***Guest Appearance
Credits to:
https://www.youtube.com/@InvestorMelDaveDupuis
“Raising Private Money Like A Pro: $2m In Just A Few Months!”
https://www.youtube.com/watch?v=Epb08dAiKDs
For new and experienced real estate investors alike, the challenge of finding funding is one of the biggest obstacles to growing a profitable portfolio. If you’ve ever wondered how some investors manage to raise millions in private money, without begging banks or feeling desperate in front of lenders, you’ll want to pay close attention to the strategies shared by Jay Conner, known as the “Private Money Authority.” Recently, Jay joined seasoned investor couple Mel and Dave Dupuis for an in-depth discussion about the art and science of raising private capital for real estate deals.
Overcoming the “Bank Said No” Club
Jay’s real estate journey began traditionally, with bank financing. But in 2009, when his banker abruptly cut off his line of credit, Jay was forced into what he calls the “club of being told no by the bank.” Many investors find themselves here: good credit, a history of successful deals, but suddenly, institutional partners slam the door shut. For Jay, this so-called setback was the doorway to a better way: raising private money from individuals.
What Exactly is Private Money?
Private money, as Jay explains, is funds lent by individuals (not institutions) who are looking for secure, high-yield investment opportunities. Unlike hard money lenders, who often charge hefty fees and high rates, private lenders can be ordinary people—friends, acquaintances, or referrals—looking to invest their savings or retirement funds through self-directed IRAs.
Jay’s “Secret Sauce” to Raising Millions (Without Ever Begging)
Here’s where Jay’s approach is both counterintuitive and powerful: He never asks anyone for money. That’s right. Instead of pitching deals or putting on the hard sell, Jay puts on his “teacher hat” and educates potential private lenders about the opportunity to earn attractive, safe returns by acting as the bank. He keeps the educational conversation separate from any specific asks or deals.
The process goes like this:
- Teach, Don’t Pitch: Jay hosts one-on-one conversations or small luncheons to explain how private lending works, what kinds of returns they can expect, and how their investment is secured.
- Let Them Volunteer: By the end of the conversation, prospective lenders often tell him how much they have available to invest, sometimes even moving retirement savings into a self-directed IRA.
- The “Good News Call”: Once a suitable deal comes along, Jay updates his new lender with a simple call: “I have good news! I can put your $150,000 to work on a house in Newport next Wednesday.” He explains the terms, closing date, and logistics—but crucially, he never “asks” for the money. The lender has already expressed their interest and is waiting for the opportunity.
This approach eliminates desperation, builds trust, and positions Jay as a partner and educator, not a salesperson.
How Jay Protects His Private Lenders
A major reason people hesitate to lend is concern about risk and security. Jay addresses this upfront:
- Each loan is secured by a deed of trust (mortgage) on the property, just like a bank loan.
- Maximum loan-to-value is 75% of the after-repair value, not the purchase price, ensuring enough equity for safety.
- Private lenders are named as mortgagees on insurance policies and as additional insureds on title policies.
- Loans are set up with conservative timelines (typically two years), so extensions or surprises are rare.
- Most importantly, if Jay ever fails to pay, the property itself secures the lender’s investment.
From Scarcity to Abundance—Building Your Lender Network
Jay’s network now includes dozens of private lenders—none of whom had ever heard of “private lending” before meeting him. As he continues to perform, satisfied lenders often ask to invest even more. That’s how a $30,000 loan can quickly become a $200,000 relationship—sometimes with nothing more than the right question at payoff time.
Your Next Steps
Whether you’re a new investor daunted by raising capital or a seasoned pro looking for a better system, Jay Conner’s approach proves that trust, education, and solid systems will attract more funding than hard selling ever could. Focus on serving, protecting, and teaching your lenders, and the money will come—no begging required.
Want to learn more? Jay offers his book, “Where to Get the Money Now,” packed with practical details, and Mel and Dave’s podcast episode has even more tips. Ready to leave the “Bank Said No” club? Start building your private lender network today!
10 Discussion Questions from this Episode:
- Jay Conner describes how he was able to raise over $2 million in private money funding in under ninety days without ever directly asking anyone for money. What do you think are the key elements of his “secret sauce” approach?
- The episode highlights the importance of educating potential private lenders rather than pitching deals or sounding desperate. Why do you think this educational approach is so effective in building trust and attracting investors?
- Both Jay and the hosts mention being unexpectedly shut down by banks and how this pushed them towards private money and creative financing. How would you handle a similar situation if your access to traditional funding suddenly disappeared?
- Jay mentions that he operates in a very small market (Morehead City, NC) but still achieves significant profits per deal. How does investing in a smaller or less competitive market change the strategies and opportunities for real estate investors?
- The protection of private lenders seems essential in Jay’s model, such as using deeds of trust, conservative loan-to-value ratios, and insurance policies. Which of these protections do you find most reassuring, and why?
- Jay and Mel discuss overcoming the fear that new investors often have about borrowing other people’s money. What strategies or mindsets can help people get comfortable with leveraging private funds?
- The episode talks about “never pitching a deal,” but instead, separating the education of the private lending program from presenting actual deals. How might this change the dynamic between you and a potential investor?
- Jay emphasizes always raising capital before securing deals, contrary to the advice, “just get the property under contract and the money will show up.” What are the pros and cons of each approach?
- The listeners learn about the importance of establishing relationships with self-directed IRA companies for attracting private lenders using retirement funds. What are some advantages and potential challenges to this strategy?
- Jay mentions that, often, private lenders have more capital than they initially disclose, and simple questions can lead to more substantial investments. What steps can investors take to nurture and expand relationships with existing private lenders?
Fun facts that were revealed in the episode:
- Small Town, Big Profits: Jay Conner operates his real estate investing business in Morehead City, North Carolina— a town with only 8,000 people— yet his average profit per house deal is an impressive $82,000. He proves you don’t have to live in a big city to make big money in real estate!
- $2 Million in 90 Days—Without Asking for Money: Jay raised over $2.1 million in private money in less than 90 days and claims he’s never actually asked anyone directly for money. Instead, he focuses on educating potential lenders about the opportunities, leading with a “teacher’s hat.”
- Creative Financing Across Borders: Hosts Mel and Dave have purchased over 250 units in five different countries (Canada, the US, Mexico, the Dominican Republic, and Costa Rica) using creative financing strategies and private funds, showing that thinking outside the box can take your investments around the globe!
Timestamps:
00:01 Profitable Real Estate in Small Market
03:55 Investing in Outlying Real Estate
07:44 Private Lending with Self-Directed IRAs
10:52 Private Lending Program Pitch
15:58 Protecting Private Lenders
18:21 Private Lender Mortgage Protection Explained
21:06 Quick Property Turnaround Strategy
23:48 The Money Comes First in Real Estate
28:22 Investment Increase Inquiry
32:42 Consistent Leads Crucial for Success
33:48 Where to Get the Money Now!
38:05 Creative Real Estate Funding Insights
Connect With Jay Conner:
Private Money Academy 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
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
#RealEstate #RealEstateInvesting #RealEstateInvestingForBeginners #Foreclosures #FlippingHouses #PrivateMoney #RaisingPrivateMoney #JayConner
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcast:
Facebook:
https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
Building Real Estate Wealth in Small Markets Using Private Lenders
Narrator [00:00:01]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money, because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:00:30]:
Did you know that in less than ninety days, I was able to attract and raise $2,150,000 in new private money funding? And you know what? I didn’t ask anybody for money. And people ask me all the time. They say, Jay, how in the world do you raise millions of private money and you never ask anybody for money? Well, here’s the secret sauce, and then I’m gonna turn it back over to you all.
Dave Dupuis [00:01:06]:
Have you ever wondered how to raise capital? Today’s guest is an expert in that field.
Mel Dupuis [00:01:09]:
Plus, make sure to stay right till the end because he’s gonna give you a copy of his free book. I’m Mel.
Dave Dupuis [00:01:13]:
I’m Dave.
Mel Dupuis [00:01:14]:
And we’re the investor couple.
Dave Dupuis [00:01:16]:
Very excited about today’s episode. We’ve got a guest, Jay Conner. Today, Jay is gonna be talking about the secret sauce to raising capital. He’s gonna talk about how he structures the deal for security-wise. And then number three, he’s gonna talk about how to raise money without even asking for money.
Mel Dupuis [00:01:29]:
And if you don’t know who we are yet, Dave and I have purchased over 250 units using creative financing and with Thousand Year Venture Partners, and we’re investing in five countries: Canada, the US, Mexico, the Dominican Republic, and Costa Rica.
Dave Dupuis [00:01:40]:
And if you’re new to our channel, make sure to subscribe and hit the bell to get notified. We release a video every single week.
Mel Dupuis [00:01:45]:
Make sure to stay right till the end because you don’t wanna miss out on so many great tips that Jay’s gonna be sharing. Let’s get started.
Dave Dupuis [00:01:52]:
Alright. So we wanted to welcome our guest today, Jay Conner, known as the private money guy, with whom we happen to be in masterminds together. We’ve had the pleasure of meeting in Tampa in, in September. So, yeah, Jay, welcome to our show. Welcome to our audience.
Mel Dupuis [00:02:06]:
Happy to have you here today. I know you get a price so much value to everybody.
Jay Conner [00:02:11]:
Dave and Mel, I’m so excited to be here on your show, and that’s because we’re gonna be talking about my favorite subject in real estate investing, which is private money. And why is it my favorite subject? Because private money’s had more of an impact on our real estate investing business than any other strategy that we’ve ever done.
Dave Dupuis [00:02:29]:
I agree. Private money has been a game changer in our portfolio, and by the sounds of it, your portfolio and the people that you help. So, couldn’t agree with you more, Jay. It’s a great way to open up the conversation. But, yeah. Tell us more. Tell our audience so they get to know you a little bit more. But who is Jay Conner?
Jay Conner [00:02:47]:
Right. Well, my wife, her name’s Carol Joy. She’s originally from Texas. We live here in Eastern North Carolina, which is my hometown, where I grew up. We’re in a small town. It’s called Morehead City, North Carolina. And Morehead City’s only got 8,000 people in it. Our total target market, and we’ve been full-time in real estate investing since 02/2003.
Jay Conner [00:03:08]:
But our total target market is only 40,000 people here in Eastern North Carolina, which is a really, really small market. Now, we do two to three deals a month. In this market, we’re flipping most of them. Our average profit right now per transaction is $82,000 per house per deal we’re doing. And I don’t say that to brag at all. I say that to make a point. And that is, you don’t have to be in a big market to make significant income. And if you can make $82,000 a deal, you don’t need to do that many deals, you know.
Jay Conner [00:03:42]:
Well, you’ve just
Mel Dupuis [00:03:43]:
Got all the audience tuned in listening to you saying, Wow. That’s amazing. I’m excited. I’m living in a small market. Our one best where returns are best. So, I mean, that’s not little money. That that’s that’s life changing. Right?
Jay Conner [00:03:55]:
Once you’re Sure. Absolutely. And I mean, there’s a strong argument to be made to invest in the outlying areas, not in, like, the middle of the big city where you’ve got all that competition. So, you know, for, like, in our circumstance, we are a big fish in a very, very small pond. Not many other, you know, full-time real estate investors that I even know of here in the area. But my background as to how we got involved with private money, the first six years that we were investing here, and this is where we’ve been investing all these years. From 02/2003 until 02/2009, January 2 thousand 9, to be exact, I relied on the local banks to fund my deals. I never heard of your expertise back then, those first six years of creative financing and subject to, and seller financing.
Jay Conner [00:04:46]:
And I never heard of wholesaling. I had never heard of private money. I had never heard of self-directed IRAs and how people can take their retirement funds and be a passive real estate investor and be a private lender to us, real estate investors. I hadn’t heard of any of that. All I knew to do was to go to the local bank, get on my hands and knees, and put my hands underneath my chin and say, Please fund my deal. Please fund my deal. And, you know, give my tax returns and ver you know, verification of income and W2s and all that jazz. So January 2009, everything changed, like immediately.
Jay Conner [00:05:26]:
Now, where you all live, you may not have any longer what these things we call handsets with cords attached to them. That’s a, that’s a, you have cell phones. Right? Well, we actually still have landlines here in North Carolina. Anyway, I was sitting here at my desk in January 2000 and 9, and I called up my banker. His name was Steve. And Steve had funded a lot of my deals. I mean, all of my deals, to tell you the truth, from 02/2003 to 02/2009. Well, I had two houses under contract in January 2009.
Jay Conner [00:05:58]:
I called up Steve. We had a little chat. I told him about the two properties. They represented over a hundred thousand dollars in profit, just between those two deals. And I told him the funding required for the deals. Well, I learned like that over the telephone that my line of credit had been shut down, with no notice. And, you know, my first thought was, you know, I wish somebody had told me, like Steve at the bank, that my line of credit had been shut down anyway. So I said, Steve, what do you mean my line of credit’s been shut down? I got a great credit score.
Jay Conner [00:06:33]:
We’ve done a ton of deals in six years. Why was my line of credit closed with no notice? He said, Jay, don’t you know there’s a global financial crisis going on right now? I said, no, but now you just gave me a global financial crisis because now I can’t fund these two deals, and I was relying on you to fund them. He says, Well, sorry. We’re not loaning out money to real estate investors. So I hung up the phone and I asked myself a very, very important question. I asked myself, I said Jay, who do you know that can help you with your problem? And by the way, these people are running around saying every problem’s an opportunity. I wanna throw up. I didn’t have an opportunity.
Jay Conner [00:07:14]:
I had a problem. I didn’t have a way to fund my deal. Right? So immediately when I asked myself that question, I thought of Jeff Blankenship, who lived in Greensboro, North Carolina, at the time, a Good friend of ours through church, through singing events, and stuff. And I called him up and I told him what had happened. He said, Well, welcome to the club. I said, What club? He said the club is being shut down at the bank. They shut me down last week. I said, well, how are you gonna fund your deals? And he says, well, have you heard of private money? I said, no.
Jay Conner [00:07:44]:
He said, Have you heard of self-directed IRAs and how people can use retirement funds to lend money out as a private lender to real estate investors, either tax deferred or tax free? I said, for goodness’ sake, no. So I hung up the phone with Jeff, and I studied private money. Now, by the way, let’s be clear. I’m not talking hard money. By the way, I got some great friends and you all do too, who are hard money lenders, but I’m not talking hard money in this conversation. I’m talking about borrowing money from individuals, just like you and me, from either their investment capital or their retirement funds. So I put my private money program together. What’s my private money program? It’s like, what am I gonna offer individuals, you know, potential private lenders, you know, to be a private lender with us? And so I put my program together.
Jay Conner [00:08:31]:
What interest rate am I gonna offer? What’s my terms gonna be? Frequency of payments, etcetera. So I put that together. I learned about self-directed IRAs. I established a relationship with a self-directed IRA company that, when people have retirement funds, I can refer them to. So here’s what I did. Did you know that in less than ninety days, I was able to attract and raise $2,150,000 in new private money funding. And you know what? Here’s what’s interesting about it. I didn’t ask anybody for money.
Jay Conner [00:09:02]:
Since I started raising private money, I’ve never asked anybody for money. We have 47 private lenders right now that are funding our deals, and we’ll have a bunch of projects going on. And people ask me all the time, they say, Jay, how in the world do you raise millions of private money and you never ask anybody for money? Well, here’s the secret sauce, and then I’m gonna turn it back over to you all.
Dave Dupuis [00:09:26]:
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Dave Dupuis [00:09:49]:
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Dave Dupuis [00:10:12]:
Let’s get back to the episode.
Jay Conner [00:10:13]:
The first thing I did was put on my teacher hat. My teacher hat, which says private money teacher. And so I didn’t pitch any deals. I’ve never pitched a deal in all these years. So what did I do first? And here’s the secret. I separate the conversation of teaching the private lending program and how people can earn high rates of returns safely and securely, and the kind of returns they’re gonna get. I separate that conversation with offering them any kind of a deal to fund. Because desperation’s got a smell to it.
Jay Conner [00:10:52]:
And if I’m talking about a deal and my private lending program, what I’m gonna offer, I already sound desperate, and I’m not even trying to. So first, I teach the program. I’ll do that at a private luncheon and have 15 or 20 people there, or just on one. And I don’t have to ask them. They tell me how much they’ve got at the end of that conversation. If it’s investment capital, is it retirement funds, etc.. And, say, well, hey, I’ve got X number of dollars I’d like for you to put to work. I said, okay, I will give you a call probably within the next couple of weeks, at the most thirty days, and I’ll have a deal for you to fund, and I’ll put your money to work.
Jay Conner [00:11:28]:
So we ended that conversation. Now, the second part of that is I call them up with what I call the good news phone call. So I call them up and let’s say, oh, shoot. Mel, let’s say you’re one of my new private lenders. And let’s say you have said, I’ve got 150,000 that you’d like to get that kind of return on. So I’ll call you up. We’ll We’ll have a little chat. And I’ll say, ma’am, I’ve got good news for you.
Jay Conner [00:11:56]:
I can now put your hundred and 50,000 to work. I’ve got a house in Newport under contract with an after-repaired value of $200,000. The funding required is $150,000, and closing is gonna be next Wednesday. So you’ll need to have your funds wired to my real estate attorney by next Tuesday. I wanna have my attorney email you the wiring instructions. End of conversation. Notice I did not ask you if you wanted to fund the deal. Of course, you wanted to fund the deal. You’ve been waiting for the good news phone call.
Jay Conner [00:12:29]:
And particularly, if you have moved your retirement funds or a portion of them over to a self-directed IRA, you’re not making any money on that money. And you’re actually, I’m ethically bound to put your money to work because you moved it over to a self-directed IRA company that I recommended you move it to. So again, it’s all about leading with a servant’s heart. It’s all about educating. We’re not selling, persuading, chasing, or trying to talk anybody into anything. Instead of asking for a mortgage or mortgages, we’re offering mortgages.
Dave Dupuis [00:13:04]:
Jay, that is refreshing. I love how you’re doing it. I love the good news phone call. I love the secret sauce. Our listeners are probably loving it. Well, I’m not probably they are loving it as well because that’s why they’re following us as creative financing and real estate. Two things that you said that resonated with me were Welcome to the bank said no club. When you get into that club, not by choice.
Dave Dupuis [00:13:22]:
Right? Whenever you’re kind of put into that club, at first, it’s a, what do you mean you don’t wanna finance me? Great credit score, great history, great total debt service. All and no. You’ve hit your credit limit at the financial institution. You’re now kind of a burden and a credit or, you know, a risk from the risk assessment team. And same with us. We were pushed into creative financing.
Mel Dupuis [00:13:42]:
Who knew, Jay? We were in the same spot for not.
Jay Conner [00:13:45]:
being a
Mel Dupuis [00:13:45]:
Boss together and friends. We’re now we’re at this club together, too. Right?
Jay Conner [00:13:50]:
Well, I’m I’m glad we’ve got some I’m glad we got some war stories we can share.
Dave Dupuis [00:13:55]:
Yeah. It does. Exactly. And I love what you say. And just the mindset, guys, around all of this. If you’re thinking, well, you know, Jay, that might sound easy for you, and, Melonie, that might sound easy for you. It’s all about how you look at things. And even in the beginning, we took the same approach as what Jay is saying, is you’re not necessarily pitching.
Dave Dupuis [00:14:14]:
You’re not having that desperation. You’re planting the seed, and then you’re if someone moves the money over, you know they’re very serious. And then when you call them back with the deal, and if you have a solid deal, like Jay was just saying, had the solid deal, had the after-repair value, like, it becomes a no-brainer for them. So I love how you’re doing things, Jay.
Mel Dupuis [00:14:33]:
And I’d love to tap into that a little bit more because I know sometimes, you know, that’s the fear, of course. If ever you’re gonna lend out somebody’s money, that was my fear when borrowing money. I need to make sure I have my exit strategy, never touch a penny ever, ever, ever, unless you know exactly how you’re gonna be paying it back, and on over leverage and all those kinds of things. But how do you know, somebody says, okay. I have a hundred thousand dollars to invest with you, but I am fear. You know, you have a deal, but I don’t fully, I guess, how do you go about making sure that, you know, how to, of course, ensure that you can pay them back?
Jay Conner [00:15:03]:
Sure. Sure. Well, if a lender is a potential lender, and by the way, all 47 of these private lenders that we have today, not one of them has ever heard about private money. Not one of them had ever heard of self-directed IRAs. And by the way, over half, over 50% of our private lenders are using their retirement funds. So here’s an actionable item for those of you who are listening to this show. And that is, you want to establish a relationship with a self-directed IRA company so that you can refer your new private lenders to them, or they’re not going to be able to loan their retirement funds out to you. But as far as reducing the fear, or nervousness, or whatever, of a new private lender moving forward, all that is fixed in the program that we share.
Jay Conner [00:15:58]:
So it comes down to the question is how the private lenders are protected? Right? So I’ll first start answering the question by sharing a question that I hear from new real estate investors a lot. And that is, they’ll say, who’s gonna loan me money when, you know, they can say, I got a fear of asking for money. Well, the answer to that, the answer to that statement is, how can you fear rejection when you’re not asking anybody for anything? I’m not asking anybody for anything. I’m educating. I’m teaching people what this program is, what this opportunity is. Right? So I’m just sharing. As far as reducing the fear of a lender, it comes down to, as I said, how we’re protecting them. So, how do we protect our private lenders? Well, first of all, we don’t borrow any unsecured funds.
Jay Conner [00:16:48]:
You can. You can. You can legally borrow unsecured funds. You can give a promissory note and or you can shake hands. But for goodness’ sake, don’t do that. Right? You wanna protect your private lenders. We give them in North Carolina. It’s called a deed of trust.
Jay Conner [00:17:03]:
Most people call it a mortgage. So all of their funds that they’re lending to us are backed by the real estate that we are purchasing. Now, private money can also be used for refinancing. It doesn’t have to be used for purchasing. You can have equity in some properties, and you can pull some cash out of them by using private money. But anyway, so number one, we’re going to secure them with the mortgage. Number two, in addition to that, we’re going to make it conservative. Loan-to-value.
Jay Conner [00:17:32]:
So we’re not gonna borrow more than 75% of the after-repaired value. Notice I didn’t say 75% of the purchase price. 75% of the after-repaired value. And the little example that I gave a minute ago on I’ve got an after-repaired value of $200,000 on a house in Newport, and the funding required is $150,000. Notice that it was 75% of the after-repaired value. Just as a side note, we always bring home a big check if there’s gonna be a rehab or renovation on the property. By the way, private money works for single-family houses and commercial, of course. We just structure the notes differently. And are they investing in a fund? Everything I do with single-family houses is what’s called one-off.
Jay Conner [00:18:21]:
What’s a one-off? That means you got a private lender or maybe a couple of private lenders that are funding a single-family house, and they each have their promissory note, their own deed of trust. So, back to how they’re protected, they’re getting a mortgage. We’re not going to borrow more than 75% of the after-repaired value. In addition to that, we are going to name them on the insurance policy, the property and casualty insurance policy, as the mortgagee. So just like borrowing money from a bank, if you borrow money from a bank and get a mortgage, well, that bank’s gonna be named on the insurance policy as the mortgagee. Which means, if there’s ever a claim against that insurance policy, then the lender, the private lender, or the bank, that check’s gonna be made payable to them and to your entity. So they gotta sign off on it. Right? So that gives them another layer of protection.
Jay Conner [00:19:15]:
We also name our lenders on the title policy as an additional insured, in case there are any title issues, you know, down the road. So here’s the bottom line. If I, the borrower, do not pay the private lender, the property does. It’s that simple. Now, of course, they don’t want the property back. You know, they don’t even want you to do a deed in lieu. They don’t want to mess with it. That’s why they want to be a private lender.
Jay Conner [00:19:41]:
They want to be a passive investor and not have to mess with all that. But that is their recourse. That’s their protection. And of course, with the way we do the numbers, they would make more money on the resale than the interest that we’re gonna pay them. Nonetheless, that’s how we protect them.
Dave Dupuis [00:19:58]:
I love that you’ve got and you always have to, but I love that you have parameters and, you know, we’re never going over this. Right? We follow a system. We don’t deviate. The loan-to-value or sorry. The ARV, you put x amount on, you know, put the name in the title insurance. You name them in the so I love that you have all those systems. Right? So that before people even ask the question, do you say we do this, this, and this, which gives you security in the asset? I guess one question that I had is what is the typical turnaround time on that, Jay? Like, on, let’s say, your typical deal, like that deal you were mentioning. What would be your, yeah, your turnaround time on that?
Jay Conner [00:20:32]:
Yes. So we set all the notes up for two years. Two years. But, typically, we’re not gonna be using the money for two years on that particular deal. We just do it for two years instead of one year, just so we don’t have to do an extension or whatever on the note. One reason that it takes us well, first, let me answer the question of how long. We’re doing so many houses simultaneously, and I work with two different general contractors, and we have our crew as well. And so, we may have, like right now, we’ve got six properties going simultaneously.
Jay Conner [00:21:06]:
And typically, when we close on a house or a property, it may sit there for three months before the crew starts on it. Our average rehab now is running between $40,000 and $60,000. So typically, we’re gonna be in and out in two to three months, and then we’ll put them on the market. So our average turn time right now is about nine months from the time we buy it. The renovation is completed. Landscaping is in. We do a music video on every deal that we’re gonna list that goes in the multiple listing services. But the demand is so high around here, we just put a house on the market about three weeks ago on a Friday. And by Sunday, we had 22 showings.
Jay Conner [00:21:53]:
22 showings. Can you believe? But so yeah. So we’re typically in and out within about nine months right now.
Dave Dupuis [00:22:01]:
Something you just said, sometimes you might have a property sit for three months before the crew can turn around. And this is something, listeners, you’re carrying costs. Some people might think, hey. The day I get the property, we’re demolishing. We’re doing that’s not the reality of, and you know this better than anyone, Jay. That’s not the reality of you don’t get the keys, and unless you’re doing it yourself, and you’re starting to do some of the demo, and depending on where you’re doing it, and the building department, and that type of thing. But you’re being realistic. You’re giving yourself, sometimes there might be some carrying cost, some lag time, and I’m sure that’s all in your calculations.
Dave Dupuis [00:22:33]:
I also love that you said, Dave, in your note, tons of runway. And this is a mistake I see with a lot of people who raise capital. They just wanna get the money, a nd they’ll say, yes. Six months. Yes. Twelve months. And then they don’t give themselves enough runway. They have issues, and they’re going back with their, for lack of better wording, maybe their tail between their legs.
Dave Dupuis [00:22:52]:
I’m like you. I’d rather ask for two, and it takes me eight months, and I pay everyone back, and I never have to do an extension. So we’re very parallel in our mindsets and our procedures. I love that you do it that way, too.
Jay Conner [00:23:04]:
Absolutely. So I’m getting ready to say something, Dave, and I’m gonna I’m taking a risk. Uh-huh. I’m taking a risk when I say this. So if you say what I’m getting ready to say, so my apologies, but I’m gonna tell my story anyway.
Dave Dupuis [00:23:19]:
Yeah.
Jay Conner [00:23:19]:
So, what let me tell you what drives me crazy. I tell you what just drives me nuts, and I know you’ve heard it. I know you’ve heard it over a hundred times, and you’ll have educators, gurus, teachers that are, you know, teaching real estate investing, and here’s what they’ll say. They’ll say, Oh, just get the property under contract. The money will show up. Have you ever heard that?
Dave Dupuis [00:23:45]:
I have heard that multiple times. Yes.
Jay Conner [00:23:48]:
Yes. And you know what? I wanna go, I wanna look up at the clouds, and I wanna say, where? Where is the money going to show up? Right? Where do I mean where? Where’s it going to show up? Where you go, I mean, listen. I have never put a house under contract or property under contract that I didn’t know where the money was coming from. I mean, talking about stress, I mean, look, the worst time to ever be raising private money or attracting private money is when you need it for a deal. Right? And I mean I mean, just just think about how much more confident that you will be, and I’m speaking to the audience today, think about how more confident real estate investors are on making offers When you know you’ve got $500,000 or more, or, you know, if you’re in California, you probably want a million, burning a hole in your pocket waiting for you to make an offer. You know, so that’s why I practice and that’s why I preach. The money comes first. There’s always gonna be deals.
Jay Conner [00:24:55]:
There’s always gonna be deals. And of course, you and Mel are experts in the world of creative strategies. I buy a lot of houses, subject to as well. So actually, my exit strategy is if I buy it on terms creatively, then I wanna sell it creatively. Right? I wanna stay in that deal typically, unless the profit is like insane. But when I’m buying all cash with private money, I’m typically gonna want to cash out instead of, you know, continuing to pay the private money interest and that kind of thing. However, I did i, I did it another way for many, many years. I used to rehab all of them, using private money, and then I would let the market speak.
Jay Conner [00:25:35]:
And this is when the market was slower back then. I’d either put it in the multiple listing service, but I might also sell it on rent-to-own. But anyway, that’s my general rule of thumb now. Pay with cash, private money, cash out, buy with terms, sell on terms. But anyway, I don’t know how I got off on that.
Dave Dupuis [00:25:53]:
No. No. And I love that, Jay. And Mel and I were the same as well. On some of our deals that we’ve exited, we’re holding mortgages, right, for them. So we went into it with seller financing. We mortgage, right, for them. So we went into it with seller financing.
Dave Dupuis [00:26:04]:
We exited with seller financing. And, audience, think about this. To to reiterate what Jay has just said is, if you can get into a deal with as little of your own money as possible, and other people’s money, right, done correctly, creative financing, your return on investment, creative financing, your return on investment x becomes infinite. Right? The asset continues to cash flow if you’re doing long-term buy and hold, or if you’re flipping it, like Jay was mentioning. If you continue to hold the asset and you continue to make interest on that, like, you keep making money off that same deal. Like, the deal just keeps pumping out money. So I love that, Jay, you’re open to that as well. And something you had mentioned about we’re this, we’re so parallel, so many ways.
Dave Dupuis [00:26:45]:
I agree with you on I see some people who get a deal under contract. They’re scrambling for money. Sometimes they even go firm, and they don’t even know where the money’s coming from. We’re like, oh my gosh. Don’t do that. So we’re continuously raising capital as well. And I find that confidence comes. So, hey.
Dave Dupuis [00:27:00]:
If I’ve got five different lenders that I’m speaking to and I’ve got a particular property, it’s gonna be, hey. Whoa, who wants that at first type thing? It’s not the other way around, doing of getting a deal and then hopefully not coming up, and then trying to find money. So I a % agree with you.
Jay Conner [00:27:13]:
Absolutely. And by the way, let me go ahead and share a tip. One of the easiest ways to raise even more private money is when you are cashing out or selling a property and paying off one of your private lenders, that alone. Just a couple of weeks ago, we sold this property, and one of my private lenders, whose name is Terry. And, of course, I informed Terry that we were cashing out. So she only had $30,000 in second position on this house we were cashing out. That 30,000 we had used towards rehab, right, of the property. So I called her up.
Jay Conner [00:27:52]:
I said, well, look, we’re cashing it. By the way, as a side note, we’ll do a lot of substitutions of collateral or loan modifications where the private lender wants to keep that smaller amount of money invested. And so if we’re starting another project, we may keep the note in play, but just substitute the collateral of that note without paying them off. Anyway, that’s beside the point. So I call up Terry. I tell her I’m cashing out. And here’s the question. An easy way to raise more private money is just by asking a simple question.
Jay Conner [00:28:22]:
And here’s what I said to Terry. I said, we’re we’re paying off the 30,000. And I said, by the way, would you like to add any more investment capital to the 30,000? And look, I wasn’t asking for money for a deal. I just asked her all framed with, Do you want to make more money? Is what it’s coming down to. Would you like to add any more to your $30,000? And she said, well, how much could you use? And I said, well, I’ve got some private lenders at $30,000 like you. I’ve got other private lenders that have over a million with us and everything in between. He said, she said, well, can I think about it until tomorrow? I said, sure. And so, she calls me up the next day, and she says, Well, how fast do you think you could put $200,000 to invest instead of the 30? And I said, oh, probably within about a month or so.
Jay Conner [00:29:19]:
And, she said, okay, I’d like to go 200. So that 30,000 with just my one simple question became an additional 170,000 by just asking the question, would you like to add more to your investment capital? So you’ve already proven yourself. You’re paying them off. They’re getting their principal back. They know they’re not gonna make any more money until you get it reinvested for them in a property. And so, it’s a simple question, very easy to raise. And what had happened was that she had a family member who passed away. So she had just recently come into this extra money that I didn’t know about.
Jay Conner [00:29:59]:
I just asked her if she wanted to add more to her 30,000. So that’s a downer. Always ask the question, particularly when you’re paying off.
Dave Dupuis [00:30:09]:
Okay, Jay. And, audience, take note of that because we’ve had similar instances. So, exactly like Jay is saying, you never know how much money people have in the background. In this particular situation, it was an inheritance. Right? No one can foresee that. It could have been that this person was maybe trying as a trial run. Right? They might say they have 30k, but they’ve got 200k in their bank account. So we say this all the time with private lenders.
Dave Dupuis [00:30:33]:
No matter what the you might have a certain minimum, but sometimes, again, don’t just knock people out of the pool to have those smaller amounts because they might have bigger amounts. The same thing I find with our seller financing, we do a deal with someone. They hold a mortgage for us. We pay them back. Everything goes well. And next thing you know, hey. I’ve got five properties that I’m looking to do the same thing with. So you never know how many or how much money people have and what type of assets they have.
Dave Dupuis [00:30:57]:
So I love that story, Dave. Hey, 30k went to 200k in
Jay Conner [00:31:02]:
In a pretty quick instance. Exactly. Well, Dave, you know, what you just said triggered another truth that I know for you. I never know how much a private lender has, but I do know this. They always have more than they tell you.
Dave Dupuis [00:31:18]:
Well, a % like, just think. Okay. When you’re sometimes you’re filling out something online or a website, and they ask you what you you never really give your full information. Right? You typically, you know what? I’ll I’ll wait till I’m, you know, more in front of a person. So it’s the same thing with private lending. They’ll give you a number. But, again, I agree with Jay. There’s probably some reservation and maybe a little bit more in the background.
Dave Dupuis [00:31:40]:
So I love that tidbit, that nugget of information. That’s it. That’s awesome stuff, Jay, for private money. And people following us and listening to this are interested in that private money realm. So that’s cool.
Jay Conner [00:31:50]:
Absolutely. Absolutely. It’s my subject that I’m passionate about.
Dave Dupuis [00:31:56]:
Okay. That’s awesome. And when you’re passionate about something, it comes easily. And you had mentioned earlier, and this is something I wanna talk about. If you’re listening to Jay and me and you’re thinking, how do I do this? You know, this is hard. We’ve all been in that instance where now Jay probably has to turn people away. I know sometimes, we have to say, hey, guys. We have to find the perfect deal before we put your money to work.
Dave Dupuis [00:32:18]:
And this problem, I shouldn’t call it a problem. This opportunity, this problem comes to you as you go along your journey. Okay? So, just because you don’t have a bunch of people looking to invest with you yet, again, I preface the word yet, it will happen one day with consistency and the proper coaching and teaching, and knowledge. So this could be you one day saying I’ve got a lot of private lenders, and I’ve gotta find the perfect deal for them before I can put their money to work. It comes with time.
Jay Conner [00:32:42]:
Absolutely. Well, right now, I reviewed yesterday, I think it was yesterday morning, I reviewed what private money we have available from all our different lenders that are looking for it to be put back to work. And, you know, it’s about a million and a half that’s just sitting in their bank account waiting to be wired to our real estate attorney’s trust account. And so that I mean, that’s something to be aware of. I mean, you wanna have your marketing machine turned on to where you have consistent seller leads coming into your funnel, coming into your marketing funnel every day, every week. And I tell real estate investors all the time. I say, you know what? If you don’t have consistent seller leads, motivated seller leads coming into your pipeline, you do not have a business; you have a hobby. It’s gotta be consistent.
Dave Dupuis [00:33:33]:
I like that. Words of wisdom. I like that from Jake. Right? Been there, done that. I love it. Okay. So, Jay, I know we had said in the beginning that, that you would be giving, you know, away your free book to everyone with your Yes. We thank you so much.
Dave Dupuis [00:33:47]:
Tell us more. Again, how do the
Jay Conner [00:33:48]:
Absolutely. Well, I’ve reached a point in my life that I’m all about wanting to give back and share what has, you know, what’s worked in my world. So, I finally, I finally, wrote my book, which is called Where to Get the Money Now, and by the way, this is not an ebook. You can’t download the book. We have to mail it to you in the mail. We send it three-day priority. And so the name of the book is Where to Get the Money Now, subtitle, How and Where to Get All the Money You Would Need for Your Real Estate Deals without relying on traditional or hard money lenders. So in this world, we make the rules.
Jay Conner [00:34:28]:
You know, when I was borrowing money from the banks, they made the rules. They set the interest rate. Well, in this book, I’ve already laid out for you the exact program that I offer our private lenders. What’s the interest rate? How can they get their money back in case of an emergency? And they need to call Manote Due. How’s that work for them? How’s that work for you? We’ve got it all in here. Well, this book is $20 on Amazon. But since you are listening to Dave and Mel, you get the book for free. Just cover shipping.
Jay Conner [00:34:59]:
So here’s the URL to where you can get this book shipped right out to you. I’ll autograph it for you and we’ll rush it right out to you.
Dave Dupuis [00:35:07]:
Wow. Jay, that’s so amazing. Listeners, guys, definitely get this book. You can’t pass this up. Jay, that is so, you know, Mel and I greatly appreciate that. That’s so generous of you. I love it. People can take advantage of getting your book for free by paying for that.
Dave Dupuis [00:35:22]:
We’re gonna put it in the show notes as well. So if you’re like, oh, I didn’t write that down. Don’t worry. It’s gonna be below. You guys will be able to click it. If people wanna reach out to you, Jay, whether they wanna learn your message, whether they wanna lend money to you, like, what’s the best way for people to get in touch with you?
Jay Conner [00:35:37]:
Sure. Well, when you order the book, you’re gonna have our office number. You’re gonna have all of our contact information. If you don’t want the book, then, of course, we’ve got free resources at just the main website, which is jConner.com.
Dave Dupuis [00:35:50]:
Oh, that’s awesome.
Jay Conner [00:35:52]:
And by the way, this may be a shocker to one or two of your listeners, but when you call our office, we answer the telephone.
Dave Dupuis [00:36:01]:
I don’t know.
Jay Conner [00:36:02]:
I can’t. There’s none of this press 1 for this and 2 for this and 3 for that. We say, thank you for calling the office at Jay Conner. How can we serve you?
Dave Dupuis [00:36:15]:
That is extremely rare nowadays, speaking with an actual human and speaking on the actual telephone with us. That’s amazing, Jay, that you guys, you guys offer that. But, Jay, yeah. No. So many nuggets, guys. If you watch this, I think you should rewind and watch this again. Jay has dropped so many nuggets of information and knowledge from experience, years of experience, tons of deals. Raising private money is one of the biggest things we get asked all the time.
Dave Dupuis [00:36:39]:
So if you watch this and you didn’t fully grasp everything, this was a good one. K? So go back, watch it again, reach out to Jake, get your free book, get the resources from him, reach out, call him if you want, call his team. But, Jake, couldn’t thank you enough. Thank you so much for being on our episode and providing so much value to the audience.
Jay Conner [00:36:58]:
Absolutely. Dave, thank you so much. And by the way, here’s another way that, audience, you can reach out to me and follow me. And that is, come check out my podcast, which I know is gonna be hard for you to believe. The title of it is Raising Private Money with Jay Conner. And so, we do two episodes a week. We release them on Monday mornings and Thursday mornings. We’re coming up on episode number 700 right now.
Jay Conner [00:37:25]:
And we always interview people and ask them how they go about raising private money. And guess what? Dave and Mel are gonna be joining me on the podcast, and it’s gonna be my turn to ask them questions. We’re gonna talk about how they’ve raised private money for their deals and how they go about using creative financing. So, Dave, I can’t wait to have you and Mel join me on my show.
Dave Dupuis [00:37:47]:
Yeah. Same here, Jay. And I’m sure this isn’t the only one we’ll do with you. I’m sure we’ll have you back over the years, and couldn’t be happier to have you on. Couldn’t be happier to be in a mastermind with you. Jay, our our pleasure. Thank you so much for coming here today.
Jay Conner [00:37:59]:
Dave, thank you so much, and God bless you. Look forward to seeing you soon.
Dave Dupuis [00:38:05]:
Wow. What a great episode. I love that Jay was talking about not even having to ask people to raise funds, number one. Number two, the group of banks saying no. If you’re starting to invest in real estate or you’ve been investing for a while, this will be a reality. At some point, the banks are gonna say no, and you’ll have to go into the creative financing route. But Jace makes it sound so simple and easy. He’s been doing it for so long.
Dave Dupuis [00:38:27]:
So, yeah, definitely reach out. Get his free book. I’m so grateful that he’s doing this for our audience, the Investor Mel and Dave community. So what a great episode. Jay is crushing it, raising money is right up your alley. You’re an expert at it. And if you like this episode, make sure to check out the next one. I’m Dave, and I’ll see you there.
Narrator [00:38:45]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide, and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/MoneyGuide to get your free guide. We’ll see you next time on raising private money with Jay Conner.