***Guest Appearance
Credits to:
https://www.youtube.com/@ShortTermRentalRiches
“Securing Easy Financing for Life with Jay Conner”
https://www.youtube.com/watch?v=7KcPAcfGmc4&t=12s
If you’ve ever felt that your real estate ambitions are limited by the money in your bank account, you’re not alone. Many aspiring and seasoned investors face the challenge of raising capital, especially in an environment where traditional lending is tightening and interest rates are climbing.
Jay Conner, a recognized authority in raising private money for real estate, recently sat down with Tim Hubbard to share his experience and actionable strategies for accessing private capital—transforming the way investors grow their portfolios regardless of market cycles.
What Sets Private Money Apart?
In the world of real estate finance, the words “private money” get thrown around a lot. It’s critical to draw a distinction: private money is not the same as hard money or institutional lending. Where banks and hard money lenders enforce strict qualifying criteria and often charge hefty fees, private money lending is about building relationships directly with individuals—regular people who have capital or retirement funds they want to grow passively and securely. Instead of going to a fund or intermediary, you go straight to the source.
For the private lender, it’s an opportunity to earn a solid return, often secured by real estate, but without the complications of hands-on investing. As Jay Conner emphasizes, you don’t need to chase or beg for money; rather, you educate potential lenders about the benefits of this method. The property itself typically secures the loan, so if an investor doesn’t make payments, the lender still has the underlying real estate as their protection.
How Private Lending Revolutionizes Investing
When the financial crisis hit in 2008–2009, Jay Conner found his credit lines with traditional banks shuttered overnight. Faced with losing out on profitable deals, he pivoted and built a business rooted in private capital. This shift didn’t just save his company—it tripled his business within a year and resulted in more money available to him than he could immediately deploy.
The beauty of private money is flexibility. Terms are negotiated directly with individuals—not dictated by bank policies. Investors can set rates, payment structures, and loan durations that fit their business model. Whether you need short-term capital for a flip or long-term financing for a buy-and-hold rental or short-term rental conversion, private lending adapts to your goals.
Lowering the Barriers for New Investors
A common worry among those new to real estate is how to attract private lenders without experience or a proven track record. Jay Conner argues that this concern is largely misplaced. The key isn’t in your resume—it’s the structure of the deal. Private lenders are secured by the value of the real estate and the equity cushion you build in. Instead of risky, unsecured loans, the lender holds a mortgage or deed of trust, just as a bank would, and is often listed as the mortgagee on your insurance and title policy for added protection.
Education is the cornerstone for building these relationships. By teaching friends, family, and community contacts the ins and outs of private lending—and not immediately pitching deals—you build trust and credibility. When an opportunity arises, your network is already familiar with your program and ready to act.
Structuring Private Money Deals
Another advantage of private money is the ability to customize each loan. Investors aren’t locked into rigid amortization schedules or high interest rates if the numbers don’t work. For flips, it might make sense to let interest accrue and pay upon sale, boosting cash flow. For long-term rentals and short-term rental conversions, interest-only or principal-and-interest payments can be set based on projected revenue.
Creative deals are also within reach. For example, when acquiring properties from retiring landlords who want to sell but also desire monthly income, using private money for a down payment while offering seller financing for the balance can be a win-win for everyone involved.
Get Money Lined Up First
Perhaps the most powerful piece of advice is to secure your funding before finding deals. Contrary to some popular “money follows the deal” mantras, having capital on hand is what truly empowers investors to act quickly on opportunities—especially in competitive markets where fast closings matter.
Private money isn’t just a tool—it’s the foundation that can fuel your next phase of growth, no matter where you are on your investing journey. Education, relationship-building, and a flexible approach to structuring deals will set you apart in a challenging market—and open doors to opportunities others can’t access.
10 Discussion Questions from this Episode:
- Jay Conner talks about the difference between private money and hard money. What are the key distinctions he mentions, and why does he emphasize going “straight to the source”?
- How did the 2008-2009 financial crisis drive Jay Conner to shift from traditional bank lending to using private money, and what lesson does he share from this experience?
- Why does Jay Conner stress the importance of “teaching” instead of “begging” or “selling” when attracting private lenders? How might this mindset shift impact your approach to raising capital?
- What actionable steps does Jay Conner recommend for real estate investors who want to leverage retirement funds as private money, and why are self-directed IRAs significant in this strategy?
- Tim Hubbard and Jay Conner discuss interest rates and flexibility with private money deals. How does the ability to “make the rules” with private lenders affect deal structuring and negotiation?
- For those just starting in real estate, Jay Conner suggests not going it alone. What mistakes did he make early on, and how can partnering with an experienced investor mitigate those risks?
- The episode explores the idea of leveraging relationships in real estate investing. What examples do Jay Conner and Tim Hubbard offer for bringing together people with resources and experience?
- What protections does Jay Conner recommend providing private lenders (such as promissory notes, mortgages, insurance, etc.), and why is this important for building trust?
- When discussing deal structures, Jay Conner mentions using private money for fast closings and refinancing later with conventional loans. What are the pros and cons of this strategy?
- At the end of the episode, Jay Conner shares a practice for enriching his life outside of finances. What is the practice, and how might it be applied to personal growth in real estate or other areas?
Fun facts that were revealed in the episode:
- Jay Conner currently works with 47 private lenders funding his real estate deals, but he points out that you can easily get started with just one or two.
- Over half of Jay Conner’s private lenders use their retirement funds, like 401(k)s or pensions, to move into self-directed IRAs to invest in real estate deals.
- Jay Conner’s very first private lending conversation was with a fellow church member, which led to securing $250,000 from that person to fund his deals.
Timestamps:
00:01 Private Money Strategies Explained
03:44 Private Lending for Real Estate
07:04 Private Money and Growth Journey
12:07 Indirect Method to Private Money
15:59 Starting Smart: Avoiding Mistakes
18:13 Secured Real Estate Lending Basics
23:26 Flips vs. Short-Term Rentals
24:15 Math Over Emotions for Decisions
27:34 Private Lending Opportunities Explored
30:41 Secure Funds Before Deals
35:50 Raising Private Money Podcast
37:34 Free Private Money Guide
Free Report:
https://www.jayconner.com/MoneyReport
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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.
What is Real Estate Investing? Live Private Money Academy Conference
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