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“Unlocking Real Estate Wealth with Private Money, with Jay Conner”
https://www.youtube.com/watch?v=IXC3j67N–8
When it comes to breaking into real estate investing, one myth has persisted for years: just get a deal under contract, and the money will show up. On a recent episode of the Raising Private Money podcast, John Odermatt sat down with Jay Conner—also known as the Private Money Authority—to bust that myth and reveal a smarter, safer path to funding real estate deals.
Why Private Money Changes the Game
Jay Conner, a veteran investor who’s bought, flipped, and rehabbed over 500 houses, attributes the success of his business not to market timing or secret deals, but to the strategic use of private money. As Jay explains, “Private money’s had more of an impact on our real estate investing business than any other strategy that we’ve employed since I started using private money to fund my deals.” The difference was clear during the 2009 financial crisis. Jay was suddenly cut off from traditional bank loans, but instead of giving up, he pivoted. After a critical conversation with another investor, he discovered the world of private money and self-directed IRAs.
Turning Problems into Opportunities
Jay’s story began with adversity: his bank stopped lending, and his deals were at risk. Rather than dwelling on the setback, he asked himself, “Who do you know that can help fix your problem?” That single question led him to a seminar on private money, and ultimately to raising over $2.15 million in alternative funding in just a few weeks. Instead of seeking help from institutions, Jay got creative and built relationships with private lenders—ordinary people interested in secure, high-return investments.
The Servant’s Heart Approach
A unique aspect of Jay’s approach to private money is his attitude. He decided never to ask anyone directly for money or pitch specific deals. Instead, he adopted a “servant’s heart” mindset, positioning himself as a teacher. As Jay puts it, “I started sharing… with my own network, my own connections, my own warm market as to what private money is and how they could be a private lender and how they could earn high rates of return safely and securely, either using their investment capital or… their retirement account.”
Jay designed a private money program offering 8% interest, with no points or origination fees. He secured these investments with deeds of trust or mortgages and included additional protections like naming lenders on insurance and title policies.
How Jay Gets Deals Funded Without Pitching
Instead of pitching deals, Jay educates his network about the opportunity first. When a suitable deal comes up, he simply provides his lender with the good news: he can now put their money to work, matching the funding required with the lender’s available funds.
Jay says, “The most stupid thing I could do is ask… do you want to fund the deal? Of course, they want to fund the deal.” His system separates the teaching of private money from the timing of specific deals, making the process seamless and stress-free for both parties.
Getting Started in Private Money—Even If You’re Brand New
Many new investors wonder, “Who’s going to loan me money if I’ve never done a deal before?” Jay emphasizes two reasons why this is possible: first, private loans are secured by the property itself. If the investor defaults, the lender gets the property, making it a safe bet.
Second, Jay recommends partnering with experienced mentors. “A brand new real estate investor should not be doing this business unless they have joined forces and… are working with somebody that already knows the ropes.”
Advice for Today’s Market
Jay’s advice for current investors? Focus on first-time homebuyer price points in your market—those properties represent the largest pool of buyers. And remember, private money isn’t just for purchasing homes: it can be used for refinancing and for other real estate investments, from land to self-storage.
If you want to learn more from Jay Conner or receive his new book “Where to Get the Money Now,” visit www.JayConner.com/Book. And for more private money strategies, tune in to Jay’s podcast Raising Private Money.
10 Discussion Questions from this Episode:
- Jay Conner criticizes the advice to “just get the deal under contract, the money will show up.” What are the potential risks of following that approach in real estate investing?
- How did Jay’s early experience in the manufactured housing business and his father’s influence shape his approach to real estate investing?
- Jay shares his “aha moment” during the 2009 financial crisis when he was cut off by his bank. How did this challenge become an opportunity, and what mindset shift did it require?
- Can you explain the concept of private money lending versus traditional or hard money lending based on Jay’s description? What are the key differences?
- Jay talks about never asking for money or pitching deals directly. Instead, he “puts on the teacher hat.” Why does this educational approach work for raising private money?
- Self-directed IRAs play a significant role in Jay’s funding strategy. How do self-directed IRAs work for private real estate investing, and what are the tax benefits he mentions?
- What are the three big reasons Jay gives for why his private lenders are eager to fund his real estate deals? How do these reasons relate to building trust and credibility?
- Jay suggests focusing on first-time homebuyer price points in today’s market. What factors make this segment particularly attractive during times of high interest rates and uncertain markets?
- For new investors, Jay emphasizes partnering with experienced mentors and building credibility. What are the specific advantages of this approach, and how does it help secure private funding?
- How does Jay’s system for using private money provide security for both the investor and the lender, and why is the deal structure (e.g., collateral, insurance, title policy) so important in private lending?
Fun facts that were revealed in the episode:
- Jay Conner has never missed out on a real estate deal due to a lack of funding since he started using private money in 2009. He credits private money with having the biggest impact on his business, saying, “I’ve never missed out on a deal for not having the funding.”
- Jay Conner and his wife Carol Joy have flipped and rehabbed over 500 houses in eastern North Carolina, averaging $86,000 profit per deal—despite operating in a market of only about 40,000 people! He believes in being a “big fish in a small pond” rather than competing in large cities.
- When raising private money, Jay takes a unique approach: he never pitches deals or asks people directly for money. Instead, he acts as a teacher, educating his network about private lending and letting them come to him when they’re ready to invest. He says, “I’ve never asked anybody for money and I’ve never pitched a deal.”
Timestamps:
00:01 Secure Funding Before Investing
06:05 From Sweat Equity to Investing
09:43 Global Crisis Halts Credit Access
11:40 Discovering Private Money Options
14:50 Teaching Private Money Opportunities
19:34 Private Money and IRAs Explained
21:17 Real Estate Investment Opportunity
26:22 Secured Loans for New Investors
30:55 Hard vs. Private Money Notes
33:21 Free Book & Event Offer
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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