***Guest Appearance
Credits to:
https://www.youtube.com/@BreakAwayfromtheRatRace
“How to Raise Private Money Like the Pros with Jay Conner”
https://www.youtube.com/watch?v=jEfBfmut8ao&t=1s
Jay Conner’s journey in real estate investing, as shared on Eric Martel’s Breakaway from the Rat Race podcast, offers powerful lessons for both new and seasoned investors. Operating in a town with a population of roughly 40,000, Jay has built a seven-figure income business, completed more than 300 house flips, and attained average profits that now exceed $71,000 per deal. His story highlights how determination, innovative financing, and smart automation can transform obstacles into opportunities—especially in niche markets like small towns.
Small Town Challenges and Advantages
Working in a smaller market presents unique challenges. The primary limitation is deal volume; with fewer homes and less overall market activity, an investor’s number of opportunities will naturally be capped. However, Jay points out that the relative lack of competition is a significant advantage. Most investors aim for bigger cities where populations frequently top 250,000, but smaller markets often have less crowded playing fields. This means that someone with a solid marketing system can consistently find motivated sellers without having to contend with aggressive bidding wars.
Though the deal count may be lower, Jay emphasizes that the financial upside remains strong. Averaging two to three flips per month at his profit margins, he has more than enough opportunity to sustain his business. For him, there’s no pressing need to expand geographically when the numbers already work in his favor.
The Power of Private Money
A turning point in Jay’s career came during the 2008–2009 recession. When traditional bank lines of credit disappeared unexpectedly, Jay had to pivot quickly. He discovered the world of private money funds sourced from individuals, often tapped from self-directed retirement accounts. This new financing model empowered Jay to set his own rules, free from the constraints and regulations of banks. Private money lenders are protected by physical collateral on each deal, and the investor can negotiate interest rates, payment schedules, and even whether payments are deferred until cashing out.
One crucial insight Jay shares is that for investors starting out, private lenders are more concerned with the security of their investment than the investor’s track record. As long as the deal is collateralized with real estate and the numbers are sound, the lender is protected. Jay’s guiding principles for safeguarding lenders include buying properties at the right price, accurately estimating renovations, and never over-leveraging. He prefers to keep total loans below 75% of the after-repair value to maintain a safe cushion.
Thanks to private money, Jay’s business not only survived but thrived during market downturns. His access to capital allowed him to seize foreclosed and bank-owned property opportunities when others couldn’t finance their purchases. To this day, he rarely misses out on a deal due to lack of funds, and he’s been able to help other investors find similar success.
Automation and Team Building
A hallmark of Jay’s approach is automation. He reminds investors that the aim of entering real estate was to gain freedom, not be shackled to 60-hour workweeks. Early in his career, he tried to do everything himself—from lead generation to negotiations—but quickly realized this was unsustainable. Building a reliable team has been indispensable.
Jay’s automated business deploys key team members such as acquisition managers and lead managers, supported by robust CRM tools. Marketing is handled by specialized companies running Google and Facebook ads, with Google leads proving especially productive. Follow-ups are automated, nurture campaigns keep lines open with sellers, and communication happens seamlessly within the software ecosystem. On the sales side, properties are marketed through free platforms like Facebook Marketplace or local realtors, depending on the selling strategy.
Long-Term Relationships with Private Lenders
Jay’s network includes 44 private lenders, with investments ranging from $50,000 to over $750,000. Most lenders stay for years, attracted by rates and the security of collateralized loans. Jay pays interest only, sometimes deferring payments entirely until cash-out, which maximizes lender returns and keeps his cash flow solid.
Conclusion
Jay Conner’s journey demonstrates that real estate success isn’t reserved for big-city investors or those with endless networks. By leveraging private money, building automated processes, and focusing on relationships, anyone—even in a small town—can break away from the rat race and build lasting wealth through real estate.
10 Discussion Questions from this Episode:
- What are the main reasons Jay Conner believes real estate investors seek private money instead of traditional bank financing?
- How does Jay Conner’s approach to investing in a small town differ from that of investors in larger metropolitan areas?
- What are the benefits and challenges of automating a real estate business, according to Jay Conner?
- How does Jay Conner structure his private money deals to protect both himself and his lenders?
- Why is follow-up with motivated sellers such a critical part of Jay Conner’s business model?
- What impact did the 2009 banking crisis have on Jay Conner’s investing strategy, and how did it drive him to private money?
- Eric Martel and Jay Conner both talk about relationship-building with private lenders. What are the key elements to maintaining those relationships?
- How does the availability of liquidity in self-directed IRA accounts affect thecurrent real estate investing landscape, as described by Jay Conner?
- What automation tools and team roles does Jay Conner rely on to keep his business running with minimal hands-on time?
- For new investors, what advice do Jay Conner and Eric Martel give about getting started with private money, and what are the most important factors to earn the trust of lenders?
Fun facts that were revealed in the episode:
- Jay Conner has automated his real estate investing business so efficiently that he spends less than 10 hours a week working on it, yet earns over $2 million a year—all in a town with only about 40,000 people.
- Despite being in a small market, Jay Conner averages about $71,000 profit per house flip and has never done a wholesale deal because he hasn’t found the need or the buyers to do so.
- In just 90 days, after losing access to his traditional bank financing, Jay Conner raised over $2 million in private money by educating people about private lending and self-directed IRAs.
Timestamps:
00:00 Why Invest in Real Estate?
04:25 Real Estate Investing in Small Markets
07:38 Foreclosure Opportunities for Investors
09:49 Real Estate Liquidity Insights
15:32 Reflecting on Lost Earnest Money
18:06 Private Money Success Journey
22:38 Why Private Lenders Fund Deals
24:32 Protect Private Lenders in Real Estate
28:46 Setting Private Money Minimums
30:41 Private Lending: Long-Term Benefits
36:00 Private Lending: Securing Safe Investments
37:19 Creative Financing in Real Estate
40:22 Real Estate Investing for Freedom
45:17 Real Estate Attorney & Realtor Insights
46:18 Real Estate Selling Strategies Explained
49:40 Private Money Real Estate 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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