In the real estate investing world, few strategies are as empowering—and potentially lucrative—as flipping with private money. In a recent episode of “Flip This Town,” veteran investor Jay Conner sat down with Jason Lassiter, a successful real estate entrepreneur, to share actionable tips for building your business using private funding. Here’s a summary of their conversation and why private money might be the creative spark your local real estate market needs.
What is Private Money—and Why Does It Matter?
Jason Lassiter began by defining private money simply: it’s funding that comes from individuals, not banks or hard money lenders. Private investors—often friends, family, or local connections—lend their money for your real estate deals, earning a return secured by real estate collateral.
“The agility that private money gives you in this market is powerful,” Jason noted. Unlike traditional lenders with stringent requirements and long paperwork trails, private lenders can provide speed and flexibility. This allows investors to swoop in on deals that others might not be able to close.
In Your Backyard—Opportunities are Everywhere
Jason emphasized that you don’t have to move to a big city or a hot market to take advantage of private money lending. In fact, there are undervalued properties to flip in every town, big or small. The crucial first step is identifying what Jason describes as the “hidden gems”—properties often overlooked due to cosmetic issues or outdated marketing.
“When you’re using private money, you can move fast,” Jason said, “and sellers appreciate that, especially in smaller markets where good buyers are hard to find.” Swift, cash-based closings put you ahead of the pack, especially in competitive neighborhoods.
Building Your Private Money Network
Jay Conner and Jason discussed that often, potential private lenders are in your everyday circles—they just don’t know how they can help (and benefit!).
“The number one thing is just letting people know what you do,” Jay advised. Start having conversations: Share at local meet-ups, church groups, or even on social media that you help people earn great returns, secured by real estate.
Jason added, “You’d be surprised—neighbors, dentists, business owners—they all might have retirement accounts or savings that aren’t earning much. Once they trust you, these can become great sources of private loans.”
A key point is to keep things professional. Outline a simple deal structure, provide transparency, and ensure their investment is secured and insured. Over time, as you develop a track record, referrals will flow your way. As Jason put it, “Integrity and communication are the secret sauce. You have to deliver every time.”
How to Structure the Deals
Every private money arrangement needs clear boundaries. Jason likes to keep it simple: agreements are usually secured by the property (via a note and mortgage or deed of trust), and the lender earns a fixed interest rate, often paid when the property flips. Terms vary, but the focus is always on win-win scenarios—reasonable rates for the lender, with enough margin left for a profitable flip.
Jay and Jason explained that clarity is crucial. Lay out timelines, exit strategies, and backup options—with private money, reputation is everything. As your investors succeed, they’ll want to invest again (and will bring friends along).
Flipping With Confidence
Jason’s parting encouragement? Don’t let a lack of bank financing stop you. In any town, there’s “hidden money” waiting to work for you, if you leverage relationships and communicate well. Confidence, transparency, and consistency are your best tools for building a private money network and growing your flipping business.
Flipping houses with private money isn’t just about real estate—it’s about community building, providing value, and creating local wealth. Start conversations, build trust, and watch as you flip not just houses—but the trajectory of your town.
10 Discussion Questions from this Episode:
- Jason Lassiter emphasized the importance of good communication skills when approaching potential private lenders. Why do you think communication is so critical in raising private money, and what methods have you found most effective?
- Jason shared his story of finding his first private lender on Craigslist. How do you feel about finding lenders through unconventional means, and what other “outside the box” avenues could investors explore?
- Both Jason and Jay discussed the importance of building credibility and relationships over relying solely on book sales or impressive numbers. How do you personally establish trust with investors or partners?
- The episode mentioned structuring deals to protect both the investor and the lender, like using promissory notes and deeds of trust. What are some other ways to ensure both parties are protected in a private lending arrangement?
- Jason talked about his mindset shift from thinking he was “asking for money” to realizing he was “offering an opportunity.” How can changing your mindset influence your results in raising capital?
- Mistakes were discussed, such as pursuing deals with insufficient equity. What are the top red flags to watch out for when evaluating a potential real estate investment to be funded by private money?
- Jason’s work in the nonprofit sector was highlighted as part of his credibility and mission. How important do you think it is for investors to give back to the community, and can this help in building relationships with lenders?
- Both guests agreed that there’s currently more private money available than good deals to put it in. Why do you think this is, and what implications does it have for new investors entering the market?
- What advice from Jason or Jay resonated most with you about overcoming the fear that “no one will trust me with their money,” and how can new investors address this common self-doubt?
- Finally, networking was mentioned frequently—including at yacht clubs, networking events, and even just in everyday life. What are your best strategies for networking, and have you ever unexpectedly met a valuable connection in an unusual place?
Fun facts that were revealed in the episode:
- Creative Financing Journey: Jason Lassiter got started in real estate investing without using any of his own money—he learned the ropes of “flipping” properties by leveraging private money, which allowed him to scale his business quickly.
- Community Impact: One of Jason’s passions is revitalizing neighborhoods. He believes that flipping houses with private money isn’t just about profit—it’s also about breathing new life into communities and improving the local landscape.
- Networking Matters: Jason credits much of his success to building strong relationships. He emphasizes that the private money world is built on trust and networking, showing that having a solid reputation can attract investors eager to fund your deals.
Timestamps:
00:01 Jason Lassiter’s Private Money Secrets
04:17 Flipping Houses & Networking Success
07:42 Unexpected Funding Hiccup at Closing
12:45 Success with Hard Money Lending
15:04 Avoid Costly First Real Estate Mistakes
16:46 Ensuring Successful Property Investment
22:46 Liquor License Boost and Sale Potential
24:19 Smart Housing for Elderly Safety
27:02 Connect with Coach Jason:
27:37 Real Estate Coaching and Problem-Solving
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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.
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