Mindset and Connections: The Real Keys to Raising Private Money for Real Estate Deals with Jarrod Frankum
When most people think about real estate investing, the first images that come to mind are often an endless stack of contracts, house tours, negotiations, and the hunt for the best properties. But beneath the surface of this transactional world lies a powerful truth: real estate is still very much a people business. This principle is at the heart of the podcast episode.
The episode features Jarrod Frankum, an investor, realtor, and founder of a family-run real estate business, as he sits down with Jay Conner to break down the real journey behind private money, deal-making, and why relationships are the ultimate currency for success.
The Unexpected Path to Private Money
One of the most compelling aspects of Jarrod Frankum’s story is how his path into private money wasn’t something he planned. He didn’t approach investing with a wealthy background, a trove of connections, or a pile of capital. Instead, his journey began with sharing excitement about his business with people he already knew—without any intention of pitching for funds. What happened next signaled a core reality for real estate entrepreneurs: often, genuine enthusiasm and consistent action attract others who want to participate.
By being open about his goals, Jarrod Frankum found himself approached by someone willing to partner and supply the capital he needed for his very first deal. Later opportunities arose through a mixture of referrals and organic connections at investor meetups. The lesson is clear—building trust and communicating authentically about what you are doing can be a magnet in itself. Importantly, many of his early deals were funded by those who believed in him, not just the numbers.
Referrals and Reputation: The Real Deal-Makers
Throughout the episode, Jarrod Frankum repeatedly emphasizes that referrals have played a pivotal role in sourcing private lenders. Instead of chasing every dollar, he focused on being active, visible, and reliable in local investor networks and professional circles. Delivering on promises, managing deals well, and communicating clearly with partners generated a network effect; each successful transaction made the next connection easier.
Jay Conner reinforces this pattern with his own experience, having also raised capital through personal contacts, specifically through shared communities like churches. Being known as someone who does what they say and values transparency becomes much more important over time than any marketing gimmick or pitch. Deals come and go, but reputation endures and pays dividends as word spreads organically among peers.
Transparency: The Ultimate Safeguard
Mistakes in the private lending world can be costly, and Jarrod Frankum notes that the biggest he’s observed among peers is masking risks or being less than forthright with partners. Huge issues arise when people use new funds to patch over old mistakes or don’t present a realistic picture of the numbers. Instead, Jarrod Frankum’s approach is to front-load honesty: he shares comps, renovation budgets, and even points out risks with each deal. Trust is built on full disclosure, and if potential partners walk away, that’s better than jeopardizing anyone’s capital. In his view, always being upfront ensures that only the right kind of people, with the right expectations, get involved.
Preparation Beats Panic
A recurring theme is the importance of finding money before stumbling into desperate need. Too often, novice investors are told to get a deal under contract and assume the money will follow. The reality is that having funding lined up enables investors to act quickly and confidently. This confidence, in turn, makes it easier to secure more deals, grow the business, and help more people.
Getting Started: Mindset and Intentional Action
For those just starting out, Jarrod Frankum stresses the importance of understanding both what you’re raising private money for and what your potential lender needs. Every deal starts with a clear purpose and conviction. Matching great deals with the right people—and being prepared to walk away if the situation doesn’t feel right—forms the backbone of a sustainable business.
The episode closes with a strong reminder: in real estate, taking action on what you’ve learned—starting those conversations, sharing your journey, and being real about your process—is what ultimately opens doors. Build your reputation with each step, focus on meaningful connections, and let the power of community work for you.
Whether you’re just getting started or seeking to strengthen your next deal, remember that in real estate, relationships are the bedrock. When you focus on building them with integrity, the money and the opportunities often follow.
10 Discussion Questions from this Episode:
- What mindset shifts did Jarrod Frankum identify as essential when transitioning from chasing deals to attracting private money, and how did those shifts impact his business trajectory?
- Jarrod shared that his first private lender came from a church connection. In what ways do personal connections play a role in raising private money?
- How did Jarrod’s participation in real estate meetups and networking events help him develop relationships with potential private lenders?
- Jarrod and Jay Conner both mentioned losing access to bank lines of credit. What lessons about funding sources and risk management can real estate investors learn from their stories?
- According to Jarrod, why is it important to be upfront and honest when raising private money, and what consequences has he observed when this is not practiced?
- Both Jarrod and Jay discussed the importance of enthusiasm and sharing excitement about one’s work rather than actively pitching for money. How can this approach create opportunities for private funding?
- What common mistakes do new real estate investors make when trying to raise private money?
- How does having private money “lined up” in advance impact an investor’s confidence and deal-making ability, based on the experiences shared in this episode?
- Jarrod referenced advice about taking action “one bite at a time.” How can breaking down the process benefit new investors facing uncertainty?
- Both speakers stress the power of referrals and the importance of maintaining a solid reputation. What strategies can investors use to build credibility and attract more private lenders organically?
Fun facts that were revealed in the episode:
- Jay Conner’s very first private lender connection was made through his church, and funnily enough, the same was true for Jarrod Frankum—they both got started with private money through personal and community relationships rather than chasing traditional funding.
- Jarrod Frankum raised $50,000 in private money for his very first home purchase without actively asking for it—he simply shared his excitement and progress with people in his network, one of whom offered to partner with him and fund the deal.
- Jarrod Frankum’s journey into raising private money began out of necessity when a bank suddenly declined to renew his credit line, forcing him to find creative ways to fund his deals and build a sustainable business reliant on strong personal connections, organic referrals, and his reputation in real estate circles.
Timestamps:
00:00 Raising Private Money without Banks
05:37 Finding private money for real estate
07:22 Raising funds for new projects
10:31 Starting with private lenders
14:58 Getting first deal funded
18:31 Building trust and attracting investors
19:39 Mistakes to avoid in real estate
23:46 Finding a deeply discounted property
26:27 Evaluating deals and lending criteria
29:40 Connect with Jarrod Frankum
https://www.facebook.com/JarrodFrankum/
30:58 Wrapping up with a call-to-action
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
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcasts:
Facebook:
https://www.facebook.com/jay.conner.marketing
Listen to Our Podcast:
Comments