Credits to:
https://www.youtube.com/watch?v=LttbnLZFK8M
“1624: Private Money Real Estate Funding Secrets with Jay Conner ”
https://www.youtube.com/@RobertPlank
When it comes to building wealth through real estate, one of the greatest hurdles investors face is access to funding. Traditional bank loans can be slow, inflexible, and loaded with red tape. On a recent episode of the Raising Private Money podcast, Jay Conner, a seasoned real estate expert who’s flipped and rehabbed over 500 properties, sat down with Robert Plank to share his hard-won insights into raising Private Money and achieving rapid, sustainable growth in real estate.
What is Private Money?
The term “Private Money” gets thrown around a lot in investing circles, but there are important distinctions to be made. As Jay Conner points out, Private Money is not hard money. Hard money typically comes from an institutional lender or broker who raises funds from individuals and then lends those funds at high interest rates with fees attached. By contrast, Private Money involves a direct one-on-one transaction between the investor and an individual lender. There’s no broker, no middleman, and no inflated rates or origination fees. The lender could use either their personal savings or even their retirement funds, transferred into a self-directed IRA.
With Private Money, the lender enjoys attractive returns (Jay offers 8% and never charges points) and the borrower gets speed and flexibility. The lender doesn’t own part of the property; they are simply acting like a bank, backed by collateral and secured with promissory notes and insurance.
When to Use Private Money vs. Bank Financing
One key decision for investors is when to use Private Money and when traditional financing makes sense. The answer? It all depends on your exit strategy. For quick flips or BRRRR deals, Private Money is ideal due to the speed at which you can close (sometimes in seven days) and the ability to negotiate directly without institutional constraints. If your goal is to hold and rent long-term, you could use Private Money to acquire and renovate the property, then refinance later with a traditional lender for the long-term hold.
Connecting with Private Lenders: The Power of Education
Perhaps the most surprising revelation from Jay Conner was that 47 unique individuals have lent him money over the years, and not one had heard of private lending before he explained it to them. The secret isn’t salesmanship—it’s education. Jay approaches his network not as a salesperson, but as a teacher, diagnosing their investment “problems” and offering private lending as a safe, lucrative solution. Everyday conversations about financial goals open the door; if someone isn’t satisfied with their returns elsewhere, Jay presents his opportunity.
According to Jay, the myth that “money finds good deals” is completely backward. It’s better to have your funding lined up and ready to go before the right deal comes along. That way, when opportunity knocks, you’re ready to act and can wow sellers by closing fast and smoothly.
Structuring Deals & Protecting Everyone Involved
Private Money works for all kinds of real estate—single-family homes, commercial properties, land, and more. For single-family homes, Jay structures the loan. Hence, the lender receives the same protections a bank would—collateralized notes, insurance, and first position on the deed. For larger commercial or apartment deals, things get more complex. They may require funds pooled from multiple lenders, triggering SEC regulations.
Avoiding Common Pitfalls
Where do investors go wrong in Private Money deals? Overpaying is the most common mistake. Emotion should never drive the offer—strict formulas and conservative loan-to-value ratios keep both parties safe. Borrowing no more than 75% of the after-repair value builds in a powerful equity cushion.
Final Thoughts: Schedule Your Success
Jay Conner leaves listeners with his favorite maxim—“successes are scheduled.” To-dos are meaningless unless they make it onto your calendar. If you’re serious about changing your financial future, commit to the steps, block them out, and follow through.
Ready to learn more? Download Jay’s free “Curiosity Opener Script” or join his live Private Money Conference to start your journey toward real estate independence.
Private Money isn’t just about access to capital—it’s about building relationships, educating partners, and creating win-win solutions. By following a process rooted in preparation, transparency, and integrity, you can unlock the doors to real estate success.
10 Discussion Questions from this Episode
- Jay Conner emphasizes the importance of scheduling successes rather than relying on a to-do list. How might this approach impact productivity in a real estate investing business?
- What are the main differences between Private Money and hard money, as described by Jay Conner? Why is this distinction significant for new real estate investors?
- According to the conversation, why is it recommended to secure Private Money before finding a real estate deal rather than the other way around?
- What strategies does Jay Conner use to find and educate potential private lenders within his network? How might someone apply these strategies in their own community?
- What protections does Jay Conner provide to private lenders, and how do they compare to protections offered by local banks?
- How does the exit strategy affect the way Private Money is used in different types of real estate deals, such as single-family homes versus commercial properties?
- What are some common mistakes real estate investors make when using Private Money, and how does Jay Conner recommend mitigating those risks?
- What is the formula Jay Conner uses to determine the maximum offer for a property, and why is this formula crucial for protecting both investor and lender interests?
- Simplicity is a repeated theme in this episode. How can striving for simplicity lead to better business outcomes in real estate investing, according to the discussion?
- If someone is interested in getting started with Private Money for real estate, what actionable first steps does Jay Conner suggest, and which of his resources might be most beneficial to a newcomer?
Fun facts that were revealed in the episode:
- Jay Conner Has Flipped Over 500 Properties
Jay Conner has personally flipped and rehabbed more than 500 properties in Eastern North Carolina, showcasing extensive experience in the single-family real estate market.
- Jay’s Time Commitment is Under 10 Hours Per Week
Through automating his real estate investing business, Jay Conner is able to operate efficiently, working less than 10 hours a week on his business while still achieving 7-figure results.
- None of Jay’s 47 Private Lenders Had Heard of Private Lending Before Him
Over the years, Jay Conner has worked with 47 private lenders, and strikingly, not a single one had previously heard of Private Money or self-directed IRA companies until he educated them about the process.
Timestamps:
00:00 Private vs. Hard Money Explained
05:47 Finding and connecting with lenders
07:16 Building relationships through networking
11:38 Asset-backed vs. private lending
13:32 Single-family house exit strategies
17:05 Buying distressed properties with private funds
22:04 Exploring Jay Conner’s Resources
24:17 Free real estate investing guide
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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