced the very real prospect of business collapse. But rather than giving up, he asked himself a critical question: “Who do you know that can help you with your problem?”
That question led him to a conversation with a fellow investor, who introduced Jay to the concept of private money—borrowing from individuals instead of institutions. In less than 90 days, Jay raised over $2 million in private funds, completely transforming his business.
Demystifying Private Lending
Private money isn’t about slick pitches or high-pressure sales. Jay’s approach is rooted in education and integrity. He puts on his “teacher hat” and explains to prospective private lenders exactly how private loans work:
- Funds are secured by real estate: Each lender receives a promissory note and is listed on the mortgage or deed of trust, protecting their interest.
- Positions and loan-to-value are carefully managed: Jay never borrows more than 75% of a property’s after-repair value, ensuring a conservative margin of safety.
- Clear, fair terms: Private lenders receive a straightforward interest rate (for example, 8% in Jay’s case) without junk fees or hidden costs.
- Transparency and verification: Every deal is closed with an attorney or title company. Lenders are advised to verify that their mortgage is recorded and to review all documents before sending funds.
This approach not only safeguards the lender but also builds Jay’s reputation as a trustworthy operator, critical in a relationship-based business.
Red Flags and Lessons Learned
Jay is candid about the risks and common mistakes in the world of private lending, especially those that have plagued both Canadian and U.S. real estate markets. He cautions against deals where loans aren’t properly collateralized or registered, and warns lenders to “trust but verify.”
Jay encourages would-be lenders to always confirm the position of their lien, to never wire money without reviewing documentation, and to be wary of scammers demanding upfront “application fees.” His advice, simply put: if it sounds too good to be true, it probably is.
Scaling with Systems—and Service
One of the most impressive aspects of Jay’s story is how he leveraged private money to scale his operations. With reliable access to funds, he was able to triple his business during the recession, cherry-picking the best foreclosure opportunities while others scrambled.
But, as Jay emphasizes, money alone isn’t enough. Systematization—using tools like CRM software, delegating tasks, and continuous networking—enabled him to work fewer than 10 hours per week on his real estate business, freeing up time for personal growth and giving back.
Final Thoughts
Jay’s journey from banking breakdown to private money expert offers a clear blueprint: educate, protect your partners, systematize your process, and lead with a heart for service.
For investors and aspiring private lenders alike, the lessons are simple but profound: Know who you’re working with, verify everything, and never stop learning. In the world of real estate investing, your network and your reputation are every bit as valuable as the properties you buy.
Want to learn more? Jay offers his book “Where to Get the Money Now“ for free (just cover the shipping), sharing all of his step-by-step strategies for raising private capital without relying on traditional banks or hard money lenders.
Financial freedom through real estate is possible—even in uncertain markets—when you have the right knowledge, the right mindset, and the right approach to raising and managing private money.
10 Discussion Questions from this Episode:
- Jay Conner discussed losing his line of credit during the 2009 financial crisis. How did this experience shift his approach to funding real estate deals, and what lessons can current investors draw from his pivot to private money?
- The concept of “private money” is central to Jay’s strategy. In your own words, how does private lending differ from traditional bank financing, and what are the key benefits and potential risks for both borrowers and lenders?
- Jay talks about putting on his “teacher hat” to educate his network about private lending. Why do you think education is so important when raising private funds, and how can transparency build trust with potential investors?
- Given the examples of fraud and mismanagement in the Canadian private lending space that Serena mentioned, what due diligence steps should new private lenders always follow before wiring funds?
- Jay emphasizes never borrowing unsecured funds and ensuring every investor is properly protected. Why is having your investment properly collateralized so critical, and what red flags should investors look for to spot potentially risky deals?
- Automation and building a team are highlighted as key strategies that allowed Jay to minimize his work hours. If you’re looking to scale your business or investments, what roles or tech would you add first and why?
- Jay shared his “good news” script for informing investors about funding opportunities. What do you think about his approach to presenting deals, and how does it help avoid the “desperation” scent he mentions?
- Serena raises concerns about operators over-leveraging properties by taking multiple promissory notes far exceeding the actual property value. What systems or KPIs could be put in place to prevent such scenarios?
- Jay’s story about holding onto a beachfront condo that wouldn’t sell taught him the importance of ensuring a property can cash flow if a flip doesn’t work out. How do you factor multiple exit strategies into your deals?
- The episode touches on the importance of mindset and continuous learning. What daily habits or routines have you adopted (or want to adopt) to strengthen your own knowledge and mental approach to investing?
Fun facts that were revealed in the episode:
- Jay Conner Raised Over $2 Million in 90 Days
After losing his line of credit during the 2009 financial crisis, Jay Conner quickly adapted by raising $2,150,000 in private money in less than 90 days—all without having to rely on traditional banks! - He Operates in a Small Market—on Purpose
Jay’s real estate investing business is based in Morehead City, North Carolina, a community with a target market of just 40,000 people. He prefers being a “big fish in a small pond” and believes smaller markets make it easier to dominate and find profitable deals. - Jay Never Asks for Money—He Teaches Instead
One of Jay’s secrets to success is that he doesn’t ask people for money to fund his deals. Instead, he puts on his “teacher hat” and educates people about private money lending, allowing them to come forward and invest with him when the time is right!
Timestamps:
00:01 Jay’s Financial Turnaround Journey
04:37 Credit Shutdown Amid Financial Crisis
08:25 Multi-Lender Real Estate Financing
10:56 Property Collateral Fraud Uncovered
14:31 Protect All Lenders Equally
18:33 Exploitative Financing Schemes Emerging
21:35 Mortgage Strategies with Jay Conner
25:24 Good News Phone Call Script
28:27 Building Networks with BNI
30:40 Lessons from Costly Condo Rental
33:31 Automated Success: Free Time Unlocked
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
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https://www.facebook.com/jay.conner.marketing
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