Credits to:
https://www.youtube.com/watch?v=5sff1RevVAw&t=37s
“Stop Begging Banks: How to Fund Every Real Estate Deal with Private Money”
https://www.youtube.com/@GoodNeighborPodcastCooperCity
If you’re venturing into real estate investing or even just curious about alternative forms of financing, the term “Private Money” has likely caught your attention. It’s often shrouded in mystery, separated from the world of conventional banking and lending. But as explored in the recent episode of the Raising Private Money Podcast with Jay Conner, Private Money might just be the game-changer aspiring and seasoned real estate investors have been searching for.
Dismantling Myths: What Is Private Money?
Most people’s introduction to real estate financing involves banks, credit scores, down payments, and mountains of paperwork. Private Money, as Jay Conner explains, is fundamentally different. Rather than relying on banks or hard money lenders, Private Money comes directly from individuals—ordinary people who invest their capital or retirement funds into real estate deals, bypassing traditional financial institutions and brokers altogether.
This shift isn’t simply about sourcing cash; it’s about flipping the power dynamic. With Private Money, it’s not the lender who dictates the terms—the real estate investor does. Instead of applying and hoping for approval, the real estate investor offers an opportunity, teaching potential lenders about the investment advantages. There’s “no asking, no begging, no chasing, no selling, no persuading”—just teaching.
Why Is Private Money a Game-Changer?
Jay’s passion for Private Money is rooted in his own story. Having started in real estate by following the traditional path—mortgages through banks, lines of credit, and dealing with bureaucratic hurdles—he found his world turned upside down during the 2009 financial crisis. Suddenly, his bank line of credit was shut down with no notice, leaving him grasping for solutions.
Instead of folding, Jay leaned into a pivotal question: “Who do I know that can help me solve my problem?” This led him into the world of Private Money—where individuals, sometimes using their self-directed IRAs, could invest directly into his deals. Within 90 days of exploring this new methodology, he had raised over $2 million from private investors who’d never heard of this model before.
But what makes Private Money so powerful? Here are a few key advantages Jay outlines:
- Unlimited Growth Potential: There’s no cap on how many deals you can fund; it only depends on the number of private lenders in your network.
- Flexible Terms: Investors set the terms, not institutions. Jay, for example, offers his lenders a flat 8% rate, with no origination or “junk” fees.
- Speed and Control: With funds already lined up, deals close faster, and investors can always pick up a “check” at closing—rather than scrambling for down payments like with traditional loans.
- Security and Trust: By educating lenders about maximum loan-to-value ratios and repayment methods, investors build confidence and sustainable relationships.
The Mindset Shift: Teaching, Not Selling
One of the most important takeaways from Jay’s interview is the mindset real estate investors should adopt. Success with Private Money isn’t about high-pressure pitching or desperate pleas. It’s about teaching: showing people how they can benefit from being a private lender, patiently answering questions, and only presenting deals that match the criteria already discussed with your lenders.
This mindset extends to separating conversations: First, teach the opportunity, without a deal in hand. Only once your lender understands and agrees to the terms do you bring them a specific investment. This separation avoids the sense of desperation and builds sustainable trust.
From Challenges to Opportunities: E + R = O
Jay draws inspiration from Jack Canfield’s formula “E + R = O” (Event + Response = Outcome). Events—like losing access to conventional funding—are out of our control. But how we respond determines the outcome. For Jay, the challenge of losing his credit line became the event that propelled him into Private Money—and ultimately, greater success.
Getting Started
If you’re a budding real estate investor, your first step is simple: shift your mindset. Own the real estate “between your ears” first. Approach Private Money as a teacher, not a beggar. Build confidence, clarity, and a strong educational foundation—and then, the deals (and the money) will follow.
To dive deeper, Jay offers generous free resources like his “Curiosity Opener” script and his book. The journey from financial setbacks to real estate abundance is paved not just with money, but with the right approach—and an openness to the world of private lending.
Ready to make your next deal happen? Start by expanding your mindset, building your network, and learning to teach the Private Money opportunity. The doors to real estate success might be closer—and more accessible—than you think.
10 Discussion Questions from this Episode
- Jay Conner emphasizes the importance of the “who, not how” question when facing problems in real estate or life. How can this mindset shift impact decision-making outside of real estate investing?
- Based on the episode, what are the key differences between hard money lending and Private Money, and why is it important for investors to understand this distinction?
- Jay Conner states that with Private Money, “we set the rules” instead of the lender. What are the potential advantages and disadvantages of this approach for both the investor and the lender?
- The episode discusses the critical role of mindset in securing private capital. How can new investors develop the necessary mindset and confidence to approach potential private lenders?
- Why does Jay Conner recommend lining up Private Money before searching for deals, contrary to the advice often given by other real estate educators?
- How does teaching and exposing private lenders to opportunities differ from pitching a specific deal, and what are the benefits of separating these conversations?
- According to the episode, what are the three major reasons a private lender would be eager to fund a deal once they’ve moved their funds to a self-directed IRA?
- Jay Conner describes how the 2009 financial crisis forced him to discover Private Money lending. How have external events or setbacks led you, or could they lead you, to discover new opportunities in your own field?
- The episode introduces Jack Canfield’s formula E+R=O (Event plus Response equals Outcome). How can this formula be applied to challenges in real estate and beyond?
- Jay Conner highlights that with Private Money, there is “no limit to the number of deals you can do.” What implications does this have for scalability in real estate investing, and what factors might still limit an investor’s growth?
Fun facts that were revealed in the episode:
- Unlimited Deals, Unlimited Lenders
In the world of Private Money, there is no cap to the number of deals you can do or private lenders you can work with. Jay Conner highlighted that he has 47 private lenders funding his deals, but started with just one, showing how scalable the approach can be. - You Can Get Paid When You Buy
Unlike traditional financing, where you bring a down payment to closing, using Private Money often means you get a check at closing! If you buy right, you can walk away from the closing table with extra cash in hand to use for renovations or even carrying costs. - Access to Private Money Doesn’t Depend on Your Credit
According to Jay Conner, when you tap into private financing for real estate, there’s no application, no underwriting the traditional way, and your credit score isn’t a roadblock—because “you’re already approved.” It’s all about offering an opportunity, not begging for a loan.
Timestamps:
00:00 Understanding private vs. hard money
05:34 Accessing private capital for investments
07:55 Teaching investment opportunity strategies
10:46 Funding strategy and lender criteria
15:38 Discovering Private Money solutions
17:31 Embracing obstacles as opportunities
20:39 Importance of Taking Action
26:45 Free Million Dollar Money Script
28:12 Discussing real estate investing interest
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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