Credits to:
https://www.youtube.com/watch?v=fZqb-JePR-E
“How to Raise Private Money Without Asking For It With Jay Conner- Podcast”
https://www.youtube.com/@NathanPaynelessFlipping
If you’re a new real estate investor or an experienced wholesaler, odds are you’ve heard the buzz about Private Money—but maybe you don’t really know how it works, how to get it, or why it can make all the difference for your business. In a recent discussion on the Raising Private Money podcast, we learned exactly how Private Money is the ultimate tool to turbocharge your deals and put you firmly in the driver’s seat.
What Is Private Money?
First, let’s demystify the term. Private Money is capital sourced from individuals—think friends, family, or business connections—who are willing to lend you money for your real estate deals. Unlike traditional hard money lenders or banks, Private Money lenders are regular people. They loan you investment capital or funds from retirement accounts, such as self-directed IRAs, and you secure their investment with real estate.
As explained in the episode, this isn’t about filling out mountains of paperwork or jumping through institutional hoops. You get to make the rules. There are no applications. Deals can close in less than 7 days using Private Money. The process is relationship-driven and flexible, allowing for rapid deal execution and custom terms.
Why Is Private Money Essential?
Too many real estate newbies, particularly wholesalers, overlook Private Money. They focus on getting deals under contract, then scramble to find a cash buyer. But as revealed in the podcast, Private Money gives you options. Rather than being forced to assign or wholesale every property, you can cherry-pick the best ones to keep and flip—or hold for long-term rental—maximizing your profit on each transaction.
Imagine finding a property with little needed rehab, but where the seller only wants cash—no creative financing, no terms. The only way to stay in and profit from such a deal is to have Private Money ready to fund it. In the episode, the expert shares an example where he bought a property for $141,500 with an after-repaired value of $280,000. The rehab? Less than $10K, and he could have sold the house “as is” for over $225,000.
How Do You Get Private Money?
This was the big ‘aha’ of the episode: you don’t ask for money—you teach people about the opportunity, establish trust, and let the relationship do the work. The process starts by putting on your teacher hat. Explain what Private Money is, how it’s secured, and the kind of returns your investors can expect—typically 6–8%, which far exceeds savings or CD rates at the local bank.
You never pitch a deal and ask for money in the same conversation; that comes off as desperate. Instead, you inform, educate, and learn what your contacts have available. Then, when you do have a property under contract, you simply call with the great news that you can put their money to work. No sales pitch, just an opportunity for them to earn a steady, secured return.
Terms and Benefits
Private Money comes with major investor-friendly perks:
- You make the rules: Set your own terms—interest rate, payment schedule, and maximum loan-to-value (never more than 75% of after-repaired value).
- No personal guarantees: Unlike banks and hard money, your assets (not you personally) secure the loan.
- No credit requirements: Your credit score is irrelevant; it’s about the deal and the relationship.
- Fast closing: Deals can close in a week because there’s no red tape.
Private Money works for flips, rentals, single-family, multifamily, and even commercial or self-storage projects. The flexibility and security make it the ultimate tool to scale and stabilize your business.
The Takeaway
For wholesalers and new investors, the big lesson is clear: instead of passing up juicy deals because you don’t have the cash or relying on a buyer’s whims, raise Private Money and seize opportunity for yourself. As they put it, when you have all cash available at your fingertips, you do more deals, and your deals are more profitable.
If you’re looking to take your investing to the next level, consider learning more about Private Money—not just as a funding source, but as the lever that puts you in control of your business and your financial future. And, as the guest suggested, always work with experienced mentors and check out free guides and resources to fast-track your success.
Ready to stop passing up great deals? Make Private Money part of your real estate toolkit today.
10 Discussion Questions from this Episode
- What are the primary differences between Private Money and hard money lenders as described in this episode?
- How can access to Private Money transform a wholesaler’s business model and profit potential?
- Why is it important for real estate investors to build relationships with both private lenders and hard money lenders?
- What are some advantages of using Private Money compared to traditional bank or institutional loans?
- How does the strategy of borrowing up to 75% of after-repaired value offer both security and leverage for investors?
- In what ways does teaching potential private lenders about self-directed IRAs and private lending help to build trust and attract capital?
- Why is it crucial not to discuss a funding opportunity and explain your Private Money program in the same conversation with a potential lender?
- What role do market conditions and property types play in structuring Private Money deals as discussed in the episode?
- How do first and second lien positions impact the risk and process of private lending on a single property?
- According to the conversation, how do smaller, local markets affect marketing ROI and deal acquisition for investors using Private Money?
Fun facts that were revealed in the episode:
- Quick Closings with Private Money
Deals funded with Private Money can close in less than 7 days, with no applications or lengthy approval processes required. - No Personal Guarantees Needed
Unlike traditional or hard money loans, Private Money deals typically do not require personal guarantees—a major advantage for investors looking to reduce personal risk. - Profits Without Using Your Own Cash
Investors using Private Money often borrow more than the purchase price and rehab costs (up to 75% of the after-repaired value), so they can receive a check at closing without bringing their own money to the table.
Timestamps:
00:00 Using Private Money in wholesaling
05:32 Difference Between Private and Hard Money
08:35 Negotiating a property sale loss
11:36 Using Private Money for rent-to-own deals
15:26 Using Private Money in real estate
19:54 Teaching investors about funding deals
20:48 Investing liquid capital securely
24:57 Educating private lenders on IRAs
27:35 Funding property deals with lenders
33:02 Real estate closing funds process
36:59 Analyzing deals and marketing strategies
39:07 Solving wholesaler challenges
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What is Private Money? Real Estate Investing with Jay Conner
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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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