***Guest Appearance
Credits to:
https://www.youtube.com/@Marketing-Boost-Solutions
“Money Chases You: Real Estate Funding Secrets with Jay Conner”
https://www.youtube.com/watch?v=yure7pj9hZc
If you’re a real estate investor or dream of diving into property investing, one of the first hurdles you’ll face is finding the money to fund your deals. Traditionally, this means begging banks for loans or paying dearly for hard money lenders. But what if there was a smarter, safer, and more profitable way? That’s exactly the approach Jay Conner—dubbed “The Private Money Authority”—has perfected, and he recently shared his wisdom on the Marketing Boost Solutions Podcast with Captain Marco Torres.
For anyone involved in—or intrigued by—real estate, Jay’s journey and innovative strategies are nothing short of eye-opening. In a small North Carolina town of just 40,000, he’s flipped over 500 homes and managed deals worth over $118 million. Even more impressively, he averages $82,000 in profit per transaction—all by leveraging private money instead of relying on traditional lenders.
Jay’s Turning Point: From Bank Rejection to Private Lending Pioneer
Jay’s story took a dramatic turn in 2009 when, like many investors in the wake of the financial crisis, his bank cut him off from credit—out of the blue and without warning. Staring at two deals about to collapse, Jay recalled the power of his network, asking himself: “Who do I know who can help me?” This led him to discover the concept of private money through a fellow investor and the renowned trainer Ron LeGrand.
Private money, Jay learned, is entirely different from the “hard money” most investors know. Hard money lenders are institutions that operate like banks, charging high interest rates, origination fees, strict underwriting, and requiring hefty down payments. Private money, on the other hand, comes from individuals—regular folks who want to earn a solid, secure return on their capital without the headaches of direct real estate investing.
How Private Money Works (and Why It’s a Game Changer)
With private money, Jay flipped the traditional model. Instead of the lender making the rules, Jay became his underwriter. He created a straightforward program: offer 8% interest, secured by a deed of trust or mortgage, without points or junk fees, and only borrow up to 75% of a property’s after-repair value. This minimizes risk for both parties and builds trust.
The most powerful part? Jay never asks for money directly. Instead, he educates potential private lenders—often people in his network or through business organizations like BNI (Business Networking International)—about the benefits and process of private lending. Once someone is interested and sets up a self-directed IRA or allocates other funds, Jay simply calls with the “good news”: a deal is available that matches their investment profile. They send funds directly to the closing attorney, and the wheel turns.
The Benefits and the Bigger Picture
The advantages of private money ripple throughout the process. Deals close faster because there’s no lengthy bank approval. Borrowers (that’s you, the investor) make the rules and keep more of the profits, while investors enjoy a passive, predictable return on secured real estate. Once Jay implemented this model, his business didn’t just recover—it tripled. He has never missed a deal for lack of funding since.
Anyone—from local friends and business associates to existing private lenders found through specialized data feeds—can become a private lender. And while Jay’s system works wonders for single-family homes, the principles can apply to larger projects as well.
Ready to Learn More?
Jay Conner’s methods are a breath of fresh air for anyone seeking financial independence through real estate. If you’re tired of bank gatekeepers and want money to seek you out (not the other way around), step into the world of private money.
Get a free copy of Jay’s book, www.JayConner.com/Book, or tune in to his podcast “Raising Private Money” for weekly insights and real-life success stories. As Jay says, “Nothing’s going to change in your life unless you take a little action.” In real estate—and life—the money really can come first.
10 Discussion Questions from this Episode:
- Private Money vs. Hard Money:
How does Jay Conner distinguish private money from hard money, and what are the practical benefits for real estate investors in using private money for their deals? - Teacher vs. Negotiator Mindset:
Why does Jay emphasize being a “teacher” rather than a “negotiator” when approaching potential private lenders, and how does he structure his presentations to prospective lenders? - Overcoming the 2009 Funding Crisis:
What pivotal moment did Jay experience in 2009 that led him to shift from traditional bank financing to private money, and how did this change impact his business? - Sourcing Private Lenders:
Jay breaks down three main sources for finding private lenders. What are they, and what strategies does he use to tap into each source? - Private Lending Criteria:
What specific criteria does Jay set when structuring private money deals (such as interest rates, collateral, and loan-to-value), and how does this protect both the borrower and lender? - Substitution of Collateral:
How does Jay use the “substitution of collateral” strategy, and why is this important for keeping private lenders’ funds continually working and earning interest? - Problems with ‘Too Much Money’:
Jay mentions that the biggest challenge with his method is having more money available than deals. How does he manage this challenge and keep his private lenders happy? - SEC Regulations:
When does the SEC (Securities and Exchange Commission) get involved in private lending, and how does Jay’s approach to one-off deals avoid regulatory complications? - Building Investor Relationships:
What role do trust and relationship-building play in Jay’s private money strategy, and how does he ensure that new investors are comfortable and informed? - Education and Action:
Jay credits much of his philosophy to mentors like Zig Ziglar and emphasizes taking action. How does education and mindset impact success in raising private money, according to Jay’s story?
Fun facts that were revealed in the episode:
- Jay Conner Has Flipped Over 500 Homes in a Town of Only 40,000 People
Despite operating in a small market, Jay has managed to buy and sell over 500 single-family homes, proving that you don’t need a big city to build a big real estate business! - Jay Conner Was Inspired by the Legendary Zig Ziglar
Jay attributes much of his sales success and passion for teaching to studying Zig Ziglar’s cassette tape trainings early in his career. He even met Zig multiple times and was heavily influenced by his motivational style and classic sales advice. - Jay Raised $2.1 Million in Private Money in Less Than 90 Days—Without Ever Asking for a Loan.
When banks stopped lending during the 2009 financial crisis, Jay pivoted to private money and, by putting on his “teacher hat” instead of his “sales hat,” attracted over two million dollars in new funding in just three months, all by educating others instead of pitching for money.
Timestamps:
00:01 Unlock Real Estate Riches
05:19 Meeting Zig Ziglar: A Memorable Experience
08:09 Thriving with Private Money in Crisis
14:55 Understanding Private vs. Hard Money
22:46 “Affordable Business Incentives & Tips
28:04 “Using Private Money in Real Estate”
32:01 “Substituting Collateral in Loans”
36:46 “Finding Private Lenders Categories”
43:25 “Boosting Online Reviews & Reputation”
46:02 Managing Excess Private Lending Funds
49:41 Mind-Blowing Financial Strategy Unveiled
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
Navigating Real Estate Funding: Jay Conner’s Comprehensive Private Money Tactics
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 [00:00:29]:
Over seventy percent of those account holders want to loan you money on your real estate deals they love real estate but they want to be passive they don’t want to go find deals negotiate deals oversee rehab projects they just want to be a private lender and sit back and watch their account grow but there’s one big caveat to existing private lenders you’re not going to put on your teacher hat and teach an existing private lender what private money is and what your opportunity is they already know they’re already an existing private lender so now that’s a negotiation conversation and i’d rather be a teacher than a negotiator welcome to the marketing boost solutions podcast the number one source for proven solutions to all your marketing challenges.
Marco Torres [00:01:25]:
Captain marco here and today’s guest is about to drop some treasure maps for the real for real estate riches joining me in the marketing boost solutions podcast today is none other than jay connor known far and wide as the private money authority since two thousand three jay’s been buying and selling homes in a small town with only forty thousand people yet he’s flipped over five hundred deals he’s been involved in over one hundred eighteen million dollars in real estate transactions and now averages a whopping eighty two thousand dollars in profit per deal but here’s the kicker when the bank slammed the door on him in two thousand nine jay didn’t panic he didn’t quit he pivoted and raised over two point one million dollars in private money and and raised in private money in less than ninety days without asking for a single loan the traditional way so he’s now on a new mission to teach everyday investors like you how to attract money like a magnet without begging the banks or using your own credit he’s trained thousands of people investors one on one as well as being a national speaker a two time best selling author and has even automated his business to day to run in under ten hours of his time a week so talk about freedom if you’ve ever dreamed of flipping homes funding deals or scaling your wealth this episode’s for you so stick around we’re also jay’s also going to be offering access to a free copy of his book and we’ll tell you more about that later in the show jay connor say hello.
Jay Conner [00:03:15]:
Captain marco my lands what an intro thank you so much for inviting me to come along and talk about my most favorite subject that i’m so passionate about that being private money and why is that because private money having access to private money for funding my real estate deals ever since two thousand nine has had more of an impact on our real estate investing business than any other strategy at all wow so i.
Marco Torres [00:03:45]:
Look forward to hearing that i am a real estate investor myself i own you know i love to buy real estate i’ve done a lot of flips in my time time my stepson is a huge very successful real estate flipper with having done several hundred transactions himself so really looking forward to this conversation jay but before we dig in one of the things i want to compliment you on when we were chatting before i hit the record button is i love your voice i love your tonality i love your delivery you remind me of one of my heroes and mentors mister zig ziglar so tell us jay then you mentioned that you met him several times go let’s go back there first and then i want to hear some more of your story on how you got where you are the expert as that you are today jay so tell us about your zig ziglar background.
Jay Conner [00:04:36]:
Well thank you so much marco yes way back when i was twenty four years old twenty three years old i moved to texas and i was in the dallas fort worth area and the company i was working for at the time at twenty three years old i was in sales and they required me to listen and answer questions of every zig ziglar cassette tape training that he had boy we just dated ourselves there on cassette tapes and so.
Marco Torres [00:05:14]:
Do those too? I bought every cassette tape, every book he had, yeah, and.
Jay Conner [00:05:19]:
So i listened to zig all the time i had his phrases memorized and so coincidentally my definition of coincidence is god’s way of staying anonymous so coincidentally while i was in training in the dallas fort worth area one of my fellow trainees told me that they’d seen an ad in the newspaper that’s back when people read newspapers had an ad in the newspaper and advertising free tickets to zig ziglar’s he was going to be on a television show early in the morning at seven am and it was live and the name of the tv show was dawn dawn it stood for dynamic achievers worldwide network and so zig ziglar was going to be the guest speaker and they needed a studio audience free tickets i said man i’ve been listening to zig ziglar every day for weeks and weeks and weeks i got to go to this so it was a small studio audience and afterwards he hung around and i got to shake hands with him and visit with him a little bit he was so personable so that’s when i met him for the first time and then two more times he was on a very very large speaker speaker network called get motivated and the linux training i can’t remember what it was called but anyway and so got to meet him in raleigh north carolina a couple of times more and the last time i saw him he had already had his stroke and had fallen down the steps so his daughter was traveling with him and zig was standing he was sitting on a stool but he was still doing all of his arm motions they had choreographed with his talk but his daughter was sort of triggering him along and interviewing him and you know reminding him of his stories but yes zig ziglar was my hero i can still as i’m thinking about him i still think of you know so many of his lines that he had in in his recordings but anyway yeah zig one of my favorite people for all of you.
Marco Torres [00:07:31]:
Young folks out there if you haven’t read these his books and his tapes and his training still relevant today if you’re in sales which every one of you are if you’re in business if you’re in sales you got to go back to basics back to blocking and tackling make sure your team knows how to sell and go look up the zig ziglar series of books and training you can’t go wrong by going back to zig ziglar so moving forward jay tell us about how you got into real estate investing and you know we’re doing the volume you were doing and suddenly two thousand nine hit and you had to piv tell us a little.
Jay Conner [00:08:09]:
Bit about that story sure well my wife carol joy and i we started investing in single family houses here in eastern north carolina all the way back in two thousand three so we’ve been doing this for many many years and we’re in a small market only forty thousand people but we do two to three deals a month averaging over eighty thousand dollars per transaction i don’t say that to brag at all i say that to make a point and that is there’s an argument to be made and a case to be made to dominate a small market i’d much rather be a big fish in a very very small pond then like investing in the large cities and i’m competing with all the other real estate investors well from two thousand three to two thousand nine january of two thousand nine to be exact the only thing i knew marco to get my deals funded my real estate deals funded was either go to the local bank or go to the mortgage company and get on my hands and knees and say please fund my deal you know and mother banker would make me pull up my skirt and i had to show all my personal assets and my financial statements and credit scores pulled well that’s all i knew to do that’s the traditional way to borrow money to get funding and that worked out okay for the first six years but then in january of two thousand nine everything changed everything changed i called him my banker his name was steve and steve and i had done a ton of deals ton of business those first six years so i called up steve i had two houses under contract to purchase marco and i learned like that over the telephone that my line of credit had been closed at the bank with no notice to me whatsoever and i said to my banker steve i said steve what in the world are you telling me you’re shutting down my line of credit i said i got a great credit score i’ve always been on time with my payments for six years why are you or the bank closing my line of credit and steve said jay don’t you know there’s a global financial crisis going on right now i said no but you just gave me a financial crisis i don’t have a way to fund my deals he says sorry jay not loaning money out to real estate investors well i hung up the phone marco i sat here at this very desk for a moment and i thought for a second i want to share with you and your audience a very powerful question that i asked myself that changed the total trajectory of my business and here’s the question i asked myself this question will help fix any problem anybody’s got and by the way these people running around saying oh every problem’s an opportunity i want to throw up i didn’t have an opportunity i had a problem let’s face the facts right so here’s the question i asked myself i said jay who do you know you know it’s not how it’s who i said who do you know jay that can help you with your problem of losing your funding i immediately thought of a good friend his name is jeff blankenship we’re dear friends we know each other from acapella singing events and at gospel singings and he was investing in single family houses in greensboro north carolina in january two thousand nine so i called up jeff thinking my buddy could help me and i called up jeff i told him what had just happened with the banker cutting me off he said well jay welcome to the club i said well i’m not sure i want to be a member of that club but what club are you talking about he said that’s the club of having the bank shut you down he said my bank shut me down last week i said well how are you going to fund your deals jeff he said well have you ever heard of private money i said no he says have you ever heard of self directed iras and how people individual people regular ordinary people like you and me can use retirement funds that they have to loan money out to us and the interest we pay them is either tax deferred or tax free i said jeff i don’t have a clue what you’re talking about i said what’s private money he said well there’s this gentleman down in jacksonville florida by the name of ron legrand and he says i’ve ron knows about private money i said well what’s private money jeff says i don’t know but ron says we can get a lot of it really really fast so i went to ron legrand’s training i went there to learn about private money and i did i’m not talking hard money hard money is not private money private money is when you’re doing business with individuals to fund your deals i learned about private money i came back home marco and i put on my teacher hat i put on my teacher hat which says private money teacher and i put my program together that i was going to start sharing with people in my own connections as to what private money is and how they can earn high rates of return safely and securely and so i just started sharing my opportunity with how people could be a private lender i taught them the interest rate that i’d pay and how they’re protected and all that kind of good stuff and without asking anybody for money and being a teacher i was able to raise two million one hundred fifty thousand dollars in new funding that i didn’t have in less than ninety days and so here’s the deal marco because of that problem that opportunity because of that problem our business tripled in that first twelve months when the banks weren’t loaning money you remember all those foreclosures were going on well think about it you had all those foreclosures going on and the banks were not loaning money so you had to have the cash so now i got all this private money lined up i was able to pick and choose the foreclosures we wanted to do our business tripled and ever since that time i’ve never missed out on a deal for not having the funding ready to go wow.
Marco Torres [00:14:19]:
Now that’s different than yeah as i’m preparing for our interview i’m assuming you’re talking about hard money loans which are relatively easy to come by you know if you’ve got some especially if you’ve got some history in doing flipping homes so what is private money then i mean you described it briefly there but how do you how do you access it is there something you have to do that training you’re talking about yourself and or is it now sort of a you know accessible to to real.
Jay Conner [00:14:55]:
Estate investors right yeah so see a lot of real estate investors particularly if they’ve been doing real estate investing for a little while they they confuse private money with hard money and and that’s not their fault you got a lot of hard money lenders that call themselves private money that call themselves private money lenders well so here’s the difference and by the way i’m not poo pooing hard money lenders some of my best friends are hard money lenders but hard money lending is an institution it’s institutional money hard money lenders go out and raise private money they raise investor money for individuals to invest in their hard money lending fund right so then the hard money lender the broker turns around and loans that money out to us real estate investors and so they charge a higher interest rate typically than the interest rate that they’re paying their investors and then they charge points or origination fees extension fees et cetera well this world of private money is one hundred eighty degree difference one hundred and eighty degree change in direction you see the traditional way to borrow money is the lender makes the rules that’s the traditional way i mean the old saying is he or she who has the cash makes the rules but guess what not in my world not in my thousands of members that are now doing this business the way i do so what we do is we are our own underwriter we make the rules we set the terms so what i did first is i put my opportunity i put my what i was going to teach and offer to ordinary people individuals in my own network is how i started out this opportunity so i decided i’m going to pay him eight percent i’m going to pay them a straight eight percent no points no origination fees and i’m going to protect them i’m going to protect them with a in north carolina it’s a deed of trust most states call it a mortgage so that collateralizes the promissory note so i’m not going to borrow any unsecured money and everything i’m going to do is going to be asset backed debt asset backed debt so i’m not going to raise money for a fund right i got a single family house and then maybe one or two or three private lenders that are funding that particular property each of them have their own promissory note their own deed of trust collateralizing the note and i’m going to name them part of my program i’m going to name them on the insurance policy as the mortgagee so that way if there’s a claim then the checks made payable to them and to my company they got to sign off on that check i’m going to name them on the insurance policy i mean on the title policy as well as an additional insured and i’m not going to borrow more than seventy five percent of the after repaired value i didn’t say seventy five percent of purchase price seventy five percent of the after repaired value and that gives them a nice equity cushion but it allows me to bring home a big check i always bring him a big check when i buy without taking any of my own money to the closing table who wants to get paid to buy properties right so i put the program together that i would teach and expose to people and then i want to share with you marco and your audience right now how do i get my deals funded without ever asking for money i never pitch a deal and people say jay how do you get i got eight and a half million dollars that i use from project to project to project to projects single family houses how do i get my deals funded without ever asking for money here’s the exact script here’s the script i call it the good news phone call and the best way to illustrate this marco is to do a short quick little hypothetical scenario let’s pretend marco that you and i have known each other for some time we’re friends let’s pretend we go to church together so the trust factor is already there we go to church together we know each other let’s also hypothetically assume that i’ve taught you this opportunity i’ve taught you the private lending opportunity to be a private lender and let’s all and you like it you like the program you like the eight percent because all you’re going to get at the local bank is less than three percent now in a seven month cd so you like it you like how you’re protected and let’s also hypothetically assume marco that you had a one hundred fifty thousand dollars retirement account in a four hundred one k at a previous employer and i’ve taught you the program and i’ve introduced you to a self directed ira company that i recommend and you have moved that one hundred fifty thousand dollars with no tax effect over to the self directed ira company so now you can be a private lender with your retirement funds so that’s the setup so now i call you up with the good news phone call here’s the script i call you up you answer the phone we have a little chit chat and then here’s exactly what i say i say marco i’ve got great news for you i can now put your money to work i’ve got a house under contract in newport with an after repaired value of two hundred thousand dollars now the funding required for the deal is one hundred fifty thousand which matches up to what you have in your retirement account at the self directed ira company now closing is going to be next thursday i’ll need for you to wire your funds from your retirement account directly to my real estate attorney’s trust account and i’m going to have my real estate attorney email you the wiring instructions that’s the end of the conversation the most stupid thing i could do is ask marco and does he want to fund the deal of course he wants to fund the deal for three big reasons marco wants to fund my deal for reason number one he trusted me to move his money he moved his money from the four hundred one k over to the self directed ira company that i introduced him to the second reason marco wants to fund my deal is because he knows i’m not going to bring a deal for him to fund that doesn’t match the criteria of the program i already taught him did you hear the numbers i told marco it’s got an after repaired value of two hundred thousand i told him the funding requires one hundred fifty thousand that’s seventy five percent of the after repaired value so he knows i’m not going to bring a deal for him to fund that doesn’t match the criteria of what i’ve already taught him and the third reason barco wants to fund my deal is because he’s not making any money until i put his money to work so i’m ethically obligated to get marco’s money invested and loaned out to my company as soon as possible so he starts making money.
Marco Torres [00:22:04]:
Love it, and folks, we’ve got a bunch more questions to ask of Jay Connor and how he does this and how you can learn to do this too, but we’ll be right back. We’re going to hear from our main sponsor go away.
Narrator [00:22:18]:
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Marco Torres [00:22:46]:
For free right now you just heard from marketingboost dot com and what’s that all about if you’re a business owner and you’re looking for ways to wow surprise and delight your clients you got to check out marketingboost dot com we’re the most affordable way that you can provide amazing high value travel incentives complimentary hotel stays restaurant savings vouchers hotel savings cards to from everything to help people show up for your zoom calls reward them for being on time for your webinar prizes that you give away at a trade show millions of ways to use the marketing boost incentives join our facebook with over thirty three thousand entrepreneurs so you can learn from others how incentives can help you generate more leads and close more sales we’re back with jake connor here and we’re talking about how you can become or how you can help generate funds for your own real estate transactions let me go ahead and share my screen and talk about your book for a moment and tell us how we can get the book free over here i’m on the website now i think it is let me see if i find that here jconor dot com forward slash book and we’re going to have the links down below in the show notes so don’t worry about jotting that down the links are in the show notes discover how you can get unlimited private money for your real estate deals and you can get his book here for what six hundred ninety five shipping is that correct that’s.
Jay Conner [00:24:22]:
It so the book’s twenty bucks at amazon don’t spend your money over there but the name of the book is where to get the money now subtitle how and where to get all the money you’d want for your real estate deals without ever relying on institutional money banks or hard money lenders and this is not an ebook i’ll autograph the book for you and mail it to you express mail is that you can get the book for free just cover shipping and i’m also going to include with the book two tickets valued at two thousand nine hundred ninety seven dollars to my private money conference in person live event just had my most recent one last week not another live event like that where you learn from me for three days all about raising private money without ever asking for money.
Marco Torres [00:25:13]:
Wow, that’s a different strategy than I’ve ever heard, so where is your next big two-day event?
Jay Conner [00:25:21]:
Going to be yeah the next three day actually the next three day live event is going to be right here in my hometown of atlantic beach morehead city north carolina we’re right here on the beach we have the event oceanfront and the next dates are october eighth ninth and tenth here in twenty twenty five october eighth ninth and tenth and i’ll even give you the website that you can register for free with just a small actual registration fee but the is almost three thousand dollars that’s www dot theprivatemoney conference dot com www dot theprivatemoneyconference dot com also my book i didn’t give out the website there marco you can get the book at jconor dot com book j a y c o n n e r dot com book jconner dot com book i’m an er not an or and in addition to that i’m now in my eighth year of my show my podcast which is called raising private money have two shows a week we’re now in almost our eight hundredth episode and i’m always interviewing other real estate investors as to how they raise private money how they go about it so wherever you like to listen to podcasts you can just search for raising private money with jay connor and i’ll pop right up cool.
Marco Torres [00:26:51]:
So thank you for all that and again folks in the show notes below you can find quick access to those links and and come and start following jay get his book and join his next live event but back to while i still got a little more time with you where do you outside of the learning how to find the private money which is like a whole brand new business in itself right you’re going to learn from you from your book from your techniques from your live events from your podcasts where to find and develop this strategy of teaching others to that have retirement savings money to put it in a place that they can access it and invest it and then they’re earning the eight percent and so on but once when it comes to the what almost to me sounds simpler you know like again i’ve been a flipper i’ve been a home flipper really when it comes to what kind of deals do you invest in what do you teach there what kind of you know property should people invest in you talk about doing it in a small town forty thousand residents yet you’ve done you know hundreds of deals what kind of properties do you look for yeah.
Jay Conner [00:28:04]:
So that’s a great question marco because you can use private money for any kind of real estate right particularly if you’re going to secure the note and so you can use private money for single family houses like i do you can use private money for self storage projects you can use private money for apartments you can use private money for land right but the larger projects you’re not going to do what i call one offs you’re going to be raising money for a fund for say apartments self storage facilities and that type of thing with what i do i do single family houses i’ve i’ve bought and rehabbed and sold over five hundred of these houses now since we started in our small area here and the thing about it is what i mean by asset back debt i’m not raising money for a fund you’ve got a single family house and then you have a private lender or maybe one two or three depending on how big the project is that are funding that particular property they each have their own promissory note they each have their own deed of trust that’s collateralizing the note and so as a result the sec does not regulate what we do so that’s a very popular question where does the sec come into this the security exchange commission the sec is going to regulate you raising money if you’re raising money for a fund and if you’re borrowing unsecured debt the sec does not like that at all so you’re raising money for a fund then you’re going to be regulated you’re going to hire you would hire a security attorney to draw what’s called a ppm which stands for a private placement memorandum but in my world of single family houses if you’re listening to this show and you’re interested investing in single family houses whether you want to flip or you want to buy and hold there’s no hurry to pay back private money did you know right now i’m paying my private lenders less interest i’m paying them eight percent the local bank right here down the street two weeks ago is charging more than eight percent in commercial rates right now so there’s no hurry if you want to buy and hold and not be a flipper you can use private money for that and so that’s what i love about it i got twenty reasons i love private money i’m not going to give all twenty but the big ones are number one as i mentioned you make the rules you are your own underwriter guess what you as the borrower using private money you’re already approved you’re already approved right you’re there’s no application to fill out instead of asking for a mortgage you’re offering a mortgage.
Marco Torres [00:31:06]:
Offering the mortgage now let me ask you this this kind of throws me for a loop here okay so i found the private investors i’ve got people i’ve learned from you how to line them up how to have them move their money so they have access to loan it to buy to for for the investor to be owning the paper owning the mortgage owning the loan so now i use his money to buy a property that i intend to to flip so it takes me six months to do all of the the permits and get all the constructions done and so on the house flips within six or seven months would i pay off that loan completely and i have to look for a new loan a new investment for that particular owner or how does that how does that work what do you typically do.
Jay Conner [00:32:01]:
There yeah i’m glad you asked that marco so you’re going to do one of two things first of all you cannot keep the money you cannot keep the money because it’s it’s secured by that deed of trust so you got two options you’re either going to pay it off and then go find another deal and put their money right back to work because i can tell you the private lenders do not want their money back they do not want their money back because when they get their money back they’re not making money and that’s why they loaned it to you right on the deal so they don’t want their money back so you’re either going to pay it off and put their money back to work right away on another deal or you can do what i do a lot of times which is called substitute the collateral so what is i mean what do i mean by substituting the collateral well substitution of collateral is a loan modification so here’s what happens you have the initial note say let’s do easy figures of one hundred thousand dollars you got an initial note of one hundred thousand dollars and that a hundred thousand dollars was secured by property a well now you’re selling property a down the road six months down the road nine months down the road sometimes i use the money for a year if it’s a large rehab project i mean i’ve got contractors i got my own crews and you know it might take ninety days before they actually start working on that property so we go to sell it and so now i got to either pay off the lender or i’m going to substitute the property so that one hundred thousand dollars note is secured by property a well now property a gets sold so now a substitution of collateral is exactly what it sounds like i’m now going to substitute property a with property b so property b could be a property that i’m buying within a seven day window because my real estate attorney is not going to keep money in her trust account if it’s not attached or designated for a particular transaction or closing so property b has got to be identified within seven days as either a purchase or i could have another property that’s got equity in it that maybe i haven’t started the rehab on yet or maybe i just want to refinance private money is not just for purchases private money can be for refinancing and pulling equity out so i will substitute the property if i have a property available i’ll substitute the property the collateral and keep that note for the private lender open to where they’re not missing out on making any interest payments.
Marco Torres [00:34:46]:
Can you turn it into a for-sale-by-owner, so to speak, and let the buyer, the new buyer buying the flip become take on that mortgage and continue paying the investor, or is that not something that’s typically done?
Jay Conner [00:35:01]:
Is a possibility but i would not do it that’s called buying a property subject to the existing note that’s on the hud settlement statement line two hundred three and two hundred four i buy a lot of properties subject to the existing note but i’m not going to sell a property subject to the existing note and rely on the buyer to pay my private lenders on time because my relationship with my private lenders are sacred sacred relationship i got forty seven private lenders right now marco forty seven private lenders that are loaning money to us on our deals and you know what’s interesting not one of my forty seven private lenders ever heard of private money private lending some of them until i put on my teacher hat they never heard of it until i exposed them to this world and so they use investment capital just liquid money in their checking account that they might have had in a cd and or they use retirement funds but yeah none of them heard about it until i exposed it to them and i love private money for so many reasons there’s no limit to the number of private lenders you can have there’s no limit to the amount of private money that you can use and that you can borrow you can borrow across state lines because we’re not regulated by the sc i mean we’re not regulated by the commissioner of banks this is a one on one transaction between you and your private lender with no middle person no originator no broker involved.
Marco Torres [00:36:39]:
So how do you go about finding these people who are willing to become your private lenders, like?
Jay Conner [00:36:46]:
Where are these people right well there’s three categories of where these people are by the way if you have an abundant if you have an abundance mindset you know there’s millions and millions and millions of dollars all around you all the time right you just have to uncover it here’s the three categories category number one is what i call your warm market it’s your own network it’s people that you already got on your cell phone you go to church with them you play golf with them they’re in the rotary club you know ask yourself where do you go every week and see the same people right so your warm market well sooner or later if you want to scale your business you’re going to run out of your own warm market you’re going to run out of that so where’s the second category of private lenders i call that your expanded warm market how can you grow your network overnight like that to establish more relationships with people well i teach that in depth in my book for those of you that are ordering my book how to grow your network i teach it at the live event as well but i’ll tell you one one big awesome way to do it like that and that is join bni which stands for business networking international founded by ivan meisner even little old morehead city north carolina where i live we started a bni years ago and that’s a great organization networking organization and then the third category of where you find private lenders are what i call existing private lenders these are individuals ordinary people like you and me that are already private lenders they’re already loaning money out to other real estate investors well the question is where in the world do you find them people well the quickest and easiest way to find them is just use my software which is called private the private lender data feed we get every private lender closing in the nation contact information every month there’s over twelve thousand closings a month in the nation of individuals that are loaning money out on real estate investing but you don’t have access to my private lender data feed what do you do well i’ll tell you where private lenders are you may find this interesting self directed ira companies they are companies that are approved by the irs they’re called third party custodians and so those account holders that have accounts at self directed ira companies over seventy percent of those account holders are want to loan you money on your real estate deals they they want they love real estate but they want to be passive they don’t want to go find deals negotiate deals oversee rehab projects they just want to be a private lender and sit back and watch their account grow well self directed ira companies have networking events where they’ll bring people together that are account holders and real estate investors that are looking for money but there’s one big caveat to existing private lenders you’re not going to put on your teacher hat and teach an existing private lender what private money is and what your opportunity is they already know they’re already an existing private lender so now that’s a negotiation conversation and i’d rather be a teacher than a negotiator yeah that way you.
Marco Torres [00:40:25]:
Write the rules versus them telling you what they want exactly exactly now i know what hard money is i don’t know that every one of our listeners know or not because they may or may not be in the this real estate world but you know you’ve always thought you’d love to be a flipper that old house would be great to take it and re you know refurbish it sell it make a profit hard money tell us the difference you know you how to one degree it can be it sounds to me that it can be easier to get hard money out of the gate you know compared to building your network of private lenders but tell us the biggest benefit in the comparison between hard money and and private money loans yeah well with.
Jay Conner [00:41:14]:
Hard money here’s the big differences number one their interest rates are going to be a lot higher your average interest rate now with hard money lenders is between twelve percent and fifteen percent that’s a big difference with the eight percent another big difference is hard money lenders charge origination fees or points which is a percentage of the loan amount that right now averages between two percent and four percent another big difference are extension fees and length of the note so the length of the note is typically going to be six months or nine months with a hard money lender with private lenders all my notes are between two and five years depending on where they’re getting the money from two years for liquid capital five years for retirement funds and then another huge difference is what’s called the advance well what in the world is the advance the advance is how much is the lender going to advance to you or loan to you and fund to you when you purchase well a hard money lender is only going to advance to you between sixty five and eighty percent of the purchase price regardless of how good the deal is you got to come up with the other thirty five percent or twenty percent as a down payment that’s a big difference with this world of private money with private money you get one hundred percent of the purchase price if renovation is involved by the way private money is not only for renovated projects it’s for when the seller requires all the cash so you’re going to get one hundred percent of purchase if renovation is required you can get one hundred percent of renovation and you’re going to be able to pull out more equity well the only reason that works is you’re buying the property at a discount you’re buying the property at a discount and here’s a check imbalance if you can’t bring home a big check when you buy the property and you’re using private money you’re paying too much for the property let me repeat that if you can’t bring home a check without taking any money to the closing table when you purchase you and you’re using private money you’re paying too much for the property.
Marco Torres [00:43:25]:
That’S part of the science on learning how to do this properly so click the links get the book sign up for the three day event guys the links are down in the show notes below i’m going to take a minute guys and tell you about a business we are excited about launching here any day now we’ve been making a lot of edits we’ve had a few people on beta seeing some great results but we are launching something that’s a game changer for online reputation and generating reviews testimonials for your business marketing boost was born on the idea of gen of needing video testimonials for one of our other travel websites and we we grew that to over thirty thousand video testimonials and now we’re teaching business owners how to do the same with trust by reviews dot com trust by reviews dot com we help you manage your online reputation solicit a constant flow of new reviews and testimonials every business today you need reviews and testimonials and video reviews if you expect to be generating you know having the social proof you need to generate new business on an ongoing basis and you need constant new testimonials and reviews so check out trust by reviews dot com again another amazing platform that marketing boosted us and we are launching to our community you’re going to love it and it’s going to provide you with an a constant flow of new reviews and testimonials and matter of fact we teach you how to use our incentives with to reward clients for going the extra mile of giving you a video review or publishing their honest opinion on multiple third party review sites like sites like google trustpilot site jabber shopper approved facebook etcetera so when your client goes the extra mile of telling their story in multiple places you can reward them with marketing boost incentives so we show you how to use those incentives to help grow and improve your online reputation we’re back here with jay connor and wow the subject of private money funding your own real estate deals and and making money for others in the process so really powerful subject here what would you say is the biggest drawback in doing this scenario in the real estate business either for the client that’s funding the money or for someone like you well the.
Jay Conner [00:46:02]:
Biggest drawback is when you do it the way i do it you’re going to have a problem and the problem is you’re going to have more money than you know what to do with you see there’s more money available than there’s deals in fact in this market today it’s more challenging to find the motivated sellers i use seven different pay per lead google vendors that are feeding me and my acquisitionist and my team daily leads of motivated sellers and so regardless you’re going to have more money than you want to do so the challenge is keeping your private lenders happy by keeping their money invested and so how do i do that well a couple of ways number one when i have a new private lender come on board with new private money they go to the top of the queue whatever my next deal is i’m using their money next because i want to prove to them that i can deliver and i can perform and i can put their money to work because you see private money is like bananas in the grocery store unless you consume it rather quickly it will disappear and go rotten on you ask me how i know that so i want to put them to the top of the queue put their money to work and then if i’ve got a private lender that has been sitting on the sidelines and i’ve paid them off for ninety days i have been known to take their money and pay off a current private lender on a property and refinance the property so i can get their money back to use so that money doesn’t go and disappear so it’s a challenge it’s a challenge to use that money and.
Marco Torres [00:47:47]:
Keep them happy wow yeah that sounds like a big problem to have i’ve got to figure out how to buy another property flip it sell it you know i’ve got my i’m gonna have to get my son the stepson watching this show and we’ll get and come up and see if we can join your operation i’d love to mail i’d.
Jay Conner [00:48:09]:
Love to mail in my book and get you all to my live.
Marco Torres [00:48:12]:
Event, yeah, back on your page, so folks, again, the show in the show notes below, you can find the link to jconnner dot com book tell us about this, how we get it, what we get in the call.
Jay Conner [00:48:29]:
To action you had earlier sure so the website to get my book i’ll autograph it for you i’ll ship it to you three day express through the united states postal service which by the way is still open and doing business so i’ll ship you this book i’m going to include two tickets to my upcoming live event which is called the private money conference and this book will teach you exactly how to raise private money without ever having to ask for money it has in the book my exact opportunity and program that i teach to private lenders i got a whole chapter in here on how to have successful private lender luncheons and events i’ve raised nine hundred sixty nine thousand dollars at one ninety minute luncheon that i’ve put on without having any deals attached to it so it’s all about putting you in the driver’s seat putting you in control to where the money is chasing you and you’re not chasing the money in this world of private money there’s no begging no selling no chasing no persuading it’s all about attracting the money and not chasing the money.
Marco Torres [00:49:41]:
Yeah wow thanks for that folks if you’ve liked the content we’ve brought you i mean first jay thank you so much for this kind of mind blowing strategy that most of us have never heard of me included so i’m it’s been an education for me to learn about this strategy of i’ve only heard of either bank loans or hard money loans so this strategy is is powerful can’t wait to learn more about it so folks if you like the content we brought you one give us some comments below on what you thought of the show what you thought of the the information order jay’s book and share this episode with somebody please so give us a like subscribe and share and stay tuned to the jay any last comments from you words of wisdom for people out there looking to succeed in.
Jay Conner [00:50:33]:
The real estate business, well, nothing’s going to change in your life unless you change and take a little action, so if you want to be in control of your funding and your money for real estate deals, take action, order the book, and you’ll be glad you did.
Marco Torres [00:50:52]:
Man, the voice of Zig Ziglar himself.
Jay Conner [00:50:57]:
That’s a big compliment right there.
Marco Torres [00:50:59]:
Assure you i tell you you must have studied those tapes and learned his tonality and the whole thing i love it i love it it’s like you were like like zig was still with me right now in person well jay thanks again folks if you like the content one more time give us a like share and subscribe and we’ll see you on the next episode of the marketing boost solutions podcast thank you thanks for listening to another episode of marketing boost solutions podcast with your hosts captain marco torres now it’s on you take the next step now go to marketing boothsolutions dot com for more on how you can wow delight and surprise your clients with the most amazing draw card on the planet so stay thirsty my friends stay thirsty for knowledge see you next time.
Jay Conner [00:51:53]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MpneyGuide, that’s www.JayConner.com/MpneyGuide, 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/MpneyGuide to get your free guide. We’ll see you next time on raising private money with Jay Conner.
