***Guest Appearance
Credits to:
https://www.youtube.com/@EG_Developer
“The Art of Raising Capital”
https://www.youtube.com/watch?v=oo0HNrZOvtI
If you’re a real estate investor or developer wrestling with the age-old question—how do I find funding for my deals?—You’re not alone. Most of us start in the same place: we turn to banks, endure rigorous credit checks, and cross our fingers that the funds come through. But as veteran investor Jay Conner shared in his interview with Eugene Gershman, there’s a better way: Raising Private Money.
In this episode, we’ll break down Jay’s method for leveraging private lenders—a system that not only allows you to fund deals quickly but puts you firmly in the driver’s seat.
The Bank Shutdown That Sparked a Change
Jay’s journey into private money began out of necessity. For years, he’d relied on banks, but in 2009, his line of credit was abruptly closed. With deals under contract and no financing in sight, he asked himself, “Who do I know that can help?” That call led him to the world of private money, where individuals, often using their retirement funds, can invest in real estate for higher, safer returns.
Don’t Beg for Money: Teach Instead
One of Jay’s core philosophies? Don’t chase money—attract it by teaching. Instead of pitching individual deals with desperation, Jay developed a private money “program.” He educated potential lenders on what private money is, how it works, and why it’s mutually beneficial—all before bringing any specific investment opportunity to the table.
By wearing his “teacher hat,” he positioned himself as a knowledgeable, trustworthy guide rather than someone begging for help. This simple shift allowed him to raise over $2 million in 90 days.
The Secret: Separate the Funding Conversation from the Deal
Jay Conner emphasizes that the worst time to raise money is when you need it urgently for a deal; desperation has a scent that savvy investors can detect. Instead, he recommends cultivating interest in your program beforehand. Explain your investment approach, outline your terms (like 8-10% interest, first or second lien position, borrowing up to 75% of after-repair value), and show potential lenders how their money is protected.
When a deal arises, you call with “great news”—not a desperate plea. The money is already pledged, and investors are ready and waiting.
Indirect Outreach: Ask for Referrals, Not Funds
A genius part of Jay’s approach is the indirect ask. Rather than pitching investments directly, he’d connect with well-networked locals (like the town’s original Zenith TV dealer!), share that he’s helping people earn high rates of return, and ask for referrals. More often than not, people would express interest themselves or spread the word to their circles.
This reflective, relationship-driven technique allowed Jay to build a network of 47 private lenders, most of whom had never even heard of private money lending before he educated them.
Scaling Up: From Small Deals to Millions
Is this approach scalable? Absolutely. Whether you need $500,000 or $10 million, Jay’s model works by adapting your outreach. For example, he’s raised nearly a million dollars in a single luncheon by teaching his program to a room of community influencers. He regularly uses presentations, podcasts, and word-of-mouth to reach potential lenders, rather than relying solely on one-on-one conversations.
The Role of Self-Directed IRAs
A powerful hack in the private money world is using self-directed IRAs. Many investors have retirement funds languishing with low returns. By educating them on how to use these funds for private lending, Jay unlocks a huge pool of capital, often tax-advantaged for the lender.
Final Tips
- Lead with value. Teach, don’t pitch.
- Build relationships ahead of time. Don’t wait until you’re desperate for funding.
- Leverage influencers and referrals. Your next lender is often just one introduction away.
- Emphasize safety and security. Collateral, insurance, and clear terms build trust.
Private money isn’t a “get rich quick” tactic, but with consistent education and relationship-building, it can transform your real estate business, regardless of your market size.
Interested in learning more? Jay offers a free Private Money Challenge at www.PrivateMoneyChallenge.com, with bite-sized videos explaining the basics, alongside his long-running podcast, “Raising Private Money.”
10 Discussion Questions from this Episode:
- How does Jay Conner suggest approaching potential private lenders when trying to raise funds for real estate investments?
- What key lesson did Jay Conner learn when his bank line of credit was unexpectedly closed in 2009?
- Discuss the importance of putting on a “teacher hat” in the context of raising private money, as mentioned by Jay Conner.
- What does Jay Conner mean by the “worst time to be raising private money is when you need it for a deal”?
- How does Jay Conner differentiate between direct and indirect methods of attracting private lenders?
- Analyze the concept of using self-directed IRAs for private lending and how it can benefit real estate investors.
- What are some key elements of the private lending program that Jay Conner offers to his lenders?
- How can leveraging relationships and networking be effective in scaling private money raising efforts, according to Jay Conner’s experience?
- In what ways does Jay Conner suggest ensuring that private lenders are comfortable and secure in their investments?
- Reflect on how the global financial crisis affected Jay Conner’s perspective and strategy in real estate investment funding. What changes did he implement?
Fun facts that were revealed in the episode:
- Jay Conner Raised Over $2 Million in Private Money in Less Than 90 Days: After being cut off by his bank in 2009, Jay quickly pivoted and developed a system to attract private lenders, raising over $2 million in less than three months—without ever pitching a deal or asking for money directly.
- Jay Uses a “Teacher Hat” Approach to Raising Money: Instead of begging for loans or pitching investments to friends and contacts, Jay focuses on educating people about private lending and self-directed IRAs. By teaching his program, he inspires potential investors to come to him, making them eager to get involved.
- Jay Once Raised Nearly $1 Million at a Single Luncheon: By inviting about 20 local influencers to a lunch where he shared his private lending program (without pitching any specific deal), Jay was able to raise almost a million dollars in one sitting—demonstrating the power of networking and education when raising capital.
Timestamps:
00:01 Raising Private Money Strategy
03:22 Problem-Solving Through Networking
07:49 Prepare Investors in Advance
10:11 Private Money Investment Timeframes
14:18 Referral-Based Real Estate Opportunity
19:09 Private Lender Protection Strategies
21:59 Million-Dollar Luncheon Strategy
22:55 Civic Group IRA Strategy Insights
26:33 Navigating Passive Real Estate Investment
Connect With Jay Conner:
Private Money Academy Conference:
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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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Proven Techniques to Secure Private Money in 90 Days with Jay Conner
Narrator[00:00:01]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money, because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:00:28]:
The only thing I knew to do, Eugene, to get funding for my deals was go to the local bank, get on my hands and knees, put my hands underneath my chin and say, please fund my deal and raise my skirt so they could look at all my assets and give me a colonoscopy and pull my credit. The worst time to be raising private money is when you need it for a deal. We never take our own money to the closing table. And the skin in the game, by the way, is the equity that’s already built. Now, if you don’t remember who the Zenith television dealer was in your town, that means you’re too young to remember life before Walmart came to town. One, I make the rules. I’m the underwriter. Legacy.
Eugene Gershman [00:01:12]:
But you don’t ask for money directly. Nobody wants to be begged for money. You ask them for help, for advice, for referrals. Legacy. And welcome to another episode of real estate development, land to legacy. Today, we’re talking to Jake Connor, who is going to teach us how to raise funds for our real estate projects. Welcome, Jake.
Jay Conner [00:01:45]:
Eugene, thank you so much for inviting me to come along and join your party and to talk about my favorite topic that I’m so passionate about. That’s private money.
Eugene Gershman [00:01:55]:
So this is a very common topic. We frequently talk to developers who call us and say we’ve got this amazing project, and we are struggling to raise funds for it. So,o where does one start?
Jay Conner [00:02:09]:
Well, that’s a good question. I started investing in single-family houses here in Eastern North Carolina back in 02/2003. And the only thing I knew to do, Eugene, to get funding for my deals was go to the local bank, get on my hands and knees, put my hands underneath my chin, and say, please fund my deal, and raise my skirt so they could look at all my assets, and give me a colonoscopy, and pull my credit, and hope and pray. Well, that worked okay. I had great credit. And this was back in the day when you could get unsecured lines of credit. Well, that worked okay from 02/2003 until 02/2009. And then in January 2009, for goodness’ sake, I was sitting here at my desk.
Jay Conner [00:02:55]:
I had two properties under contract to buy. And I called up my banker. His name was Steve. And I told him about the project. Steve and I had this conversation many times. And I learned like that over the phone that the bank had closed my line of credit with no notice to me whatsoever. And I said, Steve, what in the world are you saying you closed my line of credit? We’ve had a great relationship, never had on payments. My credit score is still great.
Jay Conner [00:03:22]:
I said, Why are you telling me you’ve closed my line of credit? And Steve said, Jay, don’t you know there’s a global financial crisis going on right now? So I hung up the phone, Eugene, and I wanna share this that I asked myself a question I’ve ever asked myself and that anybody could ask themselves, and it will help fix any problem anybody’s got. I don’t care if it’s financial, relationships, or health; it doesn’t matter. Here’s the question I asked myself. I said, Jay, who do you know that can help fix your problem? Well, immediately, when I asked myself that question, who do I know? I immediately thought of Jeff Blankenship, who lived in Greensboro, North Carolina, at the time. A good friend of mine and my wife, Carol Joy. He was investing in real estate. I called him up. I told him what had just happened.
Jay Conner [00:04:09]:
The bank had cut me off. He said, Jay, well, welcome to the club. I said, What club is that? He said, the club of having the bank shut you down. My bank shut me down last week. I said, Well, Jeff, how are you gonna fund your real estate deals? He said, Well, have you ever heard of private money? I said, no. He says, Have you ever heard of self-directed IRAs and how individuals can use retirement funds that they’ve got to loan out to real estate investors and earn high rates of return safely and securely, either tax deferred or tax free. I said, you’re talking a whole different world, Jeff, I ain’t never heard about. So I hung up the phone, and Eugene, I studied private money.
Jay Conner [00:04:47]:
And, so what did I do? I didn’t run around town selling, begging, trying to persuade, or talk anybody into loaning me money. What I did I raise over $2,000,000 in less than ninety days. I’ve raised now 8 and a half million dollars that I just keep using over and over again on our real estate deals. What I did, I decided I didn’t wanna chase anybody. I wanted to do this, and here it is. I put on my teacher hat. I put on my teacher hat as a private money teacher. And so I put my program together as to what I was going to offer.
Jay Conner [00:05:23]:
You see, instead of asking for a mortgage, we’re offering a mortgage or offering away for people to high rates of return safely and securely. So I put together, without associating with any deal, I put together, okay. Here’s the interest rate I’m gonna pay. Here’s how I’m gonna put this program together. And I went about starting to teach people what the program is, without having a deal associated with it. Desperation’s got a smell to it. The worst time to be raising private money is when you need it for a deal. Right? So I’d have people just pledge to my program.
Jay Conner [00:05:53]:
I said, Jay, I got 200,000. I’d love to start with. I got 250,000. One guy started. I got 650,000, I’d like to start with. And then I come back to them and offer to put their money to work. So I’ve never pitched a deal. So first, you see that here’s the secret. You separate the conversations of having a private money program for people to loan you money, and then coming back for a deal for them to fund.
Jay Conner [00:06:20]:
So I’ve never pitched a deal. When I’ve got a deal for them to fund, I simply call them up with the good news phone call, Eugene, and here’s the script. And I’m gonna turn it back to you. Here’s the script. I call them up. I say, I’ve got great news. I can now put your money to work. I’ve got a house in Newport under contract with an after-repaired value of $200,000.
Jay Conner [00:06:41]:
The funding required for the deal is 50,000. I know they got it. They already told me. Closing’s next Friday. You need to wire your funds to my real estate attorney by next Thursday, and I’m gonna have my real estate attorney wire, I mean, email you the wiring instructions. That’s the end of the conversation. The most stupid thing I could do is ask them, Do you want to fund the deal? Of course, they want to fund the deal. I already taught them what the underwriting criteria are.
Jay Conner [00:07:06]:
And particularly, if they have moved their retirement funds over to a self-directed IRA company at my recommendation, they’re not making any money until I put their money to work, so I’m ethically bound to put their money to work and get their money invested. So, again, it’s all about leading with a servant’s heart, having your teacher hat on, teaching people what this word is all about. You know what’s interesting, Eugene? I got 47 private lenders, and not one of them had ever heard of private money or private lending until I told them about it. And not one of them had ever heard of self-directed IRAs and how you can use retirement funds to be a private lender. Over half of my private lenders are using retirement funds. So it’s all about teaching.
Eugene Gershman [00:07:49]:
So the message here is to educate yourself ahead of time. So when you need the money, you could just give them a call, and they’re ready to invest. So if I am working on a new project, happen to be in real estate development, and I am halfway through, we’re getting the building designed, we’re working through the permits, and I’m getting ready to go to the bank because that’s where I think my money’s at for me to build the building. But the bank is telling me that I need to add, you know, half a million dollars or a couple of million dollars, depending on the project size, of additional equity. And now I’m stuck because I haven’t done the work that you’re teaching to do ahead of time, and I need to go back and start from the beginning. How long does it take to build this momentum to have these people waiting and eager to invest with you?
Jay Conner [00:08:45]:
Less than ninety days. But that also depends on how much money you’re looking to raise. Right? So I’ve raised a lot of private money for single-family houses. I’ve got a lot of friends who, in the commercial world, see everything that I do with single-family houses as what’s called one-offs. So we’re not even regulated by the SEC in this world of single-family houses. You have a single-family house, and then you have a private lender, an individual, or maybe a couple of private lenders that are now funding that deal. They each have their promissory note. They each have their mortgage or deed of trust, as it is here in North Carolina.
Jay Conner [00:09:22]:
In the world of commercial, what you will want to do is what we call syndication. And, of course, Eugene, you know all about that. That’s where you hire the SEC attorney. They prepare a private placement memorandum, and you’re gonna raise money for your fund. And then it’s that fund that’s gonna take care of the gap in between what your primary commercial lender will loan and the rest for the cost of build or build out, etc. That’s also a very popular strategy in multifamily. So, if you’re doing multifamily, very common to have a syndication and raise money either for the entire project. You can have a fund for people to invest in to purchase and then add value, do a value add.
Jay Conner [00:10:11]:
And those are typically a three year to five-year turnaround on that. In this world of single-family houses, the turnaround is typically within twelve months on rehab and single-family houses. So, you know, it’s just a matter of what kind of appetite individuals have, you know, how comfortable they are having their money either tied up for twelve months, three years, five years, etcetera. Private money puts you in the driver’s seat, whether you’re doing new development, you’re investing in a current project that you wanna do in a value add, or single-family houses. And again, depending on how much I mean, you know, I’ve got a lot of students that come to me to learn how to raise private money. And all the time, they’ll get $500,000 and more. It’s commercial development. You’re gonna need more than $500,000.
Jay Conner [00:11:04]:
So give yourself ninety days.
Eugene Gershman [00:11:08]:
Excellent. So, ninety days to raise the funds. Typically, when people think about fundraising, the first thing that comes to mind is, well, I gotta open my phone book and call everybody in my phone book that I think has money and pitch them this deal. Is that the way to go, or is there a better approach?
Jay Conner [00:11:28]:
Well, there’s the direct method and there’s the indirect method. Right? So we’ll talk about the direct method for a second, but I much prefer the indirect method of conversing or starting a conversation. So here’s what I’m talking about. The direct method of a conversation for attracting money employs what I call the magic question. And the magic question is, quote unquote, do you have investment capital and or retirement funds not giving you a high rate of return safely and securely? And that’s the direct method. You’re not gonna start a conversation like that. That’s gonna be like a by the way. You’re having a conversation already.
Jay Conner [00:12:06]:
So, here’s how the indirect method of attracting money without asking for money. I’ll share it with you in a short story. So, when the bank cut me off back in 02/2009, as I said, one of the first things I did was I put my program together, my private lending program, that I was gonna offer to individuals. Regardless of the property, it’s all the same. Same interest rates, same length of the note, same loan-to-value. By the way, we borrow money based on the after-repair value. That’s why we always bring home a big check when we buy. We never take any of our own money to the closing table. And the skin in the game, by the way, is the equity that’s already built into the property.
Jay Conner [00:12:48]:
So I put my program together, and then I was going to bible study on a Wednesday night here in Morehead City at the Church of Christ on Barber Road. And I walked into the foyer, and I knew I wanted to talk with Wayne. Now, Wayne and I have known each other for several years. I walked up to Wayne. I said, Wayne, I’d like to talk with you about something confidential. When he said, Sure. So, everything’s finished. We went down to the nursery, shut the door.
Jay Conner [00:13:16]:
Here’s exactly what I said to Wayne. Exactly. I said, Wayne, you know everybody in this town. And he did. He was the original. Now, Eugene, you’re not gonna be old enough to remember what I’m getting ready to say. But Wayne was the original Zenith television dealer here in Morehead City, North Carolina. Now, if you don’t remember who the Zenith television dealer was in your town, that means you’re too young to remember life before Walmart came to town.
Jay Conner [00:13:52]:
The Zenith television dealer, that’s who you got your TVs from. They financed them. They repaired TVs back then, before you just throw them out and buy a new one. So anyway, Wayne was the Zenith television dealer, and he was retired. I said, well, and that’s why he knew everybody in town. He put a television in everybody’s house. Right? And I said, Wayne, you know everybody in this town. And he was very, very well connected to the Rotary Club and all that.
Jay Conner [00:14:18]:
I need your help. There’s the magic phrase for the indirect method. I said, Wayne, I need your help. I said, you see, I’ve now opened up my real estate investing business by referral only and by word-of-mouth to people that I know and trust. And when you run across somebody who is complaining about losing money in the stock market and the volatility of the stock market, and making hardly any money in the certificate of deposit at the local bank. Would you refer them to me, and I’ll tell them about how I’m paying my investors insane high rates of return? Wayne paused there for a second. He says, Well, now, brother Jay, what you got going on there? And I said, well, Wayne, are you saying that you might be interested? He said, Yeah. I might be interested.
Jay Conner [00:15:08]:
I said, Why is that? He says, well, we’re losing money in the stock market, and we’re only making 3% at the local bank. And that’s after two cups of coffee and a conversation, that 250,000 became 500,000 that next afternoon at their house. So, let’s take a second and analyze and unpack that story. Notice, I didn’t ask him for any money. I asked I asked him to just spread the word that I’m now paying very, very high rates of return to my investors and my real estate deals, and just passed the word on. He asked about details. I told him. Now they’re signed up, and I didn’t say anything about any deals.
Jay Conner [00:15:47]:
They quickly became a $500,000 private lender, and then they did exactly what I asked them to do. They spread the word. I lost count of how many private lenders came to me just on the word-of-mouth of Wayne and his wife, spreading the word. So it’s called leveraging your relationships. And, I mean, people wanna help out. And so all I did was ask him to spread the word. They came right on as a private lender, and they spread the word. That’s how you start.
Jay Conner [00:16:19]:
Well, that’s not really how you start. How you start is that you need to know what you’re gonna offer. Right? You need to know what you gonna offer your private lenders or your investors. And here’s a spoiler alert. Before Eugene ends the show and thanks me for coming on, I have a way that you can learn very quickly what the program is that I offer my lenders.
Eugene Gershman [00:16:44]:
Okay. You gotta tell us about the program.
Jay Conner [00:16:47]:
Well, let me go ahead and give your audience an invitation, Eugene, and then I’ll talk about the program. So I just recently finished recording my brand new private money challenge. So it’s a seven-seven videos, only fifteen to twenty minutes long each. Gives you the basics of private money. And you can enroll if you’re listening to this show; you can enroll at www.privatemoneychallenge.com. Again, that’s www.privatemoneychallenge.com. You’ll immediately get the first video in your email inbox. Then, the next six days, you’ll get the next video at 9 AM Eastern.
Jay Conner [00:17:26]:
But here’s the gist of the program. The percentage rate. I pay 8% or I pay 10%. That’s 8% in first position, 10% in second position. I’ve been paying the same thing, Eugene, since February 2009. That’s the same thing I pay today. And, you know, something interesting that people will say to me, they say, Jay, in this market of what interest rates have done the past year, the past year and a half, how in the world are you still paying your private lenders the same thing that you were in 02/2009? I said, well, there are two big reasons. Number one, I make the rules.
Jay Conner [00:18:09]:
I’m the underwriter. Not the lender. I’m the underwriter. I make the rules. Here’s what’s offered. The second reason is that 8% is still a whole lot more money than 4% or four and a half percent at the local bank. And the third reason there’s so much more money out here than there are deals. There’s so much more money available just sitting on the sidelines.
Jay Conner [00:18:33]:
So, anyway, 8%, ten % in second position. My maximum loan-to-value is 75% of the after-repaired value, not 75% of the purchase price, but 75% of the after-repaired value. The length of the note is typically two years. I’m typically not going to use the money for two years, but that’s what we set the note up as. And then, I protect my private lenders in multiple ways. This is what I teach them with my teacher hat on. So, I’m not gonna borrow unsecured money. I’m gonna collateralize that promissory note with the real estate.
Jay Conner [00:19:09]:
I’m gonna name them on the insurance policy as the mortgagee. That way, if there’s ever a claim against that mortgage, that insurance policy, the insurance company is gonna make the check payable to the mortgagee and my company. So they gotta sign off on that check. I’m gonna name them on the title policy, as an additional insured in case there’s any title issues down the road. I’m gonna give them a ninety-day call option. Right? A ninety-day call option, which means if they’ve got an emergency and they need their money back early, just let me know, and I’ll replace their private money with another one of our private lenders’ money. So, it’s very easy. I don’t charge them any kind of penalty if they call the note due early.
Jay Conner [00:19:51]:
Most programs, like putting money in a CD at the local bank, are gonna charge a penalty. I’ve only had two small notes called due early, and it’s because they had medical issues going on, and they needed the money for the medical. So, anyway, that’s awesome.
Eugene Gershman [00:20:06]:
That sounds great. But you don’t ask for money directly. Nobody wants to beg for money. You ask them for help, for advice, for referrals, essentially, and introduce the product and hope that they become interested. How do you scale this? You know, I can see that working if you need to raise a couple of hundred thousand. If you need to scale that up to, you know, a couple million, 2 million, 3 million, 10 million, does the same model work?
Jay Conner [00:20:32]:
Yeah. I’ve scaled mine to 8 and a half million. And I don’t raise any more private money because I just keep using the same money over and over again to, you know, projects. I raised 2 and a half million in ninety days. Right? So, this model works if you’re not in a rush. A lot of times, I’ve introduced the concept to an individual. It might be two years before they have retirement funds available. This entire 8 and a half million probably didn’t take over two to three years kind of thing.
Jay Conner [00:21:09]:
But I’m still only doing two to three deals a month, single-family houses. Our average profits are $82,000 per deal. So, really, how much do you need to raise? You don’t need 47 private lenders. Right? You only need, like, a couple to get started. Coming to a very, very small market, Eugene, our total target market is only 40,000 people here in Eastern North Carolina, which does make a point. I’d much rather be a big fish in a small pond and dominate the market, rather than competing with all those other real estate investors in large populated areas.
Eugene Gershman [00:21:49]:
Interesting. But the key is still to find a handful of influencers, right, that could potentially refer you to their group of peers.
Jay Conner [00:21:59]:
I raised almost a million dollars at one sixty minute luncheon. What did I do? I invited about 20 influencers from our town here, and I had my CPA and my realtor, and my real estate attorney at the luncheon. Had it at the Dunes Club, Atlantic Beach, North Carolina, the nicest place around here that I could have it. And I bought them lunch, and I took twenty minutes. I put on my teacher hat, and I taught the program without pitching a deal. It takes the same amount of time to teach what you’re offering to 20 people as it does to one person. So I just leveraged the time, and just at that one, probably under lunch, and almost a million dollars. How else can you get the word out? I have a PowerPoint presentation that and my mastermind members, I run a mastermind group for real estate investors wanting to raise money.
Jay Conner [00:22:55]:
This PowerPoint presentation is what I call the civic group presentation. So it’s a teaching presentation. It does not teach private money, but it plants the seed at the end of it. Essentially, here’s what the presentation teaches: how you can put $100 in a self-directed IRA company. $100. You can go find a real estate deal, a single-family house, and get an option on it, an assignment fee of 10,000 or $20,000, and that’s in your Roth IRA at a self-directed IRA company; you just made 10,000 or $20,000 tax-free in your Roth IRA. Well, that blows their mind. I mean, these sophisticated smart business people at the Rotary Club, they never heard of this strategy and what self-reported IRAs are.
Jay Conner [00:23:45]:
But then at the end of the presentation, we say, and by the way, if you don’t want to find deals, if you don’t want to negotiate deals, and you just want to be a passive real estate investor with your retirement funds, then here’s this world of private lending, how you can just sit back, collect checks, and do nothing, and earn super high rates of return. I’ve got an audio, and then we put up the QR code on the PowerPoint. Here’s a QR code. Listen to the sixteen-minute audio, and it will introduce you to this world of private money lending. So that presentation in twenty minutes is a lead generator for potential private lenders that have never heard about this.
Eugene Gershman [00:24:26]:
Wonderful. That’s amazing. So let’s talk a little bit about the self-directed IRA business. I’ve heard about it. I know that a lot of people are doing this, but can you explain a little more? Sure. It sounds like a wonderful hack to make some money and not pay taxes. Right?
Jay Conner [00:24:41]:
Oh, yes. So self directed IRAs, there’s a handful of self-directed IRA companies in the nation. They are IRS-approved. They are also called a third-party custodian. And so just simply, you know, go to Google and, you know, you wanna find one near you if you can. But just Google self-directed IRAs. Well, here’s the way it works. An individual can take a current retirement account, such as it could be in Schwab.
Jay Conner [00:25:12]:
It could be in Morgan Stanley. It could be in the big stock brokers. It could be in a four-zero-one K company, and they established their account. Now, the private lender, the individual who’s moved that money over, can lend that money out on real estate. And interestingly enough, over 70% of account holders in self-directed IRA companies want to lend money out to real estate investors. That’s a great place to network. Right? Find self-directed IRA companies that are having networking events. And there are a bunch of private lenders.
Jay Conner [00:25:47]:
However, that’s a negotiation conversation because those people already know about this world. I’d rather have on my teacher hat, teach people that’s never heard of this, tell them my program, then they move their current retirement funds over. So, depending on the type of account they’ve got, if they’ve got like a four zero one k that they moved over, then the money they’re gonna earn is tax deferred until it’s distributed. However, if they have a Roth IRA, that IRA is established with after-tax funds. So, they’ve got a Roth IRA. All the returns that they earn are tax-free. So, it’s an amazing strategy. I highly recommend you research it.
Jay Conner [00:26:29]:
She is all about self-directed IRAs.
Eugene Gershman [00:26:33]:
Excellent. That’s wonderful advice. Very useful. And definitely, everybody who’s interested in passive real estate investing, self-directed IRAs, a path to investigate. There are a lot of rules about it that cannot be ignored. It could be regulated. It could be that you could be audited if you don’t do things right, but a wonderful way to invest in real estate and avoid future taxes.
Jay Conner [00:26:59]:
Exactly.
Eugene Gershman [00:27:00]:
Jay Conant, thank you very much for joining us. Very useful information. Once again, why don’t you share your contact information, and we’ll put that in the show notes.
Jay Conner [00:27:08]:
Absolutely. So, enroll in the private money challenge at www.privatemoneychallenge.com. Also, come check out my podcast. I’m in my eighth year of podcasting. The name of my show is, believe it or not, Raising Private Money with Jay Conner. It’s on all the platforms. And I’m an ER, by the way, c o n n e r. So come check it out.
Jay Conner [00:27:32]:
You can reach me. We pick up the phone when you call our office. Isn’t that a novel idea? But you can find me at jayconner.com. www.JayConner.com. I love to talk money with anybody.
Narrator [00:28:00]:
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.