Guest Appearance
Credits to:
https://www.youtube.com/@yieldcoach
“S02 E37 – Jay Conner – The Big Fish in a Little Pond”
https://www.youtube.com/watch?v=c8SRgpoCfXU&t=46s
When most people imagine real estate investing at scale, they picture bustling cities and high-profile investors closing multi-million-dollar deals in large urban centers. Jay Conner’s story, as revealed in his guest appearance on Ian Brown’s Yield Coach Show, flips this conventional wisdom on its head. Based in a market of just 40,000 people, Jay has built a thriving operation, completing over 475 rehabs and maintaining an impressive average profit of $78,000 per flip—all by leveraging the power of private money.
Building a Real Estate Machine in a Small Market
Jay’s journey began in the housing industry alongside his father, who once owned the country’s largest mobile home retail operation. With consumer financing for manufactured homes abruptly ending, Jay transitioned to single-family investing in 2003. Rather than chasing larger markets, he decided to master his small local area, demonstrating that significant profits can be earned even far from the big-city spotlight.
Initially, Jay started solo. By his own admission, the first year’s three house flips were ambitious for a team of one. Over the years, he scaled up, and today his local operation handles two to three properties monthly—all without the intense competition or wholesale activity common in larger markets. In fact, Jay notes that wholesaling isn’t even present in his area; he’s the go-to buyer.
The Power of Positioning Private Money First
One of the most important shifts in Jay’s approach came during the financial crisis of 2008. When traditional bank financing suddenly collapsed, as it did for so many investors, Jay had to rethink his approach. Instead of relying on banks that could shut down credit lines with a single phone call, he began raising private capital. Within three months, he’d secured more than $2 million by educating local contacts about the returns and security of lending on real estate deals, often via self-directed IRAs.
Rather than approaching private lenders with a sense of desperation or pitching specific deals, Jay positions himself as a teacher. He explains the safety features and returns of private lending, building trust and credibility. Prospective lenders learn about the process, and when they’re ready, they’re excited to lend—often reaching out proactively to fund deals. This mindset shift—from asking for money to offering an investment opportunity—has been foundational to his success.
Jay now works with 47 private lenders, who collectively provide about $8.5 million in funding for his deals. Private loans typically come in at 8% interest for first-position liens and 10% for subordinate liens. Regular people—retirees, acquaintances, friends from church, and family—make up this lender base. Many had never even heard of private lending or self-directed IRAs before Jay introduced these concepts.
Automation and Smart Deal Flow
Jay’s streamlined operation is built on proactive, automated marketing and systematic deal flow. His company deploys multiple Google and Facebook pay-per-click campaigns using third-party vendors. By running three separate campaigns under different names, he maximizes lead generation and dominates the search results for motivated sellers in his local market. Despite paying $150 per Google lead, he needs only seven prospects to secure a purchase, given his acquisition strategy.
Direct mail to pre-probate and foreclosure lists, high-conversion sequences, and direct outreach to new wholesalers round out his marketing mix. Having a quick response system is key to converting leads since speed builds credibility and rapport with distressed sellers.
Flexible Structures for Investors
Jay’s approach to structuring investments is flexible, catering to his lenders’ needs. Some investors prefer monthly income, while others want accrued interest payable on sale. Retirement funds are often paid quarterly or semi-annually through their IRA custodians. Jay prioritizes safety and transparency, always giving lenders a first lien position when appropriate and never borrowing unsecured.
For investors looking to create a repeatable, resilient source of funding in any size market, Jay’s model is instructive. By blending strong local relationships, wide-reaching automated marketing, and a focus on education rather than hard selling, he’s built a machine that adapts through market changes and puts the deal—and the funding—directly in his control.
10 Discussion Questions from this Episode:
- Jay Conner emphasized the advantages of operating in a small market for real estate investing. What are some specific benefits and challenges he mentioned about working in a market with a population of only 40,000?
- Jay Conner shared that his average profit per flip is $78,000 in a small market. How does he achieve such high margins, and what lessons can investors in larger or smaller markets take from his approach?
- The episode discusses the importance of private money in Jay Conner’s business. What strategies does he use to attract private lenders, and why does he believe it’s crucial to “get the money lined up first” before finding deals?
- Ian Brown and Jay Conner touched on marketing techniques like Google Ads, Facebook ads, and direct mail for deal flow. Which strategies seemed most effective, and why?
- What are the key differences between sourcing deals in residential versus commercial real estate, as discussed by Ian Brown? How do their methods of deal sourcing compare?
- Jay Conner insists on serving and educating potential private lenders instead of pitching or begging for money. How might this approach help build trust and long-term business relationships?
- The podcast talks about using self-directed IRAs for private lending. What are the benefits of educating lenders about this option, and how has it helped Jay Conner scale his business?
- Jay Conner shares his approach to deal structure—using cash deals for quick flips and terms for rentals or lease-to-own. How does he decide which strategy to use, and what risks/rewards are associated with each?
- Both speakers discuss the importance of immediate follow-up on prospect leads (“the older, the colder” principle). Why is speed so crucial in responding to leads, and how can investors automate or improve this process?
- What did you find most surprising or inspiring about Jay Conner’s journey—from his early days flipping single-wides to building a business funded by dozens of private lenders?
Fun facts that were revealed in the episode:
- Jay Conner operates a thriving real estate investment business in a small market of just 40,000 people, yet he consistently achieves impressive average profits of $78,000 per house flip.
- Jay Conner funds his deals through 47 private lenders, none of whom had heard of private money or self-directed IRAs until he introduced them to these concepts.
- Jay Conner has automated his lead generation by using multiple Google Ads vendors in his market, cleverly making it appear that several different companies dominate the search results—when in reality, they all lead back to him.
Timestamps:
00:01 Investment Insights with Jay Conner
05:15 Flipping Challenges and Funding Struggles
08:39 Starting Deal Flow Strategies
12:46 Foreclosure Leads & Marketing System
16:49 Foreclosure Timing & Marketing Tips
18:09 Speedy Lead Response Strategy
21:22 Instant Callback Impresses Callers
27:02 Real Estate Deal Instructions
27:33 Private Lending Mindset Explained
33:17 Attracting Private Money Tips
34:55 High Returns, Unique Investment Strategies
38:29 Flexible Lending and Loan Terms
43:03 Strategy and Funding Are Key
Free Report:
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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.
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