Credits to:
https://www.youtube.com/watch?v=aSpmbmco_pA
“He Raised $2M After the Bank Cut Him Off”
https://www.youtube.com/@EdgartheConnector
If you want to scale your real estate investment business, the biggest bottleneck is often not finding the next deal, but securing the funding to make it happen. Traditional bank financing moves at a glacial pace, comes with layers of red tape, and can vanish overnight—as this episode of the Raising Private Money podcast makes abundantly clear. In this insightful conversation, Edgar Salgado sits down with Jay Conner, the Private Money Authority who built his business after having his line of credit snatched away by his bank with zero warning. What followed was a crash course in resilience, networking, and ultimately, a system for attracting millions in Private Money without a single “ask.”
From Crisis to Opportunity: The Power of Community
Jay’s story starts with a gut punch: in 2009, his bank cut off his funding without notice, leaving him with two properties under contract and no way to close. In those first critical moments, he didn’t focus on how to fix the problem alone, but rather on who could help. That question led him to a friend, Jeff, who introduced Jay to the world of Private Money and self-directed IRAs. This is a vital mindset shift for any entrepreneur: don’t ask “how,” ask “who.”
Jay emphasizes that real estate is a team sport. Cultivating relationships with mentors, advisors, and mastermind groups isn’t just a networking hack—it’s survival. As John Maxwell told Jay at an event: “I just fail more than anybody else because I try so many more things.” The key is bouncing forward, learning from every experience.
How to Attract, Not Beg, for Private Money
A myth Jay is quick to bust is the “get the deal, the money will show up” mantra preached by so many so-called gurus. The truth? Money doesn’t walk up to your door, and it doesn’t have legs. Instead, Jay’s philosophy is to get the money lined up first, offering potential lenders a consistent opportunity regardless of the deal.
So how do you start?
- Lead with Education: The first conversation with a potential lender is never about a deal. Instead, Jay focuses on teaching what private lending is, how it works, and—most importantly—how it’s safer and more lucrative than they’ve realized.
- Build Real Relationships: Every one of Jay’s 47 private lenders was either a previous acquaintance or referral. Trust is the foundation; never approach someone you don’t know with an investment pitch.
- Offer Real Protection: Private lenders get the same protections a bank would receive—insured, secured loans, conservative loan-to-values. Jay makes it simple: you’re already approved, and the terms are clear upfront.
- Separate Money and Deals: Don’t commingle the ask. First, present the opportunity. Only later, when the lender is committed, do you bring a specific deal for them to fund.
Why Private Money Wins
What’s the big differentiator? Speed. In one memorable deal, Jay shared how private funds allowed him to buy an oceanfront condo facing foreclosure within seven days—a timeframe banks could never match. That quick action not only netted a hefty profit for his business but handed the sellers nearly $100,000 more than if it had gone to foreclosure.
And, as Jay points out, thinking like a real estate investor doesn’t mean cutting corners or exploiting the vulnerable. Real service is about solving people’s problems, putting money in their pocket, and treating their situation with integrity and empathy. Every successful deal is built on trust, transparency, and putting the other person’s needs first.
Final Takeaways
Whether you’re new to real estate investing or ready to scale, Jay’s journey offers a simple but powerful lesson: “Knowledge isn’t power—implementation is.” Seek out the right people, educate them honestly, protect their investment, and deliver every time.
For those ready to take action, Jay offers resources like his “Curiosity Opener Script” and book, as well as a vibrant podcast and live events focused on Raising Private Money.
Don’t let banks decide your fate. Build your network, serve your lenders, and unlock the funding you need to grow. After all, the best investors aren’t just deal-makers—they’re community builders.
10 Discussion Questions from this Episode
- How did losing access to traditional bank funding in 2009 lead to a new approach for raising capital in real estate deals?
- What are the core differences between Private Money, hard money, and traditional bank funding as discussed in the episode?
- Why is building trust and relationships emphasized as foundational before discussing private lending opportunities?
- How does the practice of “no pitching, no begging, no selling” work in attracting private lenders, according to the strategies shared in the episode?
- What specific protections should private lenders expect to receive, and how do these compare to protections offered by banks?
- How can self-directed IRAs be utilized in private lending for real estate, and what are the advantages or challenges associated with them?
- Why is it important to have access to funding before finding deals, rather than securing money after getting a deal under contract?
- How does leading with education and a service mindset benefit both the investor and potential private lenders?
- What lessons about business and resilience did the guest learn from his father, and how have those lessons influenced his approach to real estate and coaching?
- According to the episode, what are the main risks and pitfalls new real estate investors face when structuring deals, and how can they mitigate these risks when working with private lenders?
Fun facts that were revealed in the episode:
- $2 Million Raised in 90 Days: After having his entire line of credit pulled by the bank in 2009, Jay managed to attract over $2 million in new private funding from individuals within just 90 days, without ever pitching or begging for money 01:09.
- From $250,000 to $500,000 Overnight: Jay’s very first private lender initially committed $250,000 after a conversation at church, but after learning more about the opportunity, that commitment doubled to $500,000 over a cup of coffee at their home 26:06.
- 47 Private Lenders, None Knew the System: Over the years, Jay and his wife, Carol Joy, have worked with 47 unique private lenders. Remarkably, not one of these lenders had ever even heard of Private Money or self-directed IRAs before being educated about it through a simple, educational conversation—never a sales pitch.
Timestamps:
00:00 Attracting Private Money for deals
04:35 Lessons from my dad Wallace
09:03 Mastermind group experiences
12:25 Facing the global financial crisis
14:26 Learning about Private Money
17:12 Discussing private lender protections
22:00 Educating on private lending
25:20 Discussing investment interest rates
30:25 Structuring deals with private lenders
34:08 Criteria for lending money
37:51 Balancing real estate and coaching
40:53 Private Money Conference details
44:59 Helping homeowners facing foreclosure
46:53 Dividing responsibilities in business partnership
49:24 Funding deals without bank permission
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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