***Guest Appearance
Credits to:
https://www.youtube.com/@FuquanBilal
“PFREI Series Episode 141: Jay Conner”
https://www.youtube.com/watch?v=LZG3uHXDWtI&t=1s
Raising private money is a powerful lever in real estate investing, but many investors—especially those just starting—find themselves facing significant roadblocks. In the latest Raising Private Money episode, Jay Conner and Fuquan Bilal discuss not only the critical importance of private money in deal-making but also the mindset shifts, practical steps, and relationship-building essential for success.
The Mindset Shift: Teaching, Not Begging
A central theme from Jay Conner is the need for a fundamental mindset change when approaching private lenders. The traditional approach to raising capital often feels like chasing, persuading, or even begging, which instills fear of rejection and desperation. Instead, Jay Conner encourages investors to become educators. By teaching rather than selling, you build trust and reduce anxiety—both for yourself and potential lenders.
This teaching approach involves explaining what private money is, how it operates, and the security that comes with investing in property-backed loans. It’s crucial to outline the program, the interest rates, terms, and how investors are protected. When investors understand the process, they become confident participants rather than skeptical bystanders.
Building Relationships and Networks
Relationships are at the heart of raising private money. Jay Conner’s career was transformed when his access to traditional bank financing suddenly dried up. Forced to find alternatives, he leveraged his personal and professional networks—reaching out to contacts from the church, the Rotary Club, and business groups—to introduce them to the private lending model. His approach resulted in raising over $2 million in just three months and ultimately increased his business’s profitability.
What stands out is how Jay Conner is not dependent on lenders who already understand private lending. He positions himself as a trusted advisor, cultivating long-term trust and transparency. As a result, his private lenders often refer new prospects, and his capital pool continues to grow—even when market conditions shift.
Overcoming Common Challenges
New investors often struggle with three main challenges: the wrong mindset, fear of rejection, and lack of confidence. Jay Conner emphasizes the importance of owning the “real estate between your ears” before expecting to own real estate out in the market. Investors must approach conversations with confidence, conviction, and a servant’s heart.
Confidence comes from mastering the private lending program; knowing how it works inside and out ensures conversations are natural and engaging. For those who worry about having no deals or experience, Jay Conner points out that lenders are secured by the property. With proper guidance, a new investor can safely structure their deals, and the lender’s risk is mitigated.
A useful tip for conversational starters is the “Did you know?” question. Sparking curiosity can lead to discussions about the benefits of self-directed IRAs and how private investors can earn significant returns, sometimes even tax-free.
Navigating Market Headwinds
The episode touches on how market fluctuations—such as rising interest rates, changing investor sentiment, and increased volatility—have impacted private lending. For Jay Conner, the foundational relationship and education-based model has shielded him from market slowdowns. His lenders, having confidence in the security and returns of real estate-backed deals, remain engaged even during challenging cycles.
Interestingly, while other forms of capital slowed, single-family house lending has often increased during market uncertainty. Investors are drawn toward the stability and predictability of real estate loans compared to stocks and treasury bonds.
Structuring Private Money Deals
Terms and flexibility play a vital role in keeping lenders comfortable. Jay Conner typically offers a two-year note for liquid capital and a five-year note for retirement funds, but also includes a 90-day call option for emergencies. This gives investors peace of mind and ensures liquidity when needed. Payments are structured as interest-only or accrued, rather than principal and interest.
Takeaway for Real Estate Investors
Raising private money is less about “asking” and more about “teaching.” Building relationships, mastering the private lending process, leading with confidence, and structuring deals with investor protection are key pillars. With these strategies, real estate investors can create robust funding networks, weather market changes, and never miss out on opportunities due to a lack of capital.
Any investor looking to learn more can dive deeper into these strategies and frameworks, leveraging educational resources found at Jay Conner’s platforms, and start paving their own path toward financial freedom in real estate.
10 Discussion Questions from this Episode:
- Jay Conner emphasizes teaching instead of asking when raising private money. How does adopting a “teacher mindset” versus a “sales mindset” affect investor relationships and outcomes?
- What are some specific ways Jay Conner educates potential lenders about private money and self-directed IRAs, and why does he find this approach so effective?
- Early in his investing career, Jay Conner relied on banks, but a sudden line-of-credit shutdown forced him to pivot. How did this challenge ultimately become an opportunity?
- What are the three main challenges Jay Conner identifies when raising capital, especially for new investors, and how can they be overcome?
- According to the episode, how does building confidence and conviction play a crucial role in successfully raising private money?
- Fuquan Bilal mentions that “your network is your net worth.” How have relationships and reputation contributed to the growth and stability of Jay Conner’s investing business?
- The episode describes a logical progression in conversations with private lenders. What are the steps, and why is separating “teaching the program” from “pitching a deal” important?
- How have shifting market conditions, like rising interest rates and investor sentiment, impacted private money raising, according to Jay Conner? How does his approach buffer against these challenges?
- What are the terms Jay Conner offers to private lenders, and how do features like the 90-day call option address investor concerns about liquidity?
- How does Jay Conner’s free book and educational resources empower aspiring investors to duplicate his private money program, and what are the main takeaways from the episode about making your own rules in private lending?
Fun facts that were revealed in the episode:
- Jay Conner and his wife Carol Joy run their real estate investing business from a tiny town called Morehead City in eastern North Carolina, focusing mostly on single-family houses.
- Rather than asking or begging for money, Jay Conner teaches people about his private lending program and emphasizes a mindset of serving and educating, which has helped him raise over $2 million in private funding in less than 90 days since he started.
- Jay Conner has maintained an 8% interest rate paid to his private lenders since 2009, regardless of fluctuations in market interest rates, and he doesn’t pay any points or origination fees to his lenders.
Timestamps:
00:01 Profit Growth Through Alternative Funding
05:32 Relationships and Investment Strategies
08:37 Private Lending Program Overview
12:52 Mastering Private Lending Conversations
13:38 Unlimited Tax-Free Income Secret
17:33 Private Lending at Fixed 8%
20:00 Private Lending Over the Stock Market
23:38 Free Private Money Guide
26:45 Download Free Private Money Guide
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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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