Want to level up your real estate game and learn the secrets of Raising Private Money for deals?
Then you don’t want to miss this informative episode of the Raising Private Money Podcast with Jay Conner, where Jay had the opportunity to join Tim Hubbard on the Short-Term Rental Riches podcast, and revealed the secret to securing easy financing for life through private money lenders.
Jay and Tim delved deep into the world of private money lending and discovered how it differs from traditional methods like bank loans and hard money lenders. Jay shared his experiences, including how he found solutions through private money and self-directed IRAs. The insight he offered on attracting private lenders and building solid relationships was truly eye-opening.
One of the key takeaways from the episode was Jay’s emphasis on how private money provides flexibility and can be a game-changer in real estate investing. Whether you are a seasoned investor or just starting, learning about the opportunities with private money can be a game-changer for your real estate portfolio!
Jay also shared practical advice for new investors, emphasizing the importance of education and mentorship in overcoming fears and building relationships. The conversation was not just about financing; it was a masterclass in the holistic approach to real estate success.
Plus, don’t miss out on Jay’s insightful tips on enriching your life beyond finances. His simple yet effective advice on the power of reading is a game-changer for personal development.
Elevate your real estate game today!
Timestamps:
0:01 – Private lenders raise and lend funds for real estate.
5:27 – Private money offers more control over borrowing.
9:01 – Learning about private money and teaching others.
11:05 – Using the indirect method to attract private money.
16:04 – Book teaches real estate investing, borrowing explained.
19:02 – Advising long-term investors on private lending structures.
22:39 – Long-term mortgage rates may decrease in 12 months.
25:40 – Private lending allows flexible loan setups for acquisition.
30:21 – Tom Krol’s advice: read 8 pages.
34:14 – Experienced team offers property management services nationwide.
Connect With Jay Conner:
Private Money Academy Conference:
https://www.JaysLiveEvent.com
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 #PrivateMoney #FlipYourHouse #RealEstateInvestor
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https://www.youtube.com/c/RealEstateInvestingWithJayConner
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https://podcasts.apple.com/us/podcast/private-money-academy-real-estate-investing-with-jay/id1377723034
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Mastering Private Lending with Jay Conner
Tim Hubbard [00:00:00]:
Welcome to Short Term Rental Riches. We’ll discuss investing in real estate but with a specific focus on short-term rentals. Quick actionable items to acquire, manage, and scale your portfolio. I’m your host, Tim Hubbard. Welcome back, everyone, to the Short Term Rental Riches podcast. Happy you’re here again as always. I’m also happy because we have a fabulous guest today, Jay Conner. And as we know before we buy a short-term rental, we’ve gotta have money from somewhere.
Tim Hubbard [00:00:39]:
Right? But one of the beautiful things about investing in real estate Is that it doesn’t always have to be our money. We talk about OPM, right, other people’s money. And we have some very traditional ways that we do that, of course, going to the bank, but Jay has been specializing in an alternative option for quite a long time. He’s got a ton of experience, So I’m excited to jump into the topic of private lending today with Jay Conner. Welcome to the show, Jay.
Jay Conner [00:01:07]:
Tim, thank you so much for having me. I’m so excited to be here because we’re gonna be talking about my most passionate topic, which is Private Money. And the reason I’m so passionate about it is that Private Money Using Private Money lenders to fund our deals. We got 47 of them today funding our deals. And, of course, nobody’s got to have 47 startups with 1 or 2. But it has had the biggest impact on my business of any strategy. I mean, when I was cut off from the banks all the way back in 2009 and the banks weren’t lending money and all those foreclosures were coming along, our business tripled the first 12 months, we started using Private Money and I ended up with a good problem very, very quickly. I couldn’t use all the Private Money that was chasing me and so Well, that’s one thing that I talk about all the time how we get all this Private Money without ever asking for a mortgage, without ever applying for a mortgage.
Jay Conner [00:02:04]:
No chasing, no begging, no selling, no persuading. Yeah. I’m excited to be here.
Tim Hubbard [00:02:09]:
Yeah. Well, I’m glad to have you, Jay, Private Money is, in fact, something that I’ve used a couple of times in my real estate portfolio. So before maybe we get into a little bit of your background, why don’t we just Find for the audience, what exactly is Private Money and how it differs from some traditional methods?
Jay Conner [00:02:28]:
Yeah. So with Private Money, first of all, what it is not. So Private Money is I’m not talking about any kind of institutional money. I’m not on institutional funding. I’m not talking about going to the bank. I’m not talking about hard lenders. A lot of people use that word synonymously with Private Money, hard money, and Private Money. They’re not the same thing.
Jay Conner [00:02:51]:
Most of the time, a hard money lender is a broker or a brokerage that has gone out and raised Private Money from individuals, and private investors, To invest in their fund, and then the hard money lender turns around and loans that money out to real estate investors From their fund, what this world of Private Money is all about is going straight to the source, going straight to the individual. So a private lender is a human being, An individual just like you and me that’s interested in real estate, but they wanna be passive. They don’t wanna go find deals, negotiate deals, over deals, manage properties, and all that stuff. They just wanna sit back and get nice rates of returns safely and securely. So simply put, a private lender is a person who loans money from either their investment capital or their retirement funds to us, the, real estate entrepreneur. The reason I say retirement funds, are really important is because of our 47 private lenders, over half of them are using retirement funds, either a four zero one k they already had or a pension, any kind of dedicated retirement funds, and they move those in my direction. They move those retirement funds to a self-directed IRA company, also known as a third-party custodian. And now they can lend those retirement funds out on our deals, And they earn tax-deferred or tax-free income depending on the type of retirement fund they’ve got.
Jay Conner [00:04:30]:
So that’s the first Actionable item if you are a real estate investor wanting to get more funding very quickly for your deals you want to establish a relationship with a self-directed IRA company That you can then refer people to when you talk to them and you learn they have retirement funds and they can move them over. But don’t be confused. It’s not only just retirement funds. It can be just liquid investment capital as well that the private lender uses.
Tim Hubbard [00:04:56]:
Yeah. I’m excited today because this is Timely advice. Right? Interest rates have pretty much doubled, which means if we go the traditional routes with banks, which a lot of us are used to working with, Our cost to borrow money is much, much higher, and that doesn’t leave us with a whole lot of options. And so Private Money can be a great, great option. Jay, how did you I guess you mentioned in 2008, and 2009, it was Kinda difficult to get in. Can you give us a little bit more of the backstory?
Jay Conner [00:05:27]:
Sure. Absolutely. And, you know, you just said something important. I mean, as of Today with us being here, Tim, the federal government has raised interest rates 22 times in the last 11 months. Can you believe it? And in this world of Private Money, I’m not spending any more on interest than I was even before COVID. And the reason is, that there’s a big difference right between hard money and Private Money. Is that with Private Money, we make the rules? You know, the traditional way To borrow money is you go to the bank, you go to the hard money lender, you go to an institutional lender, you get on your hands and knees, you put your hands underneath your chin, you say, please fund my deal.
Jay Conner [00:06:06]:
Right? And verification of income, credit score, and all that. In this world of Private Money that I’m talking about, there is no asking, Begging, chasing, there’s no you’re already approved. Your credit score has nothing to do with it. And so here’s the big difference. Instead of asking for a mortgage, you are offering a mortgage. Right? And so how did I get started in this world? Well, I can tell you, Tim, I just didn’t wake up 1 morning and say, hey. I think I’ll go raise me some Private Money. Growth, personal growth, financial growth, Entrepreneurial growth, the growth takes place in the valley.
Jay Conner [00:06:45]:
Typically, there’s a problem that has come along, And you gotta fix your problem. And therefore, you grow in your business or personally or all the above. What I remember it like it was yesterday, Tim, is that how I got into this. You may find it hard to believe, Tim, but we still have handsets here in North Carolina with cords attached to them. You know, a lot of people I never don’t even know what that is. But anyway, when
Tim Hubbard [00:07:08]:
I was catching the video, Jay just showed a real phone, not a cell phone. A real phone has dates for that, Jay.
Jay Conner [00:07:17]:
You got it. And so I was sitting here at my desk and I had 2 houses under contract that I wanted to buy. And I had been using the same banker, the same bank from 2003 until 2009, my 1st 6 years. And that’s all I knew to do was Go to the bank, and borrow money from our real estate deals. That’s all I knew to do. And so I picked up the phone. I called my banker. I learned very quickly on that com and that was in January 2009.
Jay Conner [00:07:45]:
I called up my banker and I learned very, very quickly that my line of credit had been shut down with no notice to me And that they were not loaning money out and my banker’s name was Steve. I said, Steve, why are you shutting me down? By the way, these 2 houses I had under contract Represented over $100,000 in potential profit. And I said, Steve, I got a great credit score. I’ve never been late on my payments in 6 years. Why have you closed my line of credit? He said, Jay, don’t you know there’s a global financial crisis going on right now? I said no. But now I have a financial crisis because I don’t have any way to fund these deals, and you’ve cut me off. And so I hung up the phone And I sat here for a moment. And by the way, Tim, these people that are running around saying, oh, every opportunity is an I mean, every problem’s an opportunity.
Jay Conner [00:08:30]:
I don’t wanna throw up. I didn’t have an opportunity. I had a problem. Right? I didn’t how am I gonna fund these deals? So I sat here, and here’s another Fractional item. Whenever you have a problem, here’s what I do. I ask myself the question, who can help me with my problem? Who can help me with my problem? Immediately, I thought of Jeff Blankenship, a good friend of ours who lives in Greensboro or did live in Greensboro, North Carolina at the time. I called up Jeff and told him what happened. He said, well, welcome to the club.
Jay Conner [00:09:01]:
I said, what club? He said the club of getting cut off from the banks. He said they cut me off last week. I said, well, how are you funding your deals? He said, you ever heard of Private Money? I said, no. He said, you ever heard of self-directed IRAs? I said, no. Well, I put on my research cap, and I learned all about Private Money very, very quickly. So one of the first things I had to do was to put my program together, My private lending program, and after putting my program together, I had to put on my teacher hat Right here, I had to put on my Private Money teacher hat. And then I just started teaching people, not selling, not begging, Not talking trying to talk to anybody anything. I started teaching people that I go to church with, that I know on my cell phone, at the Rotary Club, and Business Networking International, I just started teaching people what Private Money is and how they can earn high rates of return, safety and security.
Jay Conner [00:09:57]:
I started teaching my program. So, you know, what interest rate am I paying? What’s the length of the note? Frequency of payments? How you can get your money back in less than 90 days if you have an emergency, etcetera. So I just started teaching people. Now here’s another rider downer. Desperation has a smell to it. And the worst time you can be looking to raise Private Money is when you need it For a deal. So I did not tell any of my people that I was teaching about Private Money about those 2 deals that I had under contract. Because if I taught him my program and told him about the 2 deals, now I’m pitching a deal.
Jay Conner [00:10:32]:
Now I’m asking, And I’m coming across as desperate, and I’m not even trying to sound desperate. So I separated the conversations of teaching the program And then having a deal for them to fund. So I remember like it was yesterday, Tim. I went to bible study on Wednesday night At 7:30, and there was a gentleman there that I wanted to talk to. And so I walked up to him, and I said, hey. Could we visit for a few minutes after bible study? He said, sure. So we got together, and here’s exactly what I said to him. His name was Wayne.
Jay Conner [00:11:05]:
I said, Wayne, I need your help. So here’s a little bit of scripting. This is called the indirect method of attracting Private Money. I said, Wayne, I need your help. I said I’ve now opened up my real estate investing business to people I know and trust. And when you run across somebody who is complaining about the low interest rates and CDs and the volatility in the stock market and losing money in the stock market, would you refer them to me and I’ll tell them about my program? Well, what do you think Wayne said to me? He said, well, now, brother Jay, what you got going on there? Well, by the end of that conversation, he had become my 1st private lender Because I asked him for his help to spread the word. Now he’s asking me how it works. I went to his house the next day and sat down with him and his wife.
Jay Conner [00:11:49]:
And $250,000 and, you know, an hour later, I got $250,000 burning a hole in my pocket from him saying, well, look. We’ll start with 250. So I didn’t tell him about the deal. So I let 2 or 3 days go by, and I called him up, and I gave what’s called the good news phone call. I called up Wayne. I said, Wayne, I got good news. I can now put your money to work. I got a deal on the contract over in Newport with an after-repaired value of 200,000.
Jay Conner [00:12:17]:
The funding requires a 150. I know he’s got a 150 because he told me he got 250. I said the funding requires 150, and the closing is next Thursday, So you’ll need to have your funds wired to our real estate attorney by next Wednesday, and I’ll have my attorney email you the wiring instructions. Did you notice how I didn’t ask him if he wanted to fund the deal? That’s the most stupid question in the world I gotta ask. Of course, he wants to fund the deal Because he’s been waiting on the phone call for me to put his money to work. And I’ll tell you another thing real quick. I’ll turn it back to you, Tim. And I’ll tell you another thing.
Jay Conner [00:12:50]:
If you like, if Wayne had had retirement funds and I had introduced him to the company that I recommend to all my private lenders to move their retirement funds to, If I had had him move funds over, now I am ethically bound to put that money to work because they’ve moved the retirement funds over waiting for me to put her to work, and they’re not earning any money until I give them the good news phone call once they’ve moved those retirement funds over. So, again, it’s all I had to get my mind wrapped around this whole thing of there’s no asking, begging, chasing, persuading, or selling. It’s all about teaching, Edifying, serving these people, and making a difference in their financial future.
Tim Hubbard [00:13:31]:
Gosh, Jay. And there are so many nuggets there. I mean, It’s clear that you’ve been doing this for a while, and you’re a fabulous educator. And I love the idea of teaching people about this now when we don’t need the money. Again, I think this is super timely advice because there are a lot of people out there that are thinking interest rates are high, but when they come down Boom. I’m gonna pull the trigger. But that doesn’t necessarily mean that the banks are gonna be lending easily, you know, even because interest rates come down. So I love that advice about teaching and educating people right now.
Tim Hubbard [00:14:06]:
I’ve got quite a few things I wanna jump into. 1 is about the actual structures. And Like you said, this is up to us. Right? So it’s very flexible. A lot of our listeners on the show were Buy and Hold long-term rental investors, you know, with a focus on short-term rentals, hence our show name. But before we get into that, I know there’s also a lot of our audience out there that are thinking, gosh, this all sounds fantastic, Jay. But I haven’t got started. I haven’t gotten started with real estate yet, and I don’t have any experience.
Tim Hubbard [00:14:41]:
What would you say for some of those people starting down this road of educating people and hoping to have some private lenders lined up?
Jay Conner [00:14:49]:
Well, first of all, don’t start by yourself like I did. Big mistake. I was in the mobile home-manufactured housing business for a long time And the consumer finance for that product virtually went away. That’s why I started in this in 2003. So I just used my experience and my knowledge from that industry, but I can tell you it is not directly transferable. So my advice is if you’re brand new and looking to do your 1st deal, You need to get someone like Tim to work with you that already knows where the minefields are. And I mean, when I started, oh, Tim, I hate to even think about all the stupid mistakes I did or ignorant mistakes I did because I didn’t know any better. Alright.
Jay Conner [00:15:35]:
So the first thing is to get a coach, get a mentor like Tim. In addition to that, one common Fear that I hear from new real estate investors is 2 things they say. I say, first of all, I’m not comfortable asking anybody for money. Well, we already fixed that. You’re not asking anybody for money. You’re teaching, you know, what you know. You’re teaching them about how they can earn high rates of return, safely, and securely. So you teach the program.
Jay Conner [00:16:04]:
And by the way, I’ve got a book that I’m gonna offer everyone here on the show when we get here to the end That will teach you the program right in the book. What’s the interest rate? What’s the length of the note, etcetera? And, you know, just just duplicate my program. Another fear that I hear new real estate investors say, Tim, is who’s going to loan me money On a deal, and I’ve never done a deal. Who’s why would they do that? And here’s the answer. So here’s another rider downer. The answer is if you, the borrower, the real estate investor, if you don’t pay your private lender, the property does. If you don’t pay them, the property does. So what does that mean? What that means is is we’re we don’t ever borrow unsecured funds.
Jay Conner [00:16:52]:
You can legally. You can just get a promise to renew draw drawn up but look, you’re not protecting your private lender. So we borrow Secured funds, and then what do we do? We’re going to give the lender, the private lender, or private lenders. You can have more than 1 private lender, funding the same deal. We’re gonna give them their promissory note and their mortgage or deed of trust. Here in North Carolina, in about 10 of the states, it’s a deed of trust. All the same thing. What that mortgage or deed of trust does is it collateralizes that note.
Jay Conner [00:17:22]:
So those these promissory notes, this money we’re borrowing, is backed Buy the real estate that we’re buying. So we typically don’t borrow more than 75% of the after-repaired value. I didn’t say the purchase price. I did not save the purchase price of the after-repair value. So typically, you’re gonna be able to bring home a check when you buy. That’s one beautiful thing I love about this Private Money. Every Private Money deal is a no-down payment deal. And some people say, well, Jay, how can you get Private Money? Don’t have any skin in the game.
Jay Conner [00:17:54]:
I can tell you what the skin in the game is. The skin in the game is the equity cushion that’s protecting your private lender. That’s the difference between the after-repaired value And the borrowed amount is, it’s a conservative loan to value. Everybody is protected. And again, I mean, you’re changing these people these people’s lives. It’s win win win all around.
Tim Hubbard [00:18:15]:
Mhmm. I love that. I love that. And I love real estate. I mean, one of the reasons I love it is because it is so flexible. It’s one of, you know, the unique investments where we can work with other people, as you mentioned. So We can’t do that with stocks. Right? If we go to buy a stock, we’re not sharing that with someone.
Tim Hubbard [00:18:32]:
We’re not creating a partnership. With lots of traditional investment opportunities, it’s Kinda like you and you alone. But with real estate, we can find someone who has the experience already. Maybe we have some family or friends or Acquaintances that want to invest their money or maybe we’re at least open to asking them. And then we also have another friend That has all the real estate experience. And we can kind of put that all together, can’t we?
Jay Conner [00:18:57]:
Absolutely. Nothing wrong with leveraging your relationships.
Tim Hubbard [00:19:02]:
Awesome. So, well, Jay, yeah, a lot of us in the audience are buy and hold long-term investors. So whereas we might not be going down the flip approach, you certainly can be adding value to a property, maybe taking a property that was a traditional long-term rental, Furnishing it, and turning it into a short-term rental. That’s been a really good approach for a lot of us, assuming the regulations allow for it. So let’s talk a little bit about some potential structures. And I know, like you said, I mean, Private Money, there are no rules. Right? It’s it’s kind of what you do with the person lending the money. So, what advice might you have for some potential structures for someone maybe wanting to look for a little longer-term private lender?
Jay Conner [00:19:46]:
Sure. So there are a couple of different ways to approach it. First of all, we’re not creating and putting together private equity deals. In other words, we’re not giving partial ownership or a percentage of your profit or whatever to the private lender. So here’s another rider downer. The private lender is the bank. So just view the private lenders, the bank, you own the property, your entity, whatever entity structure That you’re buying in, be sure you don’t put it in your name for goodness’ sake. But whatever your entity structure is, Your entity owns that property.
Jay Conner [00:20:22]:
Private lenders gonna get the same protection as the local bank. Well, what’s that protection? Well, Of course, the promise to renew that we talked about, the deed of trust we talked about, but we’re also gonna name the private lender on your insurance policy Just like the bank. Remember the private lender’s the bank. You’re gonna name them on the insurance policy as the mortgagee. So if there’s a claim against your insurance policy, Then your lender’s protected in that way. You know, mortgagee when a check is made payable from the insurance company, typically, they make that check payable To your entity, the ownership, and to the mortgagee as well. So they have to sign off on those checks. Another layer of protection.
Jay Conner [00:21:01]:
We named the private lender also as an additional insured on the title policy. So if there are any kind of title issues down the road, then they are protected. As far as the structuring of the deal, as I said, they’re gonna get a mortgage, and we’re going to pay. You got a couple of different options. Since most of what I do and I do have short-term rentals myself. But on my flips oh, I’m sorry, Tim.
Tim Hubbard [00:21:27]:
Oh, I just said that’s awesome. Yeah.
Jay Conner [00:21:29]:
I am now converting my grandparents’ home that’s in the country. I’m converting that to, a short-term rental as well. And It’s got the original beadboard ceilings and the original pine wood floors built-in 1927. And, anyway, I’m having a in fact, I talked to my contractor this morning. I’m having a great time converting that To a short-term rental. But anyway, on my flips and this is not a flip, that house I was just talking about. But on my flips, I’m typical If I’m gonna be in and out of a deal in 6 months or 9 months, then you don’t even have to make monthly payments. Just let the interest accrue.
Jay Conner [00:22:03]:
Right? Talk about fixing your cash flow. You buy a property, you bring home a big check because you borrow more than you need to buy it and rehab it if rehab’s involved. I bring him a big check, and I don’t make any payments Or to the private lender until, you know, I cash out 6 or month, 9 months down the road. But that’s a different deal here now, where we’re talking about short-term rentals because you’re Staying in that deal for quite a while. So you can either let the math make the decision. There’s another writer downer. The math makes The decision, not your emotions. So you can pay interest-only payments if your cash flow makes sense.
Jay Conner [00:22:39]:
So for a flip, I’m paying 8% and no points. 8% and no points. It’s been the same program since 2009, And I haven’t raised it since craziness has been going on the last few years. But now on a long term to where you’re gonna be holding that property, Then, you know, depending on how much monthly income, you know, take out your vacancy and all that kind of stuff. Tim can teach you those percentages. But we look at what’s your conservative cash flow looking like or revenue coming in. So, you know, on the long-term hold, you may only be offering, you know, 6 or 7% for the long term. Right? Now I believe and I do not have a crystal ball, but I have some very, very smart friends that do have crystal balls. I think we’re gonna see a reduction in mortgage rates Within the next 12 months, probably significantly, for several reasons.
Jay Conner [00:23:36]:
But you can structure it at 6 or 7%. Right? I mean, I have sold a lot of homes on rent to own, and I was paying out 8%. And, of course, rents have gone crazy. As you know, Tim, rents have gone crazy, like, in recent times. So it comes down to the cash flow. Now if you can buy a property And get it to cash flow, you can pay principal and interest. Right? Particularly if you could pay that thing off in 10 or 15 years, if you can get it to cash flow, Then you can pay principal and interest payments. Right? Another way to approach it.
Jay Conner [00:24:12]:
You know, so often when you’re buying a property, Speed is king. Fast closings are important, right, to particularly a motivated seller. And by the way, some of my best deals, I’ve just recently bought it from tired landlords. I don’t know what’s going on with the tired landlords, but they seem to be everywhere, And they’re getting more tired by the day. Anyway, you can you can use Private Money to Close quickly. See, I make all my offers. I can close in 7 days. Well, the bank can’t close in 7 days.
Jay Conner [00:24:43]:
I mean, unless we’re out of Private Money, there’s no appraisals. You don’t have to wait on appraisals. You know, you can close very very quickly. So what you can do is you could use Private Money to close quickly. And then if you’re gonna fix it up, furnish it, whatever, use that Private Money for that in the short term, maybe for 6 months or whatever. Then you can go conventional And you can refinance it for 30 years, you know, amortized or whatever you want. Pay off your private lender. Now you have that Private Money sitting there waiting to get your next deal that you can close quickly.
Jay Conner [00:25:18]:
Because I tell you, I’ll get deals and my offers accepted At a lower price? I have one right now. The competition offered 135,000, but they can’t close for 2 months. I’m buying it for 100,000 because I’m closing in 7 days. So use Private Money for a fast closing And then just refinance it out with your conventional lending.
Tim Hubbard [00:25:40]:
Yeah. That’s that’s great advice. And it’s just my mind spinning here because it is like Sky’s the limit. I mean, with private lending, right, we can set up our loans however we want. And I was thinking of something when you were going through all that, Jay, in terms of closing quickly, and also you mentioned there’s a lot of tired landlords. I mean, the reality is that a lot of our baby boomer generation, which is the 2nd biggest demographic in the US are retiring, you know, and they’re they’re at those ages. A lot of them own their properties outright, so they don’t have any loans on them. But a lot of them want to sell them.
Tim Hubbard [00:26:15]:
So there could even be some sort of mix going on here where the owner is providing seller financing, but they still want their down payment. Maybe it’s 25%. Then we could use private lending, for example, to get that down payment. So again, it’s not coming out of our pocket. The owner’s Selling their property. They’re happy campers because they got they’re getting out of a deal at a time when it’s not as easy to sell. So there’s just gosh. There are so many ways to do it, aren’t there?
Jay Conner [00:26:40]:
Absolutely. And I’m glad you brought that up. I mean, the seller could care. I mean, 1 question we ask our sellers, tired landlords, is what’s more important to you? Cash today or long-term monthly income? And, you know, a lot of those tired landlords, I mean, they will you know, that they’ll finance it for you and take back a note. But, of course, most of them are still gonna want the down payment. So I’m glad you brought that up to him. You can use Private Money in what we call a second position Or a junior lien position. But here’s the formula.
Jay Conner [00:27:11]:
You still wanna protect your private lender. You want to, you know, protect the Landlord in this example that’s, you know, has got a 1st mortgage. So, again, typically, depending on the scope of the rehab, if rehab is involved, and most of the time, you want if you’re getting a short-term rental ready to go, Tim, I probably do advise you want it to be looking good and smelling good.
Tim Hubbard [00:27:32]:
You wanna look good. That’s right. And smelling good. But you are even more important.
Jay Conner [00:27:35]:
You can put that Private Money in 2nd position as the down payment money as well. So I’m glad you brought that up.
Tim Hubbard [00:27:42]:
Yeah. A lot of lot of flexibility. I love it. Jay, I know you’ve been teaching on the subject for a long time, so we’re gonna let people know where they can reach out to you. And I’ve got one other question. It’s not related to real estate. But before we get into that, Any other last nuggets that you might have out there or words of wisdom?
Jay Conner [00:28:00]:
Well, in the real world out there, Most real estate transactions that take place, the seller’s gonna require the cash, most of them In the real world. And if you don’t have the cash readily available, you’re simply just gonna miss out on deals if you don’t have, you know, ready to go. And by the way, here’s the big here’s the biggest advice most important advice I could give as we’re starting to wrap up. But don’t go anywhere, folks. I’m getting ready to give away my book. Write this down. The money comes first. Now what am I saying? Tim, let me tell you something that just drives me bonkers, and I just want to go run head-first into a wall every time I hear this.
Jay Conner [00:28:40]:
But you’ve got educators out there, aka gurus, going around, and I’ve heard it. I don’t know how many times I’ll say, oh, just get the deal under contract. The money will show up because money follows deals. I wanna say where in the world is the money gonna show up? Is it like gonna rain out of a cloud somewhere or whatever? So I preach and I teach and I practice. Get your Private Money lined up first with 1 or 2 private lenders. There are always deals. There are always deals. I mean, you know, I’ve reviewed thousands of property lead sheets, over all these 20 years.
Jay Conner [00:29:20]:
And my statistics show that I’m a pretty good closer, and my acquisitionist has been with me for 18 years. My acquisitionist negotiates with sellers. My statistics show that 13% of those for sale by owners, FSBOs, 13% will sell creatively, Either with under financing or subject to the existing note or any of those other creative financing methods. But 87% of them require all the money. Get your Private Money lined up first.
Tim Hubbard [00:29:48]:
Excellent advice. Excellent advice. And I don’t think it could be more timely. Well, Jay, as we wrap up we let everyone know where they can get in touch with you and learn from you. I’ve got a question. So the the name of the podcast is Short Term Rental Riches. So when a lot of people hear that, They think about financial riches. Right? But as we know, living a rich life is so much more than that.
Tim Hubbard [00:30:10]:
Right? And so I’m just curious if you have any sort of anything that you’ve added in your life recently that’s not financially related that’s helped enrich your life?
Jay Conner [00:30:21]:
Absolutely. I’ve got a good friend. His name is Tom Krol. He shared, not too long ago, a practice that he started Some time ago in the past, and his practice is to read 8 pages a day in whatever book that you’re interested in. And the reason he advises that and he practices it is that, you know, I love to read. Right? I mean, the book that changed my life And had the biggest impact way back when I was 24 years old was The University of Success by Og Mandino. And I read that book, changed my life, got my head screwed on right. But, you know, I would be buying these books and they’d sit there and I never get around to them.
Jay Conner [00:31:05]:
Right? Even though I wanted to. So 8 pages a day. What I learned when I started practicing this, reading 8 pages in the morning as part of my morning routine, What I learned was most of the time I read more than 8 pages. Mhmm. But I’m setting it up as well, I can read 8 pages, particularly in a book that I’m interested in. Well, The average size book is 200 and some pages. Well, 8 times 30 is 240. So when you read just 8 pages a day in the morning or whenever, well, that’s 12 books that you have, you know, read over the over the next year.
Jay Conner [00:31:42]:
So it’s a simple practice that has a huge impact. And you know what? I love it. If you’re not constantly learning, you’re going backward.
Tim Hubbard [00:31:49]:
I love it. That’s gold, Jay. And I agree. I’m a huge reader. The thing that fascinates me about books, well, I’m just a curious person, but Someone can dedicate their whole life to 1 subject, and they can boil it down for us in one simple little book that we can read in A couple of weeks or even a month or even if it took us a year, we’re taking someone’s experience from decades, and we get the benefit of that. So I guess That’s a good segue into the fact that you have a book. Can you tell us about that and where we can find that?
Jay Conner [00:32:21]:
Absolutely. So the name of the book is Where to get the money now? Where to get the money now? The subtitle is How and Where to Get Money for Your Real Estate Deals Without relying on Traditional or Hard Money Lenders. You can’t download it. I mean, believe it or not, the post office is still in business. So I will send this priority mail out to you. The book is free. Just cover shipping, and you can pick this up at www.JayConner.com/Book.
Jay Conner [00:32:58]:
I’ll autograph it, and we’ll priority mail it right on out to you.
Tim Hubbard [00:33:01]:
That’s awesome, Jay. That’s awesome. And you are also a fellow podcaster. Can you tell us the name and where people can find your podcast?
Jay Conner [00:33:09]:
Absolutely. Thank you, Tim. So we’re in our 6th year of the podcast, and the name of the podcast is Raising Private Money With Jay Conner, I have fantastic guests on there all the time. Tim, I got you lined up. And we always talk on the show about Private Money and how my guests Have gone about raising Private Money what are the words they use and how do you start conversations? And so wherever you like to tune in on your cast whether it’s Itunes or Spotify or wherever, whatever directory you like, your iPhone, purple podcast icon, whatever it is, Easy to find. Just type in and search for raising Private Money and, with Jay Conner, and that’ll pop right up.
Tim Hubbard [00:33:51]:
Fantastic, Jay. Well, I appreciate you being On today, I mean, words of wisdom, and these are life skills for any serious real estate investor. I mean, it all starts with getting money before we get the properties. Right? So I appreciate you joining us today, and we look forward to, staying in touch.
Jay Conner [00:34:09]:
Thank you so much, Tim. It was great being on. Thank you.
Tim Hubbard [00:34:14]:
If you’ve been listening to podcasts for a while, then you know that I’ve been managing my properties virtually for years. My team and I have managed thousands of guests. We’ve learned a ton, and I’m really happy with the progress and the growth we’ve made. We’re now big enough to help manage your properties as well. Our team has a ton of experience from the inner city apartment to the large lakeside retreat. We’ve worked with all types of properties Across the nation, we’ll help to take the management workload off your plate while earning top revenue and excellent guest reviews, all while Charging an industry-low fee. If you’d like to find out if your property fits with our program, just head Again, that’s strriches.com. Just click on the property management button, and we look forward to chatting with you.
Narrator:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to jconner.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.
