***Guest Appearance
Credits to:
https://www.youtube.com/@passiveincomeadventures
“Tax-Free Ultimate Private Money Challenge! Jay Conner”
https://www.youtube.com/watch?v=5cHECcNUl8I
In a recent episode of the Raising Private Money podcast, renowned real estate investors Jay Conner and Emma Powell delved deep into the world of passive income and investment strategies. The conversation traversed through practical advice on private money lending, the intricacies of networking for investment opportunities, and personal experiences that shaped their journey to financial autonomy. Whether you’re a seasoned investor or just dipping your toes into real estate, the insights shared in this episode can serve as powerful tools for your investment toolkit.
Investment Strategies for Smart Returns
Emma Powell opened the discussion with a compelling observation on investment returns, highlighting how wealthier individuals often witness lower proportional returns due to their chosen investment vehicles. She advocated for the straightforward nature of hard money lending, where typical returns range from 10-12%. According to Powell, adding hard money lending to one’s portfolio can fill a crucial gap in diversification, ensuring that investors don’t overlook simpler, high-yield opportunities. This strategy aims to balance out portfolios and hedge against market volatilities.
Understanding Private Lenders
Jay Conner shared his extensive experience working with private lenders, stressing that these lenders are often regular people—teachers, retirees, and even minors with inherited funds. He illustrated this with an example of his pool of 47 diverse private lenders, indicating that you don’t necessarily need to target “accredited investors” to secure substantial investments. This democratization of investment opportunities underscores the importance of building trust and educating potential lenders about the benefits of private money lending.
The Power of Networking
Networking emerged as a cornerstone theme in the episode. Jay Conner and Emma Powell both underscored the significance of being actively engaged in organizations like Business Networking International (BNI) and attending high-value conferences. Powell suggested seeking out wealthy individuals through expensive hobbies or clubs that resonate with one’s interests. For those attending self-directed IRA conferences, there was an acknowledgment of the competitive environment, with Conner preferring to position himself as a speaker rather than an attendee to stand out. Both hosts agreed that feeling like you don’t know wealthy individuals is a barrier best overcome by diverse event participation.
Best Practices in Private Lending
Diving into the mechanics of private lending, the conversation pivoted to the importance of protecting and optimizing investments. Both hosts warned against unsecured loans and emphasized the necessity of collateralizing promissory notes with real estate. They advised maintaining a conservative loan-to-value ratio, around 75% of the after-repaired value, and ensuring lenders are named as mortgagees on insurance policies and title policies as additional insureds. This creates a robust security net, giving lenders peace of mind and solidifying the operator-lender relationship built on trust.
Handling Funds with Care
On the subject of fund management, Emma and Jay advised that wired funds should be directed to a closing agent’s trust account rather than to the borrower, ensuring transparency and security in the transaction. They highlighted the pitfalls of desperation in securing investments and advocated for having funds lined up or a solid relationship with a hard money lender before soliciting deals. This preemptive strategy not only builds confidence but also streamlines the process when a viable deal emerges.
Risk Management and Diversification
Emma Powell shared her journey into private lending, emphasizing the necessity of diversification to mitigate financial risks. She reflected on the significance of not investing one’s entire net worth in a single deal to avoid financial strain and fear during property flips. This sentiment echoed throughout the discussion, with both Emma and Jay advocating for balanced portfolios that marry stable cash flow with high-yield opportunities like private lending.
Building Trust Through Education
Jay & Emma resonated on the importance of educating potential lenders rather than pitching them deals. Jay Conner shared his success story of attracting $2,150,000 in private money within 90 days by focusing on education rather than direct solicitation. By hosting private lender luncheons and engaging in authentic conversations, Jay built trust and established lasting connections that continue to fuel his real estate endeavors.
Conclusion: Pathways to Financial Freedom
The episode wrapped up with a call to action for listeners to explore the opportunities in private money. Emma Powell shared her personal success story of transitioning from a stay-at-home mom to achieving financial independence through real estate, encouraging others to tap into this lucrative avenue. For those keen on diving deeper, resources like Jay Conner’s “7 Day Private Money Challenge” and Powell’s investment fund were highlighted as valuable stepping stones to financial freedom.
This episode provided a treasure trove of insights for anyone looking to navigate the complex yet rewarding road to passive income through real estate investment. By integrating practical advice with personal anecdotes, Jay Conner and Emma Powell delivered a compelling narrative that underscores the power of private money in transforming investment strategies.
10 Discussion Questions from this Episode:
- Investment Strategies: How does Emma Powell’s perspective on simple investment strategies like hard money lending highlight the limitations wealthier individuals face in achieving high proportional returns? Do you agree with her suggestion for portfolio diversification?
- Private Lenders: Jay Conner mentions having 47 private lenders from diverse backgrounds. How do you think these diverse investor profiles impact the flexibility and scalability of his investment projects?
- Networking: Both Jay and Emma emphasize the importance of networking for finding investment opportunities. What are some unique networking strategies you think could be effective based on their experiences?
- Challenges and Competitive Events: Emma and Jay discuss the competitiveness at self-directed IRA conferences. Do you think attending as a speaker, like Jay prefers, is an effective strategy? Why or why not?
- Educational Content: Emma highlights the connection between her early writing experiences and real estate. How does leveraging expertise in one area while gaining knowledge in another help in building credibility?
- Risk Management: Jay and Emma emphasize avoiding unsecured loans and maintaining a conservative loan-to-value ratio. Why are these measures crucial for both lenders and borrowers in private money lending?
- Preparation and Trust: How important is pre-educating potential lenders before pitching a deal, as described by Jay and Emma? Can you think of additional ways to build trust with potential investors?
- Handling Funds: Discuss the security benefits of having funds wired directly to a closing agent’s trust account instead of the borrower. How does this practice contribute to the overall integrity of a deal?
- Balanced Portfolios: Emma advocates for blending equity investments with private lending to ensure stable cash flow against high return potential. What are the advantages and potential pitfalls of this balanced approach?
- Future Plans and Impact: Jay mentions his focus on scaling coaching for real estate investors and the impact it has on financial gain. How can mentoring and educating new investors contribute to the overall health and sustainability of the real estate investment market? In achieving career success, and what qualities does he value in this relationship?
Fun facts that were revealed in the episode:
- Unexpected Private Lenders
: Jay Conner has private lenders who are minors with inherited funds, showcasing the diverse backgrounds of his investors. - Creative Networking
: Emma Powell suggests networking at conferences or through expensive hobbies and clubs to meet wealthy individuals, blending personal interests with professional goals. - Powerful Mindset Shift
: Jay Conner turned a major career challenge during the 2009 financial crisis into an opportunity by discovering private money, attracting $2,150,000 in less than 90 days without directly asking for money.
Timestamps
00:01 Private money is crucial for real estate investing.
06:18 Problem-solving via private money and self-directed IRAs.
07:41 Teaching attracts private lenders, not pitching deals.
12:20 Engage with “Did you know” questions about finance.
15:12 Interest rates discussion led to a $250,000 investment.
18:19 Friend needed urgent money; uncomfortable investment situation.
19:49 Lack of education led to unprepared decisions.
23:22 Podcast hosts explore private lending and borrowing dynamics.
26:06 Trust and leverage experience in real estate partnerships.
31:38 Buying property causes fear and potential buyer’s remorse.
34:17 Assessing risk and investor readiness through conversation.
37:38 Trust bridges are crucial in private money lending.
39:19 Focuses on real estate and coaching investors.
42:35 Minors as private lenders through parental help.
48:19 Writing on homeschooling, entrepreneurship, and real estate.
50:52 Passionately sharing knowledge on private money raising.
54:12 Networking transforms lives; connect for opportunities and solutions.
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
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https://www.pinterest.com/JConner_PrivateMoneyAuthority
Mastering Private Money: Strategies for Real Estate Success with Jay Conner and Emma Powell
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]:
Did you know there’s a way that people can earn unlimited money per year tax-free?
Emma Powell [00:00:35]:
Welcome back, investor, to another episode of the passive income adventures. I’m your host, Emma Powell. We retired before age 50 on our passive income for real estate investing. And now we run an investing fund for accredited investors to teach you how to do the same so that you can reach financial freedom and design your retirement. My retirement looks like running a real estate fund. In today’s guest, we have Jay Connor, who’s in a similar position with real estate investing and going off and achieving financial freedom and then finding a calling, teaching other people how to do the same. So thanks for coming on the show today, Jay.
Jay Conner [00:01:07]:
Emma, thank you so much for inviting me to come along and talk about what I’m so passionate about, that being private money. And I’m so excited about private money because private money’s had a bigger impact on my and my wife’s real estate investing career than anything else that we’ve implemented in our company.
Emma Powell [00:01:27]:
I agree. I tell everybody who wants to start a real estate business, if they wanna be a passive investor, you have to pay the private money, either lender or investor. Or if you wanna have a real estate business, eventually you’re going to need to raise money from, And I think a lot of people are scared of it. They shy away from it and they think, oh, I’ll just use the land money. And I’ve seen that be successful with people who are extremely high income earning and they can buy all their own properties, but really if they’re extremely high income earning, they don’t typically want to run a real estate business on the side. And so we’re really dealing with 2 different groups of people here. Everybody needs to at least provide private money if they want passive income or to be able to raise private money if they want some sort of a, a real estate business. So I really appreciate you coming on and shining some light on.
Emma Powell [00:02:08]:
That’s what really intrigued me because what we do is private money. Like we do hard money loans and we reach out to people who want to be completely passive and are just tired of having rentals or don’t really want to buy an apartment building. Give us a little bit about your history, your credibility, how you got to this point, like your past story, and the listener, why anybody should listen to Jay Conner about private money?
Jay Conner [00:02:30]:
That’s a good question. Carol Joy, my wife and I, we started investing full time in single family houses. Now we’ve done a lot of different types of real estate. I’ve built a shopping center from the ground up. I’ve done condominium projects. But our focus ever since 3, 2003, has been single family houses here in Eastern North Carolina. Now we’re in a very small market on purpose. I decided in 2003, if I can’t drive by it within 30 minutes, I’m really not interested in it.
Jay Conner [00:03:03]:
That’s just my own business decision. But then again, I can’t tell you how long it’s been since I actually went out and looked at a house. I’ve got a fantastic team that does that for me. But, anyway, so we’ve been full time for a long time, 2003. We’re in a small market, only 40,000 people in our total target market. And, we’ll do 2 or 3 deals a month, but average profits right now are $82,000 per flip, per fix and flip that we do. And I don’t say that, Emma, to brag at all. I say that and share that to make a point.
Jay Conner [00:03:37]:
And the point is, you don’t have to be in some huge populated area in some huge market to be making significant income. I would rather be a big fish in a small pond and dominate the market. So, that’s what we’re doing. From 2003 until January 2009, all I knew to do was go to the local bank. I never even heard of hard money from 2003 to 2000. I didn’t even know what a hard money fund was. All I knew to do was to go to the local bank and have my line of credit there, I got on my hands and knees put my hands underneath my chin, and raised my skirt so they could look at my assets my financial statement, and my credit score. They made all the rules.
Jay Conner [00:04:21]:
They did all the underwriting, that’s the traditional way to borrow money. And so that’s what I did until January 2009. What happened in January 2009? I had 2 houses under contract that represented over $100,000 in profit. And so I called up Steve. Steve was my banker at the local bank that I’ve been doing business with for 6 years. And I called him up to tell him about these two deals, and Steve and I had had this kind of conversation many times for 6 years. And I learned like that at the snap of a finger that my line of credit had been closed. Steve said, Jay, I’m sorry, but your line of credit’s closed.
Jay Conner [00:05:03]:
We’re not loaning money out to real estate investors anymore right now. I said, Steve, what in the world are you talking about? Why have you closed my line of credit? We got a great relationship for 6 years. We’ve done a lot of deals. I got a great credit score. What’s the deal? He said, Jay, don’t you know there’s a global financial crisis going on right now? I said, no. But you just gave me a global financial crisis because I don’t have a way to fund my 2 deals that I’ve got under contract. And back then, you couldn’t get your earnest money back when you put earnest money down. So, anyway, I hung up my phone.
Jay Conner [00:05:38]:
Emma, I’m gonna share with you and your audience right now a very powerful question, and the power’s in the questions. I’m I’m gonna share a very powerful question that I asked myself sitting right here at this desk when I hung up the phone with Steve. I said, Jay, who do you know? And by the way, this question will help fix any problem anybody’s got. Career, financial, relationships, health, it don’t matter. The question I asked myself was, Jay, who do you know that can help you with your problem? And by the way, 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 [00:06:18]:
Right? So who do I know that can help me with my problem? When I asked myself that question, I immediately thought of Jeff Blankenship, good friend of ours. He was living in Greensboro, North Carolina at the time, and he was a real estate investor. So I called up Jeff and told him what had just happened. He said, Jay, welcome to the club. I said, what club is that? He said, the club of having your line of credit shut down. He said, my bank shut me down last week. I said, how are you going to fund your deals? He said, have you ever heard of private money? I said no. He said, have you ever heard of self directed IRAs and how individuals can use their own retirement accounts to be a passive investor and be a private lender using retirement money.
Jay Conner [00:07:03]:
I said, no. I never heard of that. So I hung up the phone with Jeff, and I started researching and studying what in the world this private money thing is and how to find them and how to start conversations and etcetera. Well, without running around with my hair on fire, I was able to attract. I didn’t do any chasing, begging, selling, persuading. I was able to attract and get $2,150,000 in less than 90 days just through my own connections and my contacts and my cell phone. And what’s interesting, Emma? I did it and I still do it this day. I did not ask anybody for money.
Jay Conner [00:07:41]:
I got 47 private lenders right now, individuals, that are funding our deals, and not one of them did I ask for money, and I’ve never pitched a deal. People say, Jay, how do you have all the private money you need and you never ask anybody and you don’t pitch deals? Here’s the secret. Yeah. I put on my private lender teacher, my private money teacher hat, and I just start teaching people. That’s what I started doing, teaching people what’s private money, how they can earn high rates of returns safely and securely as a totally a passive investor, how they’re protected, how they can get their money back in case of an emergency, and etcetera. And I did it a a number of various ways. I put on private lender luncheons where I just invite people to lunch, I feed them lunch, and I teach them the program. And what’s interesting, Emma? Desperation’s got a smell to it.
Jay Conner [00:08:38]:
The worst time to be raising private money is when you need it for a deal. And, by the way, I’m gonna take a little bit of risk right here, Emma. I’m gonna take a little risk. I’m gonna I’m gonna say something that I think is stupid. Right? And I’ve heard it said on stage many times, and you probably have too, by other gurus and real estate investing educators. But they’ll say, oh, just get the deal under contract. Yep. The money will show up.
Jay Conner [00:09:04]:
Have you ever heard that?
Emma Powell [00:09:05]:
Oh, they say it a lot. It’s a way to get people to buy their expensive program. Exactly. It’s so stupid. Money will tell them.
Jay Conner [00:09:12]:
Yes. Oh, it’s so stupid. It’s like, where’s the money gonna come from? Is it just gonna, like, rain out of clouds or something? So that’s why I practice and preach, get the money lined up. There’s always gonna be deals. Get the money lined up. And then you can have think about how much more confident and how many more offers they’re gonna make if they got the money lined up or a relationship, say, with a hard money lender. But anyway, so how do I get deals funded without pitching deals? Here’s the secret. We separate the conversation of teaching the program.
Jay Conner [00:09:47]:
The new private lender, says, okay. I got x number of dollars I wanna start with. And when you get a deal or I’ve got retirement funds, I’m not happy with those returns. I’ll introduce them to myself, direct to the IRA representative, get their funds moved over. And then when I got a deal for them to to fund, I give them what’s called the good news phone call. I’m not calling them to pitch a deal. Of course, they want to fund the deal because they’re waiting for the phone call, particularly if they move the money over to a self directed IRA company. They’re not earning any money until they put that money to work.
Jay Conner [00:10:22]:
So here’s the script, and then I’ll turn it back to you, Emma. Here’s the script of exactly what I say when I’ve got them got a deal from the fund. I’ll call them up, we’ll have a little bit of chit chat, and I’ll say, I got great news. I can now put your money to work. I’ve got a house under contract right now in Newport, when the after repaired value is $200,000. The funding required for the deal is a 150,000, so that matches up to what you told me you’ve got. And closing is gonna be next Tuesday, so you’ll need to have your funds wired to my real estate attorney’s trust account by next Monday. I’m gonna email you the wiring instructions.
Jay Conner [00:11:02]:
End of conversation. The most stupid thing I could do is ask them, do you want to fund the deal? Of course. Of course, we want to fund the deal. They’ve been waiting for me to call them up and put their money to work, particularly if they’ve moved retirement funds over to a self directed IRA company at my recommendation. They’re not making any money until I put her to work. And, of course, I’m not gonna bring a deal for them to fund unless it matches the criteria of the program that I already taught them, maximum loan to value, etcetera. And so that’s it. Separating the conversations of teaching and then having deals for them to fund.
Emma Powell [00:11:42]:
And it’s an amazing concept because I love to teach. I just teach people for free. Pours out of me. My kids wish I would stop trying to teach them so much. And looking for somebody who really does enjoy teaching has a way of building trust and people can tell if somebody is teaching for an ulterior motive or teaching for just the love of teaching, but you’ve been able to combine those two approaches. Can you tell us a little bit more about the nitty gritty or the technical part of combining that? Because like I said, it’s very important to be authentic and genuine and really love teaching, but at the same time, make it clear. And when I have an opportunity, you can flip it.
Jay Conner [00:12:20]:
And, in fact, when I’m sharing how the program works and how they’re protected and etcetera, I let them know up front. I’ll say, I don’t have anything today for you, but let’s go over the program and see if it makes sense to you. And I’ll tell you, I have hardly had anybody engage in a conversation with me about exactly how the program works and the kind of rates that they can get on their returns and stuff Unless they’re they’ve got money or investment capital or or or retirement funds, they’re not interested in how that works. And I love how, you can start conversations. I love what I call, did you know questions? I love did questions. And I can be in a conversation with anybody, and just in the conversation, I’ll just say, by the way, did you know there’s a way that people can earn unlimited money per year tax free? They’re not gonna know the answer to that question. Of course, I’m talking about having a Roth IRA, which is established with after tax money, and then they can invest that or loan it out and there’s no taxes to be paid on those returns. And so I’ll say, did you know there’s a way people can earn unlimited money per year tax free? And they’ll say no.
Jay Conner [00:13:29]:
And I’ll say, my follow-up question for that is I’ll say, have you ever heard of self directed IRAs? In all probability, they haven’t. So now we can have a conversation about retirement funds Mhmm. And, and go down that route. I’ll share a short story, Emma. I’ll share the short story of how I got my very first private lender at $500,000, mind you, without asking for money. So it was on a Wednesday evening. Carol Joy and I are very involved in, the local church here in Morehead City. And we were at bible study on Wednesday night.
Jay Conner [00:14:03]:
I know I wanted to speak with Wayne, what’s his name, and so I walked into the foyer, I walked up to him, and I said, Wayne, I said, could we visit confidentially for a few minutes when we finish church? He said, of course. So, the short version is we got together down in the nursery. I shut the door. Here’s exactly, Emma, what I said to Wayne. I said, Wayne, everybody in this town. And he did. He’s passed away now. I said but he did.
Jay Conner [00:14:30]:
I said, Wayne was the original zenith television dealer. Now if you don’t know what the Zenith television dealer was, then you are too young to remember life before Walmart came to town. So, anyway, he was the Zenith Television dealer and I and he was plugged into the I said, Wayne, everybody. You’re plugged into the Rotary Club. I said and here’s the magic phrase. I said, Wayne, I need your help. I said, I’ve now opened up my real estate investing business by referral only, and I’m paying investors that want to invest with me insane high rates of return. So here’s what I need your help with, Wayne.
Jay Conner [00:15:12]:
When you run across somebody that’s complaining about the low interest rates they can get on a certificate or deposit the bank or the losing money in the stock market, would you refer them to me, and I’ll tell them about my program? What do you think Wayne said? He said, now, Jay, what you got going on? And I said, well, are you saying that you and your wife might be interested? He said, we might be. I said, why is that? He said, we’re only earning 3% in the local bank, and that’s what it was back in 2009. We’re only earning 3% in the local bank, and we’re losing money, in the stock market. He said, what kind of interest rate are are you paying? I said, that depends on the deal. I said, Wayne, what sounds high to you? He said, 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.
Jay Conner [00:16:08]:
So the very next day, I went to his and his wife’s home, and we had a conversation over coffee, and I put on my teacher hat. Right? Yeah. And I told them my program, the the rates I pay. We talked about how often they would want payments. Remind remember, there’s no deal involved in this conversation, this initial conversation. And I let him know I I put a 90 day call option in the note that if you got an emergency, you need your money back early, you can get your money back early. Really easy to do business with. That 250,000 by the end of the conversation became 500,000.
Jay Conner [00:16:43]:
Let’s unpack that story. By the way, so I called him up in less than a week with the good news phone call that I just shared. So let’s unpack how that happened and what happened. First of all, did you notice I didn’t ask him for any money. I asked him for his help to just spread the word as to what I got going on. And people, generally speaking, want to help. Right? So spread the word. Now why did that pledge of money come across so quickly? Because the relationship was already in place, obviously.
Jay Conner [00:17:18]:
Right. The level of trust was already there. Even though I’m protecting them, I’m not borrowing unsecured money, but that trust relationship was in there. By the way, Wayne and his wife did help out a lot. They spread the word big time and got countless referrals from other new people that didn’t know about private money and how the program worked. So that is that’s an example of attracting the money without chasing or begging or trying to talk anybody into anything.
Emma Powell [00:17:50]:
Yeah. And I’m reminded of the first time somebody approached me to be a private money lender. He was a friend of ours. We’re best friends and very great relationship with trust. He came from a real estate investing family. Like, his uncle literally wrote the book on private money. But for whatever reason, that education didn’t happen. We were sitting there with somebody we really trusted, who was offering us 10%, which to me, at the time, sounded too high, like scammy high.
Emma Powell [00:18:19]:
And the deal was already there and he already needed the money from the deal. And you could tell because we knew him so well that there was almost this trembling that he’d already gotten himself into a situation like what you mentioned with your banker, that he was trying to get himself out of. And the difference in the way he spoke and his body language and all of that was just making us feel like I wanted to help him. Cause I knew that our friend was already in the deal and needed the money, but I didn’t feel prepared. I didn’t feel educated. It was the first time it had ever come up and suddenly we’re supposed to be wiring money. And we had been working to save up this a 100 grand for a while. And we had no business putting a 100 grand into one deal, right? That was the only a 100 grand that we had.
Emma Powell [00:18:58]:
So I think that we were probably a bad target from the beginning. And I use the word target, not in a derogatory way, but we were just a bad candidate from the beginning because we only had $100,000 I have to put that all in, in basically one house, one flip. But because we talked about flipping real estate and cause we came up a couple of times, I think that was where the conversation was and it didn’t work. And I repeated the same mistake. One of the first times I asked somebody for private money, she reached out to me on social media because you’re doing this before social media. Right? She reached out to me on social media from a group that we were in a Facebook group. And I explained it to her. I’m not gonna make the same mistake.
Emma Powell [00:19:35]:
And then when I did get a deal, I called her and I was very excited. And I said, hey, there’s a deal we need to move. And she said, wait a second. Like, I haven’t even talked to my husband about this. I didn’t this was moving fast. I said we talked about this. It moves fast. Once you find the deal, you need to move.
Emma Powell [00:19:49]:
And I guess I had not done a good job of preparing her with the next step process. So I failed in the teaching as well because she reached out to me. I thought she was ready. I didn’t educate enough and she wasn’t ready. And so these are some of the classic mistakes that I’m hearing I’m making, our friends are making, and that you somehow seem to avoid making because the first person he had this conversation with actually did fund your deal. And what you did in the middle was just getting together with the spouse, sitting out, doing the education before a deal ever came along. From the story that I just told you or the stories I just told you, are you what’s the missing piece there? Why didn’t it work? Is it because the education was missing or you’re seeing some other things there that could have worked differently in those two situations?
Jay Conner [00:20:36]:
Yeah. In the first story of your friend wanting to borrow money, you felt and smelled his desperation. And when you sense somebody’s desperate, it makes you run. It makes you run. Right? They’re scared. We attract what we attract the same emotions that we are putting out. And if that person is having a deal that is to be fun, as I said a minute ago, the worst time to be raising money is when you need it for a deal. So that desperation, you know, oozed out kinda thing.
Jay Conner [00:21:08]:
Now the other story you just shared about your friend that had reached out to you, had she told you the exact amount of money that she had that she wanted to invest?
Emma Powell [00:21:20]:
Yes.
Jay Conner [00:21:21]:
Alright. Alright. So that’s good. We just didn’t have some open-ended unknown checkbook. Yeah. And so she had told you an exact amount. How much time went by approximately from when she reached out to you, she told you how much she had, and then you had a deal for her to fund.
Emma Powell [00:21:38]:
Of weeks. Because when she did reach out to me, I didn’t have anything at the time. And then I found a flip a couple of weeks later, maybe a month tops, but maybe I hadn’t called her in between to let her know I was looking. I don’t know. I messed up.
Jay Conner [00:21:52]:
No. No. The time frame doesn’t bother me given my experience. To what degree oh my man. Is this my podcast or your podcast? To what degree to what degree did you tell her the details of your program when she reached out to you? Did you tell her the interest rate that you pay?
Emma Powell [00:22:14]:
Yeah. I guess I thought I did a good job teaching, but
Jay Conner [00:22:17]:
Right. So you tell her did you tell her the maximum loan to value, for example?
Emma Powell [00:22:22]:
I think she was making a down payment money. So I was getting a hard money loan to close it, and then she was gonna come in as a down payment.
Jay Conner [00:22:27]:
Oh, she was doing the difference. The only thing that comes to my mind is that you were taking the pledge from what I call a one-legged duck. Yeah. So she was not the only decision-maker. When she said, oh, I haven’t talked to my husband. I haven’t even talked to my husband about this. He was gonna be part of the decision. So I’m glad you shared this story, Emma, because here is a big takeaway from your story.
Jay Conner [00:22:54]:
When you are presenting the opportunity to be a private lender, you want to have that conversation with all the decision-makers up front instead of just one party. So if you’ve got spouses involved or you got business partners or whatever, you want both you want parties to hear about your program and how your opportunity works. And then there’s no, oh, I haven’t talked to so ins.
Emma Powell [00:23:22]:
Yeah. I and I it’s so many things that so many factors. This is why I really wanted to talk to you because the selfishness of hosting a podcast and getting somebody to myself for a little while and asking all the questions that either I wanna ask because my current self needs to know that or recognizing that the conversation has value for my past experiences to the listener who may be going through this. So let’s shift gears a little bit to the kind of person who is going to be the private money lender, to the kind of person who is going to be asking for the private money because we have both types of listeners on this show. People who have already are making a great income, like your friend. He had some cash and he just was like, I have enough money now that if I get really started investing it and add to the pile as I work over the next, say, 10 years, that I can get $2,000,000 rolling in play and I can earn, say, 10% income off of that, annually through private lending. And that would make me basically $200 worth of income after taxes. You do have to pay tax on interest income, but if you do it through your IRA, that’s already tax advantage.
Emma Powell [00:24:31]:
And that’s one thing I always like to make sure that people understand. And then the other type of person who doesn’t have enough money from their high-paying job, that over the next 10 years, they can’t get $2,000,000 in play where they can retire earlier, hit financial freedom. And they’re like, I need to figure out how to make more money. And so you have somebody who’s maybe gonna be starting a business or starting a real estate business to earn more money, trading time for money. That’s not passive. Right? But then you have people who are like, I already have a job. I don’t need a side hustle. Right? So let’s talk about those 2 avatars, the two ends of the transaction.
Jay Conner [00:25:02]:
What kind
Emma Powell [00:25:02]:
of personal is it? And describe that so our listener can identify which one,
Jay Conner [00:25:05]:
they are most likely to be.
Emma Powell [00:25:05]:
So let’s talk about this from the perspective of a private lender
Jay Conner [00:25:15]:
that is gonna be loaning the money out to the real estate investor. So what are the things to look for and be aware of? First of all, if you are interested in being a private lender or a passive investor, The first question is, how well do you know the person who’s the operator who’s gonna be borrowing the money? At the end of the day, private lenders are not investing in the deal. They’re not investing in the deal. They’re investing in you, the operator, is who they’re investing in. So, you know, what kind of reputation do you have? How well do you know them? Now I’ve got a lot of private lenders that I’ve not even met in person. It’s all been over the phone or on Zoom because they were referred to me by a current private lender. That’s what we call the trust bridge. Mhmm.
Jay Conner [00:26:06]:
That trust that already exists between me and the existing private lender, then that trust bridge is then carried over to whoever they are referring to me to be another private lender. So, first of all, how well do you know them? Secondly, how much experience do they have? Now, one common question I get from new real estate investors is, who’s gonna loan me money and I’ve never done a deal? And the answer is probably nobody unless you are joining hips with a business partner that’s already done a lot of deals. And so, you can leverage the experience of your business partner. That’s why so many of my students and my coaching members leverage the relationship with me because we’re in business together and they get to leverage my experience of rehabbing over 500 houses and being in this full-time since 2013. So back to the question, what should a new private lender watch out for? The operator, what kind of experience do they have or their business partner? And then the next thing to watch out for is how are you or your money protected. So here’s a rider downer. Don’t ever loan out unsecured money.
Emma Powell [00:27:20]:
Yeah.
Jay Conner [00:27:23]:
I don’t care how well you know. Your brother, your sister, your mother, or your daddy. Right? Everybody needs to be protected. So for example, how do I protect my private lenders? Multiple ways. First of all, we’re going to collateralize their promissory note, and buy a mortgage here in North Carolina, it’s a deed of trust. So we’re going to collateralize that note and back that note by the real estate that’s being purchased, so it is secured. In other words, if the borrower doesn’t pay you, then the real estate does. If they don’t pay, you get the property.
Jay Conner [00:27:59]:
Right? Yep. Next point. How conservative is the loan to value? Now, I borrow against after-repair value because most properties I’m doing renovations. So I’ll be borrowing up to 75% of the repaired value. So there’s gonna be a 25% cushion for the private lender. So you wanna make sure the property is not over-leveraged by the money that you’re loaning out. Right? So you want a conservative loan to value. How else should you be protected? You should be protected as a private lender by requiring to be named on the insurance policy, that property insurance policy, as the mortgagee.
Jay Conner [00:28:44]:
If we borrow money from the bank, I promise you the bank is gonna be named as the mortgagee on the insurance policy. What does that accomplish? Here’s what that accomplishes. If there’s ever a claim or a property insurance claim against that property, the insurance company is going to make the check payable to you, the borrower, your entity, the mortgagees, to the lenders. They’ve got to sign off on that check before you get the money. That’s another layer of protection for the lender. Also gonna name the lender as, an additional insured on the title policy. So in case there are any title issues down the road, then they’re protected as well. And so, how else are you protected? Don’t you ever give money directly to the borrower?
Jay Conner [00:29:31]:
You want your money. Look. And that’s what a lot of private one of my first private lenders, more than one, they said, Jay, I like the program. I’m ready to start. What do I do? Do I just write you a check? No. You don’t write me a check when I’ve got a deal for you to fund that I can collateralize your note, and then you’re gonna wire the funds that you’re lending directly to my closing agent’s trust account. So if you’re using a title company, you’re using a real estate attorney, we use real estate attorneys here in North Carolina for mortgages, and you will mail it to them. And then after closing, after everybody’s protected on public record, the title company or the real estate attorney will then disperse funds.
Emma Powell [00:30:16]:
Yes. And that is so much more similar to my first experience being a private lender. We I, I tell people, house hack, if you don’t have enough money like you said, no one’s gonna lend you a deal. If you had money on a deal if you’ve never done one before. And so you’ve, you’ve gotta figure out a way to get this done either with like a family member or business partner like you said, somebody you’re close to who’s willing to bet on you, which is really what it is. But what we had done is we lived in a house. We completely remodeled it. We added a lot of value to it that we lived in it ourselves.
Emma Powell [00:30:46]:
And then when we sold that house, we were able to take that cash and learn how to run a real estate business. And the first thing I did was take that cash to somebody and say, can I make you a hard money loan? Like I was one of those easy ones who comes in and says, I’ve thought about this before. I’ve been approached about it before. I’ve heard about it a few times. I’m ready to do it. We sold the house. I have the cash in my hand. Let’s go.
Emma Powell [00:31:07]:
And then while you’re keeping that working for 6 months or something at 10%, sometimes 12%, depending on how much you invested, I can go out and learn. So I started attending real estate clubs and networking, and he had my money out. But after the initial conversation of I wanna lend you some money where it seemed easy, then I got really difficult because then I had to say, okay, I wanna come to your office. I wanna meet you. I wanna meet your team. I want you to teach me what you’re doing. And he was very patient, educated me, all the things that you mentioned. It’s gonna go to the trust account.
Emma Powell [00:31:38]:
We’re gonna have it lean against the property. Like all of this kind of stuff. Here’s the address, check it out. All it. Cause I, I just felt he had told me everything I needed to know, but I freaked out with a little bit of buyer’s remorse and a little bit of fear. Right? It wasn’t all the money we had, but it was close to all the money that we had in one deal. And that was probably a mistake. And so one of the things that I tell my private lenders now, in addition to everything that you just mentioned, and you tell me what your opinion is of this, I always ask, like, how much money do you have in general? What’s your net worth? I have to ask them if they’re an accredited investor because our fund is for accredited only.
Emma Powell [00:32:13]:
Right. But at the same time, I’m like, is this the only $300,000 that you have to your name other than your salary? And if the answer is yes, I don’t want it. I’ll take 50. Right? But then you need to figure out how to get more or diversify. You can put it in lots of other things, but I don’t want such a huge chunk of your net worth. And making sure that they don’t make the same mistake I did because I invested a bunch of my net worth in one deal. I got very nervous and very scared over the following months because it was a big flip and it took a long time. And so that was one error that I made.
Emma Powell [00:32:49]:
I don’t think he made that error, but he never did ask, like, how much money do you have? What is your net worth? Are you qualified to be putting this much money in one deal? And for me, that’s now very important. Diversification is huge. So how do you how do you counsel your private lenders not being a financial advisor? How do you say, look, the loan to value on the property should only be 70, 75%. But what about a portion of their net worth? How do you have that conversation about their finances?
Jay Conner [00:33:15]:
I have a very general conversation. I don’t ask them specifically what’s your net worth. I don’t ask them how much reserve you’ve got. I’m not comfortable asking that because it’s none of my business. Yeah. However, I do advise them The sentence I say is, don’t give me all your money. I say, look. I want you to keep enough in reserves that you’re gonna be able to live comfortably for the next year in your reserves if you have zero income coming in? Right? Can you live comfortably for the next year and you don’t have to tap into anything? So another thing I’ll say is I want you to have plenty of liquidity over on the side for any kind of rainy day that comes up.
Jay Conner [00:34:01]:
I’ll say, even though I’m giving you a 90-day call option in the promissory note you can get your money back in case you have an emergency, and it probably is only gonna take me 2 weeks to to replace it, but it is 90 days. So Mhmm. In other words, just don’t put yourself in a corner.
Emma Powell [00:34:17]:
Yeah. One thing that makes it easier for me is I need to at least know their minimum net worth that qualifies to be accredited investors. But the other question that makes it easy without prying too much into their finances is something more along the lines of what are your, expenses that you’re gonna need to be covering? What would you do if you lost all this money? People are afraid to ask that question because they’re afraid that then now you’re putting the idea of loss into their mind, and then they get cold feet, and then they might not invest. But to me, it’s almost like a test to say, how cold are their feet? How nervous of a lender are they going to be? What would you do if the worst case happened and we lost this money? Tell me about that. And finding that conversation gives me a lot of information about them and they’re because I don’t like whatever somebody is.
Jay Conner [00:35:07]:
Sure. Because of your own experience, it’s very natural for you to have that kind of conversation. Or Because I’m sure that when you have that kind of conversation, you’re probably sharing your personal experience as to why you’re going down that road of conversation. So it makes sense for you to have that kind of conversation, particularly since you’re raising money for a fund and they’ve got to be an accredited investor.
Emma Powell [00:35:33]:
Yep. And that makes sense too. And those personal experiences, sometimes surprise me. I asked somebody recently. I always say, oh, that’s our next step or whatever. Let’s get on a phone conversation with your husband or with your wife. And I was talking to somebody, and they said, oh, no. We do our investing.
Emma Powell [00:35:48]:
He’s got his thing. I’ve got my thing. And I was like, oh, yeah. That can happen. Because normally it’s, oh, I haven’t talked to my husband yet or I need to talk to my wife or my pastor or my brother-in-law or my financial advisor, whoever it is. So normally I say things like, what’s your normal decision-making process that you go through before making these decisions? Who needs to be involved? Like, sometimes they say I need to pray about it or I need to talk to my pastor. It doesn’t matter what it is. I just need to know what it is to make sure that if they need to talk to me or ask me any questions I’m aware of what their next steps are.
Emma Powell [00:36:18]:
Because I tend not to do like the one call close, especially with a lot of people reaching out to me are strangers. Right. And so I need to build up a relationship and make sure they go through their regular decision-making process. But I guess with you, when you first started, people knew you well. Sure. Now you’re having referrals of people who you said there’s a trust bridge, but you still need to go through a process. How many conversations or what period? I know everybody’s different, but what do you normally plan on to say, like, before you call them and say, hey, I have a deal? Is it different for everybody depending on their process?
Jay Conner [00:36:50]:
It’s either quite frankly, it’s 1 or 2 at the most.
Emma Powell [00:36:55]:
Okay.
Jay Conner [00:36:55]:
Okay. Even more than 2 comps because by the time I have a conversation with them and go into the detail of the program and the return they get and how they’re protected and all that stuff that we’re talking about, they’ve already shown interest. They’ve already shown interest or they’ve heard about it
Emma Powell [00:37:14]:
Yeah.
Jay Conner [00:37:14]:
In fact, by the time I have a referral to me and they wanna talk with me, they already know the program because whoever it is that referred them to me already spilled the beans Yep. And told them the kind of interest rate they were getting and the layers of protection. So they pretty much are by the time I talk to a referral, they’re, like, ready to go. Yeah.
Emma Powell [00:37:38]:
For me when I walked up to the guy at the club and said, everybody said you’re the guy to talk to for private money lending. What projects do you have? You know, he was just like, okay. But when you put that out there, and he had made a reputation for himself that way, I was pretty ready to go ahead and make the leap even after his first, maybe second conversation. So that kind of thing that you’re talking about, those trust bridges are very important. One thing I’ve noticed with real estate investors is when they first start you say, what sounds high to you? Oh, five percent sounds high. And you’re like, well, 8, 10, or 12% that I’m paying. It’s so high that they feel like it’s scammy high, but then once they get into the world a little bit they realize, oh, there’s a pretty typical return for hard money loans. Then I feel like they start getting shiny things in their eyes about equity and equity deals and syndications and things are gonna be paying out 15, 18, 20 plus percent, depending on what the asset is.
Emma Powell [00:38:28]:
And a lot of people are like, oh man, I, I can perform so much better with the equity or can I be a down payment partner instead of on the lean end, like an equity partner? So we do offer equity in our fund, but I’ve noticed that this is a big fight between people where they’re like, there’s that sure money that 10 or 12% total equities over there sparkly that I heard about somebody at an at a real estate club. I do both, but I only do as much equity as I need for the tax depreciation. And the rest of it Mhmm. Is cash flow through lending? And so making those decisions and being able to diversify. So I often find myself struggling with people who are over-invested in equity and don’t have enough private debt in their books. So what kinds of opportunities do you offer or could you invest in that are more on the equity side, either for higher returns or for tax depreciation?
Jay Conner [00:39:19]:
So I’ve never offered any equity. In any of my deals, it’s always been straight interest rates. And, as far as investing goes, I pretty much just stick in my little wheelhouse, which is single-family houses here in Eastern North Carolina. And I get the question all the time. I say, Jay, don’t you wanna expand out? Don’t you wanna grow? Don’t you wanna go to some other areas? I’ll say, no. Yeah. 2 to 3 deals a month, $82,000 net after realtor fees, that’s good that’s good enough for me. But where I’m spending so much of my time is in my coaching, working with real estate investors to help them grow their businesses, to help them raise private money.
Jay Conner [00:40:00]:
And that’s just what I love. I just love having my teacher hat on and sharing with other people how we do this thing.
Emma Powell [00:40:07]:
Yeah. And for me, I’ve just realized over the years is I want more boring investments. The boring is the better because once you have enough cash that you’ve built up, it can be compounding at say that average rate of say just 10%. Right? Just because it makes the math easier. I know I can go out and get 10% off any day of the week. So I do my investing portfolio calculations based on an average rate of return of 10%. And if occasionally I do an equity deal for tax depreciation that hits a home run and it performs at that 15, 18, 20 percent or maybe even better. Look, the economy was good.
Emma Powell [00:40:45]:
Those days are coming back. Don’t worry. I feel like the more money you have, the less money you can earn on it and still be doing well. And the less money you earn typically the more boring investments. That’s why they’re and it’s so funny that when you start talking to your private lenders and you tell them 10%, they’re like, wow, that’s a high scampi high. But after a while, they’re like, yeah, 10%. That’s not that much compared, to what they can be doing. So we do, as I said, occasionally offer equity investments because I need some, and our investors need some.
Emma Powell [00:41:13]:
For the most part, I am just all in on the hard money side because it’s just so straightforward, simple, easy to find, and easy to make a great 10, maybe 12% return. And a lot of investors just are not even thinking that they need to have this part of their portfolio, at least a percentage. So given that, what do you typically have your people doing? Just give us an eye into the wealthy people that you’re dealing with. How much of their portfolio do they typically have allocated towards this particular asset class?
Jay Conner [00:41:47]:
I don’t know. Yeah. They didn’t tell me. I just said keep enough in reserves. And all of my private lenders, all 47 of them, they’re just regular people. Here’s what’s funny, Emma. You’re gonna find this funny. I’m pretty sure not one of my 47 private lenders even knows what an accredited investor is.
Jay Conner [00:42:07]:
They don’t even they don’t know. But not one of these people had ever heard of private money. They didn’t know what it was until I taught them about it. And they’re everyday walk of life people. School teachers that are still teaching. I’ve got a couple, both of them retired school teachers. They got $1,250,000 with me. Who would think that retired school teachers would have a 1,200,000 but, look, they’ve been saving up money in their retirement plans for all them years and never touched it.
Jay Conner [00:42:35]:
Right? Yep. So there it is. And I’ve even had minor children less than 18 years old as private lenders. Of course, they couldn’t sign legal documents because they weren’t 18, so their parents had to do the signing for them. But they inherited money from their grandparents. The parents advised them, hey, you need to put your money with Jay because you’re gonna get that good rate of return, etcetera. So it’s just people from all walks of life, people that I’ve met through church affiliation and civic club organizations. Being I have gotten a lot of private money over the years from being active in Business Networking International.
Jay Conner [00:43:14]:
Some people say, Jay, all my people are broke. I don’t know anybody with money. You need to go the more money you wallow in, the more money sticks to you. So go where the money is. I coach other real estate investors who want to expand their network quickly. Get involved in business networking international, your local chapter, because now you’re gonna have 20 or 30 other individuals referring people to you that you’re looking for. And, of course, you’re gonna be referring leads to them as well. So there here’s the thing.
Jay Conner [00:43:43]:
There’s more money out there available than there are deals. I promise you. Yep. There’s more money than there are deals. So get the money lined up first.
Emma Powell [00:43:54]:
Yeah. Well, and such a good point. And I love that you brought it up because so many people will say, I don’t know any rich people. Where do I go to find them?
Jay Conner [00:44:00]:
Do I
Emma Powell [00:44:00]:
have to fly 1st class? Do I have to join a country club? I mean, those are good options. Get an expensive hobby. Take up scuba diving or motocross or something. Whatever you enjoy. I, I did this once when I invested in a sports team and I got to sit in the owner’s box and, enjoy the game from there. And I noticed when I would bring potential investors with me to the game, I’m like,
Jay Conner [00:44:19]:
I’m watching the game. Right?
Emma Powell [00:44:20]:
So just make sure that it’s a hobby that you can network and participate in the conversation with. So I had to just go to the games by myself and then get another one. I got an invitation just in my inbox on LinkedIn all the time. Hey, I’m speaking at an upcoming conference in your area. Would you like to come? I can get you free tickets. And it’s a conference for, say, founders, CEOs, sales executives. And I just show up at these conferences because people invited me and they’re just downtown.
Emma Powell [00:44:49]:
Like, I just go downtown. Even when we were traveling full-time, I was in Florida. Somebody reached out to me on social media and she said, Hey, I see that you’re in Florida right now. I have tickets to a conference for free. Do you want them? And I showed up and met a bunch of people and found some private lenders there. You have to go where there are opportunities, but people just don’t even think about it. BNI is a great one. You’ve got business leaders there who are interested in getting referrals, giving your referrals.
Emma Powell [00:45:15]:
What are some of the other best places that you go to? For me, it’s conferences, local stuff, real estate clubs, big time. After all, they all love real estate and a lot of them have cash because they just sold a house or something like that. BNI, what other places do you recommend to your students to say, here, go find some money at these kinds of places?
Jay Conner [00:45:31]:
Mhmm. A great place to go where there is a lot of money and they want to loan money out to real estate investors. They want to loan it out on real estate and be passive. And that is at self directed IRA conferences and networking events. Right? Yes. Over 70% of account holders at self directed IRA companies want to learn they wanna be a passive investors Yes. On real estate. However, when you go to those types of events, you are not gonna be putting on your teacher hat.
Jay Conner [00:46:08]:
They already know what private money is. Right? They’ve already got retirement funds that they want to invest. So this is not gonna be a teaching conversation. This is going to be a negotiation conversation. Because in my world of private money where I’m borrowing all my private money from people that I have taught what private money is and taught them my program, then I get to make the rules. I set the interest rate. I set the loan to value. It’s my program.
Jay Conner [00:46:39]:
But when you’re negotiating or borrowing from a hard money lender or etcetera, then they are making the rules, and now you’re having a negotiation conversation. However, in answer to your question, there’s a lot of money available at those networking events.
Emma Powell [00:46:56]:
Do you find those to be so competitive because there are so many other people there to raise capital from that it’s not sometimes worth going? Because there’s it’s, the like you were talking about the ponds, the big guy in the small pond or a little guy in a big pond. When you show up to an event like that, everybody’s looking for opportunities, but then everybody’s flowing in. So you’re not the only real estate guy in the room at an event like that.
Jay Conner [00:47:19]:
Well, that’s why I’ve never done it. Ah. Now, I’ve been a guest speaker at a lot of self directed IRA conferences. I was just out in Dallas Fort Worth and spoke at a huge conference out there a few weeks ago. So I much rather be the teacher and put and and offer the opportunity instead of negotiating and asking and all that stuff.
Emma Powell [00:47:44]:
Yeah. Yeah. I remember when I very first started, I had that same question. Who wants to lend money to me? I’ve the only thing I’ve ever done is lend money to somebody else in the house, hack my own house. And so I thought I needed to start putting out some content, writing something, engaging people in conversations somehow. And I said I don’t know how to write about real estate or how to talk to people about real estate because I don’t know what I’m doing. Back in the day. I said that that question is, what could you speak on for 45 minutes if the speaker didn’t show up and you suddenly needed to go up on stage, without any preparation? And I was like, homeschooling as a small business owner.
Emma Powell [00:48:19]:
And so I just started writing articles on homeschooling and how you could be an on balancing entrepreneurship and homeschooling. And to me, I was able to slip real estate into there. Like, here’s the rental house we just bought, or here’s the thing that we just did. So just thinking, like, what do I already like? What sports, what hobbies am I already into? What am I already an expert at? And how can I start to bridge that? Like, it’s it’s another trust bridge. How can I talk about something I am an expert at and start to bridge that little by little as I get, a little experience along the way? So these tips are golden and it’s questions that everybody asks. But sometimes having them all in one place during a conversation like this is valuable. Like you’ve dropped a lot of good advice and I had a list of questions I wanted to ask you and you hit on all of them. So you’ve been doing this a long time.
Emma Powell [00:49:03]:
You are a great teacher and you enjoy teaching. So tell us what is next for you. What’s down the line? This is a show about passive income and the adventures we can go on when we’re not tied to a 9 to 5. You love what you do, so I imagine you plan on continuing to do it for many years. But tell us about, like, the way that you design your lifestyle. What’s important to you? What kind of decisions go into the the choices that you make for how you spend your time?
Jay Conner [00:49:30]:
Yeah. What I am most passionate about is making an impact. I’ve reached that age in my life that it’s a whole lot more about significance and making an impact than it is exactly what’s the dollar figure in the checkbook. Right? So, I know that I can impact so many more lives when I am working with other real estate investors than the impact I’m making one house at a time. Now there’s an impact on that. There’s the contractors, and there’s the crews. And there’s a lot of people that are impacted when you do a house. But I’m able to impact so many more lives in this area of coaching and teaching.
Jay Conner [00:50:11]:
So, for example, my podcast. I just started my 8th year on my podcast, and we reach thousands and thousands of people every week on the podcast. My podcast, by the way, shockingly, is titled Raising Private Money to Jay Conners. It’s on all the platforms. But doing that, I enjoy being a podcaster. I’m interviewing people who have raised private money all the time and interviewing them about how they go about it. So what’s next for me is scaling and growing the coaching that I do for real estate investors. I’ve been coaching other real estate investors ever since 2011.
Jay Conner [00:50:52]:
But, for example, I’m so passionate about sharing what I know. I just finished recording, Emma, my brand new private money challenge. It’s called the 7-day private money challenge, and it’s a series of 7 videos. And they’re only 15 to 20 minutes long, so they’re very digestible. Right? It gives a great foundation on private money, what it is, and how I go about raising it. It’s all framed with how to raise all this private money without asking for money that we’ve been talking about it. And, Emma, when somebody enrolls in the private money challenge, they immediately get the first video training in their email inbox. In the next 6 days, at 9 AM EST, they get each subsequent video training.
Jay Conner [00:51:38]:
And if you want me to, I’d love to give out the URL, the website where people can come join the party.
Emma Powell [00:51:45]:
Yeah. Fire away. How do people get in touch with you? You mentioned your podcast. Go ahead and give them your website so they can jump in there, and learn how to raise private money, or if they wanna be a private money lender, how do they get in touch with you?
Jay Conner [00:51:56]:
Sure. So the best way is with this brand new private money challenge. So go to www. Private money challenge.com. Private money challenge.com. And I got 2 promises for you. First of all, you’ll get a great foundational, education on private money. I even have a session that I teach you.
Jay Conner [00:52:16]:
How much private money should you raise? Right? Because you don’t wanna raise all that private money, and then you’re not gonna be able to use it. So how much did you raise? And, the other promise I got for you is you come enroll in the private money challenge. I promise you, you’re gonna have a lot of fun because I’m gonna be right there on the video engaging with you, giving you a little bit of homework to do. Come join the party, private money challenge.com.
Emma Powell [00:52:40]:
Yeah. It’s such a great thing you’re putting out there because often people have never even heard of it. People don’t even know that this is out there and are satisfied with lower returns and riskier returns that are even lower. And I feel like I feel so strongly about it. Like private money has changed our lives from being a private lender to now helping other people be private lenders. We’re private lending. We’ll join forces. Like, if my money goes out on a deal, I’m like, come join me.
Emma Powell [00:53:09]:
The way that we structure it changes lives. I went from a stay-at-home mom with a little side hustle business in 6 years, retiring my husband from his corporate job. And most of that was either facilitated through me being a private lender or doing deals with private money. This is how this industry goes around. And I just feel like more people need to know about it and more people need to have it in their portfolios because it does have so much power. So thank you for sharing your message with us, Jay.
Jay Conner [00:53:39]:
Thank you so much for inviting me to come along. I had a blast and I can’t wait to see when this goes out.
Emma Powell [00:53:47]:
Yep. I’m super excited about it because this is something I’m so passionate about. Everybody, make sure that you reach out to Jay. If you want to get on a phone call with me, invest with emma.com. Just takes you right to my calendar. Ask whatever questions you have. If I don’t know the answer or I don’t know, how to help you myself, I could direct you to somebody who can help you and the networking and all of this is why we do this show. Being able to know who to call when you need it.
Emma Powell [00:54:12]:
It’s like the good news phone call that you mentioned. It’s like, you need to have a list of people that you can call when you have opportunities or problems arising because you have already created those relationships and that’s how the networking works. So thank you so much for coming on the show, Jay. Thank you so much to you, the listener for coming out. Be sure to go to private money, challenge.com, or invest with emma.com. Get in touch with us, and have the conversations. You will be shocked at how quickly your life can change by these kinds of tools. So until next time, thank you for listening to the passive income adventures.
Narrator [00:54:43]:
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.
