***Guest Appearance
Credits to:
https://www.youtube.com/@BolaAlabi
“How to Build a 7-Figure Real Estate Business with Less Than 10 Hours a Week”
https://www.youtube.com/watch?v=KlHGPU8cB0Q
The real estate world is a sphere of endless opportunities, yet financing often stands as the primary barrier for both new and seasoned investors. While traditional bank loans have long been the go-to option, they come with their fair share of hurdles and red tape. Enter private money—a game-changing concept that’s revolutionizing how deals are funded and executed.
In a recent enlightening episode on the Raisig Private Money podcast, Jay Conner joins Bola Alabi on The Career Evangelist Podcast and shares his invaluable insights on harnessing the potential of private money to transform the way you invest in real estate.
Why Consider Private Money?
Jay Conner’s journey into private money began from a place of necessity when his bank unexpectedly cut off his line of credit. Finding himself in a predicament with two deals under contract and no funding, Conner asked a crucial question: “Who do you know that can help you with your problem?” This led him to discover private money through a fellow investor, Jeff Blankenship. Unlike traditional loans that often require personal guarantees and creaking through endless bank procedures, private money is sourced from individuals looking to invest their capital or retirement funds in real estate for attractive returns.
The beauty of private money lies in its flexibility and accessibility. Whether you aim to purchase single-family homes, commercial buildings, or apartments, the structure remains consistent. The process is less about convincing hard money lenders and more about creating mutually beneficial relationships with people eager to see their money grow.
The Role of Education and Relationship Building
Jay emphasizes the importance of educating potential lenders and establishing trust as fundamental to raising private money. His approach involves putting on his “teacher hat” rather than pitching deals out of desperation. By clearly explaining the investment opportunity, the security of their funds, and the expected returns, Jay reframes private lending from a transactional agreement to an educational and collaborative partnership. This helps in fostering long-term relationships where lenders are comfortable and eager to participate in future projects.
To illustrate, Jay has developed a network of 47 private lenders, none of whom knew about private money until he explained it. His ability to attract constant investment is rooted in being transparent and providing sound knowledge about private lending, ensuring that both sides of the table feel informed and secure.
Strategies for Success
One of the standout strategies Jay shared on the podcast is the benefit of having funds ready before contracting a deal. This involves separating the conversations about lending opportunities and specific deals, thus allowing investors to feel prepared and confident when entering negotiations. Unlike the conventional wisdom that suggests getting a deal and hoping for the funds to materialize, Jay insists on the contrary—having a financial plan beforehand empowers investors to act swiftly and assuredly.
Moreover, he suggests structuring deals with flexibility in mind, such as offering interest-only payments, allowing lenders to earn consistently without reducing your cash flow during the holding period. This pragmatic approach to investor relations underscores Jay’s philosophy of leading with a servant’s heart and adds an appealing layer of security for lenders.
Conclusion
Jay Conner’s journey and expertise underscore a vital pivot away from conventional financing methods to a more people-centered, knowledge-driven approach through private money. His insights offer a powerful blueprint for investors seeking to expand and enhance their real estate ventures effectively.
By putting education at the forefront and focusing on building genuine relationships, investors are not only able to secure funds with greater ease but also enrich their network, paving the way for sustained success. If you’re aspiring to break free from the constraints of traditional loans and embrace a more dynamic financial landscape, integrating private money into your real estate strategy could be the transformative step you’ve been waiting for.
10 Discussion Questions from this Episode:
- What are some of the key benefits Jay Conner mentions about using private money for real estate investment compared to traditional bank financing?
- How did Jay Conner’s approach to financing change after his line of credit was unexpectedly shut down by his bank?
- What role does a self-directed IRA play in raising private money for real estate investments, according to Jay Conner?
- Jay mentions the importance of “separating the conversations” when discussing private money opportunities. What does he mean by that, and why is it important?
- In your opinion, why is asking the question “Who do you know that can help you with your problem?” a powerful tool in problem-solving, as explained by Jay?
- Jay emphasizes the necessity of having the right mindset before starting to raise private money. What mindset shifts does he suggest for new investors?
- How does Jay Conner differentiate between private money lending and hard money lending, and what are the pros and cons of each?
- Why does Jay recommend having private money lined up before finding a real estate deal, and how does this influence an investor’s confidence?
- What strategies does Jay use to find off-market real estate deals, and how do those strategies contribute to his business success?
- Discuss how the concept of “substitution of collateral” works and its benefits in private money lending, as explained by Jay.
Fun facts that were revealed in the episode:
- Role Play to Fund a Deal: Jay Conner shared a fun and enlightening role play scenario on how he talks to private lenders to get his real estate deals funded without directly asking for money. This approach emphasizes education and relationship-building rather than traditional hard sales tactics.
- Creative Funding Strategy: Jay was able to close a significant real estate deal in just seven days, thanks to his private money lending strategy. This speed and efficiency illustrate how leveraging relationships with private lenders can offer flexibility not typically found with traditional bank funding.
- Impressive Profit Margins: One of Jay’s recent deals involved purchasing a condominium for $425,000, investing $11,000 in renovations, and selling it for $618,000, leading to a net profit of $161,000. This example highlights his ability to find and capitalize on lucrative investment opportunities.
Timestamps:
00:01 Private Capital in Real Estate Investing
03:11 Confronting Financial Crisis: Crucial Inquiry
06:34 Initiating a Private Money Program
10:14 Investment Program with 8% Returns
13:26 Profitable Real Estate Investment Strategy
17:45 Real Estate Collateral Practices
21:29 Interest-Only Loan Advantages
24:54 Effective Pay Per Lead Model
26:36 Dominating Smaller Markets
31:35 Express Delivery: Book and Event
Connect With Jay Conner:
Private Money Academy Conference:
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book: Where to Get The Money Now?
It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
#RealEstate #RealEstateInvesting #RealEstateInvestingForBeginners #Foreclosures #FlippingHouses #PrivateMoney #RaisingPrivateMoney #JayConner
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How To Secure Unlimited Real Estate Funds through Private Money
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.
Bola Alabi [00:00:29]:
Welcome to the show, Jay. How
Jay Conner [00:00:31]:
Are you? Thank you so much. Thank you so much. I’m so excited to be here to talk about what I’m so passionate about, that being able to raise unlimited funding and private money for your real estate deals without ever having to ask for money. Thank you so much for having me.
Bola Alabi [00:00:48]:
This is awesome, Jay, because I know that many people are curious, and they are waiting to hear from you how to raise all this private money. I know that there are people who are sitting on the sidelines. They want to get into real estate because of the fun they couldn’t have. But today, they are gonna hear from you. They will listen to your perspective on how to do that. So, can you tell us how we raise private money?
Jay Conner [00:01:18]:
Yeah. So what led me to private money and using private money is when I first started investing, and by the way, my focus has been on single-family houses. Now this private money is the same money whether you’re using it for single-family houses, commercial, apartments, small apartments, duplexes, or just single-family houses. It’s all the same structure of the deals. So my wife, Carol Joy, she’s also from Texas like you. We started investing in single-family houses back in 02/2003 here in our small market. And from 02/2003 until 02/2009, the first six years that we were in the business, here’s what I did. I went to the local bank.
Jay Conner [00:02:11]:
I got on my hands and knees. I put my hands underneath my chin. I said, Please fund my deal. And, of course, the banker would make me pull up my skirt so that they could see my assets and give me a colonoscopy and pull my credit and make me, you know, cough up financial statements. Well, I had to do all that stuff. I had to jump through all those hoops for the first six years, but then everything changed in February. In January 2009, after being in this business for six years, I called up my banker. He and I have been doing business for six years.
Jay Conner [00:02:50]:
I called him up, and I had two houses under contract to buy. Mhmm. And so I’m talking to my banker. His name was Steve. I told him about these two houses. And just like that over the phone, I learned that they had shut down my line of credit at the bank and had given me no notice whatsoever.
Bola Alabi [00:03:11]:
Wow.
Jay Conner [00:03:11]:
And I said to Steve, I said, Steve, what in the world are you saying you’ve closed my line of credit with no notice to me? And Steve says, 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 now I don’t have a way to fund these two deals. And so, anyway, I hung up the phone with Steve, and I’m gonna share with your audience right now a very, very powerful question that I ask myself. And this question that I ask will help anybody fix any problem they’ve got. I don’t care if it’s financial, relationships, health, or career, it doesn’t matter. And here’s the question I asked myself when Steve notified me that I’ve been cut off from the bank. Oh, by the way, these people running around saying every problem is an opportunity. I wanna throw up.
Jay Conner [00:04:08]:
I didn’t have an opportunity. I had a problem. Right? Let’s face reality. I had a problem. Two deals under contract, no way to fund them. So Yeah. Here’s the question I wanna share that I asked myself. And, you know, the power’s in question, the right questions.
Jay Conner [00:04:24]:
And here it is. I said, Jay, where’s the powerful word. Who do you know that can help you with your problem? And immediately when I asked myself that question, I thought of a dear friend of ours, Jeff Blankenship. He was living in Greensboro, North Carolina, at the time, and he was investing in single-family houses. I said, well, maybe Jeff can help me out. So I picked up the phone, I called Jeff, and I told Jeff what had just happened with me getting cut off from the bank. And Jeff says, well, Jay, welcome to the club. I said, What club is that? He said, the club of having the bank shut you down.
Jay Conner [00:05:08]:
He said, My bank shut me down last week. I said, well, Jeff, how are you going to fund your real estate deals? He said, Well, have you ever heard of private money and private lending? I said, no. What’s that? He says, well, that’s when an individual loans money to a real estate investor, either from their investment capital or from their retirement funds, and funds your deals. I said, no. I never heard of that. And he wasn’t talking about hard money, and I never even heard about hard money back then. And he says, well, have you ever heard of self-directed IRAs? I said, no. What’s a self-directed IRA? He said, well, a self-directed IRA is a third-party custodian.
Jay Conner [00:05:54]:
It’s a company approved by the IRS that allows individuals to move current retirement funds, say, from the stock market or a previous four zero one k over to the self-directed IRA company with no tax effect, and then they can loan that money to us real estate investors. And the money that you pay them is either tax deferred or tax free. Wow. I said, Jeff, no. I’ve never heard of what you’re talking about. So, anyway, Jeff and I continued the conversation. He told me more about what private money is and how it works. And so here’s what I did.
Jay Conner [00:06:34]:
I hung up the phone, and the first thing I did was put my program together. Now what in the world do I mean by that? My program, my opportunity that I first was gonna go about here in my local area where we live and expose, and offer this opportunity to people in my connections, people I go to church with, people in my cell phone, people at the Rotary Club, etcetera, and just let them know about private money. And so the first thing I had to do, and this is one of the first questions I get asked all the time, is, Jay, how do you start? How do you start raising private money? Well, the first thing you gotta do is get your mindset right. You gotta own the real estate in between your ears before you start going out and buying and selling real estate using private money. So what did I do? Well, here’s what I did. I put on my teacher hat.
Bola Alabi [00:07:34]:
Good money teacher. I put
Jay Conner [00:07:36]:
On my teacher hat, and my teacher hat says private money teacher. Uh-huh. So I set myself up as an expert. Mhmm. Being able to offer an opportunity and information to people in my connections who had never heard about private money. Here’s what’s interesting. Today, Carol Joy and I have got 47 individuals just like you and me, regular people. These are not like high-profile people, regular people like you and me.
Jay Conner [00:08:09]:
I got 47 private lenders that are funding our real estate deals, either using their investment capital, just liquid funds, or their retirement funds. And you know what’s interesting? Not one of these people had ever heard of private money or private lending or self-directed IRAs until I put on my teacher hat, and I started teaching them about this opportunity. Now here’s a very, very important here’s a very, very important part of the system that I created that’s critical to understand. It’s very important to understand how to separate the conversations.
Jay Conner [00:08:54]:
Between teaching the opportunity
Bola Alabi [00:08:57]:
Right.
Jay Conner [00:08:57]:
As to what a private lender is, what kind of rates of return you can earn, how to get your money back in case of an emergency, and not having any deal attached to it. Because here’s a rider downer, Desperation has got a smell to it. Mhmm. Desperation. The worst time to be raising private money is when you need it for a deal. So if you lead with a servant’s heart, lead with a servant’s heart, exposing people and teaching people about this opportunity of what private money is, how they can earn high rates of return safely and securely, then they tell you how much they got, and then I come back and give them a deal to fund. And here’s what’s interesting. I’ve never pitched a deal in my life.
Jay Conner [00:09:44]:
So I’m gonna share right now the exact script, the exact script,t how I get my real estate deals funded without ever asking for the money, and then I’m gonna turn it back over to you, Bola. So here’s the way it works. Let’s just do a little role play. So let’s say, Bola, that you are one of my new private lenders. I’ve taught you the program. And, you know, let’s say, you know, you and I have known each other for a while. We’re friends. Maybe we can go to church together.
Jay Conner [00:10:11]:
Whatever. We got some kind of connection.
Bola Alabi [00:10:13]:
That’s right.
Jay Conner [00:10:14]:
And so I’ve told you about the program. You know, I’ve taught you that I’m gonna pay 8%. You love the interest rate because you’re gonna get three and a half or three and three-quarters at the local bank. I pay 8%. I’ve taught you how you can get your money back early in case of an emergency. I’ve taught you what the maximum loan-to-value is and all that, and you love it. And so in our conversation, our visit, you love the program, you wanna get involved, and you tell me that you’ve got a hundred $50,000, hypothetically speaking. Let’s say you got a hundred $50,000, sitting in the stock market as a retirement fund, say at Charles Schwab or Guardian or Edward Jones or whatever, and you’re not happy with the volatility of those funds.
Bola Alabi [00:11:00]:
Right.
Jay Conner [00:11:01]:
So I’ve introduced you to a self-directed IRA company that I respect and I recommend, and you’ve moved those funds over with no tax penalty, and you want to invest with me. Perfect. You’ve done that. It took a couple of weeks. Now here’s a script. Boa, I told you that I would put your money to work for you just as soon as possible when you’re removing those funds over. So let’s assume you’ve moved the funds over. You’ve told me you’ve called me up.
Jay Conner [00:11:30]:
You said, Jay, the funds are ready. I’m ready to go. I said, Great. I’m gonna put your money to work for you just as soon as possible. So I call you up. I know it’s hard to believe, but we still have landlines here in North Carolina with cords attached to us. But I call you up and you say hello. We have a little chat.
Jay Conner [00:11:50]:
Here’s the exact script on getting the deal funded.
Bola Alabi [00:11:55]:
Okay.
Jay Conner [00:11:55]:
I say, I have got great news for you, Beau. I can now put your money to work. I’ve got a house under contract in Newport with an after-repaired value of $200,000. Now the funding required for the deal is 150,000, which matches up to what you have in the self-directed IRA company. And closing is going to be next Tuesday. So I’m gonna have my real estate attorney email you the wiring instructions. You’ll need to have your funds wired to my real estate attorney’s trust account by next Monday.
Bola Alabi [00:12:32]:
Right.
Jay Conner [00:12:33]:
That’s the end of the conversation. I mean
Bola Alabi [00:12:36]:
That’s it.
Jay Conner [00:12:36]:
The most that’s it. I mean, the most stupid thing I could ask you is, do you want to fund the deal? Of course, you want to fund the deal. And there are three big reasons why you want to fund the deal. Number one, you’ve moved your retirement funds over to the self-directed IRA company that I recommended. And so you’re not making any money until I put your money to work. Secondly, I’m not gonna bring any deal for you to fund unless it matches the criteria of the program that I already taught you. Notice in that little script, I said I got an after-repaired value of $200,000 on this house. The funding required is a hundred and $50,000.
Jay Conner [00:13:26]:
Well, that’s 75% of the after-repaired value. I didn’t say 75% of the purchase price. That’s why I’m always able to bring home a big check when I buy. Who wants to get paid to buy houses? Right? So it matches their criteria. And I told you previously, I’ll put your money to work for you just as soon as possible. So I’m just fulfilling what I promised you to do. So let me take a second and unpack what I said, and I’m gonna turn it back to you. Okay.
Jay Conner [00:13:58]:
So first of all, separate the conversations. You know, I’ve never pitched a deal. And by the way, I know you’ve heard educators say what I’m getting ready to say, and I want wanna go run into a brick wall like the Kool Aid character when I hear this. It drives me crazy. Have you ever heard the educator say, Oh, just get the deal under contract. The money will show up. Have you ever heard that?
Bola Alabi [00:14:23]:
Absolutely. Yeah.
Jay Conner [00:14:24]:
I wanna throw up. It’s like, where is the money gonna show up? Is it like gonna, you know, like, run down on
Bola Alabi [00:14:32]:
Files or something? You know?
Jay Conner [00:14:34]:
He’s like, oh, have you heard him say this? The money always finds a good deal. Just get out of the contract. The money, Mhmm. Has has money got legs? No. Has money got a brain?
Bola Alabi [00:14:51]:
A way.
Jay Conner [00:14:52]:
I mean, money is neutral, so it just makes sense to me.
Jay Conner [00:14:57]:
I mean, think about how much more confident you’re gonna make offers on deals when you’ve got the money lined up ready to go, and you can close on any deal in seven days with private money. So that’s just sort of an overview of what happens first, what happens second, what happens third, and it just takes the stress out of real estate investing.
Bola Alabi [00:15:22]:
Oh, wow. Jay, this is amazing, I must tell you. If even if we hand the episode right here, I know people would benefit. But let’s try to unpack this. So let’s say I’m the private lender. And you are right. You put, let’s say, 8%. I don’t know if that’s your standard rate.
Jay Conner [00:15:45]:
Yeah. It is. It is.
Bola Alabi [00:15:47]:
That’s higher than what the bank would pay me today. So
Jay Conner [00:15:50]:
Yes.
Bola Alabi [00:15:51]:
Check. That means I’m earning more. Now I’m thinking about this. What is the typical duration, the length of the loan that you get from this private money lender?
Jay Conner [00:16:05]:
Typically, it’s two years.
Bola Alabi [00:16:07]:
Two years.
Jay Conner [00:16:08]:
Typically, it’s two years. So, you know, this world of private money is very, very different than hard money. You know? And I remember
Bola Alabi [00:16:17]:
Ask you the difference between card money and private money.
Jay Conner [00:16:21]:
Yeah. That’s, and the list is long. Right? But I’ll answer that. But, you know, we’re doing business, we’re doing business with individuals. Okay. And, as you said, you know, that 8% is a whole lot higher than, like, they could get at the bank. But, anyway, I’m sorry. I interrupted you.
Jay Conner [00:16:38]:
Go ahead.
Bola Alabi [00:16:39]:
So, yeah, if I’m making 8%, that means I’ll now be paying back the loan that I got from my self directed IRA. That’s correct?
Jay Conner [00:16:50]:
Correct.
Bola Alabi [00:16:51]:
8% every year. So that
Jay Conner [00:16:54]:
And that’s an annual percentage rate, just like you said. Yes.
Bola Alabi [00:16:58]:
That is good for the investor, who is putting money on you. But now the next thing that I’m thinking about is, how often or how many private lenders do you have to reach out to, to raise funds?
Jay Conner [00:17:18]:
Well, I haven’t had to in many years because I just keep using the money over and over and over again. That’s another great benefit of private money. It’s like when you like, I rehab most deals. We’ve rehabbed, renovated over 500 houses here in our local area since 02/2003. And so the private lender doesn’t want their money back. They get their money back. Yeah.
Bola Alabi [00:17:44]:
They’re
Jay Conner [00:17:45]:
Not earning any money. Right? They did, they just wanna keep using it. So I’ll either pay off the private lender when we’re cashing out. So I’ll buy the house, renovate it, put it on the market, and then I’ll either cash it out or I’ll do what’s called a substitution of collateral. And we do this all the time. Because the private lenders don’t want the money back. So if that note is still open and the note has not come due yet, if I have another property, because you see, I don’t borrow unsecured funds. We collateralize every note with the real estate, with the property.
Jay Conner [00:18:25]:
Right? All these single-family houses that we do are called one-offs. One-offs. So that means the SEC does not regulate this. Right? So we don’t have to worry about the SEC, the Securities and Exchange Commission. And all these one-offs, see, I’m not raising money for a fund. Right? I’m not syndicating. I’m not raising money for a syndication. I’ve got a single-family house and a private lender, maybe a couple of private lenders, and each of them has their promissory note.
Jay Conner [00:18:56]:
They each have their deed of trust here in North Carolina’s deed of trust. Texas is a deed of trust. Most states call it a mortgage. And if you don’t pay them as the borrower, they get the property. That’s the protection. That’s the protection for the private lender. But back to the substitutions of collateral, if I pay off the private lender and cash out on a property, if I have another property right behind it, Mhmm. Ready to go, then we’ll keep the promissory note open, which is what the private lender wants.
Jay Conner [00:19:30]:
They wanna keep earning money. They don’t want their money back. They wanna live off of their money. And if they’ve loaned me retirement funds, the interest payments are going directly to their retirement account, growing their retirement account. And so if I’m if I’ve cashed out, I got another property to go, then we’ll just I’ll have my real estate attorney draw up a substitution of collateral, which is also known as a loan modification, and the private lender will have to sign off that we’re substituting the substituting the collateral, and then we will keep that promissory note open so they can keep earning money.
Bola Alabi [00:20:10]:
So let me ask you this. How often do you pay back the private money, lender? Is it monthly, quarterly, or maybe one time every year?
Jay Conner [00:20:20]:
I leave it up to them. Okay. So I don’t have a preference. It’s I mean, because and here’s why I leave it up to them. Different private lenders have different objectives. Right? So I want to serve. I wanna serve my private lenders based on what their needs are. I have some elderly private lenders who are relying on the monthly income.
Bola Alabi [00:20:45]:
Right.
Jay Conner [00:20:46]:
So they’ll loan out their investment capital. They need and want that monthly check coming in, Right? And that’s fine. Because, look, I’m bringing home a big check when I buy, so I can use part of that initial check to cash flow their monthly payments. Now the only way this works is if I’m buying properties at deep discounts, and I do. I buy properties at deep discounts because they need renovation. Right? So some need monthly payments. If they’re loaning money from their retirement account, I never make monthly payments because that money is not going back directly to them.
Jay Conner [00:21:29]:
It’s going into their retirement account, and I never make principal and interest payments. It’s interest only. Either interest-only payments or interest-only accruing. Right? And that’s a win for the borrower, and that’s a win for the lender. It’s a win for us to borrow because interest-only payments are smaller than principal and interest payments, and it’s a win for the lender. The private lender makes more money over time because they’re keeping all of their money invested and not having the principal paid down. Now, if I’m borrowing the money from a retirement account, I only do that quarterly. Quarterly.
Jay Conner [00:22:12]:
A quarterly interest. And with some of our lenders, I can structure the deal so that I don’t make any interest payments at all. If I’m renovating and rehabbing and I’m on cash out, say, in maybe nine months, six months, nine months, I can just let the interest accrue. And when I cash out the house, pay off all their principal and all the accrued interest, and then go do another deal. So stop and think about what that does for your cash flow. Follow this.
Bola Alabi [00:22:44]:
Who?
Jay Conner [00:22:45]:
You buy a house.
Jay Conner [00:22:47]:
You take none of your own money to the closing table. Never. You bring home a big check from closing because you’re always able to borrow more than you need to purchase it. Mhmm. I make no payments to the private lender until we cash out the deal. You think that’ll help you cash flow? Absolutely. As long as you know where to find these deals and how to negotiate them, and buy them right.
Bola Alabi [00:23:16]:
And that would be my next question. I heard you talk about deep discounts. And, of course, we said off-market deals. How do you find them?
Jay Conner [00:23:26]:
Yeah. Well, they’re not in the multiple listing service for sure. That’s why they’re off market. You know, I haven’t bought a single family house in the multiple listing service since COVID, five years ago. Nothing in the multiple listing service, but we have no inventory. Here in my area, you put a house in the multiple listing service to sell it, and it’s in great condition, like our houses. I mean, multiple offers. Right? So, how do we find these off-market houses? Well, we have multiple ways to do it, but I’ll tell you my most consistent way to find them is by using Google search vendors.
Jay Conner [00:24:08]:
So there’s pay per click and there’s pay per lead. Here’s the difference. If you’re doing Google pay per click, then you set up your account with Google, and you gotta know what the, you know, search terms are. I got 75 different search terms for people to be looking for on Google, and they wanna sell their house fast. They are motivated sellers. Either their lives are personally distressed or the property’s distressed or both. Right? And so pay-per-click means you’re paying Google per click.
Jay Conner [00:24:47]:
Right? Right. I don’t do I don’t do pay per click. I don’t do pay-per-click.
Bola Alabi [00:24:51]:
Yeah.
Jay Conner [00:24:51]:
I do pay per lead.
Bola Alabi [00:24:54]:
Yes.
Jay Conner [00:24:54]:
So I’ve got seven different vendors that I pay, and I pay them per lead. So I let them be the expert. I let them be the expert on getting me these leads, and I got, you know, protected protected territory. So I only get the leads to these deals in my area. I don’t have to compete with other real estate investors. And so, you know, as long as you’ve got consistent seller leads from motivated sellers coming into your marketing, you’ve got a business and not a hobby. So that was a long answer to a short question. The most consistent way we get motivated seller leads, I’ve already gotten three this morning, is from Google Pay Per Lead vendor services.
Bola Alabi [00:25:44]:
So are you teaching people how to do this?
Jay Conner [00:25:47]:
Of course.
Bola Alabi [00:25:48]:
Okay. Awesome. Because I know many of my listeners want to connect with you and learn how to do this. I know there are people out there who really, really wanna get into real estate, but money has always been their barrier. So, this would be a service that my listeners will benefit from. Can you tell us one of your most profitable deals that you’ve closed?
Jay Conner [00:26:15]:
Sure. Just a few months ago. So I live here in Morehead City, North Carolina. Small area. Our total population that we target is only 40,000 people. We do two to three deals a month. Average profits are $86,000 per deal, but I don’t share that to brag. I do not share that to brag.
Jay Conner [00:26:36]:
I share that to make a point, and that is as an argument to be made to be a big fish in a small pond. Dominate the market instead of competing in those large cities. So you asked me to share a recent deal. Well, this deal I’ll share with you. It blows my average out of the water. My net net after realtor commissions and carrying cost was $61,000. But here’s how it happened. So a few months ago, a lead came in from one of our Google vendors, and it was a so across the high-rise bridge from Morehead City, North Carolina, is Atlantic Beach.
Jay Conner [00:27:18]:
Atlantic Beach sits on a 22-mile island at the southern tip of the Outer Banks. Mhmm. So this lead comes in, and the owner owns this condominium, an oceanfront condominium on the Top Floor of the condominium complex.
Bola Alabi [00:27:39]:
Right.
Jay Conner [00:27:39]:
And he was motivated to sell for several reasons. Number one, it was inherited from his parents; both of his parents had passed away. So it was inherited property, and he didn’t have any use of the property. He lived out of state. There’s another layer of motivation, of the state owner. And the third motivation is that the property is going to be sold at foreclosure on the courthouse steps in two weeks of him contacting us.
Bola Alabi [00:28:11]:
Right.
Jay Conner [00:28:11]:
So he was highly motivated and needed to move quickly. So, anyway, he contacted us, and we talked to him. We put the condominium under contract for $425,000, 4 hundred 20 5 thousand dollars. It was furnished with luxury furniture. And when you were in the living room and looking out, you looked like you were on a cruise ship.
Bola Alabi [00:28:37]:
Wow.
Jay Conner [00:28:37]:
Looking at the ocean. Beautiful. The total renovation only cost $11,000, and that was for interior paint and some sheetrock repair. So I was able to buy it, put it back on the market, all within less than six weeks. I sold it. I put it on the market, and had multiple offers right away. I sold it sight unseen for $618,000.
Bola Alabi [00:29:06]:
How do you sell it?
Jay Conner [00:29:07]:
For $4.25. Mhmm. Put 11,000 in rehab in it. Now here’s the secret. That’s one big reason I love private money. You can close fast.
Bola Alabi [00:29:18]:
Right.
Jay Conner [00:29:18]:
So I closed that deal in seven days.
Bola Alabi [00:29:21]:
Wow.
Jay Conner [00:29:21]:
I’m talking to him. That’s because the private money lender was ready to wire the funds and close the deal. Plus, we had the courthouse sale coming up that we had to get around as well. So we netted on that prop on that deal even after realtor fees of putting it on the market. My realtor fee was right at $30,000. We netted a hundred and $61,000. And the reason we were able to do it was because of the deals coming in, the leads coming in from our marketing, and having the private money ready to close, ready to go.
Bola Alabi [00:29:58]:
Awesome. So what’s your top advice for anyone looking to build wealth through real estate? What would you tell them to do?
Jay Conner [00:30:08]:
Work with somebody who knows what they’re doing, for goodness’ sake. Maybe it’s Bola. Maybe it’s somebody local. Right? Maybe it’s me, whoever, but don’t make the mistake that I did in 02/2003. All I did was leverage my previous experience in the mobile home manufactured housing business. I read a few books, but I didn’t get a mentor or a coach to work with me. So don’t make the mistake that I did. Get somebody to work with you who knows what they’re doing, and it’ll save you hundreds of thousands of dollars.
Bola Alabi [00:30:44]:
Oh, that is so good. So, Jay, we are coming to the end of this show. I try to keep it short so that my listeners can get actionable instructions from this episode. Now, in the beginning, you told me that you have a gift for my listeners, and it’s your book where to get the money now. Can you please tell us more so that my Sure? Can you go there and find your book?
Jay Conner [00:31:13]:
Absolutely. This is a bestseller. It’s on Amazon. It’s called Where to get the money now. And don’t spend money on Amazon. I’m gonna show you how you can get the book itself for free. But the subtitle is, how and where to get money for your real estate deals without relying on traditional or hard money lenders. And I’ll autograph the book for you.
Jay Conner [00:31:35]:
I’ll send it to you via express mail, and you can get it at www.JayConner.com/Book. That’s Jay Conner with an e r, not a o r, www.JayConner.com/Book. And there’s a gold medallion up here in the right-hand corner of the book. The book also comes with two tickets to my $3,000 live event, but I’m gonna send you the tickets, called the private money conference. So I’ll also invite you to my private money conference live event, and I’ll rush that right out. This will get you a great foundation, get you started, very easy to read. Again, it’s JayConner.com/book, and I’ll rush it right out.
Bola Alabi [00:32:27]:
Thank you, Jay. I’ll be sure to leave the link in my show notes so that my listeners can connect with you. I appreciate all your wealth of experience, the knowledge, and the information that you have shared with us today. I’m sure I’m confident that my listeners will find this beneficial. Thank you for your time, Jay.
Jay Conner [00:32:50]:
Thank you so much. God bless.
Bola Alabi [00:32:52]:
God bless you too.
Narrator [00:32:58]:
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.
