***Guest Appearance
Credits to:
https://www.youtube.com/@GRIDInvestor
“Ep #33 Jay Conner —Where To Find The Money: How To Fund Your Deals Using Private Money”
https://www.youtube.com/watch?v=ZVigcl05thY
When most people first consider real estate investing, one of their greatest fears is how they’ll fund their deals. Banks and hard money lenders seem like the obvious go-to, but what happens when those sources dry up, as they once did for Jay Conner? The answer, as Jay Conner discovered, is private money—and embracing it doesn’t just solve a financing problem, it can dramatically accelerate business growth.
Early Days and the Banking Roadblock
Jay Conner didn’t start his career in the realm of single-family rehabs. Raised in the manufactured homes business, he was surrounded by affordable housing from a young age. But when financing for mobile homes disappeared in the early 2000s, the transition to single-family investment was a natural next step. Going full-time in 2003, Jay Conner began as many do, relying entirely on traditional banks and mortgage companies for funding his rehab deals. This process seemed rock-solid—until the financial crisis of 2008 hit.
Suddenly, with deals under contract, Jay Conner found his bank had shut down his lines of credit overnight. He was left with deals he couldn’t close, earnest money at risk, and no warning. This kind of scenario is exactly what keeps new investors awake at night.
Discovering the Power of Private Money
Rather than give up, Jay Conner made a choice to pivot—and it changed his life. Asking the right questions, he turned to a friend and learned about a new world: private lending. Unlike banks, private money involves borrowing from individuals—those with investment capital or retirement funds, people you may already know through your own network.
Rather than applying for money, Jay Conner began to teach people what private lending was and how they could earn secure, above-average returns. This education-first approach put him in a position of offering opportunity, not asking for a favor. Within less than three months, Jay Conner raised over two million dollars—enough to fund his deals and more.
Why Private Money is a Real Estate Gamechanger
For Jay Conner, private money isn’t just about having cash to close. It fundamentally shifts who controls the transaction. When working with banks, you’re subject to their rules, rates, timelines, and risk tolerances. With private money, you set the terms: interest rates, note lengths, and payment schedules. Your credit score becomes irrelevant, and approvals aren’t based on a rigid box of qualifications.
This flexibility means Jay Conner can offer to close deals in as little as seven days—a huge competitive advantage when negotiating with sellers, especially those in distress or dealing with off-market properties. Because private money doesn’t limit the amount of capital available or the number of deals that can be funded, Jay Conner hasn’t missed out on a deal for lack of funds since early 2009. In fact, his business tripled in volume right after making the transition.
The structure is also attractive for lenders. Their money is secured by real estate and is typically only loaned out up to 75% of the after-repaired value of the property, leaving a healthy equity cushion. In the unlikely event of a default, the lender’s position is protected and, in many cases, they would recoup their investment plus a profit.
Building a Network of Private Lenders
How does one attract private lenders? Jay Conner’s method revolves around education and transparency. He hosts private lender luncheons, Zoom presentations, and open houses where potential investors learn about the process, risks, and rewards. Team members like attorneys, accountants, and contractors are introduced to showcase professionalism and systems.
This servant-leader approach not only reassures prospective lenders but often leads to deeper business relationships. Jay Conner emphasizes that leading with education rather than a desperate ask for money eliminates the possibility of rejection. When investors understand the safeguards and benefits, reluctance gives way to enthusiasm.
Scaling and Automating for Success
With a solid private money foundation, Jay Conner runs a business that processes dozens of deals a year, provides attractive returns to his lenders, and gives himself the freedom to focus on strategic growth, not just day-to-day hustling. The difference is clear: securing private money isn’t just about accessing capital—it’s about unlocking a model for scale, security, and lasting impact.
Whether you’re an aspiring investor or a seasoned pro, Jay Conner’s story shows that the shift from dependency on institutional lenders to private money can redefine both your real estate career and your relationship with risk. The real opportunity isn’t in the deal or the property, but in how you fund it—and how you serve those who become partners in your success.
10 Discussion Questions from this Episode:
- Jay Conner shares that the biggest blessing in his real estate career came from being cut off by traditional banks. What do you think are the benefits and challenges of unexpected setbacks in entrepreneurship?
- The concept of “asking for nothing” is mentioned as a way to avoid rejection in raising private money. How might reframing your approach to asking for capital change your results or mindset?
- Jay Conner emphasizes educating your network instead of pitching deals. Why do you think teaching is such a powerful method for building trust with potential private lenders?
- Private money is described as putting you “in the driver’s seat” as a real estate investor. What specific freedoms or controls does private money provide that traditional financing does not?
- Resiliency is highlighted as a crucial attribute for success. Can you recall a moment in your own career or business where resiliency made a difference? How did you navigate it?
- The episode discusses separating the conversations about raising money from presenting deals. Why is this separation important, and how does it impact relationship-building with investors?
- Jay Conner outlines many protections for private lenders (e.g., lending at 75% ARV, collateralizing loans). How do these practices help overcome a lender’s fears, and what further assurances could be offered?
- What are some networking strategies Jay Conner uses to find private lenders, and how could you adapt these strategies to your own field or business?
- The idea of leading “with a servant’s heart” and being a “go giver” is central to the philosophy discussed. How might this mindset shape the culture and long-term prospects of a business?
- Jay Conner
explains how market shifts forced him to innovate and pivot his business model. How can real estate investors (or entrepreneurs in general) prepare themselves for and adapt to sudden changes in their industries?
Fun facts that were revealed in the episode:
- Jay Conner and his wife Carol Joy invest in real estate in a small North Carolina community with a population of just 8,000, but they’ve managed to rehab over 475 single-family homes in their area.
- Jay Conner sometimes gets a big check when he buys a property instead of when he sells, because he borrows up to 75% of the after-repaired value, often more than the purchase price, allowing him to come home from closing with “excess cash” for renovations and expenses.
- Jay Conner once raised $969,000 from a single private lender luncheon, showcasing the power of education-based events in attracting private funding for real estate deals.
Timestamps:
00:01 Private Lending and Real Estate Investing
05:42 Secrets to Raising Private Money
07:24 From Mobile Homes to Housing
09:49 No-Cash Real Estate Deals
14:38 Creating My Own Lending Rules
19:19 Responsibility Over Life’s Responses
22:55 Exploring Self-Directed IRAs
23:43 Resiliency for Real Estate Success
29:19 Investor Concerns and Security Measures
30:51 Private Lending & Real Estate Insights
35:10 Setting Terms for Investment Notes
36:55 Substitution of Collateral Explained
41:38 Beach Gathering with Networking Focus
44:10 Zoom Parties for Private Lending
49:59 Real Estate Investment Workshop
51:05 Real Estate Success in Days
Free Report:
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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.
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