Credits to:
https://www.youtube.com/watch?v=5sff1RevVAw&t=37s
“Stop Begging Banks: How to Fund Every Real Estate Deal with Private Money”
https://www.youtube.com/@GoodNeighborPodcastCooperCity
If you’re venturing into real estate investing or even just curious about alternative forms of financing, the term “Private Money” has likely caught your attention. It’s often shrouded in mystery, separated from the world of conventional banking and lending. But as explored in the recent episode of the Raising Private Money Podcast with Jay Conner, Private Money might just be the game-changer aspiring and seasoned real estate investors have been searching for.
Dismantling Myths: What Is Private Money?
Most people’s introduction to real estate financing involves banks, credit scores, down payments, and mountains of paperwork. Private Money, as Jay Conner explains, is fundamentally different. Rather than relying on banks or hard money lenders, Private Money comes directly from individuals—ordinary people who invest their capital or retirement funds into real estate deals, bypassing traditional financial institutions and brokers altogether.
This shift isn’t simply about sourcing cash; it’s about flipping the power dynamic. With Private Money, it’s not the lender who dictates the terms—the real estate investor does. Instead of applying and hoping for approval, the real estate investor offers an opportunity, teaching potential lenders about the investment advantages. There’s “no asking, no begging, no chasing, no selling, no persuading”—just teaching.
Why Is Private Money a Game-Changer?
Jay’s passion for Private Money is rooted in his own story. Having started in real estate by following the traditional path—mortgages through banks, lines of credit, and dealing with bureaucratic hurdles—he found his world turned upside down during the 2009 financial crisis. Suddenly, his bank line of credit was shut down with no notice, leaving him grasping for solutions.
Instead of folding, Jay leaned into a pivotal question: “Who do I know that can help me solve my problem?” This led him into the world of Private Money—where individuals, sometimes using their self-directed IRAs, could invest directly into his deals. Within 90 days of exploring this new methodology, he had raised over $2 million from private investors who’d never heard of this model before.
But what makes Private Money so powerful? Here are a few key advantages Jay outlines:
- Unlimited Growth Potential: There’s no cap on how many deals you can fund; it only depends on the number of private lenders in your network.
- Flexible Terms: Investors set the terms, not institutions. Jay, for example, offers his lenders a flat 8% rate, with no origination or “junk” fees.
- Speed and Control: With funds already lined up, deals close faster, and investors can always pick up a “check” at closing—rather than scrambling for down payments like with traditional loans.
- Security and Trust: By educating lenders about maximum loan-to-value ratios and repayment methods, investors build confidence and sustainable relationships.
The Mindset Shift: Teaching, Not Selling
One of the most important takeaways from Jay’s interview is the mindset real estate investors should adopt. Success with Private Money isn’t about high-pressure pitching or desperate pleas. It’s about teaching: showing people how they can benefit from being a private lender, patiently answering questions, and only presenting deals that match the criteria already discussed with your lenders.
This mindset extends to separating conversations: First, teach the opportunity, without a deal in hand. Only once your lender understands and agrees to the terms do you bring them a specific investment. This separation avoids the sense of desperation and builds sustainable trust.
From Challenges to Opportunities: E + R = O
Jay draws inspiration from Jack Canfield’s formula “E + R = O” (Event + Response = Outcome). Events—like losing access to conventional funding—are out of our control. But how we respond determines the outcome. For Jay, the challenge of losing his credit line became the event that propelled him into Private Money—and ultimately, greater success.
Getting Started
If you’re a budding real estate investor, your first step is simple: shift your mindset. Own the real estate “between your ears” first. Approach Private Money as a teacher, not a beggar. Build confidence, clarity, and a strong educational foundation—and then, the deals (and the money) will follow.
To dive deeper, Jay offers generous free resources like his “Curiosity Opener” script and his book. The journey from financial setbacks to real estate abundance is paved not just with money, but with the right approach—and an openness to the world of private lending.
Ready to make your next deal happen? Start by expanding your mindset, building your network, and learning to teach the Private Money opportunity. The doors to real estate success might be closer—and more accessible—than you think.
10 Discussion Questions from this Episode
- Jay Conner emphasizes the importance of the “who, not how” question when facing problems in real estate or life. How can this mindset shift impact decision-making outside of real estate investing?
- Based on the episode, what are the key differences between hard money lending and Private Money, and why is it important for investors to understand this distinction?
- Jay Conner states that with Private Money, “we set the rules” instead of the lender. What are the potential advantages and disadvantages of this approach for both the investor and the lender?
- The episode discusses the critical role of mindset in securing private capital. How can new investors develop the necessary mindset and confidence to approach potential private lenders?
- Why does Jay Conner recommend lining up Private Money before searching for deals, contrary to the advice often given by other real estate educators?
- How does teaching and exposing private lenders to opportunities differ from pitching a specific deal, and what are the benefits of separating these conversations?
- According to the episode, what are the three major reasons a private lender would be eager to fund a deal once they’ve moved their funds to a self-directed IRA?
- Jay Conner describes how the 2009 financial crisis forced him to discover Private Money lending. How have external events or setbacks led you, or could they lead you, to discover new opportunities in your own field?
- The episode introduces Jack Canfield’s formula E+R=O (Event plus Response equals Outcome). How can this formula be applied to challenges in real estate and beyond?
- Jay Conner highlights that with Private Money, there is “no limit to the number of deals you can do.” What implications does this have for scalability in real estate investing, and what factors might still limit an investor’s growth?
Fun facts that were revealed in the episode:
- Unlimited Deals, Unlimited Lenders
In the world of Private Money, there is no cap to the number of deals you can do or private lenders you can work with. Jay Conner highlighted that he has 47 private lenders funding his deals, but started with just one, showing how scalable the approach can be. - You Can Get Paid When You Buy
Unlike traditional financing, where you bring a down payment to closing, using Private Money often means you get a check at closing! If you buy right, you can walk away from the closing table with extra cash in hand to use for renovations or even carrying costs. - Access to Private Money Doesn’t Depend on Your Credit
According to Jay Conner, when you tap into private financing for real estate, there’s no application, no underwriting the traditional way, and your credit score isn’t a roadblock—because “you’re already approved.” It’s all about offering an opportunity, not begging for a loan.
Timestamps:
00:00 Understanding private vs. hard money
05:34 Accessing private capital for investments
07:55 Teaching investment opportunity strategies
10:46 Funding strategy and lender criteria
15:38 Discovering Private Money solutions
17:31 Embracing obstacles as opportunities
20:39 Importance of Taking Action
26:45 Free Million Dollar Money Script
28:12 Discussing real estate investing interest
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
Redefining Real Estate Funding with Jay Conner, the Private Money Authority
Jay Conner [00:00:00]:
I asked myself a very important question that I’ll share with you and your audience. As a matter of fact, this question will help solve any problem that anybody’s got. I don’t care if it’s financial, career, relationships, uh, or, you know, no money to fund your deals. And the question I asked myself was, who— you know, it’s who, not how— who do I know that can help me solve my problem?
Narrator [00:00:24]:
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.
Narrator [00:00:52]:
This is the Good Neighbor Podcast, the place where local businesses and neighbors come together. Here’s your host, Jeremy Wolf.
Jeremy Wolf [00:01:04]:
Well, hello, hello, friends, family, wonderful community. We are back with another installment of the Good Neighbor Podcast. You know, if you’re anything like me and you’ve dabbled with real estate before, when you hear the term Private Money, private lending, private finance, private equity, there’s a certain, I don’t know, mystique that comes with it, right? Ooh, private loans. And I think we’re like conditioned to learn that you work to build your credit up, you get your down payment, you go to the bank, you get traditional financing, and that’s what you do. And you only seek private loans if you don’t qualify for a regular loan. Our guest today sees things through an entirely different lens. We are blessed by the appearance of Jay Conner. And Jay, in many circles, has been dubbed the Private Money Authority.
Jeremy Wolf [00:01:55]:
So we’re happy to have him on the show, and hopefully he can give our listeners some great tips and tricks on how to access the abundant world of private finance and real estate. So Jay, thanks so much for joining us.
Jay Conner [00:02:04]:
Jeremy, thank you so much for inviting me to come along and talk about my favorite topic that I’m so passionate about, that being Private Money. And the reason I’m so excited about it is that this is the number one strategy, the biggest strategy in our business since I started investing in single-family houses all the way back in 2003. It’s made more of a difference than anything else that we’ve done. And when we started raising Private Money for our real estate deals all the way back in February of 2009, we’ve never missed out on a deal for not having the money.
Jeremy Wolf [00:02:42]:
Love it, love it. So let’s start with some basics for listeners out there. So for those out there that may not even really know about what Private Money is, right, they have ideas in their head. Start there. Tell us a little bit about what, what Private Money is and then how that is used with what you do in real estate.
Jay Conner [00:03:00]:
Sure. Well, a private lender is simply an individual, an ordinary person like you and me, who loans money out from either their investment capital and/or their retirement funds to real estate investors. And so there’s no broker involved; there’s no middle person. It’s a one-on-one transaction between that individual and the borrower, the real estate investor. Now, one misconception that’s out there in the marketplace is that people and real estate investors confuse the difference between hard money lending and Private Money, and that’s not their fault. You’ve got a lot of hard money lenders, which are institutional lenders that raise money from individuals for those individuals to invest in. And then the hard money lender or brokerage house then loans money out to real estate investors from that fund. Private Money in this context is not hard money. This is not institutional money.
Jay Conner [00:04:04]:
And the biggest difference— and there, I mean, there’s 20 reasons why I love Private Money, but the biggest difference between borrowing from a bank, a mortgage company, a hard money lender is that traditionally you always think as the borrower, well, whoever’s got the money to loan makes the rules. They, they’re the underwriter. They, you know, they set the terms. But in this world of Private Money, the opposite is true.
Jay Conner [00:04:30]:
We set the rules, we set the terms. So instead of applying for a mortgage, I got great news. If you’re a real estate investor or you want to be one and you want to use Private Money, guess what? You’re already approved. There is no application because, you see, you’re not asking for a mortgage. You’re not applying for a mortgage. You’re offering an opportunity. So there is no asking, no begging, no chasing, no selling, no persuading. You’re simply teaching.
Jay Conner [00:04:58]:
Have the mindset of putting on your teacher hat, which says Private Money, teacher.
Jay Conner [00:05:04]:
And you know, we’ve got 47 private lenders that are funding our deals right now, and you don’t need 47. I started with one. But of these 47 private lenders, not one of them ever heard of Private Money or self-directed IRAs or any of this opportunity until we first exposed them to it, taught them about it, and then they were ecstatic and excited to fund deals.
Jeremy Wolf [00:05:34]:
So clearly you’ve built a great network of lenders, a nd what you do is, it seems, it seems to me like you help investors that are looking to access capital,l and you work with them to use the framework that you created to give them access. But to somebody out there that is completely new to this, right? What would be their first steps if they’re looking to access private capital? Again, I’m thinking in terms of somebody who maybe they’re looking to buy their first house, and they’re just- or not a first house, maybe a first investment property, whatever that is-, and they’re looking for financing. Everybody just by default goes to the bank. When is the situation where you would want to go to a bank? Versus when you would want to go out into this, this private world that you have of finance? Like, what’s that distinction there?
Jay Conner [00:06:19]:
Right. Well, with Private Money, it’s so much more flexible, right? As of right now, institutional and commercial rates are actually higher than what we pay our private lenders. We pay our private lenders 8%. We have been paying them 8% since 2009. And there are no origination fees. There are no extension fees. Uh, there are no junk fees, as we call it. It’s a straight 8%.
Jay Conner [00:06:46]:
And so if someone’s brand new to listening to this show, the question is, how do you start? I can tell you your very first step. And the very first step is to own the real estate between your ears first. What do I mean by that? You gotta have the right mindset, uh, which includes confidence, clarity, knowing what it is that you’re going to teach. And another big part of the mindset, Jeremy, to get that right is the— let me ask you, let me ask you a question, Jeremy. I’m gonna put you on the spot.
Jeremy Wolf [00:07:19]:
All right.
Jay Conner [00:07:19]:
Have you ever heard, uh, the guru on stage or a real estate investing educator say something like this to an audience of real estate investors that are new? Have you ever heard it said, oh, just get the deal under contract; the money will show up? I don’t know if you’ve ever heard that, but it’s out there a lot. Or sometimes they’ll say money finds deals. Well, the opposite is true. That’s why we practice. That’s why we teach and coach our real estate investors to get the money lined up first.
Jeremy Wolf [00:07:51]:
Capital together. Yeah. Then all deals are accessible.
Jay Conner [00:07:55]:
I mean, there are always deals. There’s always gonna be deals, but in this world of how we raise capital, we never pitch a deal. And it’s because we first expose and teach the opportunity, you know, what’s our maximum loan-to-value to our potential private lenders, how they get paid, how often they get paid, how they can get their money back in case of an emergency, without having a deal attached to that. Because if you’re exposing or talking about the opportunity and you’ve got a deal that you’re looking to get funded, you’re already sounding desperate. Without even trying to sound desperate. So this is a critical first step. Separate the conversations of teaching the opportunity, what this is all about, and then having a deal for them to fund. I’ve, I’ve got a script that’s called the Good News Phone Call Script that we call up our private lender when we’ve got a deal for them to fund, and we get it funded 100% of the time.
Jay Conner [00:08:58]:
So I’ll share that script, and I’ll turn it back to you, Jeremy. Jeremy, let’s say that you are one of my new private lenders, and let’s say you’ve told me that you’ve got a $150,000 retirement account that is in the stock market or in a previous 401 at a previous employer, and you’re sick and tired of the volatility. And let’s say I’ve exposed you to and taught you this opportunity,y and you love it. You love the 8%. You know, you can only get 3% or 3.5% on a CD at the local bank. You love the interest rate. And so you’ve said, yes, I want to, I want, I want to do this. So then let’s assume I’ve introduced you to a self-directed IRA company that I highly recommend, that you can move those retirement funds that you have sitting in an old 40, and there’s no tax effect; there are no tax penalties.
Jay Conner [00:09:52]:
You move it over, a nd now your account’s funded, and you’re now waiting for the first deal to fund. So I call you up; here’s the good news phone call. Uh, you answer the phone, I say, hey Jeremy, I’ve got great news. I can now put your money to work.
Jay Conner [00:10:08]:
I can put your $150,000 to work. I’ve got a house in Newport, North Carolina under contract with an after-repair value of $200,000. Now the funding required for this deal is $150,000, which matches up to your retirement account. Closing is gonna be next Thursday, so you’ll need to have your funds wired to my real estate attorney by next Wednesday. I’m gonna have my real estate attorney email you the wiring instructions. That’s the end of the conversation. The stupidest thing I could do is ask Jeremy, do you want to fund the deal? Of course he wants to fund the deal. And there are 3 big reasons why Jeremy wants to fund my deal.
Jay Conner [00:10:46]:
Number one, he knows that I’m not gonna bring a deal to him to fund unless it matches the criteria of the program that I already taught him. He already knows that my maximum loan-to-value is 75% of the after-repaired value. I told him in the good news phone call that the after-repaired value is $200,000 and the loan is $150,000, right? Uh, secondly, Jeremy trusted me to move his $150,000 over to the self-directed IRA company. And then thirdly, Jeremy’s not making any money on that investment capital until he funds my deal. So the sequence of that- I mean, this does not happen overnight. Now I’ve got a lot of coaching clients that get $500,000 and $1 million lined up in 30 days or less. But you don’t get the cart before the horse. Let’s get the money lined up first, and then give your private lenders deals to fund that match the underwriting that you already taught them.
Jeremy Wolf [00:11:55]:
Interesting. So, basically, the underwriting for these deals is analogous in many ways to traditional underwriting. It’s just all done through independent parties, independent of a traditional lending institution, right? So you have—
Jay Conner [00:12:06]:
That’s right.
Jeremy Wolf [00:12:06]:
The network. So you work with folks on 2 different sides, if I understand correctly. Let me kind of reiterate what I’m hearing here, and you can tell me if I got it. So you work with folks on 2 different sides, right? You have a network of lenders that you work with that produce the capital for the buyers, and then you work with the buyers through a coaching program that you’ve developed over years and years of operating in this space.
Jay Conner [00:12:28]:
Exactly. So I’m not a broker. I’m not a broker. I don’t fund deals. I simply teach and coach real estate investors how to raise their own capital for their own deals the same way that I’ve been going about doing it ever since 2009.
Jeremy Wolf [00:12:45]:
Yeah, makes a lot of sense. Now, were you always, like, before 2009, going back through your, your professional journey, were you always dabbling in real estate? When did you start? What, what really fueled the interest for you to get into the world of real estate investing?
Jay Conner [00:13:01]:
Sure. So my father, Wallace Conner, is getting ready to turn 92 years old right now.
Jay Conner [00:13:08]:
At one time, his company was the largest retailer of mobile homes or manufactured homes. Of course, you being in Florida, Jeremy, you know what a single-wide and a double-wide is. Florida was one of the biggest states back, back in the day. Well, his company was the largest retailer of mobile homes. So I was raised in that industry. And then in the early 2000s, uh, Wall Street fell out of favor with the industry and stopped lending money to the consumer for that product. So that industry, by and large, pretty much dried up compared to what it was. Well, I’m, you know, for years I’ve been helping people own affordable housing.
Jay Conner [00:13:49]:
So I knew if I ever got out of the mobile home business, I wanted to get into investing in single-family houses.
Jay Conner [00:13:55]:
And so that’s what we did in 2003. My wife, Carol Joy, and I, we started in 2003, and this was before I knew anything about Private Money or private lending or even hard money. The only thing I knew to do was go to the local bank, apply for a mortgage, or go to a mortgage company. Never even heard of hard money. And so for those first 6 years, from 2003 until January of 2009, that’s all I knew to do. And back then in the early 2000s, if you had a decent credit score, you could get an unsecured line of credit for goodness sakes. And, uh, but everything changed. Everything changed in January 2009.
Jay Conner [00:14:36]:
I called up my banker. His name was Steve. He’d been funding my deals for 6 years. And I called him up, and all of our investments were right around here in Eastern North Carolina. We were flipping houses before HGTV even existed. Anywhere. And so I called up Steve, my banker, and I had 2 houses under contract, uh, for him to fund. And, uh, I found out like that over the telephone that my line of credit had been closed with no notice to me.
Jay Conner [00:15:02]:
It’d been nice if somebody had told me my line of credit was closed. And I told Steve, I said, Steve, what in the world are you telling me? My line of credit’s closed. We’ve done business for 6 years. Always made my payments on time. What’s the problem? 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. Right? So I hung up the phone, and Jeremy, I asked myself a very important question that I’ll share with you and your audience. As a matter of fact, this question will help solve any problem that anybody’s got.
Jay Conner [00:15:38]:
I don’t care if it’s financial, career, relationships, uh, or, you know, no money to fund your deals. And the question I asked myself was, who, you know, it’s who, not how- who do I know that can help me solve my problem? And when I asked myself that question, I immediately thought of a dear friend, Jeff Blankenship. He lived in Greensboro, North Carolina, at the time, and he was investing in single-family houses. And I called him up,p and I told him what had just happened, getting cut off by the local bank. He said, well, Jay, welcome to the club. I said, well, I’m not sure I wanna be a member of that club, but what club are you talking about? He said, well, that’s the club of a bank shutting your line of credit down. He said, they shut me down last week. I said, well, Jeff, how are you gonna fund your deals? He said, uh, well, uh, have you ever heard of Private Money? I said, no.
Jay Conner [00:16:27]:
He said, have you ever heard of self-directed IRAs and how people can use existing retirement account money, ey and they can be a private lender? I said, I don’t know what you’re talking about, Jeff. What is that? He said, well, there’s this gentleman down in Jacksonville, Florida, by the name of Ron LeGrand. I said, ” Who’s Ron LeGrand? He said, well, I’m not really sure, but, uh, he can teach us about Private Money. I said, Jeff, for goodness sakes, tell me what in the world is Private Money? He says, I don’t know, but Ron says we can get a lot of it really, really fast. I said, okay.
Jeremy Wolf [00:16:57]:
Sounds good to me.
Jay Conner [00:16:59]:
So I went to my very first real estate investing seminar in January 2009. And in February, I started raising capital. I raised over $2 million in new funding from private investors who had never heard about this opportunity, uh, in less than 90 days. And since that time, uh, haven’t missed out on a deal. 2 years later, in March of 2011, is when we started our coaching company and started showing other real estate investors how to do this.
Jeremy Wolf [00:17:31]:
I love what you said earlier. You were talking about the mindset, as often the biggest component to everything in life. And it’s funny how the things- the curveballs that we encounter through our lives, the roadblocks, the barriers- in your case, not having access to capital at the time. What am I going to do? Right. Where am I going to get money? And that opened the door to what you do now. And a lot of times it’s about how we frame things, right? When we encounter those obstacles in life, we can either look at it through the lens of, all right, well, another roadblock. I guess I’ll, I guess I can’t do this anymore. Or you could say, this is an opportunity.
Jeremy Wolf [00:18:09]:
This is happening. This is a sign. This is happening so that I can grow and open a new door. And when we look at it through that lens, magic starts to happen. Isn’t that, isn’t that crazy how that works in life?
Jay Conner [00:18:19]:
That is so true. And as you were summarizing, you know, my story and what happened, it reminded me of Jack Canfield’s book, The Success Principles. There are 65 success principles in his book. And the very first success principle is to take 100% responsibility for everything that happens in your life. And he shares a formula that I love. And this formula is E R O. And the E stands for the event that happens in your life, whatever that may be. Maybe you brought it into your life, maybe you didn’t, but something happens.
Jay Conner [00:18:55]:
And unfortunately, most people are walking around with a different formula. Most people are walking around with the formula E O, which equals outcome. They’re a victim. They can’t do anything about it.
Jay Conner [00:19:06]:
Yeah, the victim mentality. But I love Jack Canfield’s formula, E+R. The R stands for your response to the event, right? You got, you got, you got 100% choice as to how you want to respond to any event that’s happened in your life. Therefore, you get to be the victor and determine the outcome. The event plus your response to the event equals the outcome. And you’re so right, Jeremy. I mean, you know, if that event had not happened and then I chose to respond to find a better and quicker way to fund my deals, I wouldn’t be on your show today. Yep.
Jeremy Wolf [00:19:51]:
I, I love that E plus R equals O. It’s so true, right? So many of us get hijacked by our emotions and allow externalities to dictate what happens in our own lives. And you nailed it right there with that. It, it, we, we control our own reality, right? Our response. Yeah. Bad things happen to people all the time, right? It’s what you do in response to that.
Jay Conner [00:20:16]:
Absolutely. Absolutely. And you know, when people understand that formula, it really, it gives you a sense of freedom. Because you know that you can respond and take action any way that you want to. And there’s a word: action. All right? You know, knowledge is worth nothing without implementation.
Jeremy Wolf [00:20:39]:
Yes, you do need to, you do need to do the activity, right? You can’t, you can’t just sit on your couch all day and manifest greatness with a positive attitude. There is a component of actually putting things into action. And it’s funny how it works when you start doing the activity. Even when you go through it and you’re failing and you’re up against roadblocks, but you just keep doing the activity, it’s like magic, right? Little serendipities start to occur, little signs, little things, little coincidences start to pop up, and you’re like, oh, wow. And it’s all due to the forward momentum and the activity and then just that positive mindset. Yeah, this is good stuff. I like it.
Jay Conner [00:21:13]:
I love it. Love it. So, you know, as I said, Private Money, it’s made the biggest difference. You know what’s interesting is, as I said, it was the beginning of 2009 when I lost my lines of credit at the bank. And if you think back to 2009, you had all those foreclosures going on. I mean, foreclosures were rampant. And think about, think about this. You got all the foreclosures, and the banks stopped lending money.
Jay Conner [00:21:42]:
So for you to, you know, bid on or buy a foreclosure, you had to have the cash because the bank wasn’t gonna loan it to you. Well, guess what? That’s why our business tripled in 2009 when we had access to the Private Money cash. So it tripled because it was like you had the storm going on, the real estate storm going on, all these foreclosures, banks not loaning money. Uh, so Private Money was and still is the answer. And you know, so many reasons why I like Private Money. There are 20 reasons. I’ll just share 2 or 3. One is there’s no limit to the number of deals you can do.
Jeremy Wolf [00:22:23]:
That’s a big one for me. Let me just stop you there because in my mind, I’m always, I’ve always been confined by how much capital I could access, right? How am I gonna get financing for all of this? And I love that this offers an unlimited opportunity for capital.
Jay Conner [00:22:39]:
Yes, so there’s no limit, no limit. Um, you know, I’ve raised over $50 million, and I normally keep about $8.5 million out on projects, you know, that we’ve got going on. So no limit, no limit to the number of private lenders you can have. And sometimes people ask me; they’ll say, Jay, you know, like, our average profit on our single-family house deals now in Eastern North Carolina is $86,000 per single-family house. Well, how in the world does that happen? Well, you gotta know how to find those deals. That’s a whole other show. That’s a whole other topic on how you find the deals. But, um, no limit to the number of private lenders.
Jay Conner [00:23:17]:
Another big reason I love Private Money is that when you buy a property using Private Money, and you’re buying it at a discount because it needs some renovation or needs some rehab, you always pick up a check when you buy the property. Now let’s stop right there. Doesn’t that sound different? Traditional loans, you gotta bring a down payment to the closing table. The opposite is true in this world. You always get what’s called an excess cash-to-close check when you purchase. And here’s my double-check. If you cannot pick up a check when you buy, you’re paying too much for the property. So I’ll illustrate this very quickly in a, in a scenario.
Jay Conner [00:24:00]:
Let’s say that I’m back to that $200,000 after-repaired house, and I’m using small numbers to— so it’s easy to follow. So let’s say that you’re buying a house that has an after-repaired value of $200,000, and then let’s say you buy it for $100,000. I do that all the time. In fact, I just closed on a, on a deal yesterday. I bought the house for $67,500. And the after-repair value is $220,000. Well, why did I buy it so cheap? It needs renovation. So back to our example, I want you to follow the cash and follow the money.
Jay Conner [00:24:39]:
You got this.
Jeremy Wolf [00:24:40]:
I’m with you.
Jay Conner [00:24:41]:
$200,000 after-repaired value house. You’re gonna buy it for $100,000 because, in this example, let’s say it needs $35,000 in rehab and renovation. So there are the facts. Watch the money, watch the cash flow. $200,000 after-repair value; you’re buying it for $100,000. Now you can borrow up to 75% using my outline. You can borrow up to 75% of the after-repaired value and not of the purchase price, of the after-repaired value. So that means you can borrow up to $150,000 in this scenario.
Jay Conner [00:25:23]:
So watch this. Your private lender wires $150,000 to your real estate attorney’s trust account or title company. Well, there’s the $150,000 sitting in the trust account. You come to the closing table; $100,000 of that $150,000 goes to the seller. Guess what? You’re picking up a $50,000 check, excess cash to close. To bring home. Of course, you’re gonna have some closing costs that come out of that to your closing agent, but you’re bringing home almost a $50,000 check. Now you can use $35,000 of that for the renovation.
Jay Conner [00:26:02]:
You can use the other $15,000 for carrying costs if your private lender needs monthly payments, monthly payment interest. A lot of them let you just accrue the interest and make no monthly payments. If you’re flipping the deal, then they get paid off when you cash out. So, so many reasons, so much flexibility.
Jeremy Wolf [00:26:23]:
Truly fascinating. And I, I do have, I do have tons of questions, but I think we gotta, I think we gotta wrap up. We’re at the top of the hour here. Uh, for anyone out there listening, how could they learn more? Like, what, what would it look like? You know, I’m sitting here, I’m listening to you, and I like what you’re saying. I want to get involved with your program. How do we learn more? How do we get connected with you? What’s the best way to? Sure.
Jay Conner [00:26:45]:
So I’ll give a couple of different ways. Actually, I’ll give 3 ways. We have a novel thing we do here at our office. Somebody dials the phone; we actually pick up the phone and answer it. Can you believe it? But anyway, I’ve got, uh, I’ve got a gift that I’d love to give your audience. And this is called my new Million Dollar Private Money Scripts. And so I wanna give away absolutely free the first script, which is called the Curiosity Opener. How do you even start a conversation with a potential private lender? You can download that script hot off the press at www.JayConner.com/Scripts.
Jay Conner [00:27:26]:
Download that PDF. Another gift I’d like to give away: my national best-selling book is called Where to Get the Money Now, and this has got the actual program in the book that we teach to our new private lenders. Uh, it’s $20 on Amazon, but don’t pay $20 to Amazon. Uh, you just cover shipping and handling. I’ll autograph it and express mail the book to you. You can pick up the book at www.jayconner.com/book. And then I’m glad to give out my phone number. I love to talk about private money.
Jay Conner [00:28:08]:
252-808-2927. And Jeremy, I’m sure you’ll have all those resources in your show notes.
Jeremy Wolf [00:28:12]:
Absolutely. We will, of course,e put links in the description below. Jay, I gotta say, I, I am intrigued myself, and I’d like to continue this conversation with you at a later date, uh, and sit down and talk about potentially working together. Because this is— for me, real estate investing has kind of always been in my mind as something that I’d wanted to do, wanted to accumulate a portfolio of properties. Uh, experienced some hiccups along the way in my own life thatkind ofd stopped me in my tracks. And I really have an interest in this. So I’d love to connect with you after and learn a little bit more about how you could help.
Jay Conner [00:28:43]:
You got it. I would love to continue the conversation, Jeremy. Thank you so much for having me.
Jeremy Wolf [00:28:48]:
The pleasure is all ours. And thanks, as always, to our listeners for tuning in. Hope you guys gleaned something useful out of this conversation. If you did, please don’t forget to like, comment, subscribe- you know the drill. Yeah, if you’ve had your own experience in the private finance world, the Private Money world, I should say. Leave us a comment below. Let us know your thoughts. We’re always interested in hearing your feedback.
Jeremy Wolf [00:29:09]:
So until next time, everyone, take care, have a blessed day, and we will catch you all next time.
Narrator [00:29:26]:
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 7 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.