Private money in real estate isn’t just a financial tool; it’s a gateway to unparalleled flexibility, control, and success. In this episode of Raising Private Money, hosts Jay Conner and Frank Iglesias deep-dive into the sonic depths of private lending. Whether you’re a seasoned real estate investor or a curious newcomer, understanding how to master private money can be the game-changer you need.
The Benefits and Responsibilities of Private Money
Greater Freedom and Control
One of the resounding themes discussed by Frank Iglesias is the level of control private money offers. As opposed to institutional or hard money lenders, private money allows investors more leeway in terms of flexibility, enabling a smoother, often faster transaction. However, with this level of freedom comes the onus of responsibility. Due diligence is crucial, as missteps can lead to substantial liabilities.
Jay Conner’s 7-Day Private Money Challenge
An Accelerated Path to Funding
Jay Conner takes the opportunity to introduce the audience to his latest initiative—the 7-Day Private Money Challenge. This program is geared towards real estate investors who wish to quickly and effectively raise private money. This rapid-paced challenge aims to equip participants with the tools and techniques needed to secure funds without conventional hurdles.
Networking: The Heartbeat of Fundraising
Building Trust Beyond Transactions
Frank Iglesias sheds light on his preferred methods for raising private money—networking and relationship-building. Far beyond mere business interactions, successful fundraising often stems from establishing genuine relationships. Whether it’s joining social circles like church groups or gym communities, places where mutual trust already exists, turning these relationships into financial partnerships can be far more effective.
Risk Management and Lender Expectations
Keeping Risk in Check
Mitigating risk when using private money is a vital focus for Frank. He underlines the necessity of assessing the risk tolerance of lenders meticulously. Evaluating deals conservatively and always seeking third-party opinions are strategies that can prevent potential pitfalls. This approach not only safeguards the investment but also builds trust with lenders, providing a safety net for all parties involved.
Hard Money vs. Private Money Lending
Understanding the Nuances
While hard money and private money are sometimes used interchangeably, Jay and Frank take the time to explain their distinctions. Hard money lenders run a more institutionalized operation, often advancing between 65-90% of a property’s purchase price. Private money lenders, on the other hand, offer 100% financing, providing borrowers with greater latitude. Understanding these nuances is crucial for any investor looking to optimize their funding strategy.
Frank Iglesias’ Journey From Hard Money to Private Money
A Breakthrough in Investment Strategy
Both Jay and Frank share personal anecdotes about their transitions from relying on hard money to embracing private money. Frank recounts the tipping point that made him pivot to private lending—realizing it was a cheaper, quicker, and streamlined alternative. This transition marked the beginning of significant breakthroughs in his real estate endeavors, offering unprecedented control and success.
Final Words of Wisdom: Tips and Pitfalls
The Do’s and Don’ts of Raising Private Money
To cap off an enlightening episode, Jay asks Frank to offer some final pieces of advice for the audience. Frank’s advice is straightforward yet invaluable. Always revisit your existing network to uncover potential opportunities. Avoid convincing yourself that a deal is flawless without getting a third-party opinion. Conservative assessment and a fresh perspective can be your best defenses against potential setbacks.
10 Lessons Covered in this Episode:
- The Power of Private Money
Responsibilities and benefits of using private money in real estate deals. Emphasizes due diligence and a conservative approach.
- Real Estate Investor’s Toolbox
Introduction to Jay Conner’s 7-Day Private Money Challenge for quick private money-raising strategies for real estate investors.
- Building Relationships
Effectiveness of networking and relationship-building in raising private money. Focuses on deeper connections beyond business.
- Finding Lenders in Familiar Places
Private lenders are often found in places where trust is established, like churches or gyms. Leveraging existing trust for investment.
- Assessing Risk Tolerance
Crucial to understand private lenders’ risk tolerance. Importance of conservative deal assessments and seeking third-party opinions.
- Raising vs. Hard Money
Distinguishing between hard money and private money lending in real estate. Understanding different terms and conditions.
- Control and Flexibility
Private money lenders can provide 100% financing, offering the borrower more control and flexibility in real estate transactions.
- Everyday Investors
Private money lenders are often everyday people, not just accredited investors. They seek simple and lucrative real estate investments.
- The Trigger for Change
Experiencing pivotal moments that drive real estate investors to transition from hard money to private money for better flexibility.
- Networking Within Reach
Revisiting existing network, including contacts in your phone, to discover opportunities and potential private money lenders.
Fun facts that were revealed in the episode:
- Breakthrough with Private Money:
One of the most exciting revelations was that Frank Iglesias experienced significant breakthroughs in his real estate endeavors after transitioning to using private money. This shift provided him with unparalleled control and flexibility, which he didn’t have with hard money lenders.
- Favorite Networking Method:
Frank revealed that his favorite and most effective method for raising private money is through networking and nurturing personal relationships. He emphasizes that in real estate, it’s all about the people you know rather than just the transactions or deals.
- Jay’s Private Money Challenge:
Another intriguing tidbit is Jay Conner’s promotion of his 7-Day Private Money Challenge designed for real estate investors aiming to raise private money quickly. This challenge offers participants actionable strategies to secure private funding efficiently.
Timestamps:
00:01 – Raising Private Money Without Asking For It
05:15 – Real estate investors finding trigger, seeking private money.
07:53 – Accepting lower interest rate for hard money.
12:44 – Real estate entrepreneurs use private money advantageously.
13:36 – Private lending revolutionizes the real estate financing process.
18:58 – Quickly raise private money with a 7-day challenge.
21:17 – Find private money that you frequent consistently.
23:37 – Consider the worst case, assess risk tolerance, real estate.
27:07 – Your business is your people.
28:24 – Connect with Frank Iglesias: https://www.FrankIglesias.com
30:16 – Jay Conner’s Free Money Guide: https://www.JayConner.com/MoneyGuide
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
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Real Estate Financing Demystified: Differences Between Hard Money and Private Money Explained
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.
Rama Krishna [00:00:28]:
Welcome back to another episode of Multi-family AP 360, today’s guest is Jay Conner from Private Money Authority. So welcome, Jay.
Jay Conner [00:00:37]:
Thank you so much for having me on here, Rama. I’m so excited to be here to talk about private money and getting all the money you need for your real estate deals.
Rama Krishna [00:00:46]:
Absolutely. Thank you. And a little bit about Jay, Jay Conner has been buying and selling houses since 2003 in a town of only 40, 000 people with profits now averaging 78k per day. He has rehabbed over 4 75 houses and been involved in over $18, 000, 000 in transactions. Jay has completely automated his annual 7-figure income business to where he works in his buying and selling house business for less than 10 hours per week. His passion is motivating and teaching other real estate investors how to raise private money without even asking for money. So with that, Jay, do you want to add anything to your background?
Jay Conner [00:01:26]:
Oh, I think you covered it, Rama. My wife, Carol Joy, and I live here in eastern North Carolina. You’re in Greensboro. I’m in Morehead City, North Carolina. And as you said, our total target market is only 40, 000 people, but we do 2 to 3 deals per month, single-family house deals here in this area. Our average profit per deal is $82, 000 per deal we do. And I don’t say that Rama, to brag. I say that to make a point, and that is you don’t have to be in a big market in order to make significant income.
Jay Conner [00:02:04]:
I would rather be a big fish in a small pond than a small fish in a big pond.
Rama Krishna [00:02:13]:
Yeah. Thank you very much. Before jumping details into, you know, deal level, So we’ll start with how exactly to get into real estate space, Jay.
Jay Conner [00:02:22]:
Sure. Well, I was raised in the housing business, affordable housing to be specific. My father, Wallace Connor, at 1 time was the largest retailer, had the company, the largest retailer of manufactured homes or mobile homes in the nation. And I know if we ever if I ever got out of mobile homes and manufactured housing, I wanted to get into single-family houses, etcetera. And so I did that in 2003. 2003, my wife, Carol Joy, and I, went full time and we’ve been investing right here in Eastern North Carolina ever since.
Rama Krishna [00:02:59]:
Awesome. How exactly start your real estate journey? So share a little bit more about your first, you know, real estate transaction. You know?
Jay Conner [00:03:08]:
Oh, sure. So from 2003, Rama, until 2009, all I knew to do was go to the local bank to fund my deals, and I got on my hands and knees and put my hands underneath my chin, and I would beg and say, please fund my deal, and I’d pull up my skirt so the banker could look at my personal assets and my financial statement, and, you know, fill out applications and all that. That’s all I needed to do. And, you know, the banks made the rules. They set the interest rate, they set the length of the note, the frequency of payments, and all that. Well, that worked okay from 2003 until January of 2009. And, Rama, in January 2009, I picked up my phone. By the way, we still have handsets and cords here in North Carolina, believe it or not.
Jay Conner [00:04:01]:
But I picked up my telephone, and I called my banker. His name was Steve. And Steve had funded 100 and hundreds of deals for me in those 1st 6 years. And, that’s where I had my line of credit. So I called up Steve. I told him about these 2 houses I had under contract for him to fund, and I learned right there on that phone call, Rama, that my line of credit had been shut down. I had no line of credit. It was gone.
Jay Conner [00:04:28]:
And I said, Steve, what do you mean you’ve shut down my line of credit? What is going on? And he said, Jay, don’t you know there’s a global financial crisis going on right now? I said, no. But now you have given me a global financial crisis by shutting me down with no notice. And so I hung up the phone. Rama, I sat right here at this desk, and I asked myself a very important question. This question I’m gonna share with your audience right now will serve you no matter if it’s a problem in finances, personal relationships, health, or business, doesn’t matter. The question I asked myself, Rama when I was shut down from the bank, I asked myself, who can help me with my problem? By the way, Rama, these people going around saying, oh, every problem is an opportunity. It makes me want to throw up. I didn’t have an opportunity.
Jay Conner [00:05:22]:
I had a problem. I didn’t have a way to fund my deals. Well, I immediately thought of Jeff Blankenship, a good friend of mine. And guess where Jeff Blankenship lived in 2 1009? Greensboro, North Carolina. So, he was investing in real estate at the time, and we were best of friends. So I called up Jeff. I said, Jeff, you’re not gonna believe what happened. I said, the bank just closed my line of credit with no notice.
Jay Conner [00:05:49]:
And Jeff says, well, Jay, welcome to the club. I said, what club? He said, the the club of losing your line of credit, said, the bank shut me down in Greensboro, North Carolina, last week. I said, well, Jeff, how are you gonna fund your deals? He said, well, Jay, have you ever heard about private money? I said, no. He said, have you ever heard about self-directed IRAs? I said, no. He said, well, that’s how I’m funding my deals. I said, okay. So I learned about private money. I don’t mean hard money.
Jay Conner [00:06:21]:
I don’t mean any kind of commercial money. I mean private money, getting money from individuals just like you and me who have either investment capital or retirement accounts that they can move over to a self-directed IRA company and get unlimited money per year, either tax-deferred or tax-free. I’d never heard of that. So I put my program together, and you know what, Rama? I put on my teacher hat. I put on my private money teacher hat and I started teaching people in my own network what private money is, and how they can get high rates of returns safely and securely. And I was able to raise 2, 000, 000 100 and $50, 000 in private money, the very first 90 days of being cut off from the banks. And so here’s the difference. Here’s here’s what’s interesting, Rama.
Jay Conner [00:07:14]:
I got 47 private lenders today. Not 1 of them had ever heard of private money or private lending until I told them about it. And none of them had ever heard of self-directed IRAs and how they can use their retirement funds to loan money out until I taught them. Now for goodness sake, if you’re listening to this show, you don’t need 47 private lenders. You just need 1 or 2 to start. But the interesting thing is, Rama, you know when I was borrowing money from the bank, I had to ask for a mortgage. I had to apply. But in this world, I’ve never asked for money.
Jay Conner [00:07:51]:
I’ve never asked for a mortgage. I’ve never pitched a deal. And people all the time ask me and say, Jay, how in the world have you got 8 and a half $1, 000, 000 in private money available to you that you just, you know, move from 1 project to another, all these multiple projects going on? I said it’s simple. First, we teach the program to a potential private lender without saying any kind anything about a deal. You know, desperation’s got a smell to it. The worst time to be raising money for your deals is when you need it for a deal. Right? So we teach the program. They tell us how much money they have to invest, and then I call them up with the great news phone call.
Jay Conner [00:08:32]:
What’s the great news phone call? Well, I get them on the phone and I say, I got great news. I can now put your money to work for you, and then I’ll tell them 4 things about the deal. I’ll give them the after-repair value, the location, the funding required, and the closing date. So I’ll call them up. I said, I got great news. I can now put your money to work. I got a house in Newport with an after-repaired value of $200, 000 The funding requires 150, 000. I know they got a 150, 000.
Jay Conner [00:09:01]:
They already told me. And if they’ve moved their money over from a retirement account to a self-directed IRA, they’re not earning any money until I put the money to work for them. So I got a house in Newport after-repaired value of 200, 000. The funding required is 150, 000. You need to wire your funds to my real estate attorney’s trust account by next Thursday because closing is next Friday. End of conversation. Rama, the most stupid question I could have asked him is, do you want to fund the deal? Of course, they want to fund the deal. They’ve been waiting for the phone call, particularly if they’ve moved money over to their self-directed IRA.
Jay Conner [00:09:42]:
So this world’s got nothing to do with begging, chasing, selling, or persuading anybody into loaning us money. It’s all about teaching them what it’s all about and how they can get involved.
Rama Krishna [00:09:55]:
Thank you for sharing that. So how exactly does this private lending or private money work, like, from a timeline or, you know, returns point of view or, you know, any other criteria?
Jay Conner [00:10:06]:
So when you say the timeline, are you talking about the length of the note or how long does it take to raise the money?
Rama Krishna [00:10:12]:
No. Note. No timeline.
Jay Conner [00:10:14]:
No time. So the notes are 2 years 2 years from the time we borrow the money, but I don’t use the money for 2 years. In this market, you know, we have no inventory down here on the coast. You put a house in the multiple listing service after you’ve renovated it, it’s gone. I mean, gone overnight. So we’re rehabbing most of these properties. So from the time we borrow the money, renovate the property, get it on the market to sell it, It’s typically, right now, 6 to 9 months from start until cash out.
Rama Krishna [00:10:47]:
So what kind of return these private lenders will get on
Jay Conner [00:10:51]:
the bill? I love that question, Rama. So I started so I put the program together in 2009 and started teaching potential private lenders what they could earn. So I started out paying them 8% 8% back in 2009. No points, no origination fees, a straight 8% APR, annual percentage rate. So I’m only paying interest or accruing interest while I’m using the money. You know what’s interesting today? All the way now here in 2024, I’m still paying them 8% with no points and people ask me and say, Jay, how in the world can you still only be paying 8% to your private lenders with no points when interest rates have gone up and shot up out of the roof over the last couple of years? I said, well, there are 2 answers to that. Number 1, you can go down to the bank right now and get a certificate of deposit for 4 a half percent or 5%. Well, guess what? 8% is still a whole lot more than 4 a half or 5%.
Jay Conner [00:11:56]:
And secondly, here’s the big reason why I still pay 8%, because I make the rules, not the lender. You see when you go to the borrower bank from the traditional bank or a hard money lender, who makes the rules? They make the rules. In this world, we make the rules as the borrower. So you see, we’re not applying for a mortgage. There’s no application. There’s no credit score. There’s no appraisal. We’re not applying for a mortgage.
Jay Conner [00:12:26]:
We’re offering a mortgage.
Rama Krishna [00:12:29]:
Awesome. Great strategy. Thank you for sharing that. But you mentioned, like, per month, you are doing 3 3 deals you’re closing, and per day, like, you are making, like, 82k something. Share with us your strategy, like, you know, how exactly that works.
Jay Conner [00:12:44]:
In other words, how do I have such high profits? Yeah. Here’s the answer. We have such high 2 reasons. We have such high profits because number 1, we know how to find motivated sellers. So, obviously, I’m not buying these properties in the multiple listing service. There’s nothing in the multiple listing service. So all these properties are what we call off-market properties. These are all for sale by owners.
Jay Conner [00:13:11]:
So how do we find these people who are motivated to sell? Here’s the answer. Primarily, we’re using Google Pay per lead. Not pay per click, but pay per lead. That means I hire 4 different companies right now simultaneously that do all the advertising. So people go to Google and they search, sell my house fast, buy my house fast. And, of course, they’re motivated to sell because they’re under some kind of distress. Maybe it’s an inherited property. Maybe somebody died and they can’t afford the mortgage payment.
Jay Conner [00:13:49]:
Maybe they’re behind on taxes. Maybe they lost a job. All kinds of reasons. But the majority of our leads are coming in with people searching on Google to find us. And I’ll give you an example, Rama. I just went under contract this past Friday night at 7 PM at night buying an oceanfront. You would love this, Rama. You would love this.
Jay Conner [00:14:15]:
Oceanfront condominium way up in the sky, oceanfront, 1500 heated square feet. That’s a pretty good-sized condominium, oceanfront. And the after repaired value is 6 $125, 000. Do you know what I’m buying this condo for? $425, 000 and the renovation is less than $10, 000. All it needs is interior paint and a front door. Now that’s the first way I got it. That came in on a Google pay-per-lead search. The second reason I got this deal is because I was able to close in 7 days.
Jay Conner [00:14:58]:
That’s the magic of the private money. Having access to private money allows you to close super, super quickly, and you know what? The seller had offers from other real estate investors more money, but they couldn’t close in 7 days. Why was 7 days important? Because it’s going to the foreclosure courthouse steps in 2 weeks. And if it goes to the courthouse steps, the seller’s getting nothing. But they’re getting a nice little chunk of change by me buying it directly from the owner.
Rama Krishna [00:15:36]:
Got it. Yeah. Thank you for sharing that. So what’s your exit strategy? Exit strategy for your deals?
Jay Conner [00:15:42]:
Oh, the exit strategy. Yeah. Right now in this market, when I’m buying with private money, all cash, which is the majority of the deals, When I buy with cash, I cash out. I don’t want cash buried in a property. Right? So if I buy with all private money, then I’m gonna put it in the multiple listing service when it’s ready to sell and just cash out. List it with my realtor. I got the same realtor for the past 19 years. Right? Now, in answer to your question, my exit strategy depends on how I bought it, and how I funded it.
Jay Conner [00:16:17]:
So if I buy a single-family house subject to the existing note, which means the owner of that single-family house agrees to sell me the property, transfer ownership into my entity, and I agree to make their payments. I’m not applying to assume their loan, I’m just agreeing to make their payments. That’s buying subject to the existing note. That’s already on the HUD settlement statement line 204. So if I buy creatively, and I buy subject to the existing note, then I’m going to sell creatively. Meaning, I’m on sell-rent to-own. So if I buy on terms, buying subject to the existing note, that’s the same thing as buying on terms. But buy on terms, I sell on terms.
Jay Conner [00:17:03]:
Lease purchase, rent to own. If I buy all cash, I cash out.
Rama Krishna [00:17:09]:
Okay. Got it. Thank you. What is the best way to find these private lenders?
Jay Conner [00:17:14]:
There are 3 categories of private lenders. There are what we call your warm market. Those are people you’ve got some kind of association with. You go to church with them. You play golf. You hang up, you know, they’re on the soccer field, you know, with your kids. They’re on the football field. You know, they’re in your cell phone, your social media.
Jay Conner [00:17:35]:
So that’s your warm market. Right? That’s what I started with. Right? How I raised over 2, 000, 000 in less than 90 days. And how I went about doing that is I didn’t run all around town. I put on 1 luncheon, a private lender luncheon. I bought people lunch. I invited 20 people there. I paid for the lunch.
Jay Conner [00:17:53]:
I did a 20-minute presentation on what private money is and how they can get involved with investment capital and or retirement funds. Rama, I raised $969, 000 at that first private lender luncheon that I put on. So that’s the warm market. 2nd category of where you find these private lenders is what I call your expanded warm market. So I have real estate investors tell me sometimes, Jay, I don’t have a good network. My network is broken. I don’t know anybody with money. And I, first of all, Rama, I don’t believe them.
Jay Conner [00:18:29]:
But anyway, I think you should expand your world market. So I teach all the time how to expand your connections. I’ll tell you 1 of the quickest ways to expand your connections. Join 1 of your local Business Networking International groups. Ivan Meisner founded BNI decades ago. I’ve been very involved here in eastern North Carolina in BNI, and I have gotten 1, 000, 000 dollars in private money from my local BNI members referring other people to me who want to get high rates of returns safely and securely and be a passive real estate investor. The 3rd category of private lenders is what we call existing private lenders. These are people, individuals, who are already loaning money out to real estate investors from either their investment capital or retirement accounts.
Jay Conner [00:19:23]:
Where do you find these people? Well, there are a number of places you can find them, but I’ll tell you 1 that’s free, a free place. So I know, and I and I recommend a particular self-directed IRA company. This particular self-directed IRA company, on the 4th Wednesday night of each month, at 6 PM CST, 7 PM EST, has a free networking event on the Internet. Did you know that over 70% of account holders at self-directed IRA companies want to invest with their retirement funds and loan out to real estate investors? So they have this networking event on Zoom, and they match up, and you get in a network. And you don’t have to have an account at this company. You can just have free networking. You got people wanting to loan you money.
Jay Conner [00:20:12]:
But here’s the difference, Rama. That is not you’re not putting on your teacher hat. You’re not putting on your teacher hat at those events because those private lenders already know the game. They already know what interest rates they are accustomed to getting, so that’s not a teaching opportunity. That’s a negotiation opportunity. But those are your 3 categories, your warm market, your expanded market, and existing private lenders.
Rama Krishna [00:20:41]:
Awesome. Thank you very much. Thank you for sharing that. Would you share any of your best experiences so far?
Jay Conner [00:20:47]:
My best experience with private money?
Rama Krishna [00:20:50]:
Yeah.
Jay Conner [00:20:52]:
Yeah. I’ll tell you my best experience was the story about how I got my very first private lender. So I put my program together after being cut off from the bank, and I wanna share how I got my very first private lender without asking for money. So it was on a Wednesday night here in Morehead City. My wife, Carol Joy, and I, go to Bible study on Wednesday nights. And so we went to the church building. I walked into the foyer, and I walked up to a gentleman named Wayne. And Wayne and I had known each other for some time.
Jay Conner [00:21:27]:
I walked up to Wayne. I said, Wayne, I got something I wanna talk with you about confidentially after bible study. Can we meet for a few minutes? He said, sure. So bible study is over. We get together in the nursery. We shut the door, and here’s exactly what I said to Wayne. I said, Wayne, you know everybody in this town, and he did. He was very involved in the Rotary Club, very, very well connected.
Jay Conner [00:21:54]:
I said, Wayne, you know everybody in this town, and here’s the magic phrase. I said, Wayne, I need your help. I said, Wayne, I’ve now opened up my real estate investing business to people that I know and trust, and it’s by referral only. I’m now paying insane high rates of return to people who would like to get involved and invest in my deals. When you run across somebody, Wayne, that’s complaining about the little bit of money they can make in the bank in a CD or they’re complaining about the volatility of the stock market and how they’re losing money, would you refer them to me and I’ll share my program with them? Wayne looks at me, he says, well, now, brother Jay, what you got in mind? I said, well, what do you mean, Wayne? He says, well, what kind of interest rate are you paying? And I said, well, Wayne, are you saying that you might be interested? He said, yeah. I might be interested. I said, well, why is that? He said, well, we’re only earning 3% in the local bank, and we’re losing money in the stock market. He says, what kind of interest rate are you paying? I said, well, Wayne, it sort of depends on the deal.
Jay Conner [00:23:05]:
I said, what sounds high to you? He said, well, I don’t know. Maybe 5 or 6%. I said, Wayne, I can’t pay you 5 or 6% but I can pay you 8%. He said, put me down for $250, 000. And so the next day, I went to his home, his wife’s home, I explained how the whole program works, how they can get their money back in case of an emergency, how they’re well protected, how I’m not borrowing unsecured funds, how they get a deed of trust, they’re named on the insurance policy. All that takes about 20 minutes to talk through. Well, that 250, 000 became 500 $1, 000. But here is the moral of the story.
Jay Conner [00:23:47]:
Notice, that I didn’t ask Wayne for money. You know, desperation’s got a smell to it. The worst time you can be raising money is when you need it. Right? So what did I ask Wayne for? I didn’t ask him for money. I asked him for his help to spread the word. He became a private lender, and by the way, he and his wife did spread the word, and they referred a ton of, potential new private lenders to us that actually ended up doing business with us. So all that story comes down to this. Use the phrase, I need your help to spread the word.
Rama Krishna [00:24:23]:
Awesome. Thank you. Would you also share any challenging experiences in raising private money?
Jay Conner [00:24:29]:
Yes. I got 1 big challenge, and I’ve always had a challenge. I have more money than I can use. Right? Of course, that’s a pretty good problem. But here’s the deal. There’s always more money than there are deals. And so, here’s the lesson. And by the way, Rama, I know you’ve heard what I’m getting ready to say.
Jay Conner [00:24:49]:
I know you’ve heard this And it drives me crazy. Drives me crazy. You got gurus going around on the platform saying, oh, just get the deal under contract. The money will show up. Have you ever heard that, Rama?
Rama Krishna [00:25:02]:
Yeah.
Jay Conner [00:25:03]:
Of course, you have. It drives me crazy. And I wanna say, where is the money gonna show up? Is it, like, gonna rain out of clouds or something? That’s stupid. No. The money ain’t gonna show up. So that’s why I preach and practice, get the money lined up first. There’s always gonna be deals. And by the way, think about how much more confident, how many more offers you’re gonna make when you know you have the money to close the deal and you can close in 7 days.
Jay Conner [00:25:33]:
You know, I get more of my offers accepted from my competition because I can close quickly, and that makes all the difference in the world to a motivated seller.
Rama Krishna [00:25:43]:
Great. Thank you. So, are there any personal habits that are helping you to be successful?
Jay Conner [00:25:49]:
Absolutely. Read 8 pages a day. Not fiction. Read 8 pages a day of personal development books, nonfiction, autobiographicals, and biographies of successful people. You just sit down and start your day with your coffee or your hot tea or your Monster or whatever it is you drink and you, by yourself, focus on those 8 pages a day, it will quickly transform the way you think and your production.
Rama Krishna [00:26:21]:
Awesome. So any 1 book that impacted your life?
Jay Conner [00:26:25]:
Yes. I was 24 years old and it changed my life. Obviously, that wasn’t last week. I was in a very, very dark place. Here’s the book, University of Success. University of Success. It’s written by Og Mandino. It’s still in print today.
Jay Conner [00:26:44]:
It changed my way of thinking and put my entire life on a brand-new path.
Rama Krishna [00:26:50]:
Awesome. Thank you. So how can listeners connect with you, Jay?
Jay Conner [00:26:54]:
Oh, thank you so much, Rama. Finally, I finished writing my book. And my book is called Where to Get the Money Now. The subtitle is how in order to get money for your real estate deals without relying on traditional lenders, institutional lenders, or hard money lenders. This is not an ebook. This is an actual book that we priority mail to you in the mail. And it’s $20 on Amazon, but you can get it for free at this website I’m gonna give out. I’ll autograph it for you.
Jay Conner [00:27:25]:
We’ll ship it to you. Just cover shipping and handling. And here is the website, www.JayConner./Book. Again, I’m an ER, not an 0R. That’s www.JayConner.com/Book. We’ll rush it right out to you.
Rama Krishna [00:27:48]:
Thank you very much, Jay. Thank you. Really appreciate it.
Jay Conner [00:27:52]:
Thank you so much for having me. God bless you.
Rama Krishna [00:27:54]:
Sure.
Narrator [00:27:56]:
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 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.
