***Guest Appearance
Credits to:
https://www.youtube.com/@BlueCollarWealthClub
“Becoming a Private Lender with Jay Conner”
https://www.youtube.com/watch?v=x-k2ACFciBk
In the world of real estate investing, securing funds efficiently and reliably can be the linchpin to scaling your business. Jay Conner, a seasoned real estate investor and the so-called “Private Money Authority,” recently shared his invaluable insights on the Blue Collar Wealth Club podcast with host Jerry Garcia. His journey from banker-dependent investor to private money mogul presents a fascinating story of innovation, resilience, and education.
The Turning Point: A Crisis into Opportunity
Jay’s foray into private money was not born out of curiosity but necessity. After six years of relying on traditional bank loans, he faced an unexpected closure of his line of credit in 2009, despite a strong credit history. This abrupt financial crisis pushed him to seek alternative funding methods, leading him to discover private money.
In a conversation with a fellow investor, Jay learned about the world of private lending and self-directed IRAs, where individuals can use their retirement funds to invest in real estate for higher returns. This discovery was pivotal. He realized that the key to raising private money lay in educating potential lenders rather than asking for loans.
Educate First: The Private Money Program
Jay emphasizes the importance of separating the conversation about potential investments from actual funding requests. His approach is based on teaching individuals about the opportunity to become private lenders. He crafted a comprehensive program that includes competitive interest rates, attractive terms, and robust security measures.
By conveying this knowledge through private lender luncheons and one-on-one meetings, Jay effectively secures significant funds without making direct asks. He underscores that desperation has a smell, and by providing information upfront, potential lenders are drawn in by curiosity and interest rather than pressure. This strategy has allowed him to cultivate a network of 47 private lenders, amassing $8.5 million in funds.
Building Trust and Offering Security
For Jay and his private lenders, trust is paramount. He demonstrates his commitment by securing all loans with real estate, providing a 25% equity cushion to safeguard against market fluctuations. Additionally, lenders are named as mortgagees on insurance policies, ensuring their interests are protected.
By acting as the underwriter, Jay guarantees that his deals align with the pre-established terms, eliminating any surprises for lenders. His success in consistently securing private money is rooted in transparency, reliability, and the proactive teaching of financial opportunities.
Empowering Business Owners with Private Lending
Jay extends his insights beyond real estate, suggesting how business owners can leverage private lending. For those seeking to become lenders, he advises knowing the borrower’s experience and securing loans wherever possible. For business owners in need of funds, Jay suggests having a well-planned program to present to potential lenders.
He highlights the advantage of having funds lined up before they are needed, preventing the desperation-driven pitfalls seen in alternative financing options like merchant cash advances. This approach offers business owners a flexible, lower-cost borrowing option, helping them manage cash flow and growth seamlessly.
Beyond Real Estate: A Broader Vision
Jay’s teachings on private money are not confined to real estate. They offer a blueprint for financial empowerment, allowing both lenders and borrowers to achieve their goals more efficiently. Whether it’s funding short-term capital needs in a business or investing in real estate, the principles of private lending are versatile and transformative.
Conclusion: A Journey of Continuous Learning
Listeners keen on exploring private money further can join Jay’s seven-day private money challenge. This educational experience is designed to equip participants with the fundamentals of private money without the complexities of financial jargon.
Jay’s journey from a traditional investor to a private money authority demonstrates the power of education and innovation in overcoming financial challenges. His insights, as shared on the Blue Collar Wealth Club podcast, are invaluable not only for real estate investors but for small business owners and aspiring lenders as well.
For those ready to explore new financial avenues or to deepen their understanding of private lending, diving into Jay Conner’s resources and following his podcast could be a transformative step on their financial journey.
10 Discussion Questions from this Episode:
- How did Jay Conner describe his initial experiences in obtaining financing for real estate deals? What challenges did he face with traditional banking methods?
- Jay Conner mentioned a key question he asked himself that changed the trajectory of his business. What was that question, and how did it impact his approach to raising private money?
- How does Jay differentiate between teaching the private lending opportunity and doing deals, and why does he believe this approach is effective?
- What are some ways Jay ensures the protection of private lenders in his deals?
- How can business owners leverage the concepts discussed by Jay to raise private money for their ventures? What are the potential benefits and challenges?
- Jay highlighted the importance of not appearing desperate when raising private money. Why do you think this mindset is significant in securing funding?
- Discuss the role of education and relationship-building in Jay’s strategy for raising private money. How does this compare to more traditional methods of securing funding?
- How did Jay’s conversation with Wayne lead to his first $500,000, and what does this demonstrate about the power of personal connections in business?
- Reflect on the potential advantages and disadvantages of using private money compared to traditional bank loans for real estate investing.
- What insights did you gain from Jay Conner’s approach to real estate investing and private money that could be applied to other areas of business or personal finance?
Fun facts that were revealed in the episode:
- The Accidental Investor: Jay Conner didn’t originally intend to become a private money master. His journey began by necessity when his line of credit was unexpectedly closed by the bank in 2009, pushing him to explore alternative financing solutions. This crisis turned into an opportunity that led him to discover the world of private money, which now plays a pivotal role in his business success.
- Church Connections: Jay’s first significant private money deal happened through a conversation at church. By approaching a fellow church member for help in spreading the word about his new private lending program, he ended up securing a commitment of $500,000. It’s a perfect example of how genuine connections and community relationships can be a powerful catalyst for financial growth.
- Private Money Maven: Despite being an expert in securing private funding, Jay Conner has never formally asked for money or pitched a deal in the traditional sense. He has successfully raised over $8.5 million by educating potential lenders and creating attractive lending programs. This education-first approach means he avoids the “smell of desperation” and instead builds strong, trust-based relationships with his lenders.
Timestamps:
00:01 Journey Into Private Money Financing
05:03 Exploring Private Lending Options
09:17 Self-Directed IRA Investment Strategy
11:45 Preemptive Education Over Desperation
16:11 Investor Opts for Higher Returns
19:38 Essential Advice for Private Lenders
23:14 Real Estate Collateral for Loans
24:39 Private Lending Benefits for Businesses
30:03 Utilizing Private Capital in Business
30:53 Private Money Investment Guide
Connect With Jay Conner:
Private Money Academy Conference:
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https://www.jayconner.com/MoneyReport
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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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Traditional Financing to Private Lending: Insights from Jay Conner’s Experience
Narrator [00:00:01]:
If you’re a real estate investor wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money, because the money comes first. Now here’s your host, Jay Conner.
Jerry Garcia [00:00:28]:
Hello, and welcome to the Blue Collar Wealth Club podcast. I am your host, Jerry Garcia. Today, we have a special guest. We have Jay Conner, the Private Money Authority, here to discuss some private money options, methods for acquiring real estate, and overall building wealth. So welcome to the show, Jay.
Jay Conner [00:00:49]:
Jerry, thank you so much for inviting me to come along. I’m so excited to be here and to talk about that topic that I’m so excited about, that being private money, because using private money has had more of an impact on our business than anything else we’ve done since being full-time in real estate investing since 02/2003.
Jerry Garcia [00:01:11]:
Fantastic. Well, why don’t you tell us a little bit about how you kinda got started in the private money world, where you came from, and kinda how you kinda met that journey.
Jay Conner [00:01:20]:
Well, I didn’t just wake up one morning and say, hey, I think I’ll go raise me some private money. I backed into it. Success is a lousy teacher, but having a problem, making a mistake, and failure is a fantastic teacher, and that’s how I got into this world of private money. So here’s the story. Carol Joy, my wife, and I started investing in single-family houses here in Eastern North Carolina full-time in 02/2003. And for the first six years from 02/2003 until 02/2009, all I knew to do, Jerry, to get my deals funded, was go to the local bank, get on my hands and knees, put my hands underneath my chin, and say, Please fund my deal. Please fund my deal. And, you know, the banker would, you know, make me pull up my skirt and look at all my assets and give me a colonoscopy and pull my credit and want financial statements.
Jay Conner [00:02:20]:
And so, anyway, that process of getting my deals funded worked okay the first six years. But then in January 2009, I was sitting here at my desk, Jerry, and I had two houses under contract to purchase. And I thought everything was just great. I thought everything was great at the bank. I’ve done a ton of deals in six years, and so I called up my banker. His name was Steve, and I got Steve on the phone, and we had a little chat. So I’m telling him about these two deals that I’ve got under contract, the funding that’s required. And then I learned from that telephone conversation that unbeknownst to me, my line of credit had been closed with no notice.
Jay Conner [00:03:07]:
And I said to Steve, I said Steve, what in the world are you talking about? You’ve closed my line of credit. I said, What’s going on? We’ve done a ton of deals. I got a great credit score. I’ve always made my payments on time. What’s going on? He 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 financial crisis. I don’t have a way to fund my two deals. So I hung up the phone, and I sat here for a moment, Jerry. And I want to share with your audience right now a very powerful question that I ask myself.
Jay Conner [00:03:45]:
And the answer to this question that I asked myself changed the trajectory and the success of my business. And the question I asked myself, I said, Jay, who do you know that can help you with your problem? And by the way, Jerry, these people are going around saying every problem is an opportunity. I wanna throw up. I didn’t have an opportunity. I had a problem. Now that the answer to that problem can turn into an opportunity, which it did. But let’s be real and face the facts. I had a problem.
Jay Conner [00:04:17]:
I got two deals under contract, earnest money tied up that I couldn’t get back in 02/2009, and no way to fund my deals. So what am I gonna do? I asked myself the question, Who do I know that can help me with my problem? I immediately, Jerry thought of a dear friend, Jeff Blankenship. Carol Joy and I saw Jeff and his wife, Megan, and their four kids this past weekend at a gospel a cappella event. And so I immediately thought of Jeff. He was living in Greensboro, North Carolina, at the time, investing in real estate. And so I called him up and I told him what had just happened with my conversation with my banker. And Jeff immediately said, Well, Jay, welcome to the club. I said, What club are you talking about? He said, the club of having the bank close your line of credit.
Jay Conner [00:05:03]:
The bank shut me down last week. I said, well, Jeff, how are you gonna fund your real estate deals with no banking relationship? And Jeff says, well, Jay, have you ever thought of or heard of private money? I said, no. He said, have you ever heard of self directed IRA companies where people, individuals can take their retirement funds, transfer them over to a self directed IRA company, and then they can loan out that money to us real estate investors, get high rates return, and either get their interest back either tax deferred or tax free. I said, Jeff, what in the world are you talking about? I never heard of any of that. And so, Jeff introduced me to those concepts, and I studied private money, and I learned how the self-directed IRA strategy worked. And so what I did, Jerry, is I put together what I call my private lending program that I would teach and that I still teach today to individuals about learning about this opportunity to be a private lender. So I decided that I’m gonna pay 8% in first position loans, 10% in second position loans. I’m having a way that they can get their money back in case of an emergency, so I was gonna offer a ninety-day call option in the promise ring notes.
Jay Conner [00:06:27]:
The length of the note, I decided what I wanted on that, two years, and etcetera, maximum loan to value. So in less than ninety days, I went about simply teaching people in my warm market, people I go to church with, people on my cell phone, people at the rotary club. I just started sharing this opportunity. Well, you know what’s interesting? I got 47 private lenders right now, Jerry, and you know what’s interesting? Not one of them has ever heard of private money and private lending. None of them had ever heard of self-directed IRAs and how they can use existing retirement funds to become a passive real estate investor by being a private lender. So not one of them had ever heard of this until what did I do? I put on my teacher hat. I put on my teacher hat. And my teacher’s hat says private money teacher.
Jay Conner [00:07:22]:
And so, here’s an important mindset to get straight. You see, desperation’s got a smell to it. There’s a writer downer. Desperation’s got a smell. The worst time to be raising private money is when you need it for a deal. And you know, Jerry, since 02/2009, I’ve never asked anybody for money. I’ve never pitched a deal. And people say to me all the time, I say Jay, how in the world have you got 8 and a half million dollars access to private money from individuals that you use over and over and over and over again, and you never asked for money, and you never pitched a deal.
Jay Conner [00:07:57]:
So here’s the secret sauce. We separate the conversation, sharing the initial conversation of being a private lender. Number one, I ask them to make too many decisions. And number two, I sound desperate. So first, we just teach the private lending opportunity with no deal attached to it. Because with no matter no matter what deals are attached to it, it’s the same program. Same interest rate, same criteria, same maximum loan-to-value, etc.. And so once they tell us, I don’t have to ask. I mean, I’m teaching it.
Jay Conner [00:08:39]:
And by the way, I didn’t run around town crazy like with my hair on fire. I mean, I love private lender luncheons. I invited 20 people to my luncheon and had my CPA there, my realtor, my real estate attorney, and it takes the same amount of time to do the PowerPoint presentation and teach this opportunity to 20 people as it does to one person. You know, it only takes twenty minutes. So I raised $969,000 at just one private lender luncheon during those ninety days. So anyway, I went about teaching. They tell me how much they’ve got to work with. They’re interested in investing.
Jay Conner [00:09:17]:
Is it retirement funds? Do I need to introduce them to the self-directed IRA company? And then I tell them, this is exactly what I say to them, Jerry. I say, I’m gonna put your money to work for you just as soon as possible. So then I call them back up. Now, I’m gonna share with your audience right now the exact script, the exact words I say when I’ve got a deal for them to fund without pitching the deal and not asking them to fund the deal. So, Jerry, let’s say you’re one of my new private lenders, and let’s say you had a hundred and 50,000 dollars in retirement funds that you just weren’t happy where they were. It was maybe at some named stock brokerage, or maybe it was a previous four zero one k where you worked. And at my advice and recommendation, you transferred your hundred and 50,000 over to the self-directed IRA company. So that money is sitting there waiting.
Jay Conner [00:10:10]:
You’re waiting for the good news phone call. I told you, I’m gonna put you running to work for you as soon as possible. So I call you up, you answer, we do a little chit-chat, and then here’s the script. I said, Jerry, I got great news for you. I can now put your money to work for you as I promised. I’ve got a house in Newport with an after-repaired value of $200,000 under contract to purchase. The funding required is $150,000, and, of course, that matches up to your funds. Now closing’s gonna be on this property next Thursday.
Jay Conner [00:10:46]:
I’ll need you to have your funds wired to my real estate attorney’s trust account by next Wednesday. I’m gonna have my real estate attorney email you the wiring instructions. That’s the end of the conversation. It’s like, I don’t have to ask you, do you want to do the deal? Of course, you want to do the deal for two reasons. Number one, I’m not bringing you a deal to fund unless it matches the criteria of the program that I already taught you. And secondly, your $150,000 isn’t making any money until I put your money to work. So, that’s the overview as to how we attract money, never having to ask for money, leave with a servant’s heart, no begging, no selling, no persuading, no chasing, offering it. See, there are no applications.
Jay Conner [00:11:32]:
You’re already approved. We are the underwriter. The lender’s not the underwriter of the deal. We are. So it’s a total mind shift.
Jerry Garcia [00:11:45]:
Absolutely. I love that you kind of present that in the way of, you know, presenting the information, presenting kind of the criteria before you ever need the money, because I think that makes such a difference for people. Like you said, people can smell desperation. People know, you know, I I come from the world of mortgage and real estate and, you know, in that world, as the market slows down, you can sense the shift in people seeming desperate to close that next deal, people trying to convince people that a refinance makes sense when it’s borderline at best, people trying to convince people that, you know, now is the time to sell their property when when maybe it’s not the time for them. So I think it’s important to just go out there with the mindset of educating, teaching, about what it is that’s possible. Yeah. And then
Jay Conner [00:12:34]:
And there’s no other
Jerry Garcia [00:12:35]:
Is that they get what’s ready? Yeah. Absolutely.
Jay Conner [00:12:37]:
And there’s and there’s no pressure, you know. I mean, here’s an opportunity that you might never have heard of. Well, my 47 private lenders, they never heard of private money, private lending, self-directed IRAs. And here’s what’s funny about 47 private lenders. By the way, your audience doesn’t need 47 private lenders. You just need one or two to start. You know? I mean, my very first one was $500,000, Jerry. Can I take another minute and share how I got my first five hundred thousand dollars without asking for any money?
Jerry Garcia [00:13:07]:
Please.
Jay Conner [00:13:08]:
So, you know, I was cut off. I was cut off from the bank, and I told that story. So I put my program together, and it was on a Wednesday night at 07:30 at 209 Barber Road, Moorhead City, North Carolina. That’s where the Moorhead City Church of Christ building is located. Carol Joy and I have been members there since 1988. And so I put my program together, and it was at 07:30 at night for Bible study. So we get there, I walk into the foyer, and I’m looking for Wayne is who I’m looking for. Wayne and I have known each other for some time.
Jay Conner [00:13:46]:
And I walk up to Wayne there in the foyer of the church building. Walk up to Wayne, I said, Wayne, I said, after bible study tonight, could we get together for a few minutes? I’ve got something I wanna talk to you about confidentially. He said, Sure. So we finished bible study. We get together. We go down the hall into the nursery, shut the door, and, I said, Wayne, and here’s exactly what I said to Wayne. I said, Wayne, you know everybody in this town. And he did.
Jay Conner [00:14:17]:
He was the original Zenith television dealer. Now, if you don’t know who the original if you don’t know who the zenith Zenith television dealer is, you are too young to remember life before Walmart came to town. Because before Walmart came to town, that’s where you went. You went to the Zenith television dealer to buy your TV. He would finance it for you. You brought them back and got them repaired. You didn’t throw them in the garbage can like you do today. So anyway, and so he had put a television in practically everybody’s home, right, in this area.
Jay Conner [00:14:52]:
He knew everybody. So, back to what I said to Wayne. I said, Wayne, you know everybody in this town. And here comes the magic phrase, Jerry. I said, I need your help. That’s powerful right there. I need your help. Look, God created us to be on this planet to help other people.
Jay Conner [00:15:11]:
So when I said to Wayne, I need your help, his ears perked up. I said, Wayne, you know everybody in this town, and I need your help. And then I said to Wayne, I said Wayne, I’ve now opened up my real estate investing business to people I know and trust by referral only. And when you run across someone who is complaining about the money they’re making in the local certificate or deposit at the bank and the volatility of the stock market, would you refer them to me because I’m now paying insane high rates of return? Wayne looked at me and he said, Well, now, brother Jay, what you got going on there? I said, well, are you saying you might be interested? He said, Well, I might be interested. I said, Well, why is that? He said, well, and my wife and I are only making 3%, and that’s what it was in 02/2009. And it’s coming back down there fast. Let me tell you.
Jay Conner [00:16:11]:
It’s coming back down there fast. He said, We’re only making 3% in the local bank in our CDs, and we’re losing money in the stock market. He said, What kind of rates are you paying, Jay? And I said, well, that sort of depends on the deal. I said, but, you know, what sounds high to you? And he said, well, we’re making 3%. He said, I don’t know, maybe five or 6%. I said, Wayne, I can’t pay you five or 6%, but I can pay you 8%. He said, put me down for $250,000 And so the next day, I went to Wayne and his wife’s home here in Morehead City, and I brought along my program that I’ve been referring to here, as to, you know, what interest rate I pay, how they can get their money back in case they need it, length of the note, frequency of payments, etcetera. So, after two cups of coffee and talking about the opportunity, that $250,000 quickly became $500,000. And so, they pledged that to me, and they said, We’d love to invest and start with $500,000 So, let’s analyze and unpack what happened.
Jay Conner [00:17:23]:
I didn’t ask Wayne for money, right? I asked him for his help to simply spread the word in his community about an opportunity that I have. Now, he’s curious about himself. I explained the program. They come on board. Right? Bear in mind, I didn’t bring up those two deals that I had under contract. Right? Because we’re separating the conversation between the program and doing deals. And by the way, I asked Wayne, you know, for help to spread the word. Boy, did he and his wife spread the word.
Jay Conner [00:17:59]:
I’ve lost count of how many people they referred to us, and Carol joined our company to become a private lenders that are still a private lenders with us today. So that’s just another example of not asking for money. Private lender luncheons, another example of not asking for money. You’re teaching them. You’re teaching them about this world, this opportunity. I run a mastermind group, and I teach them in the mastermind exactly how to attract hundreds of thousands into the millions of private money for their deals without ever having to ask for it.
Jerry Garcia [00:18:39]:
Absolutely. I love that. Tell me a little bit about how business owners can kinda take advantage of these same systems. You’re talking about IRAs and four zero one k’s. And I think a lot of business owners, you know, some of them have these things set up, some of them don’t. But all of them have the opportunity to do the same thing that you’re doing, you know, if they place their money in the right spot.
Jay Conner [00:19:04]:
Sure. So are you asking, Jerry, how business owners can become private lender, or are you asking how business owners can use private money and raise private money?
Jerry Garcia [00:19:16]:
Let’s discuss both. Let’s start with how they can become a private lender once they, you know, if they’ve established a successful business and, you know, they’re trying to defer taxes as much as possible. So let’s say they do open up that, you know, a four zero one k for self-employed individuals or, you know, self-directed IRA or something self-employed kind of retirement account.
Jay Conner [00:19:38]:
Sure. So first of all, if you are interested in becoming a private lender, then you had better know who you are lending to. And what I mean by know is know their track record. Right? Like, for instance, for all my private lenders, they know I’ve, I’ve rehabbed and flipped over 500 houses right right around here, you know, in this local record. I mean, this is in this local area. And so, you know, what kind of experience? You know? I mean, does the real estate investor, entrepreneur know what they’re doing? So, I mean, nobody’s gonna lend money unless they trust where they are lending to. Now, in my case, I never borrow unsecured money. I always secure the promissory note and collateralize that note with the real estate that I’m purchasing.
Jay Conner [00:20:37]:
So, all the notes are backed by the real estate. And so, that answers the question: how do we protect the private lenders? Well, in the world of real estate, we protect them in various ways. Number one, we don’t borrow more than 75% of the after-repaired value of a property. That way, they’ve got a 25% equity cushion. So if, you know, prices come down before the property is sold, there’s plenty of room to bring those prices down, and the private lender is protected and can be made whole. So it’s a conservative loan-to-value. Again, we’re not borrowing unsecured. We’re gonna collateralize that note with the real estate.
Jay Conner [00:21:19]:
And then, additionally, we name the private lender as the mortgagee on the insurance policy. You see, the private lender is the bank. We’re not joint venturing on the deal. You know, the private lender does not own any, does not have any percent ownership of the property, but they are secured just like the local bank is. So the private lender is the bank. So we named the private lenders the mortgagee, which means if there’s ever an insurance claim against the property, the insurance company is gonna make that check payable to not only my company, but also to the private lender. So the private lender’s got to sign off on that check before it can be cashed. That’s another layer of protection.
Jay Conner [00:22:09]:
We’re also gonna name the private lender on the title policy as an additional insured in case there’s any title issues down the road. So again, the private lender is protected just like a traditional bank would be protected.
Jerry Garcia [00:22:26]:
Absolutely. I love that. That’s a great way for people to get started. How do you think business owners can utilize these private, you know, these private lending funds to help themselves or to help them kinda grow their wealth?
Jay Conner [00:22:39]:
Sure. So in that case, you would not be able to secure as a borrower if you’re a business owner. You’re not backing it with real estate. It would just be unsecured promissory notes. So you would want to put your program together, decide on, you know, what interest rates you’re gonna pay. I can tell you that 8% for people who have never been private lenders before is a very attractive rate, even in today’s market. You’re gonna give them a promissory note. Think about other ways that you can protect the private lender.
Jay Conner [00:23:14]:
Right? I mean, do you have real estate? Do you mean the business that you have? Do you own the building? Could you give them, could there be a way that you could collateralize the note, other than just having a promissory note and it being unsecured? But I would recommend going about it the same way, and that is you teach the program, here’s what you have available, and, of course, you want to let them know what you’re gonna use the money for. Right? I mean, obviously, in my world, I’m using it to invest in real estate. But what are you gonna use the money for? And, I mean, the only limit is your creativity as to what you want to offer. I mean, how long do you need the money? Right? Is this gonna be a one-year note? Is it gonna be a two-year note? You know, that type of thing. And it all comes down to the private lender feeling comfortable, trusting you, and understanding what the risk is. Right? Like in my case, if I don’t pay them, the property does. Now, they don’t want to mess with the property. That’s why they want to be a passive investor, a passive private lender, if you will.
Jay Conner [00:24:30]:
So, think about how you can mitigate the risk of not paying them. How are they protected?
Jerry Garcia [00:24:39]:
Absolutely. And I think private lending could be a huge benefit for anybody who owns a business. I mean, tthereany countless numbers of things that people need money for in a business sense, and it could be short-term. A lot of times it is. And typically, the number one thing they go for is these merchant cash advances, which have super high payback terms. And, you know, sometimes payments are required daily, weekly, or monthly, depending on the length and the amount of money you need. And, really, a lot of times you see business owners get into trouble because they take out an MCA to, you know, pay off some debt or help make payroll or whatever the case is. And they do that, but then they get in trouble again in a month or two, and these things, you know, start to snowball on each other.
Jerry Garcia [00:25:24]:
And so, you know, if, like you said, you’re having these conversations with those, you know, with some capital to deploy before you need it, you know, you may have that opportunity to say, hey. You know, we had talked about this a while back. I do need some money right now. I just need to I need to borrow some funds for a week or two, or a month or two. And, you know, here’s what I can offer you on payback terms. And there’s just a lot of opportunity there. And it’s a whole world that, I think, a lot of people, especially blue-collar business owners, have no idea even exists out there.
Jay Conner [00:25:59]:
Sure. So
Jerry Garcia [00:26:00]:
Absolutely. Appreciate the info. It’s awesome.
Jay Conner [00:26:02]:
Jerry. And you bring up a good point that I made earlier, and it applies in the world of, you know, small business owners, and that is raising the money. Don’t use it. Don’t use it, but have it over there available before you need it.
Jerry Garcia [00:26:23]:
Yep. 100%. No. This is all great. I appreciate the info. It’s always great to learn about new methods. And this is a strategy that can be used kind of on both sides of the coin, as a business owner if you need some quick funds, or on the back end as you’re trying to build that lasting wealth for yourself and your family. You can get into that as well.
Jerry Garcia [00:26:45]:
Once you’ve, you know, reached that point where you’re able to put money away and you have that retirement account, being able to utilize these self directed IRAs, or four zero one k’s, and, you know, help be that private lender to others, you know, either on a short term basis like yourself, or even in long term, scenarios where people are looking for capital for multifamily syndications, things along that line as well. So very cool. Well, tell, tell our audience a little bit more of you know, if they wanna learn more about what you do and what you teach, how can they get hold of you?
Jay Conner [00:27:19]: Jerry. Thank you for offering that. So I want to let everybody know I’m so excited. I’ve just recently launched my private money challenge. And what in the world’s the private money challenge? Well, it’s a seven-day private money challenge. And what happens is it’s a series of seven videos, and each video is only fifteen to twenty minutes long. Not that long at all. It’s very digestible.
Jay Conner [00:27:45]:
And when you enroll in www.PrivateMoneyChallenge.com, you’ll instantly receive the very first video. And then the next six days at 9 AM Eastern time, you’ll get each subsequent video. And so you’ll learn all the basics on raising private money, no matter what you need it for. And I promise you we’re going to have a good time because I’m right there on the videos with you, engaging with you, giving you a little bit of homework to do, you know, to put this information into action. And here’s how you enroll. Go to www.privatemoneychallenge.com. That’s www.privatemoneychallenge.com. Come join me, have some fun, and let’s get you some private money.
Jerry Garcia [00:28:31]:
Awesome. That’s great. Well, one more question for you. Tell us about a book that kinda helped you along this path or helped you learn a little bit of the tools that you have now, to, you know, kinda reach these goals that you’ve had for yourself.
Jay Conner [00:28:45]:
Well, I’m gonna share a book that I read years ago that changed my mindset, and it’s still in print. The name of the book is University of Success by Og Mandino. University of Success by Og Mandino. Phenomenal book. Each chapter is very, very short, and he has several different authors who are contributing to the book. So, University of Success, I highly recommend. But let me do a second one as well.
Jerry Garcia [00:29:17]:
Yeah. Absolutely, please.
Jay Conner [00:29:19]:
Jack Canfield’s book is titled The Success Principles. The Success Principles. There are 69 success principles in that book, and they are fantastic. And I didn’t mention this, Jerry. Another way to be connected and plugged into private money is I’d love to invite your audience to come check out my podcast. I’m now in my eighth year of podcasting. And believe it or not, Jerry, I know you’re gonna be shocked. The title and name of my podcast are Raising Private Money with Jay Conner.
Jay Conner [00:29:53]:
So, whatever your favorite podcast platform is, it’s easy to find. Just search for Raising Private Money, and I’ll see you right there.
Jerry Garcia [00:30:03]:
Awesome. Well, thank you so much. A lot of great information, a lot of great ways that we can utilize private capital. I think it’s a severely underutilized tool in the small business world. I think just because most people don’t know that it’s out there, and I think that, you know, you gave us a lot of key pointers and a lot of golden information. So I appreciate you taking the time to come out and speak to the audience, and I hope everyone checks out your link. We’ll put that in the show notes, to come to your private money course there. And, hope we can stay in touch and really wanna kinda hear about what you’re doing and how everything’s going, and we’ll have to have you back on again shortly.
Jay Conner [00:30:42]:
That’s great, Jerry. I’d love to come back. Thank you so much, and God bless you.
Jerry Garcia [00:30:47]:
Awesome. Appreciate it, Jay. Well, that’s it for this episode, guys. We will catch you next time.
Narrator [00:30:53]:
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.
