***Guest Appearance
Credits to:
https://www.youtube.com/@michelleperkins-limitfreel2446
“Episode 169: Unlocking Wealth: The Power of Raising Private Money”
https://www.youtube.com/watch?v=gf8y37moYos
When it comes to real estate investing, funding is often the biggest hurdle. Most new and seasoned investors alike have stories of navigating the strict requirements of banks, gathering painful piles of paperwork, and still facing rejection or unexpected closures of credit lines. But what if there was a way to access money for your real estate deals without begging banks, risking your assets, or making desperate pitches?
Private Money: An Alternative Path
On a recent episode of the “Raising Private Money” podcast, Michelle Perkins sat down with real estate investor Jay Conner, who shared his journey from being “owned by the bank” to raising millions in private funding. When Jay started in real estate back in 2003, he was convinced that banks were the only way to finance investments. He soon found out how vulnerable he was when his trusted banker shut down his credit line overnight, leaving him scrambling to fund two projects.
Jay’s turning point came when he discovered the concept of “private money,” which involves borrowing directly from individuals—not institutions—who are seeking higher, safer returns for their investment capital or retirement funds. With clear enthusiasm, Jay described private money as “where an individual just like you or me can take their investment capital, loan the money … and repay them high rates of return safely and securely.”
Changing Your Money Mindset
Both Michelle and Jay agreed that the journey to financial freedom in real estate begins in the mind. Jay is a big believer that “until you own the real estate between your ears, it’s going to be hard to own real estate” in any other sense. Many people are constrained by their beliefs about money and investing, sometimes without even realizing it. If the traditional banking system has left you wary or you feel unqualified to approach “sophisticated” lenders, you’re not alone.
Jay emphasized that private lenders are everyday people: retired teachers, former police officers, small business owners, and even teenagers who inherited funds. Most of his 47 private lenders had never heard of private real estate loans or self-directed IRAs until he put on his “teacher hat” and explained the opportunity.
How to Attract Private Money
One of the biggest misconceptions Jay highlighted is that raising private money requires you to be a slick salesperson. Desperation has a “smell,” and people are naturally repelled by it. Jay’s approach is radically different: lead with value, teach others about the opportunity, and avoid traditional selling.
He shared his exact script for working with new lenders: after teaching the basics and identifying someone interested, he simply informs them when a deal is ready to be funded. “I have great news for you. I can now put your money to work. I have a house under contract …” and then provides the details. There’s no high-pressure pitch or fearful plea—just a professional, service-oriented process.
The Win-Win of Private Lending
What’s in it for the lenders? Many people are frustrated with the paltry returns from savings accounts and the volatility of the stock market. Private lending allows them to earn competitive, even “insane,” rates of return securely, often backed by real estate. The investor, meanwhile, gets flexibility, speed, and the ability to control deal terms. It’s a win-win.
Start Your Journey
Jay is passionate about sharing this knowledge, offering his book “Where to Get the Money Now” as a guide for those ready to step off the conventional financing treadmill. And in a world where access to institutional money is tighter than ever, learning the art of attracting private money can truly be a game-changer.
If you’re looking to scale your real estate business or simply want to invest more effectively, consider expanding your financial mindset. As Jay and Michelle showed, the possibilities are much wider—and more accessible—than you might think. The first step? Start teaching, start serving, and watch the money find you.
10 Discussion Questions from this Episode:
- Jay shares his experience with being abruptly cut off from his local bank. How do you think this event shaped his approach to real estate investing and private money?
- How does Jay differentiate between “private money” and “hard money”? What are the key distinctions that investors should understand?
- Jay emphasizes the importance of mindset when it comes to money and investing. How does your mindset impact your financial decisions, and what steps can be taken to cultivate a healthier money mindset?
- The concept of “attracting” rather than “chasing” money comes up several times. In what ways can this philosophy be applied beyond real estate and investing?
- Discuss the importance of asking the right questions in times of crisis, as Jay did. Can you recall a moment when reframing a problem with a powerful question helped you find a solution?
- Michelle and Jay talk about the lack of financial education in traditional schooling. How might more accessible education about private money and investing change the average person’s financial future?
- What role does trust play in the private lending process, according to Jay? How does his teacher-led, “servant’s heart” approach help build that trust?
- Jay outlines the kinds of people who make up his network of private lenders, including retired teachers, a police officer, and even minors. How does this challenge assumptions about who can participate as a private lender?
- Jay suggests that desperation has a “smell” and advises against approaching investors or lenders from a mindset of scarcity. How can someone shift out of that scarcity mindset in stressful financial times?
- After hearing Jay’s script for approaching new private lenders, what do you think about his strategy of never directly asking for money? How might this shift the dynamic of similar conversations in business or personal life?
Fun facts that were revealed in the episode:
- Jay Conner’s First Private Lender Came from Bible Study: Jay’s journey into private money lending began unusually—his very first private lender was someone he chatted with after a Wednesday night Bible study, proving that your everyday connections could open major financial doors!
- Retired School Teachers Invest Big: Among Jay’s private lenders are two retired school teachers who, together, have invested over $1.25 million in his real estate deals. Private lending isn’t just for high-powered financiers—everyday people from all walks of life can get involved.
- A Sudden Bank Shutdown Boosted His Success: Jay’s path dramatically changed when his bank suddenly shut down his line of credit in the middle of his real estate career. Instead of giving up, he learned about creative financing through private money, and within a few months, raised over $2 million from new private lenders without ever having to beg, chase, or even ask directly for funds.
Timestamps:
00:01 Discovering Private Money & IRAs
05:13 Overcoming Mindset Blocks in Development
07:05 Small Market Real Estate Strategy
10:20 Discovering Private Money Lending
13:49 Introducing Private Lending: A Beginner’s Guide
17:07 Desperation and Fear in Investing
22:37 Coincidence Debunked
24:54 Direct vs. Indirect Private Lending
26:30 Private Money Networking Tactics
31:14 Attracting Private Lenders for Real Estate
33:50 Finding Off-Market Real Estate Deals
38:48 Self-Directed IRA Investment Steps
41:30 Private Lending Agreement Terms
43:33 Raising Private Money Podcast
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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