***Guest Appearance
Credits to:
https://www.youtube.com/@DavidOldsREI
“Jay Conner’s Secret to Funding Deals Without Banks – David Olds”
https://www.youtube.com/watch?v=8XCccXH7s3E
If you’re a real estate investor—or have considered diving into this lucrative world—you’ve probably encountered the question: “How do I get the money to fund my deals?” For many, the answer has always involved banks, stern loan officers, and stacks of paperwork. But Jay Conner, a legendary investor and coach, has made it his mission to show that there’s a better, easier, and more empowering way: private money.
From Bank Roadblocks to Private Lending Breakthroughs
Jay’s story is relatable for anyone who’s ever found themselves at the mercy of institutional lending. For six years, he did what most investors do: went to the bank, provided loads of documentation, and hoped for approval. That all changed in January 2009, when his longtime banker informed him—unexpectedly and without warning—that his line of credit was closed, a casualty of the global financial crisis.
This pivotal moment forced Jay to ask himself an incredibly powerful question: “Who do I know that can help fix my problem?” This shift in mindset (a lesson in itself!) led him to discover the world of private money lending.
Teaching, Not Pitching: The Secret Sauce
Unlike traditional approaches, Jay never asks for money or pitches deals outright. His strategy? Education first. By donning his “teacher hat,” Jay introduces friends, acquaintances, and community members to the concept of private lending—including strategies using self-directed IRAs to lend money to investors for real estate deals. Most of his lenders had never heard of private lending or self-directed IRAs until Jay explained it—showing that sometimes the best deals come from simply educating those around you.
The teaching approach does more than inform; it removes desperation from the equation. As Jay humorously puts it, “Desperation’s got a smell to it.” Instead, he shares the opportunity in a relaxed, informative setting, such as a private luncheon, where people can learn and ask questions. At one such luncheon, he garnered nearly a million dollars in pledges.
No Applications. No Begging. Just Win-Win Solutions.
Jay flips the traditional money-chasing script. Rather than applying for a limited resource, he positions private lending as an opportunity—a way for others to earn high, predictable returns (often between 8-10%) with their idle cash or retirement accounts. There are no complicated forms or credit pulls; he’s offering others a service, not asking for favors.
New private lenders aren’t bombarded with jargon or pressured to commit. Instead, Jay explains the process in simple terms, answers questions, and only talks deals once a lender is fully on board. Many of his lenders started with modest sums and, after seeing the results, increased their investments, sometimes doubling their original pledges.
Expanding Beyond Your Network
What if you run out of friends and family to approach? Jay recommends getting involved with local networking groups, such as Business Networking International (BNI), Rotary Clubs, and your local Chamber of Commerce. These settings not only build your professional circle but also expand your reach to potential lenders looking for stable, above-average returns.
Managing Private Money Responsibly
As your pool of private funds grows, another good problem arises: keeping everyone’s money working. Jay’s solution is to give new lenders priority on new deals, sometimes refinancing existing properties to put fresh money to work. He leverages strategies like substitutions of collateral—swapping out properties securing a lender’s note—to ensure all parties are protected and their returns continue uninterrupted.
The Takeaway
Jay Conner’s approach is a masterclass in shifting the mindset around raising money for real estate deals. By leading with education, focusing on relationships, and creating true win-win scenarios, he’s built a real estate empire—and helped countless others do the same. Whether you’re a new investor or seasoned pro, Jay’s “private money comes first” philosophy is worth adopting. As Jay demonstrates, there’s more private money out there than deals to be done—if you know how to ask the right way.
10 Discussion Questions from this Episode:
- Jay Conner stresses the importance of a “teacher hat” instead of a “sales hat” when raising private money. In what ways have you seen this educational approach work (or not work) in your real estate experience?
- Jay talks about never pitching a deal during the initial conversation with a private lender. Why do you think this approach reduces the feeling of desperation, and how might it influence a potential investor’s trust?
- One key strategy Jay uses is reaching out to people in his existing network, like church groups or business networking clubs. What local communities or organizations could you tap into to find potential private lenders?
- Jay mentions that most of his private lenders had never heard of self-directed IRAs or private lending before he educated them. How could you simplify and present these financial concepts to people in your network who are unfamiliar?
- The conversation highlights the importance of mindset and “owning the real estate between your ears.” What mindset shifts did Jay have to embrace to successfully raise capital, and how could those apply to you?
- Jay’s method involves never asking directly for money, but instead teaching the opportunity. How comfortable are you with teaching versus selling, and how might you adapt your style to fit this model?
- A recurring statement is “the money comes first.” How would having private money already lined up change your deal-making process and negotiation tactics?
- Jay talks about managing multiple private lenders and keeping everyone’s money working. What systems or processes do you think are important for tracking and effectively managing your capital sources?
- Jay shared a story about using an “indirect method” to attract lenders, approaching people for referrals rather than pitching them directly. What are the pros and cons of this approach for you?
- The episode ended with a discussion about scaling up and growing your network beyond your immediate connections. What steps could you take to expand your own network strategically for finding private money?
Fun facts that were revealed in the episode:
- Jay Conner Raised Close to $1 Million at a Luncheon: Jay once organized a private lender luncheon and received pledges for $969,000 in just 90 minutes—all without pitching a specific deal, just by teaching attendees about private money lending.
- No Applications Needed: Unlike traditional bank loans, Jay’s system for raising private money involves no applications or credit checks. He teaches real estate investors to be their own underwriters and simply “offer” a mortgage, not “ask” for one.
- Oceanfront Conferences for Learning: Jay hosts his Private Money Conference at an oceanfront hotel in Morehead City, North Carolina, where attendees not only learn his methods but also enjoy beach views and VIP receptions at a private beach club!
Timestamps:
00:01 Impact of Private Money on Investing
05:56 Teacher Boosts Private Lending Knowledge
07:41 Effortless Deal Funding Formula
12:23 Private Lending Benefits Real Estate Investors
13:17 Finding Lenders Through Bible Study
19:16 Transformative Financial Solutions
20:54 Prioritizing New Private Lenders
24:16 Private Money for Cash Deals
27:00 Flexible Home Sale Agreement
30:48 Networking Growth in Morehead City
35:41 Real Estate: The Secure Investment
37:19 Free Real Estate Investment Guide
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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https://www.youtube.com/c/RealEstateInvestingWithJayConner
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