***Guest Appearance
Credits to:
https://www.youtube.com/@RafaelCortezCEO
“EP 71 | JAY CONNER – This is the right way to find private money for your deals! | Investor strategies.”
https://www.youtube.com/watch?v=TuS1QNcmiCw
In the dynamic world of real estate investing, access to capital often determines how quickly you can seize opportunities and scale your business. Many investors focus on traditional bank loans or hard money lenders, but there’s a powerful funding alternative that can transform a real estate business: private money. This topic was expertly explored when Jay Conner joined Rafael Cortez on the CEO Pulse Podcast, sharing his journey, strategies, and mindset that have made him a standout in the industry.
Jay Conner’s path into real estate began in the early 2000s, after years in the manufactured and mobile homes sector. In a small town in Eastern North Carolina, with a population of just 8,000 and a target market of 40,000, he found success not by volume but by creating consistent, high-value deals. His average profit per deal stands at an impressive $71,000, a testament to the effectiveness of his approach in a niche market.
One pivotal moment in Jay’s business occurred during the financial crisis of 2009. Before this, his deals were funded through local banks, relying heavily on lines of credit. Suddenly, with two lucrative properties under contract and over $100,000 in potential profit at stake, Jay discovered that his bank had closed his lines of credit. The market downturn had dried up traditional funding without warning. Rather than quit, he sought new answers—and that search led him to private money.
Private money, as Jay describes, is sourced from individuals—ordinary people with investment capital or retirement funds who are looking for secure, high returns. Unlike hard money lenders, who act as intermediaries and often charge higher rates and fees, private money comes directly from the source. For investors, this means lower interest rates, fewer fees, and greater flexibility. Jay’s system allows him to fund deals with up to 150% of the after-repair value, often resulting in a large check at closing with no out-of-pocket contributions.
Building a network of private money lenders hinges on education and relationship-building. Jay’s strategy doesn’t involve begging or desperately pitching deals. Instead, he focuses on teaching potential lenders about the value and security of real estate investing, particularly through self-directed IRAs. The education-first approach helps people understand how their funds can work harder, often yielding much higher returns than traditional financial products. Once the concept and program are explained, lenders are enthusiastic to participate—often finding Jay before he finds them.
Jay emphasizes the importance of having a clear, attractive private money program in place. This includes specifying interest rates, protective measures (like securing the loans with a mortgage or deed of trust), insurance, and a clear process for accessing funds or calling the note. Establishing relationships with self-directed IRA companies is also a key step, enabling lenders to invest with tax advantages.
For those new to raising private money, Jay outlines a five-step process: start by making a list of potential lenders within your warm market, initiate casual conversations (either one-on-one or in group settings like luncheons or Zoom calls), provide educational materials, teach the lending program in detail, and finally, secure a verbal pledge. Only after a lender is informed and committed do you match them with a deal, which projects confidence and proper preparation.
Jay’s approach demonstrates that the right mindset is foundational. Investors must recognize their role not as beggars, but as educators offering an opportunity. By preparing ahead and projecting confidence, the process of raising private money becomes collaborative and beneficial for all parties involved.
As Jay looks back, he credits adversity—like losing bank funding in 2009—as a catalyst for growth, pushing him to discover better and more resilient financing options. His journey highlights the power of mentorship, networking, and consistently seeking ways to improve and adapt in a changing market.
For real estate investors seeking to build a sustainable business, embracing private money as a funding source could be the game-changer. It’s not just a strategy, but a mindset shift that puts the investor in the driver’s seat, ready to capitalize on opportunities and weather market challenges.
10 Discussion Questions from this Episode:
- Jay Conner mentioned that he always gets a big check at closing by utilizing private money. What are the key differences between private money and traditional funding, and why does this approach work so well for him?
- In a small market with only a 40,000 population, Jay Conner consistently makes high profits on fewer deals. What strategies does he use to stand out in this niche and maintain authority?
- Rafael Cortez and Jay Conner discussed the importance of reputation and branding in real estate. How do longevity and relationship-building impact deal flow, especially through referrals?
- When Jay Conner lost his traditional lines of credit in 2009, he pivoted to private money. What mindset shifts did he make during this adversity, and how did those changes create new opportunities?
- The formula “Event + Response = Outcome” was shared by Jay Conner as a critical mindset piece. How can this perspective be applied to other entrepreneurial challenges?
- Discuss the distinctions Jay Conner made between private lenders and hard money lenders. What are the pros and cons for real estate investors using either source?
- Jay Conner shared his step-by-step process for raising private money, including “making your list.” What are the most important qualities to look for in a potential private lender, and how should these relationships be approached?
- What role do self-directed IRAs play in private money lending, according to Jay Conner? How can real estate investors leverage retirement funds for their deals?
- Why does Jay Conner recommend teaching your private money program first, rather than pitching a deal immediately? What are the risks if you don’t follow this approach?
- Jay Conner reflected on the value of mentorship and mastermind groups. How can surrounding yourself with the right people accelerate your business success, and why might this advice be particularly important for a younger entrepreneur?
Fun facts that were revealed in the episode:
- Jay Conner has completely automated his real estate business to the point where he works less than 10 hours per week, despite having rehabbed over 400 houses since 2003.
- In Morehead City, North Carolina—a town of only 8,000 people and a target market of just 40,000—Jay Conner averages $71,000 profit per deal by leveraging private money to make all-cash offers.
- Jay Conner once raised over $2 million in private money in under 90 days, which eventually allowed him to help thousands of other real estate investors learn how to do the same.
Timestamps:
00:00 From Mobile Homes to Flipping
05:56 Shift from Mobile to Housing
09:47 Discovering Private Money Lending
10:41 Failure Only Happens If Quitting
13:58 Adversity Sparks Opportunity
17:06 Private vs Hard Money Lenders
21:18 Private vs. Hard Money Lending
24:13 Private Lending and Mindset Essentials
30:02 Teaching Private Lending Program
31:58 Step-by-Step Confidence Builds Success
35:21 Demystifying Private Money Strategies
37:39 Get a Mentor Early
41:20 Private Money Mastery
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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