***Guest Appearance
Credits to:
https://www.youtube.com/@PlayBigFasterPodcast
“Jay Conner, the Private Money Authority: How To Get PAID At CLOSING”
https://www.youtube.com/watch?v=Hobyjd_poXw
Are you a real estate investor struggling to fund your deals, tired of jumping through hoops at the bank, or nervous about your credit standing? According to Jay Conner—“The Private Money Authority”—there’s a better way: tapping into private money.
On the recent episode of the Raising Private Money podcast, Jay broke down his proven approach to raising limitless funds for real estate, bypassing the banks, improving profits, and making investing easier for everyone—from complete novices to seasoned pros.
What is Private Money?
First, Jay spells out what makes private money different from traditional or hard money loans. Traditional funding—like banks and mortgage companies—involves strict rules, credit checks, and lots of red tape. You borrow on their terms, not yours.
On the other hand, private money comes from individuals investing their own capital or retirement funds directly with you. There’s no middleman, no institutional underwriting, and best of all: “You set the rules.” Jay’s system allows him to pay 8% interest—significantly better than bank certificates or other safe investments—on straightforward terms, with no fees or points. For more than a decade, he’s successfully leveraged private lenders without once needing to show his credit score.
Why Private Money Beats Hard Money
Hard money loans are a step up in speed from traditional financing, but they’re still expensive (think 12–14% rates), short-term, and packed with fees. Plus, there are still limits to how many deals you can finance. Private money, by contrast, offers unlimited scale, flexibility, and often better rates. Jay explains that you’re not just borrowing money—you’re building relationships and teaching others to safely get excellent returns on their capital.
No License or Experience Required
A common misconception is that you need a real estate license or an established track record to raise private money. Jay busts this myth: as long as you’re investing for yourself (not representing others), you don’t need a license. And because private money is secured by real estate, not your credit score, experience isn’t a prerequisite, either.
Jay emphasizes the power of teaching. “Not one of my 47 private lenders had ever heard of private money before I taught them,” he says. By putting on the “teacher hat,” you empower others to invest in your deals, opening doors for both you and them.
Where Do You Find Private Lenders?
Jay outlines three key sources:
- Your Warm Market: Friends, family, business associates, church groups—anyone you already know. Educate them on private lending, and most will be intrigued by the returns and security.
- Your Expanded (Warm Market) Network: Grow connections by joining business organizations like your local BNI (Business Networking International). There’s only one real estate investor per group, making you the go-to expert.
- Existing Private Lenders: Found at self-directed IRA networking events, these individuals are already lending to real estate investors and may be looking for new opportunities.
Most people with retirement accounts have never been shown how to self-direct their IRAs into real estate, where they can earn higher returns—often tax deferred or tax free.
Making the Numbers Work
To ensure every deal is profitable, Jay shares his “Maximum Allowable Offer” formula: Take the after-repaired value (ARV), multiply by 70% (or 80% if the ARV exceeds $300,000), subtract estimated repairs, and add a “Murphy factor” for the unexpected. This system keeps investors protected and ensures private lenders are always secure with a solid equity cushion.
Final Advice
Jay’s parting guidance? “Don’t go it alone.” Find a coach or mentor to help you get started, avoid rookie mistakes, and accelerate your success.
Want to Learn More?
Jay’s book, Where to Get the Money Now, goes deeper into his approach and even comes with tickets to his Private Money Conference. If you’re ready to break free from banking bottlenecks and supercharge your real estate career, it might be time to learn the secrets of private money.
10 Discussion Questions from this Episode:
- What are the main differences between private money, traditional banks, and hard money lenders when it comes to funding real estate deals?
- Jay Conner emphasizes the importance of “putting on your teacher hat” when attracting private lenders. Why is education so crucial in his approach, and how does it benefit both the lender and the investor?
- According to Jay, you don’t need a license or good credit to secure private money. How does this democratize real estate investing, and what might be some potential risks or challenges?
- Jay talks about three main places to find private lenders: your warm market, expanded warm market, and existing private lenders. Which of these do you think would be the most effective starting point, and why?
- He mentions using self-directed IRA companies to tap into retirement funds for private lending. What are the benefits and potential pitfalls of this strategy for both investors and lenders?
- Jay outlines a formula for the “maximum allowable offer” on a property. How does this formula help in risk management and ensuring profitability?
- What role does relationship-building play in Jay’s private money system, and how does it differ from traditional approaches to real estate financing?
- Jay advises against negotiating with existing private lenders and prefers educating new ones. What are the strategic reasons behind this approach?
- In the episode, Jay shares that new investors should get a mentor or coach. How crucial is mentorship in real estate investing, especially for those using private money?
- After listening to Jay’s story of pivoting after being cut off by banks in 2009, what lessons can entrepreneurs take about resilience and innovation in their businesses?
Fun facts that were revealed in the episode:
- Jay Conner Raised $2.15 Million in Just 90 Days: After being cut off by traditional banks in 2009, Jay Conner developed his private money system and was able to raise $2.15 million in private money in just a few months, jumpstarting a new chapter in his real estate investing career.
- No License or Credit Needed: You don’t need a real estate license or a perfect credit score to raise private money for real estate deals the way Jay teaches. He’s worked with 47 different private lenders, none of whom ever asked for his credit score!
- Jay’s Maximum Allowable Offer Formula: When analyzing investment properties, Jay uses a quick math trick—he multiplies the “after repaired value” (ARV) by 70% (or 80% if the property is worth over $300,000), then subtracts estimated repairs and adds a “Murphy factor” (just in case things go wrong) to decide the maximum offer he’ll make. This keeps his deals safe and profitable!
Timestamps:
00:01 Institutional vs. Private Money Explained
03:33 Money’s Rule: Institutional vs. Hard
06:44 Introduction to Private Money Lending
13:10 Expanding Private Lender Networks
15:15 Finding Private Lenders: Self-Directed IRA Network
18:13 Finding Discounted Properties
22:55 Adjusting Property Offers for Risk
25:11 Free Book and Conference Offer
28:05 Download Free Real Estate 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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