Episode 174: Wealth Building Secrets: Jay Conner’s Blueprint for Financial Freedom In Real Estate

*** Guest Appearance

Credits to:


“Jay Conner – Real Estate Investor and Author”


In the realm of real estate investing, success stories are often woven with determination, strategic decisions, and a knack for seizing opportunities. One such luminary in the industry is Jay Conner, whose journey from humble beginnings to a seasoned real estate investor is both inspirational and instructive. Let’s delve into the wealth of knowledge shared by Jay Conner in a recent episode, exploring his pivotal moments, tactics, and insights that have shaped his thriving career.

From Mobile Homes to Single-Family Houses: A Transformational Shift

Jay’s entry into the world of real estate was preceded by his involvement in the mobile home business, a domain ingrained in his familial roots. Despite facing challenges in the industry’s decline, Jay transitioned to single-family houses in 2003 with resolute optimism. This shift marked a transformative phase in his career, where he embarked on a path that would redefine his success trajectory.

Navigating Financial Waters: The Power of Creative Funding

One of Jay’s standout strategies was utilizing an unsecured line of credit from a local bank to kickstart his real estate investing journey. This bold move underscored his belief in the power of creative funding and resourcefulness in overcoming financial hurdles. Jay’s ability to leverage unconventional financing sources showcases the ingenuity required to thrive in a competitive industry.

Cultivating Success: The Role of Mentors and Mastermind Groups

Central to Jay’s evolution as a successful real estate investor was his engagement with mentors and participation in mastermind groups. The significance of surrounding oneself with confident and like-minded individuals resonates throughout Jay’s narrative, emphasizing the transformative impact of mentorship and collaborative learning. By seeking guidance from experienced professionals and fostering a supportive network, Jay honed his skills and expanded his horizons in the realm of real estate.

The Art of Private Lending: Unlocking Opportunities Through Relationships

A defining moment in Jay’s journey was the shutdown of his line of credit during a financial crisis, prompting a strategic pivot towards private lending. Through innovative approaches such as teaching a private lending program and hosting a private lender luncheon, Jay raised substantial funds without direct solicitations. His emphasis on building relationships and offering value to potential lenders underscores the profound impact of trust and rapport in securing financial backing for real estate ventures.

Strategic Renovations and Market Resilience

Navigating the challenges of real estate renovation, Jay adopts a proactive approach by preparing for unexpected repairs and market fluctuations. His commitment to transparency and integrity shines through in ensuring that private lenders receive the promised returns. By adhering to a prudent borrowing threshold and diversifying his funding sources, Jay exemplifies resilience and foresight in mitigating risks and maximizing profitability in the ever-evolving real estate landscape.

Jay Conner’s journey in real estate investing illuminates the path to success through perseverance, strategic acumen, and a steadfast commitment to building meaningful relationships. His story serves as a testament to the transformative power of resilience, adaptability, and a relentless pursuit of excellence in the dynamic world of real estate. Aspiring investors can draw inspiration from Jay’s insights and experiences, charting their own course toward success in the competitive realm of real estate investing.

“The most important thing that I understand is every one of our private lenders, all 47 of them, have gotten 100% of every penny of interest that was promised to them.” – Jay Conner

10 Lessons Discussed in this Episode:

  1. Leveraging Private Money: 

Learn the essential tips and strategies on how to raise and use private money to maximize profits in real estate investing. Private funding can open doors to opportunities that traditional financing might not.

  1. Investing in Outlying Areas: 

Discover the advantages of investing in less competitive, outlying regions rather than crowded big cities. Jay’s success story shows that significant income and profit are achievable in smaller markets if you have funding ready to go.

  1. Road to Growth: 

Gain insights from successful entrepreneurs about the journey to success. This podcast episode highlights key entrepreneurial experiences and lessons learned that can help you carve your path forward.

  1. Small Town Investing: 

Understand the benefits and challenges of investing in a small town. Jay has rehabbed over 500 houses in a town of 40,000 people, proving that extensive success is possible even in smaller communities.

  1. Marketing Funnel Channels: 

Learn about the importance of using multiple marketing strategies to attract leads from motivated sellers and find off-market properties. Jay uses eight different channels to maintain a steady flow of opportunities.

  1. Local Market Dominance: 

Hear about the advantages of keeping operations within a close geographical radius. Jay prefers to invest within a 20-25 minute drive from his office, which helps him maintain strong control and market presence.

  1. Affiliation with Realtors: 

Discover the value of building long-term partnerships with realtors. Jay has worked with the same realtor for 19 years, relying on their expertise to make offers and pull comparable property data, which aids his investment decisions.

  1. Transition from Mobile Homes: 

Follow Jay’s journey from being born into the mobile home industry to transitioning to single-family house investments after facing industry challenges in the early 2000s. His background and adaptability played crucial roles in his shift.

  1. Building Shopping Centers: 

Understand Jay’s diversified investment strategy, which includes not just residential properties but also commercial developments like building shopping centers from the ground up. This underscores the importance of versatile investment approaches.

  1. The Influence of Background: 

Recognize the impact of one’s upbringing and background on their career path. Jay was raised in the mobile home industry, which laid the foundation for his real estate investing career, highlighting how early experiences can inform future success.

Fun facts that were revealed in the episode: 

  1. During the financial crisis in 2009, Jay Conner managed to raise a staggering $969,000 for his real estate ventures without directly soliciting money. He achieved this through effective networking, teaching a private lending program, and hosting a private lender luncheon.
  1. For those interested in being private lenders for Jay’s real estate deals, the minimum investment required is $50,000. Interestingly, he often uses multiple private lenders to fund a single property, ensuring diversification and security across his investment portfolio.
  1. Jay Conner’s journey in real estate investing began in an unconventional manner; he purchased his first house in 2003 for $50,000 using an unsecured line of credit from a bank. Despite initial challenges with selling the property, this marked the pivotal start to his highly successful career in real estate.


00:01 – Raising Private Money Without Asking For It

05:50 – A business decision to keep flipping close by.

10:08 – Profiting $30,000 in 90 days from homes.

13:38 – Positivity and acceptance drove my business transition.

15:39 – Seek education and mentorship for success in real estate.

19:21 – My banker abruptly shut down my credit line.

23:33 – The Good News Phonecall

27:21 – Expect the unexpected in project, finance management.

28:28 – Leverage private money for big real estate profits.

30:55 – Jay Conner’s Free Book: https://www.JayConner.com/Book  

33:15 – Took a risk, invested, and faced challenges.


Connect With Jay Conner: 

Private Money Academy Conference: 


Free Report:


Join the Private Money Academy: 


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


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

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Wealth Building Secrets: Jay Conner’s Blueprint for Financial Freedom In Real Estate



Narrator [00:00:01]:

If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.


Jay Conner [00:00:28]:

So we do on average right now, 3 deals a month, single-family houses here in our local area. The average profit is $82,000 per house, per deal now on profit. And I don’t share that with Bragg at all. The only reason I share those figures is because there’s a big case to be made for investing in outlying areas, you know, not in the middle of the big city. And so I have very, very little competition here. And the moral of the story is, as long as you’ve got the funding and the money ready to go, then you can make significant income and profit in a very, very small area.


Vinnie Enriquez [00:01:37]:

Conner isn’t what’s one of the Arnold Schwarzenegger movies. Right? Isn’t, the con of the main character saving the world?


Jay Conner [00:01:47]:

I’m not sure about that, Vinny. I don’t know. However, I mean, I love the Terminator movies.


Vinnie Enriquez  [00:01:52]:

The Terminator. Isn’t that the main character named Conner? Somebody’s named Conner?


Jay Conner [00:01:56]:

Could be. Me and Carol Joy were dating 39 years ago when we watched it. 


Vinnie Enriquez  [00:02:03]:

Is this a true story?


Jay Conner [00:02:05]:

It’s been a yeah. It’s been a while since I’ve seen the Terminator.


Vinnie Enriquez [00:02:10]:

Wow. Bringing it back. Well,  I know we kind of, I mean, talked about it for we’re gonna get into a little in-depth about it. But you’re a real estate investor, author, teaching people how to basically use other people’s money, correct, to kind of, find these opportunities. Can you walk us through a little more about, I guess, in your words what you do?


Jay Conner [00:02:32]:

Sure. So my wife, Carol Joy, and I, have been investing primarily in single-family houses full-time since 2003. Since 2003 here in a really, really small town, Morridge City, North Carolina. Our entire target market here is only 40,000 people. So we’ve been doing that since 2003. We’ve rehabbed a little over 500 houses. We don’t do a high volume. We stay in all of our deals.


Jay Conner [00:03:02]:

I’ve never wholesaled a deal in my life. I know how, but I ain’t got anybody to wholesale at too, if you know what I mean. So we do on average right now, 3 deals a month, single-family houses here in our local area. The average profit is $82,000 per house, per deal now on profit. And I don’t share that to brag at all. The only reason I share those figures is because there’s a big case to be made for investing in outlying areas, you know, not in the middle of the big city. And so I have very, very little competition here. And the moral of the story is as long as you’ve got the funding and the money ready to go, then you can make significant income and profit in a very, very small area.


Vinnie Enriquez [00:03:50]:

Let me make sure I heard it right. So you said there are around 4,000 houses in your area?


Jay Conner [00:03:55]:

40,000. 40,000. Okay. Okay. But but no. 40,000 population.


Vinnie Enriquez [00:04:00]:



Jay Conner [00:04:01]:

40,000 population in our target market, which of course is a very, very small market when you compare it to other real estate investors. But we have approximately 8 different marketing funnel channels that are bringing in leads to us from motivated sellers of off-market properties for sale by owners that, of course, we’re not getting any leads from the multiple listing service. Right? There’s nothing in there. There’s no inventory where we’re located. So all the houses that we’re buying are directly from the owners of the property.


Vinnie Enriquez [00:04:36]:

So okay. So 40,000 people in your town. I mean, my guess is you’re talking about then what about 15,000 doors? 20 I mean, somewhere around thereof, like,


Jay Conner [00:04:49]:

You know, I’ve run I really haven’t, I haven’t run the numbers on the actual number of houses in our total target market, but the population is a little over 40,000.


Vinnie Enriquez [00:04:58]:

Okay. So let’s say, hypothetically, we’re talking about 2 and a half people per door, I mean, ballpark of it, and you’ve done 500 flips. I mean, that’s a big percentage of the actual doors in that


Jay Conner [00:05:12]:

That’s true. But again, that’s ever since 2003.


Vinnie Enriquez [00:05:16]:

So are you I mean, have you flipped the same property then?


Jay Conner [00:05:21]:

Oh, of course.


Vinnie Enriquez [00:05:23]:

Okay. So you see you basically end up getting another, deal on a property that you actually No.


Jay Conner [00:05:28]:

No. No. I mean, that’s out of the ordinary. But, of course, if I flipped over 500 houses here in the local area, the chances are I have bought the same house more than once.


Vinnie Enriquez [00:05:40]:

Wow. Okay. No. It’s it’s it’s wild. I mean, have you have you thought about expanding outside of your local market, or it’s just the kinda comfort level? Or what’s going on?


Jay Conner [00:05:50]:

I’ve just made I’ve just made a business decision. I mean, I’ve got friends that scale, you know, the flipping business, and they’ll be in all different kinds of markets. It’s just been my decision, my business decision. I want to be able to drive by any house that my team is doing and rehabbing and getting it ready to sell. I want to be able to drive by within 20 or 25 minutes from where I live or here at our offices, you know. So I’ve just chosen to keep it close to home.


Vinnie Enriquez [00:06:21]:

With that big of a market share, I mean, are you do you have a real estate team that you’re affiliated with, or do you have your own real estate team? I mean because it would seem like there’d be definitely an opportunity, especially having that big of market share that traditional buyers would probably go directly to you or someone you’re affiliated with, I would guess.


Jay Conner [00:06:40]:

Yeah. So, we are not realtors. I’m not a real estate agent. I’m not a realtor. Back in 2003, I went one night to the real estate course to get my license, license, and that man scared me to death so badly. I said, shoot. I ain’t coming back here toting all that liability around in my, billfold. So I have been aligned with 2 Realtors, and one’s in, one county, one’s in the other county where I’m investing.


Jay Conner [00:07:11]:

I’ve had the same primary realtor, Fritz, Chris Latham of Realty World. He’s been my primary realtor who pulls all my comps and makes all my offers for me. I put all my offers in through him. He’s been my main realtor for 19 years. Wow.


Vinnie Enriquez [00:07:28]:

Well, let’s let’s rewind. So 2003 is when you started in this. What were you doing before 2,003?


Jay Conner [00:07:35]:

Mobile homes. Some people call them wobbly boxes. Some people call them trailers. Some people call them manufactured homes. But, yeah, mobile homes, of course, I’m here in North Carolina, so out throughout the southeast, mobile homes were very, very popular for an affordable housing product. Unfortunately, the majority of the financing for that product, for the consumer, fell out of favor with Wall Street in the early 2000s. And by and large, that industry is gone on the big picture compared to what it was. So I just knew if I ever got out of mobile homes, I wanted to get into single-family houses.


Jay Conner [00:08:16]:

Now we’ve done other projects as well. I’ve built a shopping center from the ground up. I’ve done condominium developments, but my passion my love, and what I really enjoy are single-family houses.


Vinnie Enriquez [00:08:31]:

Okay. So going back on the timeline, I know we’re working back on this timeline. For listeners, I know we kinda usually go to the very beginning and then work our way up, but I’m kind of intrigued with the mobile homes. How long were you guys doing the mobile homes? 


Jay Conner [00:08:45]:

I was born I was born in that industry. My dad, Wallace Conner, actually, at one point had the largest retailing company of mobile homes in the nation. He had right at 180 sales centers in 10 different states. So I was raised in that industry. So it was that background of, you know, always being around looking to help people own a home that ordinarily couldn’t. So my background sort of brought me to where I was, but I’ll tell you what. I’ll tell you how I got interested in it, Vinny. This was all the way back in 1993, 10 years before we started.


Jay Conner [00:09:27]:

Good friends of ours, Craig and Kim, were living in Newbern, North Carolina at the time, and they wanted to build their house. But they didn’t have any money or down payment money or seed money to build their house. So Kim’s daddy lived down in Florida at the time, and he was a real estate investor. And he said, I’ll tell you what, I’ll come up there to North Carolina, and we’ll find a fixer-upper. He said I’ll buy it for you. You ought to do the sweat equity and get it fixed up by working in the evenings and on the weekends. We’ll turn around and sell it, and you can keep the profit to build your house. Well, in less than 90 days, they pocketed $30,000 in less than I said 30 days, 90 days.


Jay Conner [00:10:08]:

In less than 90 days, they pocketed over $30,000 And I was trying to sell a single wide mobile home and make $3,000 And I said, I like 30,000 better than 3. So I knew if I ever got out of mobile homes, that’s what I wanted to do. So that’s when we started 2003, our very first year, we only did 3 houses. I didn’t want to do more than that because I knew I had a learning curve to go through. And Bill, back during that time, I never heard of private money back then. Never heard of private money, never heard of self-directed IRAs. I was funding my deals with an unsecured, an unsecured line of credit from the local bank at BB and T, Branch Banking and Trust. And that went along fantastic for 6 years until January of 2009, and that’s when the spigot was turned off.


Vinnie Enriquez [00:11:05]:

What and we’re gonna get to that. So 10 years it took you to get out of the mobile home business into the flipping business?


Jay Conner [00:11:14]:

No. No. I left the mobile home business at the end of 2002, and I immediately started in single-family houses.


Vinnie Enriquez [00:11:22]:

But you said you 1983, you basically got the idea


Jay Conner [00:11:26]:

because Oh, yeah. I got the idea. That’s right. I got the idea. Yeah.


Vinnie Enriquez [00:11:30]:

Right. So so what why I mean, because you saw the the opportunity there. What was hell holding you back from making the junk? I’m assuming a lot of our listeners right here, they take a class, they get an interest in it, they go, oh my gosh. My friend made a lot of money here, but there’s something holding them back. So what was holding you back in that 10-year span of starting?


Jay Conner [00:11:48]:

Nothing was really holding me back because I was CEO of the company making 100 and 100 of $1,000 a year in the mobile home business. We had 65 locations at the time. So I didn’t have any desire or a need to change what I was doing. But I knew if I ever needed to change, and I had to change because, in 2002, we woke up one morning and had $22,000,000 of wholesale inventory of mobile homes and no way to sell them. The consumer finance was gone. So it took about a year to shut that business down. And while we were shutting it down, I was starting up my fix-and-flip business. 22,000,000 worth of inventory of mobile homes. 


Vinnie Enriquez [00:12:38]:

Okay. We gotta hear that story. So what happened? You had $22,000,000 of inventory. Did you just go strictly bankrupt? Did you sell them off for pennies on the dollar? I mean, what happened there?


Jay Conner [00:12:48]:

No. We came very close to having to go bankrupt. But, instead of going bankrupt, we called up all of our vendors and we said, look, I can file bankruptcy, and who knows what the bankruptcy judge is going to give you? I said, Or we can work together and try to work through this, and I get you paid just as soon as possible as much as I can. So we ended up doing workouts with our vendors.


Vinnie Enriquez [00:13:15]:

What was your mindset? Right? I mean, it was your dad’s business. You took it over. I mean, no fault of your own. I mean, it seems like I mean, outside financing was kind of the issue, but you had $22,000,000 and you had to close down the business. I mean, what was your mindset at that point in time? I mean, was it deflating? Were you still confident in yourself? Or what was kinda going on?


Jay Conner [00:13:38]:

Well, that’s a good question because my mindset was twofold. Number 1, it’s a whole lot more fun to start building a business than it is shutting down a business. So I didn’t wait until we had shut down the mobile home business all the way. I immediately started working on and working towards the real estate investing business and single-family houses. And so I had that positive project to work on that I just really believed I could go places, and of course it has. And, the other part of my mindset was just a matter of acceptance. And that is, you know, don’t go put my head in a hole somewhere like an ostrich. We got a deal with, you know, shutting this company down while simultaneously I’m working on something very, very positive that I’m very, very excited about.


Vinnie Enriquez [00:14:35]:

Where did the confidence come from? I mean, was it an eternal confidence? Was it basically, I mean, prayer? Was it your wife? I mean, where did that confidence come from?


Jay Conner [00:14:46]:

The confidence came from the people that I surround myself with. And that’s a really, really important point. I have been in, my wife, Carol Joy, and I have been in multiple mastermind groups, probably that’s the most important activity or thing I’ve done is continue to surround myself with people who have a similar goal, they got the same kind of outlook. And, you know, when you’re having that down day, you got your mastermind members that can help pick you up. You know?


Vinnie Enriquez [00:15:22]:

Yeah. I mean, that’s I mean, it’s so true. I mean, so you have that kind of little window of time. You change basically a negative into a positive. Do you start, like, on your 1st month, do you go full bore and do a couple? I mean, what was the first step? Do you recall what you did?


Jay Conner [00:15:39]:

Yeah. My first step was I just wanted to do one deal from start to finish. Now for goodness sake, for those of you who are listening right now to this show, do not make the mistake that I did. And I’ll tell you what, when I started out, Benny, it was all kinds of mistakes. Well, one big mistake I made was I didn’t get the proper education on how to go about doing this business. Right? So the 1st 6 years, I was really reading books, right? I was in a positive mastermind, but I wasn’t in a group where other people were successful real estate investors. When my business really took off, I got an excellent mentor and coach who worked with me and really held my hand. And that’s what I advise.


Jay Conner [00:16:32]:

Don’t start out on this business on your own. Be working with somebody who not only has been there but is also an active practitioner. Well, I’ll tell you what, one of the main ways I’m getting my leads today for my real estate deals, I wasn’t even doing. It wouldn’t even exist, 3 or 4 years ago. So I wanna be working with somebody that is actually active in the business.


Vinnie Enriquez [00:17:01]:

What’s your first step? Because I mean I mean, I think it’s it’s it’s good advice. And one of the most intriguing things that I’ve probably talked about, most times I have an investor on here, because I know at least in Southern California, one of the biggest flipping companies makes more money off of their classes than they do on their flips. Right? So what advice would you give to that student to find the right coach? I know you kinda already talked about a little bit, but I also to take the steps to do your first project.


Jay Conner [00:17:29]:

Yeah. Well, the best advice I can give is to vet them out. If you know somebody who has gotten training or educating or education from someone, and that referral that’s coming to you is someone, you know, that you can trust, Referral is always the best. Of course, be involved in your local Real Estate Investing Association, also known as RIA. And so, become involved, be a volunteer. Volunteer to serve in your local real estate investing association, and ask around with the other members what other types of training have they had that’s been beneficial. In fact, some RIAs themselves offer their own education to the members of the Real Estate Investing Association. So then again, as I said, referral and word-of-mouth are the best.


Vinnie Enriquez [00:18:25]:

Alright. So you’re you’re building up steam. You’re doing well. You’re getting money from the banks. Then this chaos happens where they say they’re not going to give you money. So what happens next?


Jay Conner [00:18:38]:

Well, I’ll tell you what. This was a pivotal moment in our business. Now, Vinny, I know you may find it hard to believe, but here in North Carolina, we still actually have these handsets with Ford attached to them. I know a lot of people don’t even know what that is. But anyway, Vinnie, I was sitting right here at this desk, in January of 2009, and I had been borrowing money from the same banker for 6 years. And I had 2 houses under contract to purchase. So I picked up my telephone, and I called my banker, and Steve got on the phone. And after we had a little chitchat, I told Steve about these 2 houses that I’ve got under contract to purchase.


Jay Conner [00:19:21]:

Well, Vinny, just like that, I learned over the phone from Steve that my line of credit had been shut down with no notice. I said, Steve, why are you shutting down my line of credit? We’ve had a fantastic relationship for 6 years. I’ve never been late on payments with you and the bank. I got an 800 credit score. Why are you shutting me down? And Steve said, Jay, don’t you know there’s a global financial crisis going on right now? I said no, but now you’ve given me a global financial crisis. I got these 2 houses I can’t fund. Sure would have been nice to know that you had shut me down before I put down earnest money, and back then I couldn’t get the money back. So I hung up the phone, and by the way, Vinnie, these people going around saying, oh, every problem you have is an opportunity.


Jay Conner [00:20:12]:

I wanna throw up. I didn’t have an opportunity. I had a problem. Right? So I sat here for a moment, and I thought to myself, and here’s a right or downer. I asked myself, who do I know that can help me with my problem? By the way, doctor Benjamin Hardy and Dan Sullivan wrote a book not too long ago called Who Not How? Right? Who do I know? Who do you know?


Jay Conner [00:20:38]:

Well, immediately, when I asked myself that question, and by the way, the power is in asking the right question. When I asked myself that question, who do I know that can help me with my problem? I immediately thought of Jeff Blankenship, who lived in Greensboro, North Carolina at the time. We’ve been best of friends for years years. He was investing in real estate at that time. So, I called up Jeff right away. I said, Jeff. And I told him what had happened at the bank. He said, Well, welcome to the club.


Jay Conner [00:21:08]:

I said, What club? He said, The club of losing your lot of credit. My bank shut me down last week. I said, Well, Jeff, how are you going to get your deals funded? He said, Have you ever heard about private money? I said, No. He said, have you ever heard about self-directed IRAs? I said, no. So, I studied that, and I put my program together. What do I mean by my program? My program, my private lending program where I would offer other people and teach them how they can make high rates of returns safely and securely. So here’s what I did, Benny. I took my hat.


Jay Conner [00:21:46]:

Now this is my private lender teacher hat. That’s what that says, my private lender teacher hat. And here’s how I went about, and I never asked anybody for money. I started teaching people in my own network, people in my cell phone, and email list, and people I go to church with. I started teaching them my private lending program, the interest rate I pay, how it’s secured by real estate, and how it’s going to be a higher rate of return than they can probably get anywhere else. So I started teaching them. I put on a private lender luncheon, and I invited about 20 people to that luncheon. I raised $969,000 at that one luncheon.


Jay Conner [00:22:28]:

But here’s a here’s a big part of the magic secret sauce. And that is, a side note, desperation has got a smell to it. Right? Desperation has a smell to it. So we separate the activity of teaching the private lending program so that individuals just like you and me can earn high rates of return safely and securely. We separate that conversation from having a deal for them to fund. So first of all, they just come in. They say, Yeah, I like the program. I like the interest rates you’re paying.


Jay Conner [00:23:04]:

I like the loan to value. That’s conservative. I like how you’re putting my name on the insurance policy to protect me as the mortgagee, etcetera, etcetera. So then they like the program. Now, if they’ve got retirement funds, I’m gonna introduce them to our self-directed IRA company that we recommend our private lenders use. So they’re all set up to go. And then here’s the other big magic secret part of it, Vinny. When we’ve got a deal for them to fund, I don’t pitch a deal.


Jay Conner [00:23:33]:

I’ve never pitched a deal in my life. What do I do? I pick up my phone, and I call them with the good news phone call. Well, what’s the good news phone call? Well, let’s say you’re one of my new private lenders, and you’ve told me you got 150 $1,000 that you want me to put to work for you. And I told you I would put her to work for you right away. So a few days went by, I pinged the phone, and I called Vinnie, my new private lender, and I said, Vinnie, I got great news. I can now put your money to work. You see, you’ve been waiting for the phone call, particularly if you moved your retirement funds over to the self-directed IRA company and my recommendation. You’re not making any money on that money until I call you with a good news phone call.


Jay Conner [00:24:23]:

So I called you, Vinny, and I got great news. I can now put your money to work. And then I tell Vinny, my private lender, four things about the deal. I said, Vinnie, I got a house over in Newport, so I told him the area. I didn’t tell him the physical address. He could care less. Vinnie, I got a house over in Newport. The after-repaired value is $200,000 The funding required for the deal is 150,000.


Jay Conner [00:24:49]:

I know you got a 150, you already told me, waiting for the good news phone call. And then I say, Vinnie, closing is next Tuesday, so you’ll need to have your funds wired to my real estate attorney’s trust account by next Monday for closing. I’m gonna have my real estate attorney email you the wiring instructions. End of conversation. Notice I didn’t say to Vinnie, do you want to fund the deal? Of course, Vinny wants to fund the deal. I mean, that’s the most stupid question I could be asking Vinny, because I’m not gonna bring a deal for him to fund unless it matches the criteria of the program that I already taught Vinnie. So again, separate teaching the program, how they get high rates of returns safe and securely, and then having a deal for them to fund. Critically important.


Vinnie Enriquez [00:25:38]:

Well, 2 things. Has anybody told you that you sell a lot like Jim Rome?


Jay Conner [00:25:43]:

Oh, I’m sorry. Like who?


Vinnie Enriquez [00:25:45]:

Jim Rohn.


Jay Conner [00:25:46]:

No. I didn’t mean I knew who Jim Rome was. I gotta go back and listen to


Vinnie Enriquez [00:25:51]:

some of his A couple of times, I’d be like, oh my gosh, man. This is like even some of the mannerisms, the tonality of it. I was like, that’s kinda funny right there. Anyways, so it’s


Jay Conner [00:25:59]:

I was channeling Jim Rohn and didn’t even know it.


Vinnie Enriquez [00:26:03]:

Alright. So what’s, I mean, again, you’ve done 500. I mean, put 500 opportunities. I’m I know since 2,009, I mean, the values pretty consistently have gone up over, the United States and we all that kind of stuff. So have there been less desirable outcomes? I mean, what’s I mean, any hiccups? I mean, I know you said that everything’s protected, and there are always things that can change when you’re dealing with real estate. What are those outlier situations? Have you had those? What kinda


Jay Conner [00:26:43]:

happens in those situations? Well, first of all, when we renovate or rehab a house, it never comes in on budget out of 500 of them. They never come in on budget. They always cost more than you think it’s gonna cost. That’s why the magic and why this business works is in the offer. So what do I mean by the offer? I’m I say I make lots of room for Murphy. And, Benny, you know who Murphy is. Right? I mean, sometimes Murphy shows up. You know, if anything can go wrong, it will.


Jay Conner [00:27:21]:

Sometimes Murphy’s distant relatives and cousins and aunts and uncles show up in a project of unexpected stuff. So we always, always make room for the unexpected repairs, even when you’re getting a full, you know, home inspection. But in addition to that, let’s be totally transparent here. I mean, sometimes I’ve made a whole lot more money in profit than I thought I would because the market was going up. Sometimes I didn’t make any money because of, you know, unforeseen circumstances. The most important thing that I understand is every one of our private lenders, all 47 of them, have gotten 100% of every penny of interest that was promised to them. And again, the reason for that, and the reason we can do it, is we don’t borrow more than 75% of the after-repaired value. I didn’t say 75% of the purchase price.


Jay Conner [00:28:28]:

You see, one reason I love private money is because we always bring home a big check when we buy. How do you do that? I borrow more than I need to buy the house, and I borrow more than I need to rehab the house, and that formula only works when you are able to buy houses at significantly discounted prices. Either the seller’s in distress personally, or the property’s in distress, or all the above. So that’s the reason I mean, that’s how we can bring them a big check. I mean, we never take any of our own money to the closing table when we buy, and we pick up multiple checks on every transaction. So one of my favorite phrases on my real estate attorney’s check stub is excess cash to close. And I tell you what now, Vinny, I like me some excess cash.


Vinnie Enriquez [00:29:21]:

What I know you talked about a 150,000-a-year analogy. What’s the minimum?


Jay Conner [00:29:28]:

The minimum for my private lenders to invest?


Jay Conner [00:29:31]:

50,000. So most of the time, obviously, I can’t buy a house for 50,000, but I can use 50,000 in a second position, or junior lien position for the rehab. So I do a lot of deals where I have more than 1 private lender secured by the same property. So here’s an important point, and this is called total loan to value, total loan to value. So back to our example, let’s say I got a house with an after-repaired value of 200,000. Well, I could borrow $100,000 from 1 private lender in the first position, and then $50,000 from a second private lender in the second position. So we add both notes together, the 100,000 and the 50,000, and add them together. My total amount borrowed is 150,000 from both lenders divided by the after-repaired value.


Jay Conner [00:30:32]:

I’m still at a 75% total loan to value.


Vinnie Enriquez [00:30:38]:

Thank you, Jay, for being on the platform. If you are looking to get more information, also, if they’re looking to purchase a book, I know you said for the guests, to listen to the Road to Growth podcast, that there’d be an opportunity to, get a free book. We pay for shipping and handling. Where can you get the information?


Jay Conner [00:30:56]:

Absolutely. So the name of the book and by the way, you can’t download this. We actually mail it to you in the mail. It’s Where to Get the Money Now, How and Where to Get Money for Your Real Estate Deals Without Relying on Hard Money or Institutional Lenders. Pick up the book. I’ll autograph it for you at www.JayConner.com/Book.  It’ll put you on the road to having all the money you need and want for your real estate deals.


Vinnie Enriquez [00:31:29]:

I’m gonna finish up with this last question, Jay. Is your is your father still around?


Jay Conner [00:31:36]:

Yes. He’s 90 and a half years old, and he’s still right slap dab in a housing development that’s got 300 houses. He’s got about 150 of them built. And I said, Dad, you better finish this project before you check out because I don’t want you leaving this mess in my lap.


Vinnie Enriquez [00:31:57]:

What what’s what were his thoughts on your transition from running the company that he started compared to running this company that you’ve built?


Jay Conner [00:32:08]:

Yeah. Well, it’s funny. The very first house I put under contract, I was using the bank’s unsecured line of credit. Right? And, so dad and I were having so this goes all the way back to 2003. So Dad and I were having lunch at Ruby Tuesday’s restaurant, and I had this first house under contract, for $50,000 my very first one. And I was using that unsecured line of credit to buy it. So I said, Dad, I got this house under contract, but I’m gonna fix it up and sell. Let me show it to you.


Jay Conner [00:32:40]:

So he got in the car. We rode down there to the house on Mayberry Loop Road here in Morehead City. And we got in it’s not the best street in the world, if you know what I’m saying. And so we got out of the car, and, we walked up, and the realtor had given me the lockbox code. When I opened the door, there was this little teeny tiny path about this wide. And on either side of it, there was junk piled all the way to the ceiling in this house. Dad and I couldn’t even walk into the house at the same time. He had to go ahead of me.


Jay Conner [00:33:15]:

He took 2 steps in, turned his head back around looked at me, and said, Son, have you lost your mind? I said, well, I don’t know. I’m getting ready to find out. So I bought it for 50, put 50,000 worth of renovations in it, had a 100 in it, and, I was putting it on the market for 140, 1399. Well, guess what? I put it on the market in January, it went 45 days with 0 showings, and I had it maxed out with staging and everything. So I’d read in one of them all the books. If you put owner financing in the classified ad, your phone will ring off the hook. Well, it did. My phone blew up.


Jay Conner [00:33:53]:

The first guy I met there offered me an $18,000 lease option deposit. I didn’t know what a lease option deposit was, but my dad told me if anybody offers you money, you take it and you’ll figure it out. So I put that $18,000 lease option deposit. I was an active mortgage broker at the time, and Linwood, my buyer, had a 583 credit score, mid score. I could get him done at 580, so I cashed him out with USDA financing, on that very first deal, and, you know, it’s been a journey ever since.


Vinnie Enriquez [00:34:32]:

Yeah. Seller financing is a great avenue. You can get creative with those kind of things. Thank you. Thank you, Jay, for being here today. Hopefully, everyone got some great nuggets. If you want more in-depth about private lending, I mean, using your money instead of just sitting there, go in the show notes, go get the book. Thank you.


Vinnie Enriquez [00:34:53]:

Thank you, guys. Please subscribe. Please share, and go find Jay. Bye, everyone.


Narrator [00:35:01]:

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.