***Guest Appearance
Credits to:
https://www.youtube.com/@CanadianRealEstateChannel
“Secrets Of Rich: Use Other People’s Money | Jay Conner.”
https://www.youtube.com/watch?v=WnXWripgNVM&t=91s
For many real estate investors, accessing capital is the key to taking advantage of opportunities and scaling up their portfolios. But while traditional banks and mortgage companies have long dictated the rules of borrowing, a different path exists for those ready to take control: private money lending. This approach offers an investor-centric alternative that can create bigger profits and enable greater agility in today’s competitive real estate environment.
Private money, as explained by Jay Conner on a recent guest episode with Matt McKeever, is all about borrowing directly from individuals—often referred to as “mom and pop” or “relationship money.” Unlike institutional hard money lenders or banks, private lenders are everyday people, sometimes even within your existing network. The difference? Instead of jumping through endless hoops and paying high fees, private money lending lets you set the terms and structure deals for mutual benefit.
Jay Conner’s personal real estate journey showcases the potency of private capital. Starting in a small community, he and his wife transitioned to using private funds after getting cut off from banks in 2009. Within 90 days, he raised over $2 million from private sources—leading to a tripling of his business within the first year. Since making the shift, he’s not missed out on a single deal due to a lack of funding.
The advantages of private money go far beyond just providing cash. Unlike equity partnerships or traditional JVs, which may require sharing profits and decision-making, private lending is structured as debt. This means you keep full ownership and control while offering the lender a secure, collateralized investment. For those worried about credit checks or borrowing limits, private money is a game-changer—you can borrow as much as you can manage, from as many lenders as you connect with, across the country or even internationally.
One of the most compelling features: the ability to borrow more than just the purchase price. It’s common practice to roll rehab funds and even equity into the loan, which provides flexibility and improves cash flow for the investor. Many deals can be funded with no out-of-pocket money, allowing you to be paid at closing and cover renovations without dipping into personal reserves.
While hard money lenders have become a mainstay for some, their terms can be punishing—often charging double-digit interest and expensive points, with strict timeframes for payback. Private money typically comes with much friendlier rates and terms, minimal fees, and no extension penalties. Most importantly, the process is relationship-driven, allowing you to create win-win solutions and close deals quickly—sometimes within just a week.
The next logical question is: Why would someone want to lend privately? The answer lies in the security, return, and certainty that the investor’s offer provides. Typical alternatives for savers—like certificates of deposit—offer paltry yields, while the stock market’s volatility sends many seeking more predictable opportunities. Private lending offers borrowers high, reliable returns, secured by a physical asset with a conservative loan-to-value ratio. These features make the offering attractive to those with idle cash or retirement funds.
Building your private lender network may seem daunting, but your warm market—existing contacts, friends, club members, or professional acquaintances—is filled with potential candidates or referrals. Rather than pitching or begging for money, Jay Conner advocates for an educational approach: put on your “teacher” hat, educate others about how the process works, and invite them to participate if it fits their needs. Group sessions, networking events, and word-of-mouth can help spread your message authentically.
Not every contact will be ready, but as your relationships grow, so does your pool of capital. The most successful investors constantly educate, network, and raise money even when they don’t immediately need it—creating a shelf of funds, ready to deploy at a moment’s notice.
Private money lending isn’t just a tool—it’s a strategy that puts investors back in control of their deals, growth, and future. Whether you’re just starting or looking to take your investments to the next level, tapping into private capital could be the catalyst needed to turn real estate dreams into reality.
10 Discussion Questions from this Episode:
- Jay Conner emphasizes the importance of raising money before you need it. Why do you think this strategy is so crucial for real estate investors, and how might it impact their ability to close deals?
- The episode makes a clear distinction between private money and hard money. In what ways do their terms, costs, and loan processes differ, and what impact does this have on an investor’s business growth?
- Matt McKeever shares that many new investors are intimidated by the idea of asking friends or family for money. What approaches from the episode could help overcome this fear?
- The concept of “educating” rather than “selling” to potential private lenders was a major theme. What benefits might this approach have for relationship-building and deal flow?
- Jay Conner describes multiple ways to find potential private lenders, from your warm market to public records. Which strategy do you think would be most effective for someone starting, and why?
- The statistics shared about creative financing (only 13% of off-market sellers accepting terms) highlight the importance of cash. Why might sellers prefer cash offers, and how does private lending facilitate such deals?
- Both speakers talk about positioning and networking (“I teach private lenders how to make a lot of money”). How does this kind of introduction change the nature of conversations at networking events?
- What are the three main reasons Jay Conner says private lenders are attracted to these deals? Which do you find most compelling, and why?
- The episode covers the “direct” and “indirect” approaches for engaging potential lenders. How do these methods differ, and in what scenarios might one be more effective than the other?
- Jay Conner mentions that having funding in place increases confidence and attracts more deals. Can you think of examples where access to private money could have changed the outcome for a real estate investor?
Fun facts that were revealed in the episode:
- Jay Conner once raised over $2 million in private funding in less than 90 days after being suddenly cut off by banks in 2009.
- Jay Conner often borrows more private money than needed for a real estate purchase, allowing him to occasionally bring home large checks (like $58,000) at closing—even before making any renovations.
- Jay Conner never directly asks anyone for money when raising private funds; instead, he educates his network about private money opportunities, which naturally encourages them to participate.
Timestamps:
00:01 Demystifying Private Money
04:37 Tripling Business with Private Money
07:22 Creative Deals Make Up 13%
10:27 Multiple Checks with Private Money
15:04 Private vs. Hard Money Explained
18:54 Private Lending vs. Hard Money
20:20 Safe, Secure, Collateralized Lending
25:19 Building and Engaging Your Network
29:45 Exclusive High-Return Investment Pitch
33:49“Real Estate Investment Referrals
34:37 Securing Private Lending Success
39:58 Answering ‘What Do You Do?’
43:50 Mastering OPM for Investors
44:44 Money Tips & Teamwork
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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