***Guest Appearance
Credits to:
https://www.youtube.com/@SouthsideUnicorn
“A Chat with Jay CONNER – The Private Money Lender”
https://www.youtube.com/watch?v=3WwZ1RptwQc
When most people think about investing in real estate, they envision long hours at banks, filling out tedious paperwork, and waiting anxiously for loan approvals. But what if you could sidestep all of that?
What if you could leverage alternative lending options that not only offer security but can transform the way you approach your investments? On a recent episode of the Raising Private Money podcast, Ken White sat down with Jay Conner, known as the Private Money Authority, to pull back the curtain on the world of private money lending—and why it might just be the game-changer for real estate investors across the country.
Ditch the Traditional System
Jay Conner’s passion for private money stems from his years of experience in real estate. As he shared with Ken White, “Private money for my real estate deals has had more of an impact on our real estate investing business than any other strategy that we’ve employed ever since we started back in 2003.”
Unlike traditional bank loans, which leave the borrower at the mercy of underwriting terms and interest set by institutions, private money empowers investors to set their own terms. “In my world of borrowing money,” Jay notes, “I make the rules. I set the terms. I’m my own underwriter.”
What is Private Money and Who Are the Lenders?
Private money is not hard money. As Jay explains, hard money lenders are institutional entities that raise funds from various investors to create a lending pool, often charging origination fees and high interest rates. Private money, however, is a direct transaction between the investor and ordinary individuals—such as retired teachers, law enforcement officers, and military personnel—who are seeking a reliable return on their investment.
Many of these private lenders had never heard of the concept until it was introduced by a real estate professional. They use either investment capital or retirement funds such as self-directed IRAs, enabling them to invest outside of the traditional stock market and bank CDs.
“Prior to Covid, there was $18 trillion in cash in just ordinary people’s… Today, $31 trillion,” says Jay, highlighting an enormous pool of untapped potential for real estate investors.
Safety Comes First
One of the biggest concerns potential lenders and investors have is security—how is their money protected compared to the FDIC-insured deposits in banks? Jay lays out a structure designed to mitigate risks. Private lenders aren’t left unsecured; every loan is collateralized by the asset in question.
In Jay’s words, “Everything we do is what’s called asset-backed debt.”
What does this mean in practice? If, for any reason, the borrower fails to repay, the lender has the legal right to foreclose on the property, just as a bank would. Additionally, loans are conservative—never more than 75% of the property’s after-repaired value (ARV).
Lenders are named as mortgagees on the insurance and title policy, explicitly giving them a claim if anything goes wrong. “It’s secured. It’s not unsecured. It’s a conservative loan-to-value,” says Jay.
Getting Paid to Buy
One of the most exciting aspects Jay discusses is the potential to receive multiple “big checks” in a single transaction. He breaks it down using simple math: buy a distressed property at 50% of its ARV, rehab it, and finance up to 75% of ARV through private lenders. This often leaves “excess cash to close” that the investor can use for renovations—or even to pay the lender’s monthly interest upfront.
Do More, Worry Less
Jay Conner’s system isn’t just accessible to those in North Carolina. “Private money works anywhere there’s real estate and anywhere people have money,” he tells Ken White—even internationally, as in the Philippines resort property Ken asks him about.
Final Thoughts
Private money is abundant—according to Jay, “There’s more money available than there are deals.” The key is to educate potential lenders, structure secure transactions, and line up funds before pursuing deals. As Jay emphasizes, “Desperation has a smell to it. Get the money lined up first.”
Real estate investing doesn’t have to be complicated or beholden to big banks. With private money, investors and lenders alike can find win-win solutions built on trust, transparency, and solid returns.
For more insights and a free book, Jay Conner invites listeners to visit www.JayConner.com/Book.
10 Discussion Questions from this Episode:
- What is the difference between private money and hard money lenders in real estate investing, according to Jay Conner?
- How does Jay Conner describe the protections that private money lenders receive when they fund real estate deals?
- Why does Jay emphasize the importance of securing funding before looking for investment deals, and what does he mean by “desperation has a smell”?
- How does the process work when an investor receives “multiple checks” in a real estate transaction funded by private money?
- What are some of the backgrounds of Jay’s 47 private money lenders? Why is this significant for those considering entering private lending or borrowing?
- What risks exist for private money lenders, and how are these risks mitigated in Jay Conner’s process?
- Jay mentions that there is more private money available than there are deals. What factors contribute to this abundance, and what does it mean for investors?
- How do self-directed IRAs play a role in private money lending, and what are the potential tax implications for lenders?
- Is private money lending limited to certain geographic areas or types of properties? What did Jay say about doing deals in places as diverse as North Carolina and the Philippines?
- Based on the advice given in the episode, what steps should someone new to real estate investing take if they want to leverage private money for their first deal?
Fun facts that were revealed in the episode:
- Private Money vs. Hard Money: Jay Conner explains that private money is distinct from hard money. While hard money lenders are still institutions with their own rules and fees, private money comes directly from individuals—regular folks, such as retired school teachers, law enforcement officers, and military personnel—who seek reliable returns outside of banks and Wall Street.
- Trillions in Potential Funds: Prior to COVID, Jay says there was $18 trillion in cash available from ordinary people for private lending. As of the recording, that number had grown to $31 trillion, showing just how much untapped funding is potentially out there for real estate deals.
- Getting Paid to Buy a House: Jay shares that with his private money strategy, real estate investors can actually receive a check at closing when they buy a property, not just when they sell. For example, by borrowing up to 75% of a home’s after-repair value, investors can cover the purchase price, renovations, and walk away with extra cash for themselves—sometimes before any work has even started.
Timestamps:
00:01 Fixing Your Money Machine
03:34 Government, Fed, and Financing Concerns
07:32 Private Money: Individuals Investing Capital
11:31 Real Estate-Backed Private Lending
13:35 Private Lending and Title Insurance
16:55 Private Money Insights with Jay
21:30 Excess Cash from Property Deal
24:31 Struggling in California
27:58 Money First, Avoid Desperation
31:52 Working with Jay Conner
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
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcasts:
Facebook:
https://www.facebook.com/jay.conner.marketing
Listen to our Podcast:
Comments