***Guest Appearance
Credits to:
https://www.youtube.com/@joshcantwellinvestor
“Jay Conner on The Secrets to Locating Private Money for Real Estate Deals”
https://www.youtube.com/watch?v=t5FUJjGuXfg&t=65s
If you’re a real estate investor searching for ways to scale your portfolio, few topics are as crucial as raising private money. In a candid conversation on the Raising Private Money podcast, Jay Conner sits down with Josh Cantwell to share the precise strategies that have helped him raise millions — without ever asking for money outright. Here are the game-changing insights from their exchange and how you can leverage them for your own investing business.
The Power of a Servant’s Heart in Real Estate
From the outset, Jay Conner sets the tone: his mission is not about taking advantage of distressed sellers, but serving them. He stresses that 2022 (and beyond) presents a unique window to help homeowners facing foreclosure—especially those who haven’t been able to recover post-COVID. Jay Conner and his team focus on identifying and assisting these property owners before their homes hit foreclosure sales or bank repossession, creating win-win solutions along the way.
The real backbone of Jay Conner’s approach? Integrity and empathy. By leading with a servant’s heart, he cultivates trust, which proves invaluable both in deal-making and in private capital conversations.
Where to Find Private Money: The Three Pillars
One of the fundamentals of Jay Conner’s success is knowing where to look for private money. He distills his sources into three main categories:
- Your Warm Market: These are people you already know—family, friends, colleagues, and acquaintances across social groups, church, LinkedIn, and Facebook (the genuine connections, not just casual “friends”). Jay Conner challenges the myth that everyone’s personal network is “broke,” insisting that there are untapped connections in almost every investor’s world.
- Expanded Warm Market: If your immediate circle seems tapped out, expand it. This means immersing yourself in local organizations like the Rotary Club, volunteering, and building authentic relationships in your community. The more you give, the more your network—and potential investor base—grows.
- Existing Private Lenders: These are individuals already loaning money to real estate investors. Jay Conner suggests leveraging public records (to find those who’ve secured loans with a mortgage or deed of trust), specialized data feeds (which aggregate nationwide lender info), and networking events hosted by self-directed IRA companies. Notably, he reveals that over 70% of self-directed IRA account holders are open to lending on real estate deals.
The Five-Step Method: Raising Private Funds—Without Asking
The real secret sauce in Jay Conner’s system is his five-step process for attracting private capital—without ever having to ask for it directly.
- Make Your List: Identify the top 50 people in your network who might have capital or retirement funds.
- Open a Casual Conversation: Use either a direct method (“Do you have investment capital or retirement funds not giving you a high rate of return safely and securely?”) or an indirect method (“Would you spread the word that I have this investment opportunity?”). This non-salesy approach gets prospects naturally interested.
- Let the Tools Do the Work: Jay Conner leverages a pre-recorded 16-minute audio called “Stress Free Investing” to explain private lending basics to prospects, making the process scalable.
- One-on-One Appointment: Present your exact investment program—interest rates, protections, terms—in a simple, transparent way.
- Obtain the Verbal Pledge: After understanding the program, prospects often ask, “What about me?” That’s the goal—a natural, organic commitment, not a forced sale.
The Mindset Matters: Math Over Emotion
Jay Conner emphasizes that emotion should never guide investment decisions—math does. He advises learning exact formulas for maximum offers, whether you’re buying for cash or on creative terms, and always investing in the numbers, not your feelings.
Final Thoughts
Whether you’re just beginning or looking to expand your real estate empire, Jay Conner’s servant-based, systematic approach to raising private money offers a proven path forward. Build trust, follow a process, let math guide you, and above all—never be afraid to ask for help or seek out a mastermind. Your next big deal might be one conversation (and one system) away.
10 Discussion Questions from this Episode:
- The guest shares a strategy of educating potential investors about private money rather than directly asking for funds. What benefits might come from this approach, and are there any potential drawbacks?
- The episode highlights three main sources of private capital: personal connections, expanded local networks, and existing private lenders. Which source do you believe offers the best opportunity for someone just starting in real estate investing?
- Emphasizing a mindset of service and win-win relationships is a recurring theme. How can adopting this philosophy affect your success and reputation in the real estate business?
- There was an in-depth discussion about how market forces like inflation, low interest rates, and housing supply impact investment decisions. How do these factors influence your approach to real estate investing and raising capital?
- Building a strong network—including investors, connectors, and supporters—was discussed as crucial. What are some practical ways to grow and nurture such a network in your local community?
- A five-step process for raising private money was outlined in the episode. Which step do you think is the most challenging, and how could you overcome common obstacles in that phase?
- The idea of letting math and objective analysis drive investment decisions, rather than emotions, was emphasized. Can you give an example of how emotions might lead to a poor investment choice? How do you ensure you remain objective?
- Joining mastermind groups and connecting with more experienced investors was recommended. What do you think are the main benefits of participating in groups like these? Are there any drawbacks to consider?
- Self-directed IRAs were identified as an important avenue for private lending. How would you educate potential investors about this option to expand your funding sources?
- The guest reflected on the value of seeking mentorship and professional education early in their career. How has learning from others or formal training influenced your approach to real estate investing?
Fun facts that were revealed in the episode:
- Jay Conner has raised millions of dollars for his real estate investing business—without ever actually asking anyone directly for money. Instead, he simply teaches people about private money and lets them come to him.
- In his first 90 days after losing his lines of credit at the bank in 2009, Jay Conner was able to raise $2,150,000 by leveraging his five-step process for attracting private lenders, which he now shares in his book “Where to Get the Money Now.”
- Over half of Jay Conner’s private lenders were originally unfamiliar with private lending and self-directed IRAs, but through education and relationship-building, he helped them use their retirement funds to invest in real estate deals.
Timestamps:
00:01 Secrets to Raising Private Money
05:06 Serving Others Through Real Estate
08:39 Real Estate Outlook: Year Ahead
10:26 Eastern NC Housing Prices Surge
14:47 Locating Private Money Sources
17:51 Finding Private Lenders Simplified
22:58 Raising Money with Mindset
23:49 Self-Directed IRA Lending Guide
29:39 Real Estate Success Secrets
32:00 Real Estate Lessons Learned
36:54 Accelerated Investor Podcast Summary
38:01 Raising Private Money Guide
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
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https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
Funding Equals Freedom: The Art of Attracting Private Money for Real Estate
Jay Conner [00:00:00]:
I just want all of your listeners to know, Josh, to this date, I have yet to ask anybody for money. When I’ve been raising money, I’ve never asked for money. And people say, Jay, how well do you get millions of dollars for your real estate investing business, and you don’t ask for any money? It’s really simple. I put on my teacher hat, and I teach people what private money is.
Narrator [00:00:26]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more Prof. 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.
Josh Cantwell [00:00:54]:
So, hey there, guys. Welcome back to Accelerated Real Estate Investor. I’m your host, Josh Cantwell. And today, we are talking about my favorite topic in real estate, which is raising private money. So if you’re an active investor looking for more capital for your deals or you’re a passive investor looking to deploy your money and looking for ways to find active operators to lend to, partner with, or joint venture with, you guys are both going to love this interview. Today, my guest is my friend Jay Conner. Jay has been investing in real estate since 2003. Really started going after six years of kind of failing, six years of really kind of struggling, really took off in 2009.
Josh Cantwell [00:01:37]:
Jay has raised millions and millions of dollars of private money. He has a very robust portfolio of single-family rentals and small apartment buildings. And Jay has released a book called How I’m Sorry, called Where to Get the Money Now. And it’s all about how to get private money for your deals. So Jay reveals his secrets and strategies for recruiting and raising private money. And in this interview, Jay and I talk specifically about number one, the three specific places to go to raise private money right now. We’re also going to cover number two, Jay’s specific five-step process of what he does with a possible new private lender. To go from starting and starting the conversation all the way to getting a verbal pledge.
Josh Cantwell [00:02:31]:
We talk through that. We also talk about some of Jay’s early struggles in his first six years and why it’s okay to struggle, but it is not okay to not seek help. And also number four, we talk about Jay specifically said one thing. I wrote it down. Where is it? Here it is. Number four, math makes decisions. Okay. We’ll talk about why Jay keeps the emotion out of every real estate transaction and every real estate deal he does by having the math make the decision.
Josh Cantwell [00:03:05]:
So you’re going to love this interview with Jay Connor, especially, look, if you’re short on cash for your real estate deals, if you’ve been turned on by banks, if you lack the confidence to raise private money, or you’re frustrated and feel stuck with your investment career, you’re going to love this interview with private money expert Jay Conner. Here we go.
Narrator [00:03:27]:
Welcome to the Accelerated Investor Podcast with Josh Cantwell. If you’re looking to retire early with a forever passive income, you’re in the right place. This podcast is the go-to destination for real estate investors, both active and passive, and multifamily apartment investors, both new, intermediate, and advanced. Now sit back, listen, learn, and accelerate your business, your life, and your investing with the Accelerated Investor podcast.
Josh Cantwell [00:04:10]:
So, Jay, hey, listen, thanks for jumping on. Thanks for joining me today on Accelerated Real Estate Investor. How are you?
Jay Conner [00:04:16]:
I’m doing fantastic, Josh, and thank you so much for inviting me to come along. I’m excited to be here and talk about my favorite subject.
Josh Cantwell [00:04:25]:
That’s right. Favorite subject for you and me both. I actually, you and I love private money. We love to raise it, we love to teach it, and we love to talk about it for residential and commercial deals. I actually Iid a webinar yesterday and we raised $6.6 million for our next apartment deal. And I told my partners, I texted them when it was over, and they’re like, dude, you live for this stuff. I’m like, yes, I live for it. So I am excited to have you on to talk about some of your thoughts and strategies about private money.
Josh Cantwell [00:04:56]:
Before we do, tell us what you’re up to today. What are you up to? What are you working on that you’re excited about? Projects. And what are you excited about for 2022 in your business?
Jay Conner [00:05:06]:
What I’m excited about in 2022, Josh, is my entire business, my entire team, our whole. One of our core values is always coming from the space of a servant’s heart. And what I mean by that is, you know, a lot of real estate investors out there have got a bad name for themselves, at least whether it’s true perception or not. But a lot of people out there that don’t know us, when I say us, I’m talking about real estate entrepreneurs in general that, oh, yeah, people out there to take advantage of other people and, you know, their distress and et cetera. And my entire outlook is completely different than that. It’s how can I make a difference? How can I help people in distress get back on their feet and create win-win scenarios? Well, the reason I say that is because of your question, and your question is What am I excited about, passionate about, for the upcoming year? And here it is. I believe that it’s been a long time since we’ve had an opportunity to serve as many people as we’re going to be able to serve in 2022. I’m talking about people with single-family houses, people who are facing foreclosure.
Jay Conner [00:06:15]:
You know, we’re going to be able to help those people out. Carol, Joy, my wife, and, started devising a system of actually locating people in foreclosure and distress before other real estate investors even know about it, and how we can help them and put money back into their pockets. And so due to being on this side of COVID, I don’t believe we’re going to see any kind of opportunities as we did in 2007, 9. But I do believe that there’s going to be big-time opportunities to help people. And the advice that goes along with that for everybody else, I mean, I’m excited about it because I mean, the more people I can help, the more people I can help win and create win-win strategies. And so I think we’re just going to have a huge opportunity to serve a lot of people. And I’m not talking bank-owned properties. I’m talking about helping these people prior to their homes, going to Salem, et cetera, before it becomes a bank-owned property.
Jay Conner [00:07:16]:
Yeah, big time opportunity to create win-win scenarios. Love it, love it.
Josh Cantwell [00:07:21]:
So sounds like from a market perspective, we’re definitely we’re going to see an uptick in foreclosures. The foreclosure moratoriums are gone. I agree with you that it’s not going to look like 2008, 9. Back then, the banks were the problem. Today’s banks are highly liquid. There’s cash everywhere. They’re lending money at very low ratesThere are lots of private investors who want to deploy their capital,,l and when capital is flowing freely, that allows for economic opportunity.
Josh Cantwell [00:07:51]:
But obviously, some people had a mortgage, couldn’t pay it during COVID, had a foreclosure moratorium, went six months or 12 months without paying it, and then have no way of making that payment up, getting caught up, and keeping their home. So, serving them either by purchasing it, negotiating a short sale, or some sort of forbearance agreement, there are all these opportunities. But from a market perspective, Jay, where do you think the market is going with all the different levers that can be pulled from, from low interest rates to lots of private money to more foreclosures? Obviously, home values are going up. Where do you see the market landing a year from now, at the end of 2022? If you had a crystal ball, I know I’m kind of asking you to predict the unpredictable, but what are your thoughts on where we’ll end up a year from now?
Jay Conner [00:08:39]:
Well, I’m glad you didn’t ask me for my five-year crystal ball or my three-year crystal ball because, quite frankly, as you say, it’s unpredictable. But well, over the years, and I’m 61 years old, I’ve been full-time in real estate investing since 2003. And about the furthest I’ve been able to see, listening to all the experts that are even smarter than me, is about a year down the road is about all that I can really get a gut feel for. And I believe, and a lot of other people smarter than me believe that the next year is not going to slow down at all. And when I say slow down, I’m talking about the prices of homes. I don’t think we’re going to see much increase at all in interest rates. And so we’ve got this tsunami or this economic real estate storm going on that is being driven, in my opinion, by two criteria. One is supply and demand.
Jay Conner [00:09:40]:
I mean, when I first started, I was a mortgage broker for almost 30 years. I started going to continuing ed before they required it. And one of the smartest guys I ever met predicted 20 years ago exactly where we are today: due to population increases and other people moving into this country, there was not going to be enough supply to keep up with demand for housing. That goes for single-family houses and apartments as well. Just someplace for some people to live, for people to live. And we see what has happened to prices nationwide for single-family houses and for rentals as well. So that’s not going to slow down. So that’s going to continue to drive prices up.
Jay Conner [00:10:26]:
I mean, just here in our area in eastern North Carolina, we’ve seen prices go up in the past year by 25 to 30%. Great markets over there, eastern North Carolina. So you got that. That’s going to drive prices up. But then you’ve got this other, this other piece of the puzzle, and that is as long as interest rates are staying down as low as they can, people can buy a whole lot more house than they could a year and a half ago or two years ago. Just because of the interest rates. So, as a result, I would not be shocked to see prices going up by 20 to 30%. However, you got this other creature or critter called inflation.
Jay Conner [00:11:12]:
And inflation is, it’s like, yeah, the prices are going up, people’s values are going up, but if inflation is going up, then really what kind of effect is that having on true wealth that people are actually going to be able to keep in their pocket? Yes, it’s a very, there’s, I’ve never seen any more moving parts, Tom, as far as what’s going to happen with this economy over the next year. But I think that’s the bottom line. I think, I think the prices are going to continue to go up after the next year. I don’t know. Now I will, I will be a.
Josh Cantwell [00:11:47]:
12-month crystal ball. It’s not a 13-month crystal ball. I gotcha. I feel the same way. That’s why I asked 12 months from now, because five years from now, who knows, right? Who knows? But I think one of the interesting things that’s going on, and I agree with you, the interest rates will stay low. I agree with you that inflation is kind of here to stay for a while because I think it’s a much more global economic reason. If you look at all the Federal Reserves, I’m going to go down this quick bunny trail. Look at all the Federal Reserves and central banks around the world.
Josh Cantwell [00:12:17]:
China, the European Union, you name it, all the central banks and all these governments have so many unfunded liabilities. Those unfunded liabilities cannot be paid for. It’s unrealistic; it’s impossible for them to actually be paid for. So the only tool that the governments have is to deflate, debase whatever currency they have, the dollar, the yen, they have to debase it to have inflation go up. So those dollars, yen, European, whatever they are, go down. So we can more likely afford the unfunded liabilities that have been created. It’s the only tool. So when people say, Oh my God, the Federal Reserve is printing so much money, people listen.
Josh Cantwell [00:13:01]:
It’s happening around the world. All the central banks are doing it. So now Biden is frankly the perfect president. I’m not saying he’s a socialist, but much more socially and economically than Trump was to implement these strategies that allow inflation to happen, especially coming off of COVID. So I believe that inflation is here to stay. But I do believe, weirdly enough, that interest rates will stay low, that usually the tool is let, you know, calm inflation by raising interest rates. I don’t think that’s going to happen because I feel like the federal banks and the central banks are letting inflation happen on purpose. After all, they have to. All right, that’s my bunny trail. Now, back to Jay.
Josh Cantwell [00:13:46]:
Let’s talk about raising money, because that’s my other favorite topic. Listen, there’s going to be an opportunity next year, right? There are going to be more people facing foreclosure, pre-foreclosure. We know that’s coming. Prices are still going up. So it’s a phenomenal way to invest. It’s a phenomenal time to invest. And I tell my audience, look, you’ve got to own the asset. We all read Rich Dad, Poor Dad, Multiple Streams of Income, those books to buy and let real estate work for us.
Josh Cantwell [00:14:13]:
So I love flipping, I love rehabbing. I love doing an apartment deal and selling it. But flipping doesn’t ultimately make us wealthy. It’s holding the asset. In order to do that, funding equals freedom. And Jay, you’ve become an expert over the years. You’ve raised millions and millions and millions of dollars. You’ve taught thousands of students to do the same thing.
Josh Cantwell [00:14:34]:
I’m curious to know, because I want to take some notes and get some tricks from you. What are some of your thoughts around raising private money? What are some favorite ways to unlock private money from private investors to fund your deals?
Jay Conner [00:14:47]:
Yeah. So in my experience, there are three primary categories of where you’re going to locate private money. And just to make sure everybody understands, we’re not talking hard money. We’re not talking brokers, we’re not talking institutions, we’re not talking banks. We’re talking about getting money and doing business with individuals just like you and me. There are three categories of those people that I have had very success with doing business with and locating them. First of all is what we call, or what I call, your own personal warm market, or your own personal connections, your own influence,e influences, et cetera. The second one is what I call the expanded market or expanded war market.
Jay Conner [00:15:28]:
Where can you go right there locally, where you live, to expand your own center of influence?e. The third category is existing private lenders that have already been loaning money out to other real estate investors. So let me take just a second and talk about each of those three. So the first, the warm market. Well, I’m talking about people of all types of connections. Any of your social groups, church, your cell phone contacts, your email contacts, your Facebook friends, and I don’t mean your fake Facebook friends, but your real Facebook friends. I’m talking about your LinkedIn connections, any of that. Right.
Jay Conner [00:16:06]:
And so that’s the first category. And if time permits, I’ll go over the quick five steps on how to communicate with those people in a very quick and automated way. Secondly, the expanded market. A lot of times, students of mine will say, Jay, all my people are broke. My network is, is not hardly exists. First of all, I don’t believe them. But secondly, I should say to everyone, you should expand your warm market connections anyway. And so I practice, and I teach.
Jay Conner [00:16:34]:
Expanding your war market. What is that? It’s simply coming down to getting involved with the local community and being a servant and a volunteer. I love the Rotary Club. The Rotary Club is a great place to serve your time. Of course, churches and et cetera. The third group, existing private lenders. So the question I get all the time is, well, Jay, how in the world do you locate these existing private lenders that are already loaning money out? Three quick answers. Number one, don’t do it the way I started.
Jay Conner [00:17:10]:
So the first place to find existing private lenders is on the public record. The people who have a deed of trust or mortgage have backed their promissory notes. So you know, years ago, when I started raising private money, I hired my real estate attorneys, a paralegal to search local public records of where there are promissory notices backed by real estate. Not institutions, not LLC, but individual names. We’re in a small area, 40,000 people. We found like three and 90 days. I said there’s got to be a quicker way to do it than that. So then, in addition to that, I hired some very sophisticated software developers.
Jay Conner [00:17:51]:
So, since 2011, might have been 2012, we have got our own private lender data feed that goes out every month and gets every closing in the nation. You can search it by zip code, and we got their contact information for these individuals and how much money they’re loaning out, the interest rate that they are accustomed to getting. And a ton of these people are happy at 6%, 7% on their money. You can go into this software and search by zip code in your local area. Another great place to find existing private lenders is at self-directed IRA companies. So these self-directed IRA companies, we’ll have networking events. A lot of it now is virtual. But here’s what’s interesting.
Jay Conner [00:18:41]:
My statistics show me that 70% plus 70% of people who hold and own a self-directed IRA account are looking to loan their money out to real estate investors. So I say, the more money you wallow in, the more money sticks to you. So get involved in those self-directed IRA networking events.
Josh Cantwell [00:19:06]:
That is fantastic stuff. That’s a lot of great information. Are you ready to automate and explode your real estate investing? We’re searching for extremely motivated individuals who are sick and tired of wasting time and want to finally see real results from their real estate investing business. We’re searching for investors looking, looking to get to the next level and become a bigger, better version of themselves while being a more successful real estate investing entrepreneur. Apply for mentoring and coaching@josh cantwellcoaching.com forward slash podcast. That’s joshcantwellcoaching.com podcast. The other piece, right. So I would just add one more is right.
Josh Cantwell [00:19:58]:
Digital marketing and creating new funnels. Now that’s more of a 506C federal securities. You’re going after, you know, accredited investors using a digital marketing funnel. But the three that you mentioned, the personal warm market, the expanded warm market, and existing private lenders can all be done today without any significant marketing expense, without any significant dollars out of your pocket. It’s really by using your mouth, using your feet, getting out, and you know, networking with people in the right places and saying the right things. That’s fantastic stuff. And Jay, that’s exactly how I got started. I got started again, warm.
Josh Cantwell [00:20:38]:
Friends, family, people that, and I would say anybody. My target market was four groups. Anybody who I could buy a house from, anybody who I could sell a house to, anybody who could lend or invest with me, or anybody who could cheerlead for me. I wanted them to be on my email distribution list, my newsletter list, in my cellphone because I got some of my best leads from people like you said who did not have money, but they would cheerlead for me, introduce me to people, say, Hey, Josh is doing something with real estate. Oh, you’re interested in real estate. And they were a connector. Like, those were the best people. So I’ll tell the story some other time.
Josh Cantwell [00:21:20]:
My first private investor. Oh my God. The story behind that’s wild. But anyway, the last one is new funnels. You can; there’s a whole other class that Jan I could teach, which Jay does teach, on new investor funnels. Digital marketing for private investors could do all that as well. A little bit more sophisticated. I love it.
Josh Cantwell [00:21:38]:
So Jay, let’s talk about this five-step process, right? Because there’s a, there’s, there’s, there’s money available in the group, the first group, the personal warm market, and the expanded Warm market. There are probably millions of dollars that all of our listeners can go get just by kind of warming that group up. Right. And having a strategy, a way to do it. So let’s talk about your five-step process again. This is in the book, right? Yep.
Jay Conner [00:22:01]:
This is in the book that was just recently released. And to your listeners, I got a free copy for them.
Josh Cantwell [00:22:08]:
The book is called Where to Get the Money Now by Jay Connor, our guest today. Where can they get the book?
Jay Conner [00:22:12]:
Sure. So my last name is an er, not an or. So they can get the book at www.JayConner.com/Book, that’s www.JayConner.com/Book, and it’s 20 bucks on Amazon. Your audience gets it for free. Just spend a couple of bucks and cover shipping. But this new book, Where to Get the Money Now, goes through these exact steps in detail and shows and reveals how I raised $2,150,000 in my first 90 days when I lost my lines of credit at the bank back in 2009. And we knew what was going on then. Right? But first of all, Josh, let me say this about these five steps.
Jay Conner [00:22:58]:
So this will be a quick 50,000-foot view of these five steps of raising money from your warm market. All the details are in the book. But first, let me say this, and that is your mindset and your outlook on how you are attracting money. I just want all of your listeners to know, Josh, to this day, I have yet to ask anybody for money. When I’ve been raising money, I’ve never asked for money. And people say, Jay, how well do you get millions of dollars for your real estate investing business, and you don’t ask for any money? It’s really simple. I put on my teacher hat, and I teach people what private money is. We’ve got right now about 47 individuals that are funding our deals, and zero of them, none of them, had ever heard of private money.
Jay Conner [00:23:49]:
None of them had ever learned or heard about self-directed IRAs. And that’s why it’s so important, Josh, from my experience, for your listeners to develop a relationship with a self-directed IRA company because over half of our private lenders are loaning us money from their retirement funds. And without having that connection to introduce them to, then they don’t, they’re not even going to know how to do it. So what are those five steps in the world market? Number one, and this is going to be really down and dirty and fast. Number one, make your list. I teach my Students to make their list of the top 50 potential private lenders within their network. And don’t rule out anybody. But how do you start making your first 50? Well, if somebody is retired in your own personal network, there’s a pretty good chance they’ve got a retirement fund, they’ve got a pension, or a previous 401 (k) that they can move over to a self-directed IRA company and start funding your deals.
Jay Conner [00:24:52]:
So number one, make your list. Number two is what we call an opening casual conversation. An opening casual conversation. And this conversation again is I’m not talking or chasing or begging or trying to sell anybody into anything. We’ve got two different types of methods in the opening conversation that the book goes into detail about. We have the direct method, and we have the indirect method, without getting into the scripting. And the book has all the scripting. It’s very, very simple.
Jay Conner [00:25:23]:
The direct method involves only three to four sentences of developing rapport over the phone. It can be on the phone or in person. And the direct method asks what we call the magic question. And the magic question is, do you have investment capital or retirement funds not giving you a high rate of return safely and securely? Well, if they say no, I know they’re broke because 0.17% in a 12-month CD ain’t much money. But if they say yes, that takes us to step number three. Before I get to step number three, the indirect method, without getting into the scripting, the indirect method is simply asking someone to help you spread the word. One magic phrase is I need your help. I need your help.
Jay Conner [00:26:11]:
Well, what do you need my help with? Well, I’ve now opened up my real estate investing business to people I know and trust, and I’m now paying insane high rates of return. When you run across someone who’s complaining about the volatility of the stock market or getting 0.17% in a 112-month CD, would you refer them to me, and I’ll tell them about my program? Well, you know what’s going to happen if they’ve got investment capital, they want to hear about your program.
Josh Cantwell [00:26:37]:
What about me?
Jay Conner [00:26:38]:
What about me? And so in fact, the first million that I raised was by using the indirect method, asking people to help me spread the word that I’ve got this just wonderful program. Then if they ha,d and they did, I got both. They spread it, and I would, I would teach them. Now, before you get into these five steps, you have to know what your program is, right? Well, the good news is my book explains the exact program that you offer to people, the interest rate, how you protect them, how they can get their money back with a 90-day call option, and all that kind of stuff. Step number three is I let the tools do the work. So I have recorded and personalized over 1,016 minutes of audio for people. Then people can just email, text, et cetera, send this audio out. It’s called stress-free investing.
Jay Conner [00:27:26]:
This 60-minute audio just introduces the idea of what private money and private lending are. And it then leads your prospects to step number four. Step number four is what’s called the one-on-one appointment. This can be in a group, on Zoom, or it can be one-on-one at lunch or over the phone. Step number four reveals the exact program, it spills the beans, it tells what interest rate you’re paying, how they’re protected, how long the term is, their minimum investment and etc. The book goes into the details of the program, and it’s very simple. And step number five is to get a verbal pledge. And again, I’ve never had to even ask anybody for a verbal pledge.
Jay Conner [00:28:07]:
When I finish with the program, I promise you, and it only takes 20 minutes to go through it, I promise you, when I finish explaining the program, if they’ve got investment capital or retirement funds or they know somebody that does, they’re now chasing me and wanting to. And they’re asking the question, well, what do I do, Jay, just write you a check? Of course, the answer is no. We’re going to go find a deal as soon as possible. Put the money, put the money to work and close it with a real estate attorney. But again, that’s the fast, you know, 30,000-foot view of the five-step method in the war market. The book also goes into details of the five-step method for working with existing private lenders as well.
Josh Cantwell [00:28:46]:
Oh, that’s great stuff, Jay. Like, wow, especially with this short podcast format that we have. I mean, you teach this over a several-day seminar. Teach us in your training program. So, one, make your list for the opening casual conversation. Three, let the tools do the work, which Jay mentioned, those recordings that he has, sending those out. Number four, the one-on-one appointment, and reveal the program. Essentially, that’s where you’re doing the training, right? This is just again a conversation; it’s a training opportunity.
Josh Cantwell [00:29:18]:
You’re teaching somebody what private money is, how they can do it without asking them for it. And then the verbal pledge is ultimately where you show them how the program works and say something along the lines of Hey, do you know anybody that would be interested in Something like this and they’re going to probably say, What about me?
Jay Conner [00:29:38]:
I’m interested in that.
Josh Cantwell [00:29:39]:
I’ve got some capital, or I know somebody who does. Right? So in no time during that five-step process did Jay ask for money. The verbal pledge comes because they’ve been, they’ve been, they’ve been trained on how it could work, and they’ve convinced themselves that this is beneficial for them. Fantastic stuff. In my newest real estate investing book, The Flip System, you’ll learn the proven secrets and strategies that I’ve used to be a successful real estate investor. You’ll also hear the story of my journey from quitting my job to doing over 2,000 units of apartments. The Flip System is now available for a limited time, and you can grab your free copy@getflipsystem.com podcast. You’ll learn the same proven principles and secrets, and investing strategies that I used to quit my job and pursue a life of financial freedom.
Josh Cantwell [00:30:39]:
In this book, I’m sharing exactly how I was able to personally close over 750 profitable real estate deals, make over 400 private lender loans, raise over $30 million, and acquire over 2,000 units of cash-flowing apartments. Get my newest book now for free@getflipsystem.com podcast. That’s the getflipsystem.com podcast. Jay, you’ve been doing this for a long time. Since 2003. You raised millions of dollars. Thank you for finally putting this in this new book, where to get the money. Now you guys all need to go get that book.
Josh Cantwell [00:31:23]:
It’s fantastic stuff. Jay, listen, if you were to go back and talk to your younger former self and look at what you’ve done and how success, the successes you’ve been, look at some of your members, your students, the successes that they’ve had. I’m sure some initial challenges were faced. What were some of those initial challenges that you faced, and some of your members face? And then what advice would you give our audience on how to overcome those challenges, or things you would have done differently?
Jay Conner [00:31:54]:
So number one, don’t do what I did the first six years.
Josh Cantwell [00:31:58]:
Okay, what was that?
Jay Conner [00:32:00]:
And that was I was out here trying to do this business by myself and not working with anybody that had already done it and had already worked, you know, walked through the mines. So my first big piece of advice is don’t do what I did. I mean, I didn’t even go get an actual professional education on this real estate investing. You were just winging it until I was, you know, six years into it. Number two, do not let your emotions make the decision on what you invest in. The math makes the decisions, and you have to know what the math is. So, like, you know, when I’m buying a property with all private money, there is a formula that happens to be in the book as well. But when I’m buying a property, whether it’s commercial or single-family, there is a specific formula to follow on what your maximum amount is that you are going to be willing to pay. All cash for that property.
Jay Conner [00:33:01]:
But in addition to that, if I’m buying a property on what we call terms using creative financing, subject to seller financing, whatever, then that’s a whole different formula. You know, like if I’m buying on terms, then I can actually pay full retail for a house if the terms are right. So, you know, I didn’t know any of that stuff my first six years. So, you know, you need to. My advice is your audience needs to hook themselves up like a, to a Josh Cantwell and like learn what not to do and learn what to do the way Josh does it. You know, I love it. So yeah, don’t let the emotions make the decision. Let the math make the decision, and not only hook yourself up with somebody who knows what they’re doing.
Jay Conner [00:33:52]:
Masterminds all my lands. The biggest return I’ve gotten on my investment, Josh is hanging around like-minded people. And I’m in three mastermind groups of other real estate investors that I pay a lot of money to be in. But you don’t have to pay a lot of money. Start smaller, but hang around people who are like-minded. Find the masterminds and let me tell you where they are. Not now. You should be involved in your local rea and be a servant and volunteer at your local rea.
Jay Conner [00:34:22]:
But your smartest people, your smartest people, are some of the mastermind groups that are out there of real estate investors that have proven themselves. I want to hang around people in the business I’m interested in who are smarter than me and have already made a lot more mistakes than I have.
Josh Cantwell [00:34:42]:
Love it, Jay. Fantastic, fantastic advice, guys. Listen, the book again, Jay Conner spelled www.JayConner.com. The book is free for y’all to go ahead and get. Just pay the shipping and handling to get it out, and go ahead and check that out. So if you’re short on cash for your deals, if you’ve been turned on by banks, if you don’t have the confidence to go raise money. Go get Jay’s book right now. Jason, listen, this is just fantastic stuff.
Josh Cantwell [00:35:11]:
Real actionable stuff, guys. Listen, here’s what we learned, like the different categories and places to go get funds. Personal warm market, expanded warm market, and existing private lenders. And then we talked a little bit about new funnels and the five-step process. This is just a small bite, a small taste of what’s inside the book. Jay, listen, I had an absolute blast having you on the show. It’s been great to build this new relationship with you over the last couple of months. I look forward to having that expand and grow, and working together in the future.
Josh Cantwell [00:35:38]:
Thanks so much for being on today.
Jay Conner [00:35:39]:
Same here, Josh. Thank you so much for having me, Josh. And I hope to see you soon.
Josh Cantwell [00:35:46]:
Well, there you go, guys. There you have it. There was an interview there with Jay. Man, I had a blast learning about his three places to get private money now and his five-step process for recruiting and raising private money. Especially the fact that he doesn’t ask for money and gets what he calls the verbal pledge. I also love the part where he talked about math, making decisions. So anytime I can talk to another expert about recruiting and raising private money, I get pretty geeked up. You could tell I was pretty excited during that interview.
Josh Cantwell [00:36:17]:
So if you enjoyed the interview, please subscribe. Don’t forget to hit the subscribe button so you never miss an episode. Whether you’re on iTunes or Spotify, or you’re on YouTube, hit the subscribe button so you never miss another episode. We release them twice a week. Most of the time, twice a week. And I’m really excited that you are here today. If you feel compelled, I would be so grateful if you would leave us a rating and a review. It means so much to me to see the feedback, the impact that we’re having on other people, and hopefully, this is advancing your real estate investing career.
Josh Cantwell [00:36:50]:
Thanks for being here. We’ll talk to you next time.
Narrator [00:36:54]:
You were just listening to the Accelerated Investor podcast with Josh Cantwell. If you enjoyed this episode and learned something new, help us build the AI community by leaving a review and 55-starr rating on our iTunes podcast channel. Also, don’t forget to subscribe so you never miss another episode. To see passive investing opportunities, visit freelandventures.com. Passive to start your journey toward the lifestyle you’ve always dreamed of with multifamily apartments. Apply for a coaching session with Josh at www.joshcantwellcoaching.com.
Narrator [00:38:01]:
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.