***Guest Appearance
Credits to:
https://www.youtube.com/@investorfuel
“5 Steps to Raising Private Money”
https://www.youtube.com/watch?v=ksdxraEyryo
Real estate can be a daunting world to break into, but thanks to trailblazers like Jay Conner and Mike Hambright, aspiring investors can sidestep common pitfalls and accelerate their learning curve. In the enlightening episode, Jay joins Mike to dive deep into the keys behind his success and the lessons every real estate investor, seasoned or novice, needs to hear.
From Banker to Real Estate Maverick
Jay Conner didn’t start his career in real estate. As he shares with Mike, Jay’s journey began in the world of banking—a background that gave him an insider’s view of how lending institutions make decisions. When Jay ventured into real estate investing full-time back in 2003, he brought this financial acumen with him. Early on, his competitive edge was actually in understanding how to secure funding—a lesson that remains critical for investors today.
Jay recalls how, like many, he initially relied on traditional, institutional lenders. But that all changed in 2008, when banks started shutting their doors in the wake of the financial crisis. “All our lines of credit were frozen overnight,” he recounts. Instead of calling it quits, Jay pivoted—discovering the world of “private money.”
The Power of Private Money
Jay’s perspective on funding is refreshingly straightforward: if you’re not controlling your funding, you’re limiting your business. Traditional lenders are plagued by delays, red tape, and shifting lending standards. That’s where private money shines.
Private money—loans from individuals rather than banks—allowed Jay to swiftly acquire, renovate, and turn properties without cumbersome loan approvals or rejections. He points out that private lenders are seeking good returns and safe investments, making real estate the ideal match. For Jay, mastering the art of private money raised the ceiling on how much he could grow.
Scaling with Relationships and Reputation
Mike Hambright, a seasoned investor himself, steers the conversation toward how relationships have been key to Jay’s ongoing success. In real estate, says Jay, your reputation is your most valuable asset. By delivering consistently and treating lenders and partners ethically, Jay built a network eager to work with him.
He also underscores the importance of transparency. Jay openly communicates about project risks and rewards, which only enhances trust. “Private lenders want to know their money’s safe, and that you’re someone who can be trusted with that responsibility,” he explains.
Mindset: The Ultimate Game-Changer
One of the most inspiring moments in the podcast comes when Jay and Mike discuss the mindset required for sustained success. Jay admits he wasn’t always comfortable pitching opportunities to others—a common block for many entrepreneurs. “It’s not about asking for money,” Jay says. “It’s about offering an opportunity—letting someone else participate in your success.”
Mike echoes this sentiment, highlighting that shifting from a scarcity to an abundance mindset changes everything. Real estate is ultimately about solving problems for sellers, buyers, and lenders alike; making offers and networking isn’t self-serving, but rather a win-win for everyone involved.
Timeless Takeaways for Any Investor
The episode wraps up with Jay’s advice for anyone looking to break new ground or scale their investing business:
- Embrace Rejection: Not every deal or lender will say yes, and that’s okay.
- Invest in Relationships: Treat every partner like your most important client—they might just become it.
- Never Stop Learning: The market is always shifting; stay adaptable and educate yourself continually.
With these insights, Jay Conner and Mike Hambright empower listeners to take bold steps in their real estate journey. If you’re ready to take control of your own funding and growth, take a page from their playbook—and remember, the right mindset and the right relationships can take you further than you ever imagined.
10 Discussion Questions from this Episode:
- Jay emphasizes the difference between private money and hard money throughout the episode. How does his approach to private money challenge the traditional way of securing funding for real estate deals?
- Jay shares his story about losing access to bank financing in 2009. How did this “problem” ultimately create an opportunity for him, and what lessons can other investors learn from his experience?
- According to Jay, most private lenders are regular individuals who have never even heard of private lending or self-directed IRAs. What strategies does he use to educate and attract these potential lenders?
- Jay discusses the importance of separating the “opportunity conversation” from the “deal conversation” with private lenders. Why do you think this is so crucial, and how might it impact a new investor’s success in raising funds?
- What are the advantages Jay outlines for real estate investors who raise private money instead of relying on institutional lending sources?
- Jay describes both ‘direct’ and ‘indirect’ methods of starting conversations about private money. Which method do you find more appealing or practical, and why?
- He talks about a concept called “the good news phone call” when it comes time to fund a deal. How does this approach differ from traditional pitching, and why does it seem effective for Jay?
- Jay mentions the “freedom number exercise” as a way to determine exactly how much private money you really need. Why is it important for investors to calculate this, rather than continuously seeking more and more capital?
- Jay explains that you don’t need a large number of private lenders to be successful and that many people might already be in your personal network. How can investors expand their network to find more private lenders if they run out of immediate contacts?
- Reflecting on the episode, what are the biggest mindset shifts an investor needs to make to successfully raise private money, according to Jay and Mike?
Fun facts that were revealed in the episode:
- Jay Conner’s Unique Start: Jay shared how he transitioned into real estate investing after a different career path, proving that you can start in this field no matter your background.
- Creative Financing Insights: In the conversation, Jay revealed some innovative strategies for securing funding on deals—often without using any of his own cash or credit.
- Mike’s Podcast Milestone: During the episode, it’s mentioned that this RPM episode is one in a long-running series, highlighting how Mike Hambright has built a valuable resource for real estate investors through consistent content.
Timestamps:
00:01 Tax-Free Earnings: Roth & Self-Directed IRA
04:21 Bank Dependency to Financial Independence
07:18 Discovering Private Money Funding
11:57 Private Money: Lead with Servant’s Heart
12:53 Funding Deals Without Pitching
16:51 Indirect Method for Conversations
22:09 Discussing Tax-Free Investment Growth
25:26 Managing Excess Private Investment Funds
29:06 Expanding Your Real Estate Network
32:57 Raising Private Money Podcast
35:16 Investor Fuel Membership Benefits
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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