Credits to:
https://www.youtube.com/watch?v=cuk5O6Cgikk&t=8s
“How to get Unlimited Funding for Your Deals! – Jay Conner ”
https://www.youtube.com/@AndrewSchlag
If you’re a real estate investor—new or seasoned—you’ve likely faced one persistent challenge: access to funding. Traditional banking can leave you scrambling for appraisals, jumping through endless hoops, and losing deals because the money just isn’t there fast enough. But what if you could flip the script, be in the driver’s seat, and have money chasing you instead of you chasing it? That’s exactly what Private Money can do for your real estate business, as revealed in the insightful conversation with Jay Conner and Andrew Schlag.
What Is Private Money?
Private Money, as Jay Conner explains, is not institutional lending, nor is it hard money with steep rates and heavy fees. It’s about working with individuals—everyday people looking to grow their wealth—who lend you funds, backed by real estate, on mutually agreed-upon terms. And the advantages over bank financing or hard money are huge.
Why Private Money Changes Everything
The biggest shift with Private Money is a change in power dynamics. As the borrower, you make the rules for deals. That might sound radical, but as Jay Conner shares, “You set the interest rate. You set the length of the note. You set the loan-to-value. You set the frequency of payments.”
This control yields clear advantages:
- Faster Closings: Private Money allows you to close deals in as little as seven days, giving you the competitive edge to snap up more opportunities.
- No Down Payments or Application Hassles: No credit check, no income verification, and no traditional approval process. In Jay Conner’s system, you can even bring home a check at closing, using borrowed funds to cover the purchase and rehab—sometimes more than the purchase price itself.
- Cash Flow Relief: Structure deals so you make no monthly payments during renovations—the interest simply accrues until you sell or refinance.
- No Appraisals or Points: Unlike hard money lenders, private funding doesn’t typically require appraisals, loan origination fees, or heavy points.
Attracting Money Without “Begging”
A huge mindset block for many is how to actually raise Private Money. Won’t you have to pitch desperate deals to friends or family? Won’t you face rejection? Not with Jay Conner’s approach.
Rather than asking for money, Jay Conner puts on his “teacher hat.” He educates potential lenders about what Private Money is, how it works, and how they can earn attractive returns, often tax-deferred or tax-free through self-directed IRAs.
The result? People are eager and waiting for him to put their money to work. “[I] have more Private Money chasing me than ever before. In fact, I have a big problem—I can’t even put all the money to work that I’ve got pledged to me,” Jay Conner quips.
Protecting Your Private Lenders
But what if you’re new? Why would anyone loan you money? The key, Jay Conner explains, is that the loan is secured by real estate at a safe loan-to-value—typically no more than 75% of the after-repair value (ARV). If the borrower defaults, the lender actually gets the property—a much stronger position than an unsecured investment.
Systematizing the Process
Once a private lender is on board, closing is a breeze. The paperwork is minimal: a promissory note, a deed of trust (or mortgage, depending on your state), and proof of insurance naming the lender as mortgagee. As Jay Conner puts it, “Closing is less than five minutes when you’re doing a Private Money deal.”
A Final Word: Get a Mentor
If there’s one thing Jay Conner would do differently, it’s this: start with a mentor, not alone. The knowledge, mindset, and systems to raise and manage Private Money aren’t difficult—but they are crucial, and best learned from someone who’s already blazed the trail.
Private Money isn’t just a way to fund more deals—it’s a way to scale, serve others, and achieve financial freedom in your real estate investing business.
10 Discussion Questions from this Episode
- What are the key differences between Private Money and hard money lending as outlined by Jay Conner, and why do these differences matter for real estate investors?
- Jay Conner emphasizes teaching over asking when it comes to raising Private Money. How does this approach change the dynamic between investor and lender?
- How does Jay Conner’s strategy for using Private Money put investors “in the driver’s seat” of their business, and what practical advantages does this provide?
- Reflect on the “good news phone call” strategy described by Jay Conner. Why is this step crucial in his process, and how does it differ from traditional funding requests?
- What are some of the most important protections offered to private lenders in this model, and how does loan-to-value impact their risk?
- According to the episode, what common fears do new real estate investors have about raising Private Money, and how does Jay Conner suggest overcoming them?
- Discuss how Jay Conner’s business model allows him to provide “excess cash to close” and not use his own money at closings. How might this affect cash flow and deal volume?
- Why does Jay Conner discourage borrowing unsecured funds from private lenders, and what documentation does he recommend for securing the loan?
- Consider the impact of market size and competition on Jay Conner’s investing model. How does operating in a smaller market shape his strategies and outcomes?
- Jay Conner credits mentorship for accelerating his success. Based on the episode, how might a mentor have helped him avoid early mistakes, and do you agree with his advice for new investors?
Fun facts that were revealed in the episode:
- Small Town, Big Profits: Jay Conner consistently averages 6-digit profit per real estate deal—even though he works in a market with just 40,000 people—and insists that you don’t need to be in a large city to achieve six-figure months in real estate investing.
- Never Ask, Always Teach: Jay Conner claims he’s never once asked someone for money when raising private funds. Instead, he wears his “teacher hat,” educates people about private lending, and lets them come to him, flipping the traditional money-raising approach on its head.
- The “Good News Phone Call”: Instead of pitching deals to private lenders, Jay Conner makes a “good news phone call,” letting people know he can now put their money to work—because he’s already educated them and confirmed their interest. This eliminates rejection and keeps a waiting list of lenders ready to participate.
Timestamps:
00:00 Using Private Money for real estate
03:47 Small market real estate investing
08:41 Learning about Private Money options
10:43 Teaching private lending basics
14:01 Flexible loan terms advantage
19:56 The myth of money chasing deals
22:42 Discussing funding strategies
27:09 Discussing self-directed IRAs
29:57 Establishing Real Estate Attorney Relationships
34:35 Discussing hard money vs Private Money
35:26 Understanding hard money lenders
39:36 The importance of a mentor
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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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