***Guest Appearance
Credits to:
https://www.youtube.com/@leads2deals
“How to Raise Millions Without Banks | Real Estate Secrets with Jay Conner”
https://www.youtube.com/watch?v=3UAComwwh3Q&t=2s
If you’re a real estate investor—whether seasoned or just starting—you’ve probably asked yourself the age-old question: “How do I fund my deals quickly and reliably, without the headaches of traditional bank financing?”
On a recent episode of the Raising Private Money podcast, Jay Conner, renowned for his expertise in raising private money, pulled back the curtain on his strategies for funding real estate investments. The conversation with Scott Morse of the Leads to Deals podcast was packed with practical tips, insightful stories, and a dose of inspiration for anyone struggling to access reliable capital.
The Turning Point: From Banks to Private Money
The journey for Jay Conner began like many others—relying solely on local banks to fund deals. For six years, things seemed manageable until a single phone call changed everything. His trusted banker, in the wake of the 2009 global financial crisis, abruptly cut off his line of credit. As Jay Conner recounts, “I said, Steve, what in the world are you saying to me? My line of credit’s closed? I got an 800 credit score… Why are you closing my line of credit?” This sudden problem became a doorway to a much bigger opportunity.
Jay Conner’s solution wasn’t just to think harder, but to ask a new question: “Who do you know that can help fix your problem?” This led to discovering private money—funds invested by ordinary individuals, often from retirement accounts, eager for higher returns and the security of asset-backed lending.
Principle #1: The Money Comes First
One of the podcast’s resounding themes is that reliable funding should precede the hunt for deals. As Jay Conner cautions, the old advice that “money finds good deals” is a myth—don’t wait until you have a property under contract before scrambling for funds. Instead, build your network of private lenders first. This shift puts investors in a position of strength, allowing for faster offers and greater negotiating power.
How to Attract, Not Chase, Private Money
What sets Jay Conner’s approach apart is his emphasis on education over salesmanship. “No begging, no chasing, no selling, no persuading,” says Jay Conner. He advocates for a mindset rooted in service and education. His method? Put on your “teacher hat” and inform your network about how private lending works, the returns they could earn, and the security features (like deeds of trust and insurance policy coverage) that protect their investment.
He illustrates this with the story of his first private lender: Instead of pitching a deal, he simply asked a church acquaintance, “Would you refer people to me who are unsatisfied with their bank returns or stock market volatility?” This gentle, indirect approach led the individual to volunteer, “What you got going on there, Jay?” and ultimately commit $500,000.
The Math Behind Every Deal
Jay Conner’s formula is straightforward: Never borrow more than 75% of the after-repaired value (ARV) of a property. This ensures safety for the lender and allows the investor to take home a sizable check at closing—without dipping into personal funds. “If you’re buying a house and it needs renovation and you’re using private money, if you can’t bring home a big check when you buy, you’re paying too much for the property,” Jay Conner insists.
Building Your Private Lender Network
Start with people you already know: church members, colleagues, neighbors, and anyone who may have retirement accounts they’d consider repositioning. By educating and empowering your contacts, you build trust and credibility. For those looking to scale their business, Jay Conner recommends joining organizations like Business Networking International (BNI) and networking with self-directed IRA holders at industry events.
Closing Thoughts
The episode delivers a clear message: The pathway to real estate wealth is paved not by chance but by preparation, education, and genuine service. Whether you’re a young wholesaler or an experienced rehabber, private money can be your springboard—if you’re willing to learn the system and lead with value.
To dive deeper into Jay Conner’s strategies, grab his book Where to Get the Money Now, connect on his Raising Private Money podcast, and start transforming your approach to real estate investing. As Jay Conner puts it, “Allow me to serve you”—your future deals (and bank account) may just depend on it.
10 Discussion Questions from this Episode:
The episode emphasizes the importance of "bringing home a big check" when buying a property with private money. What does this mean, and how does it reflect on the quality of a real estate deal?
The conversation touches on the differences between hard money and private money. What are the key distinctions between the two, and why might private money be preferred?
There's a discussion about never asking directly for money, but instead attracting it through education and a “teacher” approach. How can real estate investors practically implement this mindset shift?
When a line of credit was unexpectedly closed, the guest asked themselves, “Who do you know that can help fix your problem?” How did this question change their career trajectory, and what can listeners learn from this approach to problem-solving?
The episode details a step-by-step real-life example of securing the first $500,000 in private money. What were the key elements of this conversation, and why was it effective?
The guest mentions establishing relationships with self-directed IRA companies as one of the first actionable steps to raising private money. Why is this important, and how can it benefit both the lender and the investor?
There's a distinction between education and negotiation conversations when dealing with potential private lenders. What are the differences, and when should each approach be used?
For young or new investors who feel like they have a limited network, the episode suggests building self-confidence and knowing what to teach. What strategies are recommended for getting started if you don’t already have a broad network?
The episode discusses the misconception that private lenders must receive a percentage of equity or profit in each deal. How are deals structured in this model, and why do lenders find this structure appealing?
Throughout the conversation, the importance of education and serving others is highlighted. How does this philosophy impact investor-lender relationships and contribute to long-term business success?
Fun facts that were revealed in the episode:
Jay Conner raised $2,150,000 in private money in less than 90 days, without ever asking anyone directly for funds—he focused on education and attracting interest instead of "pitching."
When Jay Conner started using private money, his very first deal resulted in a $500,000 commitment from someone he had known for years at his church, simply by asking for referrals rather than asking for money.
Jay Conner always borrows up to 75% of a property's after-repaired value (ARV), not the purchase price, which often allows him to take home a big check at closing—even before he starts renovations!
Timestamps:
00:01 Leads, Deals, & Private Money
04:00 Bank Loans vs Hard Money
06:39 Bank Shutdowns and Private Money
10:28 Securing Investment with Trust
15:57 Get Money Before Deals
17:15 Private Lender Script Revealed
20:38 Investor Confidence in Proven Deal
23:32 Spreading the Word Tactfully
28:10 Why 8% Since 2009?
30:24 Scaling Business with Networking
34:06 Real Estate Profit Breakdown
37:25 Private Money vs Hard Lending
42:20 No Profit Sharing for Loans
44:40 Private Lending: Timing and Deal Preparation
48:25 Access to Capital for Hustlers
49:50 Golden Nuggets with Jay
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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