***Guest Appearance
Credits to:
https://www.youtube.com/@WealthOnMainStreetPodcast
“Raising Private Money with Jay Conner, Richard Canfield & Jayson Lowe”
https://www.youtube.com/watch?v=HBCKj5Uz6L4&t=4s
When it comes to real estate investing, one of the greatest hurdles for both new and seasoned investors is finding the capital to fund deals. In a recent episode of Raising Private Money, industry expert Jay Conner sat down with Richard Canfield and Jayson Lowe to reveal how private money can be a game-changer for building a thriving real estate business—without reliance on banks or traditional lenders.
What is Private Money?
Jay Conner breaks down private money to its simplest form: “Private money is money that is borrowed from a human being, from human beings. We’re talking about doing business with individuals just like you and me.” Unlike institutional sources, like banks or hard money lenders, private money is a direct relationship between the real estate investor and an individual lender—often someone with investment capital or retirement funds seeking better returns.
Private lenders aren’t just entities—often, they’re people in your network or community, looking for “really high caliber opportunities” to grow their wealth safely and securely. As Jay Conner shares, there are trillions of dollars sitting in retirement accounts in the U.S. alone, waiting to be put to work.
Making the Shift: From Banks to Private Money
Jay Conner’s story is a familiar one. For years, he depended on banks and mortgage companies to fund his deals until, seemingly overnight, his lines of credit were frozen. Staring at the possibility of missing six-figure profits on deals he had under contract, he realized he needed to find a new way. The answer: private money.
Within 90 days of making the switch, Jay Conner raised over $2 million. By eliminating the bank from the equation, he found new freedom and flexibility, setting his own terms and interest rates, with no application or approval process.
How to Attract Private Money—Without Begging or Selling
A key takeaway from Jay Conner is that raising private money isn’t about desperate begging or high-pressure selling. Instead, it’s about education—“I put on my teacher hat.” Instead of pitching, he teaches people about the opportunity of private lending. He explains his simple, straightforward program: offering 8% interest, no origination fees, notes backed by real estate, and transparent, safe terms.
This approach reframes the conversation. Jay Conner isn’t asking for a favor—he’s offering an opportunity. As he says, “In this world, there’s no rejection. You cannot be rejected if you’re not asking for the money. I’m teaching how they can get high rates of return safely and securely. They said, Wow, I want to do this.”
Common Mistakes—and Red Flags—When Getting Started
Both for new private lenders and investors, Jay Conner highlights some essential best practices:
- Never loan out unsecured money: Always back loans with real estate, not just a promissory note.
- Know who you’re doing business with: Trust and confidence in the operator (the real estate investor) matter as much as, if not more than, the property itself.
- Beware of scams: Steer clear of “private lenders” offering unrealistically low rates (like 3%) and demanding upfront application fees.
Confidence and Clarity: The Real Key to Raising Capital
If you’re a new investor worried about your lack of track record, Jay Conner’s advice is clear: confidence is critical. “Nobody’s going to loan you money for your real estate deal unless you believe in yourself and your deal and your private lending program to start with.” Know your program inside and out, and be able to talk about it with passion and clarity. Build relationships and teach—don’t chase.
A Business Built on Service and Integrity
At the heart of Jay Conner’s model is service. He emphasizes that private money—and real estate in general—is a people business. Success comes not from focusing solely on money, but on how you can serve others: “When your focus is on the other person, everything else falls into place.”
To learn more about Jay Conner’s private money system, download his complimentary guide at www.JayConner.com/MoneyGuide.
10 Discussion Questions from this Episode:
- The guest emphasized the strategy of “teaching” rather than “asking” when trying to secure private funds. How does this mindset shift impact the relationship between investor and lender?
- What advantages and challenges come with raising money directly from individuals as opposed to traditional institutions like banks or hard money lenders?
- The episode highlighted that trillions of dollars are sitting in retirement accounts, looking for secure investment opportunities. Why might real estate appeal to those seeking to grow or protect their retirement funds?
- Several warnings were given about scams and red flags in private lending. What safeguards and due diligence steps should new investors and lenders take when getting involved?
- The practice of borrowing only up to 75% of a property’s after-repaired value was described as essential. Why is maintaining this margin beneficial for both borrowers and lenders?
- The hosts suggested that confidence is key when approaching potential lenders. What are some ways a new investor can develop the necessary confidence to succeed in raising private money?
- The conversation stressed that making a positive impact and serving others is more important than simply making money. How do you think this philosophy influences the approach to real estate investing?
- It was recommended to separate the discussion about a lending program from talking about specific deals. Why might combining these topics in one conversation create an impression of desperation, and how could that affect trust?
- Word-of-mouth referrals were mentioned as a powerful way to expand access to funding. How important is reputation in the private money world, and what can investors do to nurture it?
- What lessons can be drawn from the journey described in the episode, moving from reliance on traditional financing to successfully raising private capital? How might these lessons apply to challenges in your own field or business?
Fun facts that were revealed in the episode:
- Jay Conner has raised over $8.5 million in private money for his real estate deals—without ever directly asking anyone for money or pitching a deal!
- Jay Conner and his wife, Carol Joy, have rehabbed more than 475 houses in eastern North Carolina, making a significant impact in their local community.
- Fried chicken is a recurring theme in this episode! The hosts and Jay Conner use fried chicken dinner conversations as a fun example of how casually you can discuss private money opportunities with potential lenders.
Timestamps:
00:01 Real Estate & Private Capital
04:21 Private Money Lending Explained
07:44 Real Estate Journey & Inspiration
11:06 Opportunity in Adversity
16:02 Attracting Private Money Safely
16:49 Retirement Funds for Investment Deals
19:53 Private Money Scams in Real Estate
26:09 Tax-Free Wealth with IRAs
27:53 Teaching Private Lending, Not Begging
33:29 Seminars, Fried Chicken, Wealth Advice
34:19 Systemized Real Estate Deal Program
39:25 Start Conversations, Learn & Teach
42:45 Sell Home, Stay Rent-Free
44:46 Boost Real Estate with Private Money
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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