***Guest Appearance
Credits to:
https://www.youtube.com/@lightspeedinvestingpodcast
“Podcast Ep 88: Raising Millions Without Banks- Private Money Secrets with Jay Conner”
https://www.youtube.com/watch?v=Co6x-JhgtuE
Building a successful real estate investing business often comes down to one key ingredient: funding. For many, the journey starts with traditional lenders—your local banks and mortgage companies. But what happens when those funding sources abruptly dry up? For Jay Conner, that moment marked a turning point, sparking a radical and highly profitable evolution in his investing strategy—one that anyone aspiring to real estate success can learn from.
From Banking Crisis to Private Money Breakthrough
As Jay Conner recounted to Philip Chan in a recent episode of the Lightspeed Investing Podcast, his real estate journey began conventionally. He and his wife, Carol Joy, started investing in single-family homes in Eastern North Carolina back in 2003, funding projects through local banks. For six years, it worked—until, abruptly, in January 2009, the bank called and shut down his line of credit.
“I learned like that over the telephone that my line of credit had been closed with no notice to me whatsoever,” Jay Conner recalled. With two houses under contract and no funding, panic could easily have taken over. Instead, Jay asked himself a crucial question: “Who do I know that could help me fix my problem?”
It was this pivot—from “how” and “what” to “who”—that led Jay Conner to private money, through a conversation with another investor, Jeff Blankenship. That conversation, and following exposure to private money at his first real estate investing conference, changed his business forever. Within 90 days, Jay Conner had raised $2,150,000 in new private funding—more money than he ever had from the banks.
The Power of Private Money: Simpler, Safer, Scalable
What is private money, and why is it such a game-changer? In Jay Conner’s words, it’s “getting funding from just ordinary people … using their investment capital or their retirement funds.” He calls it ‘lazy money’—money that’s not working hard in CDs or low-yield savings, but instead can earn much higher, safer returns through real estate-backed loans.
Jay Conner offers his private lenders 8% annual returns—vastly superior to what most are earning at the bank, and, crucially, fully secured by first or second position liens on the property. That means the lender is protected by the real estate asset itself; if Jay fails to pay, the lender can foreclose. In addition, Jay won’t borrow more than 75% of the after-repair value of the property, ensuring a robust safety cushion for his lenders.
While this approach might sound complex, Jay emphasizes its simplicity. He doesn’t raise funds for a big, pooled investment fund, avoiding the need for complex legal structures. Instead, each lender’s loan is secured by a note and a deed of trust (like a mortgage), tied to a specific property. This transparency builds trust.
The Blueprint for Replicable Success
What’s most impressive about Jay’s method is its replicability—even if your market is small. “Our total target market is only 40,000 people, and we do two to three deals a month. Average profits are $86,000,” Jay Conner shares. You don’t need to swim in a huge pond; dominate a small market, and you can thrive.
Another key takeaway: momentum with private lenders grows. Jay now has 47 private lenders on his roster—and none of them had even heard of private lending before he taught them about it. He continues to source funds simply by educating those in his network about private lending’s opportunities and safety nets, then matching deals to those who have already expressed interest. “The money comes first,” Jay Conner stresses.
Final Words: Lead With Education and Simplicity
For aspiring investors, Jay Conner suggests finding mentors and masterminds—surrounding yourself with successful people already doing what you want to do. If you want to profit in real estate without dealing with the headaches of traditional financing, private money might just be your missing link.
For more on Jay’s strategies, he offers a free copy of his book, Where to Get the Money Now, at www.JayConner.com/Book.
10 Discussion Questions from this Episode:
- The guest mentions a pivotal moment when his line of credit was unexpectedly cut off by his banker. How do you think unexpected setbacks can lead to breakthroughs in business or personal growth?
- Throughout the episode, the guest emphasizes the importance of asking the right questions, specifically “who?” instead of “how?” or “what?”. How do you think this approach can change problem-solving strategies in entrepreneurship?
- The concept of “private money” for real estate deals is discussed. What are the main advantages outlined compared to traditional funding through banks?
- The episode covers a strategy of educating potential private lenders rather than pitching specific deals. What are the benefits and potential pitfalls of this approach?
- There’s a question about risks for private lenders. How are these risks mitigated, and what security measures are put in place for lenders?
- In the conversation, the phrase “I’d rather be a big fish in a small pond” comes up. How might this philosophy apply to other industries or markets outside real estate?
- The importance of building relationships and leveraging social circles in raising private money is highlighted. How critical are personal networks in entrepreneurial success?
- The topic of mastermind groups and mentorship is discussed. What role do these communities play in accelerating learning and growth for real estate investors?
- Advice is given on “teaching the opportunity first” without overwhelming potential investors with details. How can entrepreneurs apply the idea of “keep it simple” when communicating new concepts?
- The guest is motivated by helping others take control of their funding and destiny. What do you think drives someone to pay it forward after achieving their own success, and how does that shape an industry?
Fun facts that were revealed in the episode:
- Jay Conner was able to raise over $2 million in new private money funding within just 90 days after being cut off from his local bank—without ever asking anyone directly for money, begging, or selling.
- Jay Conner dominates a surprisingly small market for real estate investing: he focuses on just two counties in North Carolina with a combined population of only 100,000 people—proving you don’t need a big city to achieve big profits.
- The private lenders working with Jay Conner often never heard of private lending until he introduced them to the concept, and he currently works with 47 private lenders who are mostly regular, everyday people—not wealthy or sophisticated investors.
Timestamps:
00:01 Private Money for Real Estate
03:37 Big Fish, Small Pond Strategy
07:17 Discovering Private Money Solutions
12:47 Creative Property Sales Strategies
14:14 Home Sale Timeline: Nine Months
18:44 Empowering Investors Through Funding Freedom
21:22 Raise Money Before Pitching Deals
25:51 Success: Find Mentors and Community
27:54 Free Private Money Guide
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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https://www.youtube.com/c/RealEstateInvestingWithJayConner
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