***Guest Appearance
Credits to:
https://www.youtube.com/@therealjenjosey
“251 – Unlocking Private Money Secrets with Jay Conner”
https://www.youtube.com/watch?v=Ww3gU1egqSY
If you’re a real estate investor who has ever felt boxed out by banks, high-interest hard money lenders, or just wanted a faster, more flexible way to fund your deals, there’s a gateway you need to know about: private money. On a recent episode of the Raising Private Money podcast, together with Jen Josey, industry expert Jay Conner broke down his journey from traditional lending to mastering the art of raising millions in private capital—and how you can do the same.
Jay’s Story: From the Mobile Home Business to Real Estate Success
Jay’s foray into real estate is rooted in a family legacy of mobile homes. Raised in North Carolina, his family’s business was the largest retailer of mobile homes in the country at one point. But when the industry collapsed in the early 2000s due to disappearing financing options, Jay was faced with a formidable challenge. It took his family a year and a half to liquidate $22 million in inventory, an experience he describes as much harder than starting a business. That difficult chapter pushed him into the world of single-family homes in 2003, inspired by friends who successfully flipped properties for far more profit (and less hassle) than he could imagine in mobile homes.
For his first six years, Jay relied on traditional bank financing: loan applications, credit pulls, heavy documentation, and all the red tape. But everything shifted for him with the 2008 market crash, when his local banker abruptly stopped lending. In 2009, Jay discovered private money—and he hasn’t looked back since.
What Makes Private Money Different?
Jay is quick to make an important distinction: private money is not “hard money.” Hard money lenders are typically brokers leveraging pools of investor capital, charging steep origination fees and higher interest rates—often 12-14% or more. In contrast, private money deals are direct relationships with individuals seeking solid, safe returns. According to Jay, the advantages are extensive:
- No Loan Applications or Credit Checks: Traditional banks set all the rules, but with private money, you’re in the driver’s seat.
- Flexible Terms: Jay pays his private lenders 8% interest (no points), a figure that has kept 47 private lenders happily funding his deals for over a decade.
- Speed and Simplicity: No more racing against the clock to get bank approvals—when you control the capital, you control the deal.
- Total Funding Coverage: With the right approach, you can even collect a check at closing for repairs and extra equity, maximizing leverage and minimizing personal out-of-pocket risk.
The Secret Sauce: Teaching, Not Pitching
So how does Jay attract private lenders? Surprisingly, he’s never asked anyone for money and never pitches individual deals upfront. Instead, he educates. Jay puts on his “teacher hat” and holds conversations or luncheons focused on how private money works, offering value first. He explains the opportunity, including the mechanics of self-directed IRAs, and then waits for interested individuals to approach him. The key, he says, is separating the education from the ask—raising capital before you need it.
When it’s time for funding, Jay makes what he calls the “good news phone call.” Instead of a sales pitch, it’s a notification: “I now have a house under contract that matches the amount you were interested in putting to work.” This approach builds trust, urgency, and a professional dynamic—no desperate scrounging for financing.
Actionable Advice for New Investors
For those new to private money, Jay recommends starting with your “warm market”—people you already know from your network, social circles, or professional groups. Don’t underestimate the power of structured networking organizations like BNI (Business Networking International), which Jay says have directly led to millions in new funding for his deals.
And remember, the true asset in any deal is not the property itself, but you—the investor. Build credibility, invest in your education, and focus on relationships first.
Conclusion
Jay Conner’s journey is proof that private money isn’t just for industry veterans—it’s an accessible, repeatable system for anyone ready to approach capital with education and integrity. If you’re struggling with funding, consider stepping into the world of private money. The flexibility, speed, and long-term relationships you build may transform your business—and your life.
10 Discussion Questions from this Episode:
- Jay Conner discusses the importance of private money in real estate investing. What are the main differences he highlights between private money, hard money lenders, and traditional bank financing?
- How did the 2008 market crash serve as a turning point for Jay Conner’s approach to funding his real estate deals?
- Jay shares that he has never missed out on a deal since 2009 because of his access to private money. Why does he think private money is such a game-changer for investors?
- The “good news phone call” strategy is a key part of Jay’s system for working with private lenders. What does this script involve, and why does he think it’s effective?
- Jay talks about using separate conversations when teaching potential lenders about private money and when discussing specific deals. Why does he think keeping these conversations separate is so important?
- The notion that “desperation has a smell to it” is mentioned as a pitfall when raising private money. What are some ways investors can avoid coming off as desperate when seeking funding?
- Jay outlines the process of cashing multiple checks on a single real estate deal. What are the different ways he makes money on each deal, and how do these methods work together?
- Lease options or rent-to-own sales play a role in Jay’s investing strategy. What are some benefits and challenges he mentions about this approach, especially regarding helping tenant-buyers become homeowners?
- For new investors, Jay emphasizes finding private lenders through your “warm market” and through networking. What practical steps does he recommend for expanding your network and attracting lenders?
- Jay makes a point that private lenders are ultimately investing in the person, not just the deal. What qualities or actions does he believe are most important for building trust with potential private lenders?
Fun facts that were revealed in the episode:
- Jay Conner’s Dad Is Still Building at 91!
Jay grew up in the mobile home business, and his father, Wallace Conner, is still actively building a 350-home development at the age of 91 and a half—he’s proud enough to include the “and a half!” - Jay Brings Home Checks When He Buys Houses
Unlike the typical real estate transaction, where you spend money to purchase a property, Jay’s private money technique often has him bringing home a check at closing—he essentially “gets paid to buy houses” by borrowing more than the purchase price to cover renovations and even some profit upfront. - Jay Never Misses a Deal for Lack of Funding
Since learning about private money in 2009, Jay hasn’t missed out on a single deal due to a lack of financing. He’s mastered raising private funds so well that his 47 private lenders compete to finance his deals, typically earning 8% interest with no points—without Jay ever having to formally “ask” for money!
Timestamps:
00:01 Passion for Private Money
05:38 Fixer Upper to House Fund
08:29 Private vs. Traditional Money Loans
10:33 Private Real Estate Investing Explained
15:12 Self-Directed IRA Investment Introduction
18:26 Real Estate Funding Strategy Tips
22:19 Final Check: Real Estate Cash Out
24:40 Guided Credit Repair for Ownership
26:20 Lease Option Agreement Explained
31:51 Private Lenders Prefer Holding Investments
32:59 Deed of Trust Secures Private Loans
38:50 Boosting Real Estate Investments via BNI
43:03 Private Money Conference Preview
44:34 Life-Changing Book: University of Success
47:46 Defining Success: Inner Joy
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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