In the ever-evolving landscape of real estate investing, one lesson remains constant: funding is king. If you’ve ever missed out on a deal because you didn’t have the money, you’re not alone. But what if you could put yourself in the driver’s seat—never rely on banks, never miss opportunities, and walk away from the closing table with tens of thousands in profit without sinking your own money into the deal? That’s exactly what Jay Conner and his team recently accomplished, using a shrewd application of Private Money and creative deal structuring.
The Deal Breakdown: Motivation Meets Opportunity
Crystal Baker shared a powerful case study: a property at 230 South Palmyra. The seller found Crystal’s company, CGN Homebuyers, thanks to their A+ Better Business Bureau rating—a crucial reminder that reputation builds trust. The initial call was handled by their AI assistant, Bailey, who scheduled a same-day call with the admin, demonstrating the importance of “speed to appointment”—never missing a motivated seller’s inquiry.
Why was this seller so motivated? Life had thrown him curveballs: plans gone sideways, a failed renovation, and an urgent need to relocate out of state. While the seller initially asked $205,000, there was an existing mortgage of $167,000 at a stellar 3.5% interest rate, with monthly payments of $1,289. After some negotiating—helped by the seller’s need to move quickly—the final purchase price was brought down to $173,000, just high enough to give the seller what he needed to move on with his life.
Stacking Strategies: Subject To + Private Money
What sets this deal apart isn’t just the negotiation. It’s the combination of creative strategies:
- Subject-To Financing: Crystal acquired the house “subject to” the existing mortgage. The title transferred, but the mortgage remained in the seller’s name, with Crystal agreeing to make the payments. No qualms about credit checks, no bank approvals. This alone put her in a position of control.
- Private Money for the Win: To cover renovations ($52,800 after a change order), closing costs, and to give the seller his $6,000, Crystal arranged $80,000 in Private Money, at 10% interest, paid quarterly. (Notably, her private lender is in second position—on top of the existing mortgage.) After closing expenses, Crystal walked away from the table with $71,549 in cash—before she even started renovations.
Real Numbers, Real Profit
Let’s talk projected profit, because these numbers tell the real story:
- Sale Price (ARV): $375,000
- Remaining Mortgage: ~$167,000
- Private Money Payoff/Interest: ~$82,000
- Realtor Commissions (5%): $18,750
- Closing Costs: ~$3,500
- Renovations: $52,800
After all costs and payouts, the projected net profit is $103,750—nearly double what most dream of on a single flip, all while using none of her own money.
Lessons for Investors
There are critical takeaways here for any investor, new or seasoned:
- Reputation Sells: Crystal’s seller chose her over other investors because of trust (Better Business Bureau rating). Build your public presence.
- Systematize for Speed: AI and CRM allowed Crystal’s team to respond immediately—a real competitive edge.
- The Power of Asking: Instead of making a firm offer, Crystal asked the sellers what they needed. That opened the door to the best deal for both parties.
- Stacked Creative Financing: Combining “subject to” and Private Money made an all-cash solution possible, while also ensuring a zero out-of-pocket purchase.
- Profit Isn’t Just on the Sale: Receiving cash at closing by borrowing for both purchase and renovation means investors don’t have to “wait” for the flip to get paid.
Final Thoughts
Deals like this aren’t rare—they become routine for those who master the fundamentals: funding first, credibility, negotiation, and fast action. Are you ready to stop being at the mercy of lenders and start controlling your own deals—and your profits? Start building your Private Money network today and see what’s truly possible.
10 Discussion Questions from this Episode
- What are the key differences between Private Money, hard money, and traditional bank financing for real estate investors as explained in this episode?
- How does the volatility in financial markets, like shifts in the 10-year Treasury note or tightened bank lending, impact investors who rely on Private Money versus those who do not?
- Why do private lenders often prefer an 8% fixed return from private lending compared to the potential 10% average annual return from the stock market?
- How did Coach Crystal’s Better Business Bureau (BBB) rating influence the seller’s decision to contact her company, and what lessons can be drawn about reputation in business?
- In the deal breakdown, what was the significance of combining a “subject-to” strategy with private lending, and how did this maximize the deal’s profitability?
- What negotiation tactics did Crystal use when communicating with the seller and his mother that resulted in a lower purchase price?
- How important are relationships—with contractors, real estate agents, and lenders—in enabling quick action and successful outcomes for investors, as highlighted in the episode?
- What systems did Crystal have in place (e.g., AI assistant, CRM) to ensure efficiency and “speed to appointment,” and how did this contribute to winning the deal?
- Discuss the role of mindset and the “teacher/educator” approach in attracting Private Money lenders, as mentioned in the episode.
- After hearing about this real-life deal, what are your key takeaways for applying combined strategies (like subject-to and Private Money) in your own investing, and what potential challenges might you anticipate?
Fun facts that were revealed in the episode:
- Better Business Bureau Leads
A motivated seller found Coach Crystal because her company, CGN Homebuyers, had an A+ rating on the Better Business Bureau website. This endorsement was so compelling that it helped Crystal stand out above other investors and clinch the deal. - Getting Paid at Closing—Literally!
On a recent real estate transaction, Coach Crystal brought home an excess cash-to-close check of $71,549—meaning she actually received money at closing, used none of her own funds upfront, and still had enough left over after covering the rehab and seller’s needs. - Creative Deal Structuring Wins
Coach Crystal combined two strategies in one deal: she bought the property “subject to” its existing low-rate mortgage (3.5%) and supplemented with private lender funds in second position, showcasing a creative approach that squeezed maximum value from the deal while minimizing risk and upfront cash.
Timestamps:
00:00 Getting serious about business funding
03:29 Unlocking private real estate funding
07:47 Using Private Money for deals
12:00 Discussing investment risk preferences
17:17 Connecting via AI scheduler
18:11 Handling calls with AI assistant Bailey
22:09 The seller’s story and urgency
25:33 Negotiating renovation costs
27:36 Buying a house subject to a note
32:55 Securing escrow overages profit
37:05 Negotiation strategies and tactics
39:31 Raising Private Money for real estate
41:37 Announcing the Private Money Conference
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
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcasts:
Facebook:
https://www.facebook.com/jay.conner.marketing
Listen to Our Podcast:
Comments