***Guest Appearance
Credits to:
https://www.youtube.com/@ROIClear
“Jay Conner: Teaching & Leading with a Servant’s Heart”
https://www.youtube.com/watch?v=kqCmL7b5mYE&t=46s
Introduction: Reimagining Real Estate Financing
In the latest episode of the Real Estate Investing podcast, we delve into an enlightening discussion on private money and private lending with Jay Conner, affectionately known as the “private money authority.” Having embarked on his real estate journey in 2003 alongside his wife, Carol Joy in Eastern North Carolina, Jay has amassed invaluable experience and developed a unique approach to real estate financing — one that eschews traditional banks and lenders in favor of private money. Here’s how Jay’s innovative strategies can revolutionize your approach to real estate investment.
The Genesis: Jay Conner’s Real Estate Journey
Jay Conner’s foray into real estate investment began in 2003. Like many new investors, Jay initially relied on local banks for funding his deals. However, the global financial crisis in January 2009 marked a pivotal turning point. When his bank line of credit was abruptly closed, Jay faced a financial dilemma that could have derailed his investment ventures.
Instead of succumbing to financial pressure, Jay asked himself a crucial question: “Who do I know that can help?” This quest led him to discover the world of private money and self-directed IRAs, thanks to Jeff Blankenship, who had also been affected by bank funding cuts. This newfound knowledge fueled Jay’s development of a comprehensive private lending program.
The Approach: Educating with a Servant’s Heart
One of Jay Conner’s core strategies is educating potential lenders without directly soliciting funds. This creates a trusting environment where investors feel comfortable and informed. Jay, positioning himself as a “private money teacher,” shares his extensive knowledge of private lending, emphasizing the safety and profitability of such investments.
Jay’s method revolves around hosting educational sessions where he teaches individuals about private lending. For example, Jay often organizes luncheons and community presentations, sharing insights about earning tax-free and tax-deferred returns through self-directed IRAs. By leading with a servant’s heart and focusing on education, Jay removes the pressure and desperation often associated with funding requests. This strategy fosters organic interest and investment, underlining the notion that people lend to those they trust and respect.
The Mechanics: Engaging Private Lenders
Jay Conner’s private lenders fall into three categories: personal network contacts, expanded warm market contacts, and existing private lenders. By leveraging these connections, Jay has engaged 47 private lenders who invest anywhere from $30,000 to over a million dollars each.
A practical example of Jay’s method involves using PowerPoint presentations during luncheons to educate attendees on private lending opportunities. This includes an emphasis on self-directed IRAs’ advantages, such as tax benefits. Attendees are provided with interest forms to express their willingness to participate, eliminating the need for hard selling.
Follow-up calls are crucial in Jay’s approach, focusing on gathering feedback rather than persuasively asking for investments. This subtle, respectful method often leads attendees to express their interest in investing voluntarily, underscoring the effectiveness of Jay’s educational focus.
Single Family vs. Commercial Real Estate Funding
Private money’s application varies based on the type of real estate deal. For single-family homes, Jay explains that funding often involves individual promissory notes and collateralization — relatively straightforward processes compared to commercial projects. Commercial real estate ventures, on the other hand, typically necessitate more complex arrangements such as securities and private placement memorandums.
Jay advises new real estate investors to first educate potential investors about private money. This allays fears of rejection and grants them confidence in their investment knowledge. By separating the teaching phase from the actual funding requests, investors are more likely to engage positively and willingly.
Real-Life Impact: Success Stories and Takeaways
Jay Conner’s methods are not merely theoretical; they come with proven success stories. He recounts his experience with the first private lender secured through a Bible study group. By highlighting the opportunity for high returns compared to traditional markets, Jay successfully tripled the initial investment offer within days. Such experiences testify to the potential and effectiveness of leading with trust and education.
Additional Resources: Jay Conner’s Book and Podcast
For those eager to delve deeper into private money strategies, Jay Conner’s book “Where to Get the Money Now” serves as an invaluable resource. Providing a step-by-step guide on securing real estate funding without depending on institutional money, this book is available for free on Jay’s website (covering just the postage) or for purchase on Amazon.
Listeners are also encouraged to tune into Jay’s podcast, “Raising Private Money with Jay Conner,” which features interviews and insights on raising private funds for real estate deals.
Conclusion: Transform Challenges into Opportunities
Jay Conner’s journey and methodologies serve as a testament to the power of resourcefulness and education in the realm of real estate investing. By transforming a potential setback into an opportunity for innovation, Jay provides a roadmap for investors to achieve financial independence and success through private money.
Embrace the lessons from Jay’s experience, lead with education and trust, and discover how private money can unlock new pathways in your real estate investment journey.
10 Discussion Questions from this Episode:
- Early Beginnings: How did Jay Conner and his wife start their real estate investing journey, and what motivated them to rely on private money rather than traditional bank loans?
- Private Money Strategies: What does Jay Conner mean by becoming a “private money teacher,” and how does this approach reduce apprehension from potential private lenders?
- Network Building: Can you discuss the three categories of private lenders identified by Jay Conner? How might these categories be applicable to someone starting out in real estate investment?
- Educational Approach: How does separating education about private lending from direct funding requests encourage potential lenders to invest without feeling pressured?
- Private Lender Luncheons: What are the key elements that make Jay Conner’s private lender luncheons effective, and why does he focus on education rather than hard selling?
- Real Estate Funding Differences: What are the fundamental differences between funding single-family home projects and commercial real estate ventures that Jay Conner outlines?
- Follow-Up Techniques: Discuss the importance of Jay Conner’s follow-up approach with potential investors. How does gathering feedback instead of immediately asking for investment help build trust?
- Educational Presentations: What role do educational presentations at community organizations play in Jay Conner’s strategy for raising private money, and how do they appeal to potential investors?
- Influential Books: How did “University of Success” by Og Mandino and “The Go-Giver” by Bob Burg influence Jay Conner’s philosophy and approach towards real estate investment and private money lending?
- Crisis to Opportunity: Reflect on how a significant funding crisis in 2009 led Jay Conner to pivot towards private money. What lessons can be drawn about turning challenges into opportunities?
Fun facts that were revealed in the episode:
- Jay Conner and his wife started their real estate investing career in Eastern North Carolina in 2003, avoiding traditional lenders from the outset.
- Jay secured his first private lender after approaching someone from his Bible study and landed a $250,000 commitment that doubled within 24 hours.
- Jay offers a free copy of his book, “Where to Get the Money Now,” to listeners who cover the postage, detailing how to fund real estate deals without traditional loans.
Timestamps
00:01 Secure real estate funding by educating private lenders.
03:35 Teaching regular people about private lending opportunities.
09:22 $969,000 raised teaching private money at luncheons.
12:28 No selling, begging needed; private lender assured.
14:39 Teaching using retirement funds for real estate investment.
19:39 Banker Steve is silent about funding two houses.
22:44 Start raising private money: mindset, teaching, serving.
24:48 Seeking real estate referrals for high returns.
29:11 “The University of Success” helped me during hardship.
31:23 Download free guide at 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
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcast:
Facebook:
https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
Real Estate Funding Revolution: Learn Jay Conner’s Proven Private Money Techniques
Narrator [00:00:01]:
If you’re a real estate investor 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.
Ray Hightower [00:00:34]:
Greetings, and welcome to the ROI Clear podcast. My name is Ray Hightower. And today, we are fortunate to have as our guest, mister Jay Conner. Jay Conner is the private money authority, and he’s done an effective job of getting money for real estate deals, single-family, multifamily, different commercial, and asset classes. And we look forward to speaking with him today about how he has produced those results. So let us not delay any further. Please join me in welcoming mister Jay Conner. Welcome, Jay.
Jay Conner [00:01:07]:
Hello there, Ray. I’m so excited that you’ve got me here as a guest on your amazing podcast, and that’s because we’re going to be talking about my favorite subject, and that’s private money, private lending. It’s had the biggest impact on my and my wife’s, real estate investing career Ever since we started back in 2003 here in Eastern North Carolina, I love private money. We’re not relying on banks. We’re not relying on hard money lenders. We’re not relying on institutional lenders. We’re getting money and not even asking for money. The money’s chasing us.
Jay Conner [00:01:42]:
We’re not chasing it. I can’t wait to talk about this topic.
Ray Hightower [00:01:46]:
That’s wonderful, Jay. And you know what? What’s so great? My first question to you was, would have been to ask you for an elevator speech. And for those who are new to ROI Clear, we would ask Jay what would he say to someone he wants to influence in the course of an elevator ride. But, Jay, you’re like you you’re such a ball of energy. You jumped right in. So I’m just gonna let you continue with that. You said something very interesting in that intro right there. You said how to get the money for these deals without asking for the money.
Ray Hightower [00:02:16]:
Why don’t you unpack that for us?
Jay Conner [00:02:17]:
Absolutely. So I’m gonna go ahead and give you the bottom line answer. Gonna give you the bottom line answers to how you get all this money without asking for money, and then I’m gonna explain what in the world it means. So here’s the answer. I get all the money. I have a problem. I have a problem. I got more private money from our real estate deals than I can put in the work.
Jay Conner [00:02:38]:
Ain’t that a good problem? Right? But here’s the answer. You get private money funding for your real estate deals by doing what I do, and that is what I put on my private money teacher hat. I put on my private money teacher hat. So what does a private money teacher hat? What it means is I lead with a servant’s heart and I lead by teaching people how they can earn high rates of returns safely and securely either by using their investment capital or by using their retirement funds. And so here’s the deal. Right now, Carol Joy, my wife and I, and our team, we’ve got 47 private lenders and individuals. These are human beings just like you and me who are funding our deals, and investing in our deals. And here’s what’s interesting.
Jay Conner [00:03:35]:
Not one of those 47 individuals had ever heard of private money, private lending, or self-directed IRAs until I put on my teacher hat, and started teaching these people what this world was all about. So you see, none of our private lenders are sophisticated financial people. They’re regular people just like you, just like me, and they’ll invest anywhere from 30 $1,000 to over $1,000,000 per person depending on what their financial wherewithal is. So when I say put on your teacher hat, first of all, where are these people? I mean, where do you find these people? Right? Well, there are there’s 3 categories. There are 3 categories of private lenders. Number 1, it’s people that you that are in your network. The people that you go to church with, then you know, we’ve heard we’ve heard the old mom and pop relationship money phrase, but they’re in your cell phone, etcetera. And then the second category of where these private lenders are is what I call your expanded warm market.
Jay Conner [00:04:52]:
So how do you expand your warm market? Well, you get involved with Business Networking International. I’ve raised 1,000,000 dollars without asking for it with Business Networking International, the Rotary Club, and getting involved in your community. So there are ways that I teach and coach real estate investors on how to grow their network overnight. The 3rd category of private lenders is what we call existing private lenders. These are individuals that are already loaning money out from their investment capital, from their retirement funds that they have moved over to an IRS-approved, you know, separate IRA. They’re already doing it. Well, here’s the difference. I’m not putting on my teacher hat teaching those existing private lenders about private money because they already know what private money is.
Jay Conner [00:05:45]:
They’re already doing it, but that doesn’t mean you still can’t do business for them. So what am I teaching these people about private money? Well, what I teach them is what I call my private lending program. So the program itself is not attached to a property or a or a a property that I’m trying to raise money for. You know, desperation has got a smell to it. And so the worst time to be trying to raise money is when you need it and you’re afraid that you’re gonna miss out on closing. Right?
Ray Hightower [00:06:24]:
Yes.
Jay Conner [00:06:24]:
Yes. So let me go ahead and make this distinction. So the difference between raising money for commercial projects, such as apartments, 75 doors, and more, etcetera, and raising money for single-family homes, here’s the difference. And, of course, Ray, I’m telling you nothing. I’m just speaking to your audience.
Ray Hightower [00:06:45]:
Yeah. Please do.
Jay Conner [00:06:46]:
In this world of single-family houses, which I have a ton of experience in, all the money we raise for those single-family houses is what we call one-offs. One-offs. Well, what’s a one-off? Well, a one-off is you have a private lender or maybe a couple of private lenders that are loaning money and funding deals for a single-family house, that one property, and it’s a one-off. They get their promissory note. They get their deed of trust or mortgage to collateralize the note. We’re We’re not borrowing unsecured. And, of course, Ray, you know better than anybody, when you’re raising money for apartments or commercial or self-storage or land or, you know, you know, those other classes of commercial, typically, you’re gonna be raising security, attorney, an SEC attorney, draw up a private placement memorandum a lot of times, people will invest in that. So back to this without asking for it, I can most easily explain how this works in the world of single-family houses.
Jay Conner [00:08:02]:
The concept works as well on teaching, leading with a servant’s heart. New real estate investors that have never raised private money ask me the question all the time, Jay, I’m I’m just afraid to ask for money. Well, here’s my answer to that. How can you be rejected? How can you have a fear of rejection if you’re not asking anybody for anything? If you’re just teaching them what, you know, what this world is about and how they can get higher rates of return to save and securely. So let me give a quick example, and then I’m gonna catch my breath, Ray, and give it back to you to direct the conversation. So because I could go I mean, I’m so passionate about this. I could go on without stopping, but I went for it. Go for it.
Jay Conner [00:08:46]:
So here’s a perfect exam, not a perfect exam. Here’s an easy way to understand how I get all this money and how my membership gets all this money for their private money I mean, for their deals. We separate. Don’t miss this. Don’t miss this. We separate the conversations between teaching how people can earn high rates of return in a way they’ve never heard about and then having a deal, a one-off, say, a single-family house for them to fund. So let’s talk about that.
Jay Conner [00:09:22]:
So how $969,000 at 1 private lender luncheon where I buy people lunch and teach them what private money is and how they can use it in addition to that retirement funds and move it over to a self-directed IRA, pay for tax earned for the I mean, tax-free income. When you tell somebody, let me show you how to earn an unlimited amount of money, either tax-deferred or tax-free every year, you just got their attention because they ain’t never heard that in their life. And so I bought them to lunch for a private dinner luncheon, feed them lunch. I take 25 minutes with my simple little PowerPoint presentation, and I teach private money without a particular property attached to it. And at the end of the luncheon, you know, there’s an interest form they can fill out, etcetera. And look, This is all about serving and teaching and not chasing, begging, selling, or persuading. When we do the follow-up phone call with these people who come to the luncheon, the purpose of the follow-up call is to say, hey. Thank you for coming.
Jay Conner [00:10:31]:
I know your time is so important. Can you take a minute and give me some feedback on how we could have done better at the presentation? I need your help. Give me some feedback. I don’t ask them if they want to invest. I don’t even ask. Guess what? They tell me anyway. They say, yeah. I’m, like, really interested, or thanks for having me or, no, it’s not for me.
Jay Conner [00:10:52]:
You know, I don’t even have to ask now. So we teach. Now, let’s say, Ray, you’re one of my new private lenders. Mhmm. And let’s say that, you know, we’ve had a little chitchat at Starbucks or whatever, and I’ve told you how the program works, and you’re, like, really interested. You say, but, Jay, you know, by the way, here’s another rider downer. Private lenders always have more money than they tell you. They always have more money than they tell you.
Jay Conner [00:11:18]:
He said, yeah, Jay, I’d like to start with $150,000 How soon can you put that to work? I said, probably pretty soon. So we’ve had that conversation. Now here’s how we get the money without asking for it. I call Ray up with what I call the good news phone call. Now it’s gonna be hard for y’all to believe, but here in North Carolina, we still have handsets and telephone receivers here in North Carolina. With the cord attached to the phone. Cord The cord attached to it. Yeah.
Jay Conner [00:11:47]:
Alright. So, Ray, I call you up. And I say, Ray, I’ve got great news. I can now put your money to work. You see, you’re you’re you’re waiting for the phone call. You’re waiting for the phone call. Right? Right. I care.
Jay Conner [00:12:00]:
I got great news for you. I can now put your money to work. I got a house in Newport with an after-repaired value of $200,000. The funding required is 150. Closings next Wednesday, you’ll need to have your funds wired to my real estate attorney’s trust account next Tuesday. I’m gonna have my real estate attorney email you the wiring instructions. End of conversation. Notice I didn’t ask Ray if he wants to fund the deal.
Jay Conner [00:12:28]:
That’s the most stupid question in the world I can ask him. Of course, he wants to fund the deal. He’s already told me he loves the program. He’s already told me he wants to put this money to work. And let me tell you something. If I had told Ray, my private lender, about this world of private money and Ray had moved his retirement funds over to the self-directed IRA company that I recommend, He ain’t making any money until I gave him the good news phone call, and I’m ethically bound to put his money to work because he’s moved it over there so he could invest. So you see how this is no selling, begging, chasing, persuading. It’s all about and so, you know, the traditional way to borrow money is you go to the institutional lender, you get on your hands and knees, you put your hands underneath your chin, and you say, please fund my deal.
Jay Conner [00:13:19]:
Right? Well, in this world, we’re not asking for a mortgage. We are offering a mortgage. There are no applications. There are no verifications of income. Listen, Right.
Ray Hightower [00:13:34]:
Right. Right. Wow, Jay. There’s so much to unpack there. There’s so much to unpack there. What jumps out at me is at the beginning where you talked about how you approach this from the position of a servant or a teacher.
Jay Conner [00:13:49]:
Yes.
Ray Hightower [00:13:49]:
And, immediately, you’re adding value to the people who are investing in these deals. You’re not there as you said, you’re not chasing, begging, selling, persuading, or anything like that. You are offering value in the form of education. Sometimes it’s something about something that that, a person has never heard of. There there are high-paid professionals. You and I both know high-paid professionals who make a lot of money as specialists as engineers or physicians or accountants or attorneys or whatever, but they’re not managing their money. But we come in, we offer the education, and then all of a sudden, their money, each dollar is a soldier that gets to go to work for them.
Jay Conner [00:14:27]:
Absolutely. And, like, speaking of education, so I’ve got an I’ve got different PowerPoint presentations that I teach people. So, you’re gonna love this, Ray. You’re gonna love this.
Ray Hightower [00:14:38]:
Yes.
Jay Conner [00:14:39]:
Yes. So another way we teach is I have a PowerPoint presentation that teaches people how they can use their retirement funds, either from a past 401 k or maybe they got dedicated retirement funds in the stock market. And so follow this. I’m gonna tell you what I teach, then I’m gonna tell you where we go and teach it and how this becomes a phenomenal lead generator of people interested in investing with us. So here’s the presentation in a nutshell. We teach people how they can take $100, $100 of their retirement funds. So go open up a self directed IRA account and an IRS-approved third-party custodian, and we tell them where to go. Anyway, take $100 and go find a real estate deal, a single-family house, get it under contract, and get an option for $100 that’s paid out of your retirement account.
Jay Conner [00:15:45]:
And then we teach them how you can flip or assign that contract. So this is called wholesaling. Right? This is wholesaling. How they can take $100, and now go assign that contract for 10,000 or $20,000 assignment fee to another real estate investor to take the deal down? And then guess what? You have just earned 10 or $20,000 either tax-free if you open up a Roth IRA, or at least, tax-deferred. But on a Roth IRA, you just earn 10 or $20,000 tax-free. But then when we get to the end of the presentation, we say, but it’s the Colombo close. One more thing.
Jay Conner [00:16:32]:
One more thing. One more thing. But if you’re not interested in trying to find deals, negotiate deals, or invest in real estate directly yourself your with your retirement funds, then guess what? You can be passive. Did you know you can use your retirement funds as a private lender? And so if you’re interested in learning about how to use your retirement funds and be passive, then here’s a 16-minute audio, and here’s a QR code. You can just download the audio. And here’s how you can do it passively. And so my members have done this at rotary clubs, Kiwanis clubs, and churches, and have people flocking to them at the end of the presentation wanting to learn more about it. So you see, that’s another example of how you can teach.
Jay Conner [00:17:27]:
Right? I mean, you can put together a so if you’re raising money for a project, for an apartment, you know, project or whatever, well, you can put a presentation together, but remember, you want to frame that whole presentation as an educational value add.
Ray Hightower [00:17:50]:
Right. Right. You’re adding value. You’re not asking for something. You’re adding value. You’re giving them something, and there aren’t a whole lot of books on this. This is mainly learned through mentorship and apprenticeship.
Jay Conner [00:18:02]:
Yes. Yes. Absolutely.
Ray Hightower [00:18:05]:
When did you first get excited about this energy? You’re excited. I mean, you’re on fire. You’re a ball of energy. You’re excited, and I think you’re excited because of all the people you’ve helped with this. When did you first get wind of this, and what is your journey? Why don’t you walk us through your journey from the beginning to today?
Jay Conner [00:18:24]:
Yes. I’m so glad you asked, Ray because this allows me or triggers me to say the big growth in you as a person personally and in your business, if you’re like me, always takes place in the valley when there’s a problem, when there’s a challenge to where we’ve gotta push through. And, you know, Ray, you’re gonna like this. My favorite definition of coincidence is God’s way of staying anonymous. So here’s what happened. Here’s what happened.
Ray Hightower [00:18:59]:
Love that.
Jay Conner [00:18:59]:
You see, we first started investing. Carol Joy and I first started investing here in Eastern North Carolina in 2003. 2003 is when we went full-time. And the 1st 6 years, Ray, from 2003 until January 2009, I knew what to do all I knew to do was rely on the local banks, rely on institutional money, rely on traditional financing to fund my deals. That’s all I knew. And so it was in January 2009. I picked up this very phone right here one more time. I picked up this phone.
Jay Conner [00:19:39]:
And I called my banker. My banker’s name was Steve. He had been my banker for 6 years. Funded a bunch of deals for me. So I called him up, and I told him about these 2 houses that I had under contract here in the local area to close on and the funding that was required. And Steve and I had had this conversation many times. Well, Steve went quiet on me on the other end of the phone, which is never a good sign when your banker or your significant other stops talking.
Jay Conner [00:20:12]:
Not a good sign. Steve clears his throat. Steve clears his throat. He says, Jay, I’m sorry to tell you, but the bank has closed your line of credit. I said, what do you mean, Steve? You’ve closed my line of credit. I said I’ve never been late on a payment. I got a great credit score. Why are you telling me my line of credit has been closed? He said, Jay, don’t you know there’s a global financial crisis going on right now? I said no.
Jay Conner [00:20:37]:
But now you’ve just given me a financial crisis because I have these 2 deals under contract and no way to fund them. What am I gonna do? He says, sorry, Jay. We’re not loaning money out. So I hung the phone up. By the way, right, these people running around saying every problem’s an opportunity. I wanna throw up. I didn’t have an opportunity. I had a problem.
Jay Conner [00:20:58]:
I didn’t have a way I didn’t have a way to fund my deals. You know? Yeah. Yeah. Yeah. This did end up being an opportunity, but I didn’t know it at the time. So that’s why I’m saying coincidence, is God’s way of staying anonymous. So Right. I hung up the phone, and I sat here for a moment at this very desk.
Jay Conner [00:21:17]:
And I asked myself a question. So here’s another rider downer. Whenever you have a problem, the best question you could ask yourself is, who do I know that can help me with my problem? And immediately, when I asked myself that question, I thought of Jeff Blankenship. Jeff lived in Greensboro, North Carolina at the time. And he and Carol Joy and I, we were great friends, and we still are, know each other through the church. And, we put on singing events together, and so we sang and invested in real estate and all that. And so I called up Jeff, and I told him what happened with my banker on the phone. And Jeff says, well, Jay, welcome to the club.
Jay Conner [00:22:02]:
I said, what club? He said the club is being cut off from the bank. Mike cut me off last week. I said, well, how are you going how are you funding your deals? And he said, well, have you ever heard of private money? I said, no. He said, have you ever heard of self-directed IRAs and how people can use retirement funds to invest in real estate and be a private lender? I said, no. He says, well, let me tell you about it. So I learned and first heard the words private money and self-directed IRA from my buddy, Jeff. And let me tell you something. In the next 9, I put the first thing I did was put my program together, but that’s actually where you shouldn’t start.
Jay Conner [00:22:44]:
People ask me all the time. I say, Jay, how’s the what’s the best way to start raising private money? I tell you the first place to start is to get your mindset right, which is what we’ve been talking about. You’re gonna teach people. You’re gonna serve people. So I wrote out my program as to what kind of interest rate I was gonna pay, how people could get their money back in case of an emergency, what the length of the notes was gonna be, what my maximum loan to value that I will borrow, and how I’ll protect them, and what documentation am I gonna give them. All that’s in my all that’s in my book, by the way. So, anyway, I put the program together, and then I simply started serving and teaching and telling people. I’ll give you the short version.
Jay Conner [00:23:28]:
So it was on so I put a program together, and it was on a Wednesday night at bible study, Ray. Yeah. 7:30. Wednesday night here on Barber Road in Morridge City at the Church of Christ. So I went there, the bible study, and I walked up to a gentleman that was in the foyer, and he and I have known each other a while. I walked up to him, and I said, I’d like to visit with you something, confidential about something confidential after Bible study. Can we get together? And he said, well, sure, of course. So we had Bible study and we got together, and we went into the nursery of the church building and shut the door.
Jay Conner [00:24:02]:
Here’s the script. Here’s exactly what I said to my first private lender. I didn’t know he was gonna be my first private lender, but here’s what I said to him. I said his name was Wayne. I said, Wayne, you know everybody in this town where we live, and I need your help. Don’t miss that phrase. Don’t miss that phrase. I need your help.
Jay Conner [00:24:27]:
I said, Wayne and by the way, he did know everybody. He was the original zenith television dealer in Morehead City, North Carolina. And if you don’t know who the zenith television dealer was, they’re just too young to remember life before Walmart came to town. Right?
Ray Hightower [00:24:43]:
Yes.
Jay Conner [00:24:48]:
So I said, Wayne, you know everybody in this town, and I need your help. I said, you see, I’ve now opened up my real estate investing business to people that I know and trust, and I’ve got a program that’s by referral only. I’m paying insane high rates of return. I said, Wayne when you run across somebody that’s complaining about the volatility of the stock market or the stupid, you know, rates they’re getting in certificates of of deposit. Would you refer them to me, and I’ll tell them about my program and how they can get high rates of return safely and securely? Wayne looked at me and said, well, now, brother Jay, what you got in mind? And I said, well, are you saying you might be interested? He said, well, I might. He said, we’re losing money in the stock market, he and his wife, and we’re not not making much in the local bank.
Jay Conner [00:25:45]:
He said, what kind of rates are you paying? And I said, well, Wayne, that sort of depends on the deal, but what sounds high to you? He says, well, we’re only making 3%, and that’s what it was back in 2009. We’re only making 3% of the bank and, you know, we’re losing money in the stock market. He’s I said, what sounds high to you? He said, I don’t know. Maybe 5 or 6%. And I said, well, Wayne, I can’t pay you 5 or 6%, but I can pay you 8%. And he said, put me down for $250,000. Yeah. Yeah.
Jay Conner [00:26:17]:
Yeah. Yeah. Next day that next day, I went to his and his wife’s home, and I went over the entire program with him. Yeah. Well, that 250,000 within 24 hours went to 500,000. But you see how I led that conversation. I call it the indirect method. I simply asked him to spread the word as to what I was doing.
Jay Conner [00:26:37]:
Yes. And, you know, and not and he did. I mean, he and his wife, became, our first private lender. And I don’t know. I lost count. How many other people do they refer to us? So you see, leading with a servant’s heart, teaching, and asking people to just help you spread the word as to what you’re doing.
Ray Hightower [00:26:58]:
Right. Right. Lead with a servant’s heart, teaching, and asking people to spread the word. That’s powerful. That’s powerful. Now you have a book out. You mentioned that you kind of alluded to it, a few minutes ago. So why don’t you tell us a little bit about your book and, you know, what’s going on there?
Jay Conner [00:27:14]:
Sure. I’m so excited about my book. It’s called Where to Get the Money Now. Where to Get the Money Now. And again, single-family houses, commercial deals, etc. The subtitle is, How and Where to Get All the Money for your real estate deals without relying on Institutional Money, banks, Hard Money Lenders, etc. This is not a downloadable book. You this is not an ebook.
Jay Conner [00:27:40]:
This is a book and we ship it to you in 3 days, priority. Believe it or not, the United States Postal Service is still in business, and I’ll autograph it for you. Now you can get it on Amazon for $20, but I’d rather give it to you because you’re listening here to Ray’s show for free. I’ll ship the book to you. The book’s free. All I ask is you just cover postage. Here’s how you can get the book, and I’ll ship it right out to you by priority mail, go to, www.JayConner.com/Book.
Jay Conner [00:28:18]:
One more time, that’s www.JayConner.com/Book. We’ll rush it right out to you. This program that I’m talking about where you teach other people how they can get high rates of return and be your private lender, It’s all laid out. Simple, simple, step-by-step, right in the book.
Ray Hightower [00:28:38]:
Wonderful. Wonderful. Yeah. And we are, you know, we are coming to a close. I’m looking at how the time has gotten so quickly. I’m looking at the clock here, and it’s blowing my mind. We, we got into it. We have a lot of the energy just flowed here.
Ray Hightower [00:28:52]:
So you’ve just let people know how they can get in touch with you, you know, your website and through your book. And why don’t you tell us what are you reading right now, or what are you listening to? What do you do to sharpen your your saw, to sharpen sharpen your knowledge of the business and business in general? What do you read and what do you listen to?
Jay Conner [00:29:11]:
Well, I will share it, and I’ll answer it in a couple of different ways. So I do want to share the book that changed my life when I was in a very, very dark place, had no friends, had no life, had no money, and it was a bad time. And that is the name of that book is University of Success by Og Mandino. University of Success by Og Mandino. And it’s just an amazing book, easy read. If you’re feeling a little lost in your direction and your life, in addition to the Bible, that book will get you set straight.
Jay Conner [00:29:50]:
Probably my favorite book and I read it all the time. I mean, I could give you a long list, but probably my favorite book that I’ve read in recent times is The Go-Giver. I’m sure you’ve heard of that book, Greg. Yes. Yes. Yes. I had the co-author, Bob Burg, on my podcast, recently. And it’s a beautiful book, it’s a parable, and it’s all about serving and, what that can do for you in your life.
Jay Conner [00:30:16]:
So, yeah, The Go-Giver. And by the way, if you’re listening and you’ve enjoyed this conversation and you really wanna talk more about private money and hear conversations, come on over and follow me on my podcast, which is Raising Private Money with Jay Conner. Imagine that. Ray just searched for Raising Private Money. And it’s on all the platforms, your favorite platform. Very, very easy to find. We do 2 shows a week, and I have amazing guests come on there. Ray may be one of the next upcoming guests on my show.
Jay Conner [00:30:47]:
And, and I interview them about how they raise private money because we always learn from each other.
Ray Hightower [00:30:53]:
Wonderful. Wonderful. Jay Conner, it has been a pleasure speaking with you today. I feel energized. I’m sure our listeners and watchers, our viewers feel energized as well. Thank you for the book offer, and I just appreciate that you’re sharing your knowledge and your history with us today. Grateful to see it.
Jay Conner [00:31:11]:
It’s all my pleasure. Thank you so much for having me, and god bless you.
Ray Hightower [00:31:16]:
God bless you too.
Narrator [00:31:23]:
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. Download your free guide that shares 7 reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/MoneyGuide. To get your free guide. We’ll see you next time on raising private money with Jay Conner.
