***Guest Appearance
Credits to:
https://www.youtube.com/@TheMHPExchange
“How To Find The Money To Finance Your Next Deal”
https://www.youtube.com/watch?v=FC635vBeyTA
Navigating the world of real estate can often feel like traversing a maze, especially when it comes to securing funding for your deals. For those feeling daunted by the hurdles of traditional banking, Jay Conner, renowned as the “Private Money Authority,” shares invaluable insights into how investors can break free from the constraints of conventional lending methods.
Jay’s journey into private money lending began out of necessity back in 2009, during the global financial crisis. Like many real estate investors at that time, Jay found himself in a bind when his reliable line of credit from the bank was abruptly closed.
However, rather than seeing this as a setback, Jay turned it into an opportunity to explore alternative funding sources. This exploration introduced him to the world of private money—a realm that would transform his real estate career.
Private money lending involves working with individuals who are willing to lend their personal investment capital in exchange for attractive returns. Unlike traditional banks, which often impose stringent credit checks and collateral requirements, private lenders offer flexibility, allowing you to make your own rules. Jay emphasizes that the cornerstone of his success in this arena has been education and relationship-building.
By wearing his “teacher hat,” he educates potential private lenders about the secure, high-return opportunities available through real estate investments.
One of the key insights Jay shared on the podcast is the importance of investing in your local community—an approach he prefers, as it allows him to maintain better oversight of his investments.
However, he notes that private money principles are versatile and can be applied across various real estate asset classes, from single-family homes to mobile home parks.
Jay’s strategy pivots around the concept of a “good news phone call,” a unique approach he uses to fund deals without ever explicitly asking for money. After educating individuals on private money, Jay simply calls them with news of a potential investment that matches their pre-discussed funding capability.
This approach is not just about maintaining control over investments but also about offering genuine value to lenders by securing their investments with real estate, therefore ensuring that both parties benefit.
The podcast also highlighted an often-overlooked avenue—self-directed IRAs. For those with retirement accounts, directing funds into real estate can yield higher returns compared to traditional investment vehicles. Jay reiterated the importance of establishing a relationship with a self-directed IRA company, thus providing an additional pathway for potential investors to engage in real estate funding.
Jay’s emphasis on mindset—”owning the real estate between your ears”—is pivotal. Many potential investors are held back by fear and a scarcity mindset, unaware of the abundant capital available for real estate deals. Jay’s narrative breaks these barriers, demonstrating that with confidence, knowledge, and the right network, securing private money can be a seamless process.
Entrepreneurs and real estate newcomers alike stand to gain from Jay’s wealth of knowledge, particularly those eager to explore non-traditional funding routes. His book, “Where to Get the Money Now,” which he generously offers for free (just cover shipping), is an excellent starting point for anyone looking to delve deeper into private money lending.
This episode is more than just a guide to securing funding—it’s an empowering call to action for investors looking to reclaim control of their financial destiny through private money lending. Whether you’re a seasoned veteran or a newcomer in the real estate space, embracing the principles shared by Jay can significantly enhance your investment journey.
10 Discussion Questions from this Episode:
- How do Frank Rizzo and Eric Busuttil’s approaches to capital raising differ from Jay Conner’s method, and what are the advantages of each strategy?
- Jay Conner discusses a “good news phone call” as part of his process for securing private money. How does this method build trust with potential investors?
- In the episode, Jay highlights the significance of teaching potential private lenders about private money as a separate conversation from the deal. How might this strategy benefit new real estate investors?
- Jay mentions that desperation has a “smell.” How important is mindset in successfully attracting private investors, according to the podcast discussion?
- The hosts discuss syndication versus Jay Conner’s single-family home strategy. What are the key differences and advantages of these two approaches to real estate investment?
- Jay Conner credits a significant portion of his success to switching from institutional lending to private money in 2009. How did this transition impact his business operations and growth?
- How does Jay Conner ensure security and safety for private lenders in his real estate deals, and what key documents are involved?
- Confidence and trust are recurring themes in the episode. How can new real estate investors build confidence when pitching to potential private lenders?
- Jay Conner emphasizes an abundance mindset in capital raising. How can this mindset shift influence a real estate investor’s success, as discussed in the episode?
- What role does education play in Jay Conner’s strategy for raising private money, and how does it differ from traditional methods of pitching a deal?
Fun facts that were revealed in the episode:
- Jay’s Enthusiasm and Unique Coffee Choice: Jay Conner’s vibrant enthusiasm during the podcast episode sparked curiosity about his morning routine. Interestingly, he attributes his energy not just to a positive mindset and meditation, but also to drinking mushroom coffee from a brand called “RYZE.”
- Family Background in Mobile Homes: Jay Conner has a familial connection to the mobile home industry. His father, Wallace Conner, was once the largest retailer of mobile homes in the United States through his company, Conner Corporation. Jay grew up in this business environment before transitioning to single-family homes.
- Real Estate Success in a Small Market: Despite operating in what Jay describes as a “very, very small market” with only 40,000 people, Jay Conner has managed to achieve remarkable success. He regularly completes two to three transactions per month with an impressive average profit of $86,000 per deal. This highlights his strategic approach and ability to dominate a small local market effectively.
Timestamps:
00:01 Pathway to Financial Freedom
05:13 Attracting Private Money in Real Estate
08:49 Finding Solutions Through Private Lending
12:49 Raising Capital Before Deals
15:18 Syndication Model for Investors
17:37 Mobile Home Mogul’s Journey
20:57 Top Reasons Investors Choose Us
23:41 Private Lending vs. Stock Market
29:33 Self-Directed IRA Transition Overview
31:32 Funding Obligation and Investment Assurance
36:37 Envisioning Success in Private Lending
37:24 Free Real Estate Financing Book Offer
41:51 Private Lending Insights Podcast
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
Essential Private Money Strategies for Aspiring Real Estate Investors
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.
Narrator [00:00:28]:
Welcome to the MHP Exchange podcast, where industry veterans Frank Rizzo and Eric Boussedil generously share their wealth of knowledge in their new podcast dedicated to the manufactured housing space. They tackle tough questions to provide valuable insights for those considering investments in mobile home parks. If you’re seeking answers in the manufactured housing space, this podcast is your go-to resource.
Frank Rizzo [00:00:50]:
Welcome to another episode of the MHP Exchange podcast, Eric. How are you doing this morning?
Eric Busuttil [00:00:57]:
Doing good, Frank. How about yourself?
Frank Rizzo [00:00:59]:
Doing very well, Eric. And as I was coming in, and you guys are streaming this, you and as you are streaming this or you’re listening to this or you’re watching this on YouTube, the question coming in today for myself was, why are we here and why do we why do we put this podcast out? You know, Eric and I have been in real estate for over twenty years apiece, and we’ve we’ve acquired a very specific knowledge about mobile home park, mobile home park investing, which we wanted to share with people who are interested in the space. Right? But the reason why we’re interested in mobile home park and mobile home park investing is that we found for us that this was a way for us to create wealth, right, create value, and generate cash flow for us. Right? That was very important. We wanted to create passive cash flow, which would allow us, you would agree, Eric, financial freedom. Right? Yeah. So, but to do that, and you back this up. So if you’re listening to this program, you wanna find the pathway to financial freedom.
Frank Rizzo [00:02:18]:
And it’s easy to do if you’re coming in with capital. But for us and for you out there listening, you might not have the money to start with. And so this all goes back because this program is about creating opportunities for yourself and finding a pathway to create that freedom, but it goes back to being able to raise capital for your deals. Right? So we might talk about operating, but it goes back to raising capital about four-year opportunities in real estate. And we have with us today joining us, a very special guest, a best-selling author, somebody who’s worked with thousands of investors through his course, with over twenty years of experience and a track record of just raising capital from private markets for real estate investments. And I wanna welcome the private money authority expert, Jay Conner. Jay, welcome to the program.
Jay Conner [00:03:20]:
Frank, Eric, thank you so much for having me come on. I’ve never actually had a live audience applaud after the introduction. That’s amazing. But thank you so much for inviting me to come along to talk about my most favorite and passionate topic, that being private money. And why in the world is that? Because I’ve never missed out on a deal since 02/2009 when I started using private money because I’m not having the funding. Private money has had more of a major impact on my real estate investing business than any other strategy that I do.
Frank Rizzo [00:03:54]:
And, Jay, you have an interesting story on how you even got there. Right? So before we even talk about why you’d wanna look at private money. Right? Because I think money becomes a limiting factor for people when they look at real estate investing. They say, well, I don’t have access to capital. I can’t get capital. How can I invest if I don’t have money? And you cover that topic. But how did you get there? Because your story, I think, is extremely interesting, and I think it’ll help a lot of people out there. You at home who are listening, it would help for people to get an understanding of how you came to that conclusion.
Jay Conner [00:04:36]:
Yeah. Well, my wife, Carol Joy, and I started investing in single-family houses back in 02/2003 here in Eastern North Carolina. We’re in a very, very small market, only 40,000 people. We do two to three transactions a month, primarily in the single-family space. Our average profits are $86,000 per deal. And I do not share that from coming from a position of ego or bragging at all. I share that to make a point. And that is there’s a strong argument to be made that you can make significant income in a small market by dominating a small market.
Jay Conner [00:05:13]:
But anyway, we started in 02/2003, and I do wanna just share, even though most of my experience is in single family houses, whether you’re doing mobile home parks, apartments, self storage, land, it doesn’t matter the real estate asset class, The principles and the concepts of attracting private money and funding for your deals are the same regardless of the, asset class. In this space, there’s no chasing, begging, selling, or persuading. It’s all about attracting the money. You know what’s interesting, Eric and Frank, is that since 02/2009, when I started raising private money, I have never asked anybody for money. I’ve never asked anybody for money. I’ll get into how that works. So how in the world did I get into it? Well, you see, from 02/2003 until 02/2009, January 2 thousand 9 to be specific, I relied on the local bank. I relied on institutional money to fund my deals.
Jay Conner [00:06:12]:
That’s all I knew to do. For those first six years, all I knew to do was go to the local bank, get on my hands and knees, put my hands underneath my chin, and say, Please fund my deals. Right? And my banker made me pull up my skirt so they can look at all my assets and show my financial statements and pull my credit score. And for goodness’s sakes, sometimes they’d even give me a colonoscopy to make sure I was credit worthy. You know? That’s all I knew to do. And that worked okay. That worked okay for the first six years until January 2009. I was sitting here at my desk.
Jay Conner [00:06:52]:
Frank, Eric, I know you’ll find it hard to believe. We still have handsets and cords attached to a landline here, you know, out of the ordinary. Anyway, I was sitting here at my desk, and I picked up this phone. And I called my banker. My banker, his name was named Steve. At the time, it was BB and T. It’s been bought out now, but Truist. But, anyway, I called up Steve, my banker.
Jay Conner [00:07:17]:
Steve and I had done a lot of deals over six years in the single-family house space. And I called up Steve to tell him about these two houses that I had under contract to purchase that represented over a hundred thousand dollars in profit. And I learned right away from my telephone conversation that my line of credit had been closed with no notice to me. I said, Steve, what in the world are you doing, telling me that my line of credit is closed? But I made my payments on time for six years. I got an 800 credit score. Why are you closing my line of credit? He said, Jay, don’t you know there’s a global financial crisis going on right now? I said, no. But you just gave me a global financial crisis. I don’t have a way to fund these two deals that I’ve got under contract.
Jay Conner [00:08:05]:
He said, Sorry, Jay. We’re not loaning money out to real estate investors right now. I hung up the phone, Eric, and Frank. I hung up my phone. I sat here at my desk for a moment, and I asked myself a very, very important question. And this question I’m getting ready to share with you and your audience will help fix any problem that anybody’s got going on. I don’t care if it’s health, financial, relationships, or career. I don’t care.
Jay Conner [00:08:34]:
This question helps fix any problem. By the way, these people running around saying, oh, every problem’s an opportunity. I wanna throw up. I didn’t have an opportunity. I had a problem. Let’s face the facts. I had a problem. No way to fund my deals.
Jay Conner [00:08:49]:
So here’s the question I asked myself that’s very powerful. And the question I asked myself was, Jay, who do you know that can help fix your problem? And immediately when I thought that when I asked that myself that question, I immediately thought of Jeff Blankenship, who lived in Greensboro, North Carolina at at the time, a dear friend of mine and Carol Joy. And he was investing in single-family houses in Greensboro at the time, and I called him up and I told him what had happened. He said, Jay, welcome to the club. I said, Well, what club is that, Jeff? He said, that’s the club of having your line of credit shut down. He said, My bank shut me down last week. I said, well, how are you gonna fund your deals? He said, Well, have you ever heard of private lending and private money lenders and private money? I said, no. I said, What’s that? He says, well, that’s when you do business with an individual who loans out money to you from their investment capital, and you pay them high rates of return.
Jay Conner [00:09:48]:
He says, Have you ever heard of self-directed IRAs? I said, no. What’s that? He said that’s where people can take their retirement funds that they have, that they’re not happy with the returns, and they can move those funds with no tax penalty over to an IRS-approved self-directed IRA company. And then they can loan that money out to you on your deals, and you can pay them either tax deferred or tax free interest,t unlimited per year. I said, Jeff, I don’t have a clue what in the world you’re talking about, but I knew Jeff had told me something. So I hung up the phone, and Frank and Eric, I studied private money, and I put my program together that I was going to offer people, first of all, in my warm market through my connections. So let me share a quick little secret here about how I’ve never asked for money. So what did I do? You know, most people talk about pitching deals. Guys, I’ve never pitched a deal in my life.
Jay Conner [00:10:48]:
Why have I never pitched a deal in my life? Because I separate the conversation of teaching people in my network and networks what private money and private lending is, and then having the deal for them to invest in. So here’s the mindset. Here’s a big part of the secret sauce. I put on my teacher hat, and my teacher hat says private money teacher. Private money teacher. So I take on the mindset of teaching people what private money is, how they can get involved, how they can get high rates of return, safely and securely. You know what’s Anderson, Eric, and Frank, I got 47 investors. I got 47 private lenders right now funding my deals.
Jay Conner [00:11:33]:
And you know what’s interesting? Not one of those 47 private lenders doing business with us right now ever heard of private money until I put on my teacher hat and exposed it to them. Right? So, you know, here’s a rider downer. Here’s a rider downer. Desperation has got a smell to it. Sure. The worst time to be raising capital is when you need it for a deal with a deadline. But in this world, guess what? We get to make the rules. We set the interest rate.
Jay Conner [00:12:08]:
You’re already approved. There are no applications. We are our underwriter. That’s one of the biggest differences between borrowing institutional money and raising your capital is because when you raise your capital, you get to make the rules. We set the interest rate. We set the frequency of payments. We set the maximum loan-to-value, and so we’re offering an opportunity. So instead of applying for a mortgage, we’re offering opportunities, creating win-win scenarios.
Jay Conner [00:12:37]:
Everybody wins. That’s the mindset. You know, people ask me all the time, Jay, I’ve never raised capital. How do I get started? I ain’t told you how you get started. You gotta own the real estate between your ears first.
Frank Rizzo [00:12:49]:
So so First. You know, Jay, and I get, you know, necessity is the mother of all creation. Right? So you needed to raise capital because you had a deal. Then you learned how to raise capital, and now your focus is raising that capital even before you have the deal, right, which is a little bit different than where I think most deal sponsors, right, will or most investors find themselves. Right? I, you know, I had always subscribed to the deal, and, you know, my story is similar in some respects where I didn’t have the capital to do the deals I wanted. But if I knew if I could find the deal, right, that was my skill set. I could find an opportunity where I knew the numbers would work, the capital would flow. You’ve kinda taken that in a different approach where, you know, you do you spend more time teaching people how to, you know, how to raise capital first, and then they find the deal? Like, how does your system work?
Jay Conner [00:13:53]:
Yeah. That particularly works in the single-family house space. Now, whether you’re syndicating, I don’t syndicate. My mastermind members don’t syndicate because you don’t need a syndication for single-family houses. Everything we do is what’s called a one-offs. One-offs. You got a single-family house. You got a private lender, maybe a couple of private lenders funding that deal.
Jay Conner [00:14:16]:
But, you know, if you’re gonna do multifamily, if you’re gonna do apartments, you know, so so question for you, Frank and Eric, do y’all syndicate? Yes. Yeah. And that would make sense. That would make sense for you to syndicate because, you know, you’re not gonna raise two or three or four hundred thousand dollars typically for a single-family house. You know, you may be raising hundreds of thousands and maybe into the millions of dollars when you’ve got, you know, a project. So I guess just to make sure, I’m sure you may have some new audience members. We, I guess we should take a moment, and I’m gonna give myself a break and take a breath. Erica Frank, why don’t you take a moment and explain to your audience that I sound like I’m the host.
Jay Conner [00:15:05]:
I’m not the host. Anyway, why don’t you why don’t you explain to your audience what the difference between syndication is? What in the world is syndication, and what is, like, what I do in single families, you know, one-offs for single family houses?
Frank Rizzo [00:15:18]:
So and there’s there’s a place for both of these, but a syndication model is where you have a group of accredited investors who are gonna participate in an opportunity where they’re all gonna take a piece to participate, but they’re not gonna operate the deal. They’re gonna be equity owners, and they’re gonna do a proportion of the cash flow that that property generates, but they’re not they’re they’re gonna be groups. So it’s not one investor in particular, but it’s probably a group of accredited investors who are going to participate in an opportunity that’s gonna going to be run and operated by a deal sponsor. And, hopefully, somebody who is, expert in the area that they’re going to be sponsoring the deal in. Exactly. In your opinion, what you’re doing is more on the lending side. So you’re raising awareness and preparing people to be lenders. Is that correct?
Jay Conner [00:16:21]:
That’s exactly correct. As I mentioned, my 47 private lenders, and this goes the same for my Mastermind members. Typically, none of our lenders or slash investors. And by the way, I think y’all will agree with this, Eric and Frank, even if you’re syndicating and raising money for a fund, you’re raising money for a fund. Your investors even though you even though you explained the deal, you explained the opportunity, you know, they got an equity share. My private lenders don’t get an equity share. They get their my private lenders are like the bank. Right? They get the same protection as a bank.
Jay Conner [00:16:57]:
They get a promissory note. They get a mortgage or a deed of trust that collateralizes that note. We name them on the insurance policy as a mortgagee. So in my world, the private lender is, quote unquote, the bank. They’re not like part, you know, ownership. But you know, whether you’re syndicating raising money for a fund or whatever, would you all agree that even though in your world of mobile home parks, which by the way, side note, my dad, Wallace Conner, Wallace j Conner, ninety one years old, he’s slap dab in the middle of a brand new three fifty new home development, new home build development at 91 years old.
Eric Busuttil [00:17:36]:
Wow. At the moment.
Jay Conner [00:17:37]:
At one time, he was the his company, Conner Corporation, which was the largest retailer of mobile homes, manufactured homes in the nation. In the nation. Conner Holmes is a vertic vertically integrated. He started selling mobile homes. They called them wobbly boxes and trailers in 1959, but he started selling them next to ho his dad’s grocery store in little teeny tiny Harlow, North Carolina. So I grew up in the mobile home business. I grew up in the mobile home business and didn’t start getting into single-family houses until 02/2003. Nonetheless, back to my point, would you not agree that whether you’re syndicating, raising money for a fund, or you’re doing one-offs for single-family houses, would you agree that your investors are more invested in you than they are the deal.
Frank Rizzo [00:18:36]:
Jay, that is a %.
Eric Busuttil [00:18:39]:
Hundred %, Jay.
Jay Conner [00:18:41]:
Yeah. And so let’s unpack that for a second. Since the people are, I mean, their decision, their, I mean, yes, their decision is part I mean, they love the returns. I mean, you got an opportunity. I mean, they’re gonna get, you know, an 8% or 10% or 12% or 15%, whatever it is, projected return, you know, for syndicated, etcetera. Of course, that excites them, you know, the return excites them, but their decision as to whether to move forward or not is based on whether they found here’s what it comes down to. It comes down to whether they think you’re gonna pay them or not. That’s like, I mean, that’s it.
Jay Conner [00:19:23]:
That’s it. Do they believe that you’re gonna perform? Do they believe that you’re gonna carry through? And so why is that such an important thing to realize, the mindset owning the real estate between your ears? Right? So, yeah. If you don’t believe in yourself, who’s going to? Nobody. Yeah. If you don’t, if you don’t have, if you don’t have confidence in performing, who else is going to have confidence in you, for goodness sakes? So that begs the question. That begs the question. How do you get confidence? Right.
Frank Rizzo [00:20:03]:
Well, that’s a great question because, I mean, I think you hit you hit the nail on the head. It all goes down to the real estate between your ears and how you view it and how you’re, you know, addressing that. So you know, you’re teaching methods to get people to understand, like, what are the benefits of being an investor on the private money side? Like, how you know because it is different than taking the equity state, and you do have some of those protections. But what are those of you out there listening, like, what are those protections? Where are those benefits laid out there? Because you’ve, you know, you’ve raised hundreds of millions of dollars, and you’ve taught thousands of people how to do this. Right? So what is the kinda, like, the secret sauce in that that that creates that value for the private money investor?
Jay Conner [00:20:57]:
There’s primarily there’s more, but there’s primarily three big reasons why a new private lender or investor decides to do business with us or with you. Well, with us specifically. Number one, number one, they’re gonna make a lot of money. They’re, they’re gonna make more money than they can for sure than taking their money, investment capital, or their retirement funds. By the way, here’s a writer downer. If you’re listening to this show and you want to be a capital raiser for your real estate deals, you gotta, you don’t have to do anything. I recommend you establish a relationship with a self directed IRA company so that when you’re talking with somebody new to, you know, this opportunity then, and if you learn they got retirement funds, then if they don’t know about this, this the way you you way you do this, you wanna have a relationship so you can introduce them to a self directed IRA representative to where they can move the retirement funds and do business with you. That was a side note.
Jay Conner [00:22:05]:
Back to the reasons. So number one, they’re gonna make a lot of money. They’re going to make very, very favorable returns on their investment. Secondly, the second reason is that their investment is secure and it is safe. Now, this is in my world of single-family houses. I’m not borrowing unsecured funds. So it’s secure, meaning they’re going to get a promissory note, but we’re going to collateralize the private lender’s promissory note with a, in North Carolina, a deed of trust. Most states call it a mortgage.
Jay Conner [00:22:39]:
So if you, the borrower, don’t pay them, the property does. Right? So it’s secure. It’s safe because it is a conservative loan-to-value on the single-family house. So, my program that I teach my private lenders, that my mastermind members use as well, is that we don’t borrow more than 75% of the after-repaired value. I didn’t say 75% of the purchase price. We always bring home a big check. That’s one reason I love private money is because we always bring home a big check when we purchase the property, which by the way, if you can’t bring home a big check on a single family house when you buy it and take no money to the closing table, you’re paying too much for the property. The third reason our private lenders slash investors love doing business with us is that their investment, their principal loan amount, and the value of their investment are not volatile.
Jay Conner [00:23:41]:
So, in other words, I’m contrasting being a private money lender and using your money as a private lender versus investing in the stock market or mutual funds. If an individual invests in the stock market or mutual funds, they have already lost money. There are fees, there are commissions, but in this opportunity, being a private money lender or investor, there’s nothing that comes out of the principal loan amount. So if somebody for easy figuring loans a hundred thousand dollars on a deal, I pay them 8%. No origination fees, never have, never will, straight 8%, and have since 02/2009, even in the ups and downs of the market. And so at a hundred thousand dollars, they know if I use that money for a year on a property, they’re gonna earn $8,000. They know what the return is gonna be, and they don’t have to worry about the volatility of the value of that investment. And then, as a bonus, a fourth reason, we have a way that our investors can get their money back early before the note comes due in case they have an emergency.
Jay Conner [00:24:45]:
So we put in the promissory notes what we call a ninety-day call option. So if they need their money back in case of an emergency, they just give us notice. We replace their money with another private lender’s money, and there’s no penalty involved. That seldom to never happens, but at least that gives them peace of mind. They got a way they can get it back in case they’ve got some kind of emergency. But, Frank, Eric, those are the big reasons. Well, the fifth reason is the number one reason that we already said. They do business with us because they trust us, and they believe we can perform.
Eric Busuttil [00:25:21]:
Jay, that’s amazing. And I think, you know, I think now more than ever, you know, people would rather have their money out there invested in real estate than sitting in a bank. And, you know, when you speak to people and you’re teaching them something like this and you tell them that they could have security and something stable, and I mean you have an amazing track record, and you just that is exactly what you stick to that. Right, Jay? Single-family housing, the same recipe over and over and over again. Right? I mean, it just and as time goes on, I mean, I’m assuming, you know, your track record has been consistent with that. And you invest all over the country, Jay?
Jay Conner [00:26:05]:
No. I only invest my private lender money right here in my local market, here in Eastern North Carolina. Now my mastermind community, they’re they’re all over the nation and even, you know, Hawaii, but my deals are right here locally. I don’t have to do that. I mean, I interviewed an amazing individual yesterday on my podcast, Raising Private Money. Interviewed him, and I mean, he invests all over the nation. He’s a wholesaler, but he invests all over the nation. I’ve just made a business decision for my deals.
Jay Conner [00:26:39]:
If I can’t drive by it, then I’m not so much interested. But, I mean, that’s just a business decision. You know? As long as you’ve got boots on the ground and got eyes, you know, that can report back to you as to what’s going on, you can invest anywhere. By the way, you said something just a moment ago, Eric, that’s very, very important. And that is what you were talking about, consistency, the same program, repeat and rinse, and that’s it. I don’t pay I don’t pay private lender a one deal, one thing, private lender b, another thing, private lender c, another thing. I can’t keep up with all that. And by the way, they talk.
Jay Conner [00:27:20]:
Right? They talk. And so I pay all my private lenders the same, it’s all the same program, to everybody. So I’m glad you brought that up.
Frank Rizzo [00:27:32]:
And I think this goes to the point for somebody who’s starting their real estate investing journey, where the concern is, do I have the capital or the institutional relationships to get involved in a deal that I know works. But what you’re suggesting is, hey. Build that network of private lenders first. Right? And then when you find the opportunity, now you’re not now you’re not selling the deal. Right? But you’re saying, hey. Now I’m coming to the time where I can I can generate 8% return or 9% or whatever deal structure you have, you can now execute on what you’ve already told them? Am I is that the base is the program?
Jay Conner [00:28:29]:
Yes. That is the program. So, Eric and Frank, here’s what I’d love to share with you and your audience as to how I get all my deals funded without ever asking for money. So I’ve already shared part of the secret sauce, and that is teaching the opportunity first with no deal attached to it. Now this works in single-family housing. This isn’t necessarily gonna work if you’re syndicating for mobile home parks. But with single-family houses, here’s how it works. So I’ve put on my teacher hat.
Jay Conner [00:28:59]:
I’ve taught, you know, an individual, you know, the opportunity, and here’s where I so let’s just role play here for a second. Frank, let’s say that you’re one of my new private lenders, hypothetically speaking, and, shared the opportunity with you. You know what it’s about. By the way, an easy way to share the opportunity, I’ve raised $969,000 at one private lender luncheon. I just invited 20 people. I feed them lunch. I do my little twenty-minute PowerPoint presentation and teach them about private money with no deals attached to it. Anyway, so you’re one of my new private lenders.
Jay Conner [00:29:33]:
So let’s just say, hypothetically, Frank, you got a hundred $50,000 sitting in a retirement account somewhere that you’re not liking the return. Let’s say it’s in a former employer four 401 one k plan, or maybe it’s in the stock market at Schwab or Morgan Stanley, or Edward Jones, wherever it is. It’s dedicated retirement funds. You’re not happy with the performance. You like my program better. So I’ve introduced you to a self-directed IRA company that I recommend, and you’ve moved that hundred and 50,000 dollars with no tax effect over to the self-directed IRA company, also known as a third-party custodian. Took a couple of weeks for you to move your money over. It’s sitting there, and now you’re ready to go.
Jay Conner [00:30:23]:
So how do I get you to fund a deal without asking you to fund the deal? It’s called Frank, the good news phone call. The good news phone call. And here’s the script. I’m gonna share with you and Eric, and your audience right now the exact script of what to say when you’re calling up your private lender for them to fund your single-family house deal. So I call them up. Frank, you answer the phone. We have a little chat. And then I say, Frank, I have got great news.
Jay Conner [00:30:55]:
I can now put your money to work that you’ve moved over to the self-directed IRA company. I’ve got a house under contract in Newport Township. The after-repaired value is $200,000. Now the funding required for the deal is a hundred and 50 thousand. Of course, that matches up to what you have to invest. Closing is going to be next Friday. So I’ll need you to wire your funds from your retirement account to my real estate attorney’s trust account. I’m going to have my attorney email you the wiring instructions. That’s the end of the conversation, for goodness’s sakes.
Jay Conner [00:31:32]:
The most stupid thing in the world I could do is ask you, do you want to fund the deal? Well, of course, you want to fund the deal for two big reasons. Number one, you moved your money over to the self-directed IRA company at my recommendation, and you’re not making any money on that money until I put your money to work. You are counting on me to invest that money for you. Secondly, I’m not going to bring a deal to the table for you to fund unless it matches the criteria of the program that I already taught you. And so I am morally and ethically obligated to put your money to work because you’ve already moved it over and you’re waiting for the good news phone call.
Frank Rizzo [00:32:19]:
You know, that’s a great program. And, you know, Eric and I happen to know somebody that we’ve done business with who got who does private lending. Right? And he’s been doing it since the mid-nineties. And, you know, the compounding effect for your investors, which I’m sure you told their stories from when they started till now, because not especially being in their retirement account, that money’s sitting in their retirement account. So the next time out, they don’t have a hundred and 50,000 to to lend. They have a hundred and 70,000 to lend. Then they’re getting 8% on the $1.70. That compounding effect of that capital is tremendous.
Frank Rizzo [00:33:01]:
Right? It it’s just it creates a tremendous amount of wealth for your investors, and I’m I’m sure you probably have some stories of investors who been with you from 02/2009 till now, and the the returns can be astronomical. I mean, you could it’s wealth changing and and probably life changing and at least sets up their retirement better than ever.
Jay Conner [00:33:25]:
It is life-changing. Carol Joy and I have gotten I’ve lost count. How many handwritten thank you notes from our private lenders thanking us for changing their retirement years? You know, you got somebody that’s got 400, dollars 5 hundred thousand in retirement money. They don’t want to touch it. They don’t want to touch that money. They want that money to make them money so they can live off of that money. And, you know, here’s part of the mindset we’ve got to get straight. Back to the nose chasing, begging, selling, all that stuff.
Jay Conner [00:34:03]:
You know, the traditional way to borrow money is from the bank is serving us, right? That’s a switch here. It’s a switch. It’s a 180-degree mind shift. We are serving our lenders. We are serving our lenders. We’re making a difference in their income, in their retirement years, if they’re using retirement funds. So it is a win-win scenario for everybody. And not only is it a win-win, I’ll just say this.
Jay Conner [00:34:39]:
There’s more money than you can use. There’s more money than there are deals. There’s more money than there are deals. Before COVID in 2020, there was $18,000,000,000,000 in cash sitting on the sidelines waiting to be invested somewhere. Today, this side of COVID in 02/2025, dollars ’30 ‘1 trillion in cash waiting to be used. So, you know, the scarcity mindset says there’s no money. The abundant mindset says there’s more than I can use. You know, I got to meet John Maxwell in person about three months ago.
Jay Conner [00:35:23]:
John Maxwell, the most amazing speaker I’ve ever met in my life. I love his books. I’ve got all of them. But here’s an example of John Maxwell’s abundant mindset. He says, when you’ve got a problem, quote unquote, there’s always a solution. And, in fact, not is there not only always a solution, but there’s always multiple solutions. So having the mindset of being a victor instead of a victim is paramount.
Frank Rizzo [00:36:01]:
What a great point. Yeah. You you you cannot get to be a successful investor by being the victim. Right? The only way that you can create wealth and create that abundant life that you want is by having that abundant mindset, right? So you have to envision it first, and then your mind will make it happen. If you don’t have that mindset, then it’s never going to work. If you focus on the negative, the negative will occur. If you focus on the positive, you will find the path.
Frank Rizzo [00:36:37]:
So I think that’s a huge message to have there. And, you know, I love the fact that you’re saying it’s all in your head. Right? And that is a lot of what we do and how you do it. It’s you have to envision a pathway forward to make it happen. I think we’ve uncovered a lot, and I know if you’re listening out there and you’re taking note of it, there’s more to this than Jay, you’ve broken down very simply for us. But if somebody has more information or wants more information about private lending, how they could be utilizing this in their way to build their real estate business from the investment side, or if they just wanna be a private lender, how would they get more information from you to find out about that?
Jay Conner [00:37:24]:
Well, I did mention it when we started, and I knew we talked about perhaps doing it in another segment. But since you asked, the best way to find out how to do it is to just let me send your audience for free my book, to tell you the truth, where to get the money now, by the way, this is not an ebook. It’s a real book. It’s a best seller on where to get the money now, subtitle how and where to get money for your real estate deals without relying on traditional money or hard money lenders. I’d love to autograph it, send it to your audience for free. Just cover shipping. And they can pick it up at Jay Conner. So here’s how to get plugged in.
Jay Conner [00:37:59]:
www.JayConner.com/Book. So I’m an e r, not a o r, Jay Conner dot com forward slash book. And I’ll express it out, United States post office three day express.
Frank Rizzo [00:38:20]:
So I I have I have another important question to ask you. Right? You know, I am a very enthusiastic person. I think I’m pretty excited. Just how much coffee do you drink in the morning to be this excited? Like, you overshot my enthusiasm by yards. So I just need to know how much coffee you drink in the morning. How does that how does that happen? Or is it just the North Carolina air that gives you that?
Jay Conner [00:38:52]:
Well, I mean, I’ll, answer answer your question there, and it’s threefold. First of all, when I wake up in the morning, I remind myself I have a choice as to how I want to view this day. I have a choice as to how I want to view this day. Secondly, I meditate every evening in my bed with earphones for fifteen minutes by listening to an app called abide, a b I d e, abide. And then thirdly, woo, doggies. I’m going to give an unshameful plug for this company that I drink their product, and it’s amazing. And it’s called r y z e, pronounced Ryze. Play on words.
Jay Conner [00:39:41]:
R y z e. No. I don’t own stock in it. No. I have no idea who the owners are, but it’s mushroom coffee. So get you some mushroom coffee, guys.
Eric Busuttil [00:39:50]:
So, Jay, I somehow ordered it, and they double-subscribed me.
Jay Conner [00:39:57]:
And you ordered ryeze, r y z e?
Eric Busuttil [00:40:00]:
I have literally 50 bags of it, and I just send myself.
Jay Conner [00:40:04]:
Would you send me some?
Eric Busuttil [00:40:05]:
I’m gonna I’m gonna trade you some rice for one of your books.
Jay Conner [00:40:09]:
Hey. That’s a deal, man.
Eric Busuttil [00:40:10]:
That’s a deal. Alright. I’ll autograph a few. Whoo. Now this.
Frank Rizzo [00:40:17]:
So that’s the second, now you’re the second person that told me about RISE. I’m gonna have to try it, but this was a lot to unravel here. Eric, any closing notes on this?
Eric Busuttil [00:40:28]:
No. Frank, yeah, I mean, you you you said it right. I mean, he’s got a great personality. I’m pumped about Friday. Friday is one of my favorite days, Jay. It’s just too close out to especially when you have a productive week, but you put some pep in my step today to carry out the rest of my day. Be great to read your book for everybody out there who’s looking to get a wealth of knowledge from someone very successful. Make sure you reach out to him.
Eric Busuttil [00:40:58]:
And one more time, Jay, where can they find, where can they find you, or where can they subscribe to get that book?
Jay Conner [00:41:07]:
Sure. Go to www.JayConner.com/book. And, Eric, you just gave me an idea. I’m gonna get a banner. You know, I have live events called the Private Money Conference, and we have people come in from all over the nation for my live events. And I got banners of quotations on the wall in the conference room. I got a new banner, I’m gonna get I’m gonna get printed up. It says, quote, unquote, Jay Conner.
Jay Conner [00:41:37]:
He’ll put a pep in your step.
Frank Rizzo [00:41:42]:
I love it. I love it. Yeah.
Eric Busuttil [00:41:44]:
I hope to see that. I hope to see that.
Frank Rizzo [00:41:51]:
This has been a lot of fun. And if you’re listening out there streaming or you’re watching on YouTube, if you have somebody you know who would benefit from learning about private lending and or utilizing private lending either in their real estate business or or wants to get involved in private lending, share this episode from Spotify, iTunes, or YouTube. Share this episode with them and drop a comment down below. This has been the MHP Exchange podcast brought to you by MHPExchange.com. Go there for your tips, opportunity, news, entertainment, involving the MHP world, and anything MHP related, but this is just a good like, a master class on private lending and the importance of that in your real estate investment business. Until next time, everybody. Happy investing. Okay.
Frank Rizzo [00:42:54]:
Jay, we’re gonna do that one more clip. We’ll just do straight on the book, and we’ll just say, you know, Eric, you wanna ask him a question about the book, and then he’ll just Sure. Let him go with it?
Frank Rizzo [00:43:07]:
So you wanna yeah. Okay. Go. Go. No. No. No. Go ask him a question about the book.
Eric Busuttil [00:43:11]:
So, Jay, we’ve heard about your book. I have not read it. I can’t wait to read it. You know, again, you know, very successful guy, great personality. Can you just tell us about your book and where we could find it? And, you know, to everyone else out there, he’s offering this book for absolutely free. Take it away, Jay.
Jay Conner [00:43:36]:
Sure. So I’m excited about my book. It’s all about private money and private lending, and that is how to get funding for your real estate deals without having to rely on any banks. You don’t have to rely on hard money lenders, any kind of institutional money at all. And this is the world where you get to make the rules. I promise you, read my book. You will never have to worry about missing out on any real estate deals for not having the funding. And here’s the book.
Jay Conner [00:44:07]:
The name of the book is Where to Get the Money Now. Subtitle: How and where to get money for your real estate deals without relying on traditional or hard money lenders. This is not an ebook. This is a book. It’s a national bestseller. You can get it on Amazon. It’s called Where to get the money now by Jay Conner. You can get it on Amazon for $20, but for goodness sakes, don’t spend $20.
Jay Conner [00:44:29]:
Let me give it to you for free. Just cover shipping. I’ll autograph it. I’ll three day express it to you. Where to get the money now by Jay Conner. It will plug you in to get funding for your real estate deals, you will never have to worry about missing out on your real estate deals.
Frank Rizzo [00:44:50]:
Awesome. Thank you, Jay. Appreciate it.
Jay Conner [00:44:54]:
You gotcha. One more time. Get the book for free. Discover shipping at www.JayConner.com/Book. Again, that’s www.JayConner.com/Book.
Narrator [00:45:14]:
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.
