***Guest Appearance
Credits to:
https://www.youtube.com/@SouthsideUnicorn
“A Chat with Jay CONNER – The Private Money Lender”
https://www.youtube.com/watch?v=3WwZ1RptwQc
When most people think about investing in real estate, they envision long hours at banks, filling out tedious paperwork, and waiting anxiously for loan approvals. But what if you could sidestep all of that?
What if you could leverage alternative lending options that not only offer security but can transform the way you approach your investments? On a recent episode of the Raising Private Money podcast, Ken White sat down with Jay Conner, known as the Private Money Authority, to pull back the curtain on the world of private money lending—and why it might just be the game-changer for real estate investors across the country.
Ditch the Traditional System
Jay Conner’s passion for private money stems from his years of experience in real estate. As he shared with Ken White, “Private money for my real estate deals has had more of an impact on our real estate investing business than any other strategy that we’ve employed ever since we started back in 2003.”
Unlike traditional bank loans, which leave the borrower at the mercy of underwriting terms and interest set by institutions, private money empowers investors to set their own terms. “In my world of borrowing money,” Jay notes, “I make the rules. I set the terms. I’m my own underwriter.”
What is Private Money and Who Are the Lenders?
Private money is not hard money. As Jay explains, hard money lenders are institutional entities that raise funds from various investors to create a lending pool, often charging origination fees and high interest rates. Private money, however, is a direct transaction between the investor and ordinary individuals—such as retired teachers, law enforcement officers, and military personnel—who are seeking a reliable return on their investment.
Many of these private lenders had never heard of the concept until it was introduced by a real estate professional. They use either investment capital or retirement funds such as self-directed IRAs, enabling them to invest outside of the traditional stock market and bank CDs.
“Prior to Covid, there was $18 trillion in cash in just ordinary people’s… Today, $31 trillion,” says Jay, highlighting an enormous pool of untapped potential for real estate investors.
Safety Comes First
One of the biggest concerns potential lenders and investors have is security—how is their money protected compared to the FDIC-insured deposits in banks? Jay lays out a structure designed to mitigate risks. Private lenders aren’t left unsecured; every loan is collateralized by the asset in question.
In Jay’s words, “Everything we do is what’s called asset-backed debt.”
What does this mean in practice? If, for any reason, the borrower fails to repay, the lender has the legal right to foreclose on the property, just as a bank would. Additionally, loans are conservative—never more than 75% of the property’s after-repaired value (ARV).
Lenders are named as mortgagees on the insurance and title policy, explicitly giving them a claim if anything goes wrong. “It’s secured. It’s not unsecured. It’s a conservative loan-to-value,” says Jay.
Getting Paid to Buy
One of the most exciting aspects Jay discusses is the potential to receive multiple “big checks” in a single transaction. He breaks it down using simple math: buy a distressed property at 50% of its ARV, rehab it, and finance up to 75% of ARV through private lenders. This often leaves “excess cash to close” that the investor can use for renovations—or even to pay the lender’s monthly interest upfront.
Do More, Worry Less
Jay Conner’s system isn’t just accessible to those in North Carolina. “Private money works anywhere there’s real estate and anywhere people have money,” he tells Ken White—even internationally, as in the Philippines resort property Ken asks him about.
Final Thoughts
Private money is abundant—according to Jay, “There’s more money available than there are deals.” The key is to educate potential lenders, structure secure transactions, and line up funds before pursuing deals. As Jay emphasizes, “Desperation has a smell to it. Get the money lined up first.”
Real estate investing doesn’t have to be complicated or beholden to big banks. With private money, investors and lenders alike can find win-win solutions built on trust, transparency, and solid returns.
For more insights and a free book, Jay Conner invites listeners to visit www.JayConner.com/Book.
10 Discussion Questions from this Episode:
- What is the difference between private money and hard money lenders in real estate investing, according to Jay Conner?
- How does Jay Conner describe the protections that private money lenders receive when they fund real estate deals?
- Why does Jay emphasize the importance of securing funding before looking for investment deals, and what does he mean by “desperation has a smell”?
- How does the process work when an investor receives “multiple checks” in a real estate transaction funded by private money?
- What are some of the backgrounds of Jay’s 47 private money lenders? Why is this significant for those considering entering private lending or borrowing?
- What risks exist for private money lenders, and how are these risks mitigated in Jay Conner’s process?
- Jay mentions that there is more private money available than there are deals. What factors contribute to this abundance, and what does it mean for investors?
- How do self-directed IRAs play a role in private money lending, and what are the potential tax implications for lenders?
- Is private money lending limited to certain geographic areas or types of properties? What did Jay say about doing deals in places as diverse as North Carolina and the Philippines?
- Based on the advice given in the episode, what steps should someone new to real estate investing take if they want to leverage private money for their first deal?
Fun facts that were revealed in the episode:
- Private Money vs. Hard Money: Jay Conner explains that private money is distinct from hard money. While hard money lenders are still institutions with their own rules and fees, private money comes directly from individuals—regular folks, such as retired school teachers, law enforcement officers, and military personnel—who seek reliable returns outside of banks and Wall Street.
- Trillions in Potential Funds: Prior to COVID, Jay says there was $18 trillion in cash available from ordinary people for private lending. As of the recording, that number had grown to $31 trillion, showing just how much untapped funding is potentially out there for real estate deals.
- Getting Paid to Buy a House: Jay shares that with his private money strategy, real estate investors can actually receive a check at closing when they buy a property, not just when they sell. For example, by borrowing up to 75% of a home’s after-repair value, investors can cover the purchase price, renovations, and walk away with extra cash for themselves—sometimes before any work has even started.
Timestamps:
00:01 Fixing Your Money Machine
03:34 Government, Fed, and Financing Concerns
07:32 Private Money: Individuals Investing Capital
11:31 Real Estate-Backed Private Lending
13:35 Private Lending and Title Insurance
16:55 Private Money Insights with Jay
21:30 Excess Cash from Property Deal
24:31 Struggling in California
27:58 Money First, Avoid Desperation
31:52 Working with Jay Conner
Connect With Jay Conner:
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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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From Banks to Private Money: Rethinking Real Estate Financing with Jay Conner
Jay Conner [00:00:00]:
How are they protected? It’s a very conservative loan-to-value. So how are we protecting them? We don’t borrow more than 75% of the after-repaired value of a single-family house.
Narrator [00:00:16]:
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 to raise 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.
Ken White [00:00:54]:
Hey, hey, hey. It’s your boy, Kim White, host of the Southside Unicorn show. And today’s guest is Jay Conner. Now, is that any relation to Sarah Conner? No, it’s not. He’s not here to terminate you. He’s not here to get you. But he is here to help inform you on something very, very important. When we don’t feel well, we go to a doctor.
Ken White [00:01:18]:
If our car isn’t working right, we go to a mechanic. But where do you go when money’s not working right? Because you see, some people don’t understand the actual utilitarian use of money. Money is a system, money is a machine. And if your money’s not working right, perhaps at the bank or at your local credit union, you need to find a way to make your money work right. Well, today we have Jay Collins. He is the private money authority. He’s the mechanic who can help you fix your money situation. So that’s why I asked in this show, what condition is your money in? So without any further ado, I want to introduce you to Mr.
Ken White [00:01:58]:
Jay Conner, the Private Money Authority. Hi, Mr. Conner, how are you?
Jay Conner [00:02:03]:
My lands, I’m doing fantastic. Thank you so much for inviting me to come along and be on your show and talk about my favorite topic, my favorite subject that I’m so passionate about, and that’s private money. Why am I so excited about private money? I’ll tell you why. Private money for my real estate deals has had more of an impact on our real estate investing business than any other strategy that we’ve employed ever since we started back in 2003.
Ken White [00:02:35]:
Wow, now you’ve said a mouthful when you said that. And, you know, I’m considering, when it comes to private money as it relates to the real estate industry, a gentleman comes to mind. His name is Jerome Powell. Are you familiar with Jerome Powell, sir?
Jay Conner [00:02:49]:
I’m familiar with the name Jerome Powell, yep. He is the chairman of the board of governors that oversees the Federal Reserve.
Ken White [00:03:00]:
That mythical place that, that. And it’s not even a government entity, if I’m not mistaken. They don’t actually. They’re not the government, are they?
Jay Conner [00:03:09]:
Well, that depends on your definition of the government. The. The government tells the federal. Well, doesn’t really tell the Federal Reserve what to do. They are their own entity. But the president can hire and fire whoever the president wants to run that particular department. So depends on how you want to define part of the government.
Ken White [00:03:34]:
Okay. So, since that part of the government seems to be acting pretty sketch, if you ask me, because with everything that’s going on in our nation, the tariffs seem to be doing what they’re supposed to do, Immigration is having an impact, and I don’t think it’s necessarily a negative impact, but that’s yours truly. My own opinion, but I’m about to say, since the Fed and this Mr. Jerome Powell seem to be behaving sketch, and they are connected directly to what we consider the banking system, where real estate draws its mother’s milk from, which is money, I think it’s time we start looking in other directions to get money for financing. That’s someplace that I think you can help us with. Is it, Jay?
Jay Conner [00:04:15]:
Oh, my word, yes. Because in this world of private money and getting funding for real estate deals, it’s got nothing to do with what mortgage lenders are doing. It’s got nothing to do with what the Federal Reserve is doing. And here’s why. The. The traditional way to borrow money is you go to the local bank, you go to the mortgage company, and you get on your hands and knees and you say, Please fund my deal. And the traditional way to borrow money is. And this is, this is stinking thinking.
Jay Conner [00:04:49]:
This is the old way of thinking. The traditional thinking is whoever’s got the money to lend makes the rules, does the underwriting, sets the terms, sets the interest rate. But guess what? In my world of borrowing money, I make the rules. I set the terms. I’m my own underwriter. And here’s the difference. Instead of applying for a mortgage or asking for a mortgage, I’m offering a mortgage. You know, I’ve got 47 private lenders right now funding my real estate deals.
Jay Conner [00:05:25]:
And what’s interesting is not one of my lenders ever heard of private money until I put on my teacher hat, which says, private money, teacher, private money.
Ken White [00:05:44]:
So, classes in session, I take it. I. I should have known we were in class today. So now, when it comes to the private money, the lender, and it sounds like you, you got connections, as we used to say on the south side of Chicago. You got the hookup. And when a man has the hookup, you should listen to what he’s saying. But I do want to ask you what? Okay.
Ken White [00:06:05]:
It sounds like private money is like a big secret, right? Is there a private club, or just how much private money is there out there? Is this, is this like a one little thing, or how much private money is there?
Jay Conner [00:06:18]:
Right? So private money is not a club, you see. So I said something really important, Ken, and that was none of my private lenders ever heard of private money until I told them about it, until I exposed them to it. So, who is a private lender? So first of all, let me tell you who a private lender is not. A private lender is not and is not equal to a hard money lender. A hard money lender is still institutional money. A hard money lender is down.
Ken White [00:06:50]:
You do realize that, right? We’re all writing this down. Hard money lender.
Jay Conner [00:06:55]:
Yes. It’s not private money. And the reason I say that is that you’ve got. And by the way, I’m not pooh-poohing hard money lenders. Some of my best friends in the world are hard money lenders. But, but you know, why, why do I want to borrow that money when I can go directly to the source? So, a hard money lender is an institutional lender that has gone out and has raised money from individual investors to invest in the hard money lending fund. And then the hard money lender turns around and loans that money out to real estate investors to charge origination fees, etc. That’s not private money.
Jay Conner [00:07:32]:
Private money, Ken, is when you’re doing business with an individual. And these are ordinary people. I mean, of my 47 private lenders, I’ve got retired school teachers, I’ve got law enforcement officers, I’ve got people in the military. And they use either their investment capital, just liquid funds that they don’t want to get stupid low rates in the local bank, aCD, or they’re sick and tired of the volatility of the stock market. They’re looking for a reliable rate of return. These are ordinary people who are using their investment capital and/r their retirement funds to get a nice rate of return. So there’s this thing called a self-directed. A self-directed IRA is a company, also known as a third-party custodian, that is approved by the IRS.
Jay Conner [00:08:26]:
And so an individual just like us can take current retirement funds, which might be in the stock market, might be in a previous 401 (k), or an employer. And they can move that money over with no tax consequences, no penalties to the self-directed IRA company, the third-party custodian. Now they can truly self-direct. So now they can be a private lender in addition to just investment capital. They can be a private lender with those retirement funds and loan to us, real estate investors, on real estate deals. So we’re doing business on one transaction with ordinary people with no middle person involved. How much private money is available? Before COVID, there was $18 trillion in cash in just ordinary people’s hands.
Ken White [00:09:16]:
Did you, did you say 18 with a T?
Jay Conner [00:09:19]:
Before Covid? Before today, 31 trillion. Today I think, I think the White House has been printing some money.
Ken White [00:09:32]:
Wow. Now I’ve got to ask you a question. I hear what you’re saying. And now for retirees, those of us who, well, I’m not a retiree yet. I’m still out here on the grind. But for those people who are actually like some of my friends, they’re retired or semi-retired and they’re watching their 4k 401ks do somersaults. It’s going up, it’s going down, it’s doing this, it’s gone, it’s back. This sounds great for them.
Ken White [00:09:55]:
I heard what you said about safety nets for them. But now, because this is something different than the FDIC, where, you know, $100,000 of your money is insured. Should something go cattywampus, what is the protectorate for someone who would actually take these private loans? Is there, is there any risk for them?
Jay Conner [00:10:16]:
Ken, I’m so glad you asked the question. Of course, there’s risk in anything you do. There are no guarantees in life. So let’s talk about mitigating the risk. How do I, how do other real estate investors who are using private money, how do we protect, how do we protect our private lenders? Well, there are several ways. Number one, we do not borrow unsecured funds. Now we could legally, we could just borrow money, give them a promissory note, and all they got is a paper receipt. But we don’t do that.
Jay Conner [00:10:50]:
Not only do we give them a promissory note, but in addition to that, we secure the note, we collateralize the note by the real estate that we’re buying. So everything we do is what’s called asset-backed debt. Asset-backed debt. So that means we’re going to protect the private lender, just like the bank is protected. So so our private lenders are not equity sharing in the profits; they’re getting a set rate of return. How much? I’ve been paying them 8% ever since 2009. And they love it. Particularly when you compare that.
Ken White [00:11:30]:
Wow.
Jay Conner [00:11:31]:
When you compare that to what you can get in the local bank now, which is less than 3% and a 7-month CD. So it’s backed by the real estate. So what does that mean? I mean, what does that security mean? That means if the borrower, the real estate investor, does not pay the private lender, guess what? The property does. If they don’t get your money from the borrower, if they don’t get that interest, if they don’t get paid back, well, their legal recourse is they can foreclose on the property just like, just like a bank would. Now they don’t want the property. I mean, they want to be a passive investor. That’s why they’re a private lender. But that’s their security.
Jay Conner [00:12:11]:
Now, secondly, how are they protected? It’s a very conservative loan-to-value. So how are we protecting them? We don’t borrow more than 75% of the after-repaired value of a single-family house. Now I didn’t say 75.
Ken White [00:12:30]:
I’m sorry, that sounds like a NASA spaceship to me. I mean, you know, on the spaceship, they have what’s called redundancy. You know, you’ve got two systems that kind of make sure if one goes bad, there’s another one to hold it up. Well, it’s 75%. Yo, you’re already dealing with positive money the minute you even secure this deal. Am I right?
Jay Conner [00:12:49]:
Correct. Correct. So, wow, it’s secured. It’s not, it’s not unsecured. It’s a conservative loan-to-value. How else do we protect them? Well, we name the private lender, these ordinary people, as the mortgagee on the insurance property, on the property and property and casualty insurance policy. That means if there’s a claim against that insurance, you know, by that insurance policy, that coverage, well, the insurance company is going to make the check payable to the private lender and to the borrower. Well, that private lender’s got to sign off on that check before they, before you, the borrower gets the check.
Jay Conner [00:13:30]:
That’s the same thing the bank does.
Ken White [00:13:32]:
We also get their money back.
Jay Conner [00:13:35]:
Exactly. And we name them on the title insurance policy as an additional insured in case there are any title issues. So think of the private lender as the bank. As the bank is giving them the same. They know exactly that it’s just like them putting money in a CD certificate or a deposit in the local bank. And they know exactly what the rate of return is going to be. If they invest or loan $100,000 for that year and you’re using the money for the whole year, they know they’re going to get $8,000. Now, if they’re using retirement funds, their interest is either tax-deferred or tax-free, depending on the kind of retirement account they have.
Jay Conner [00:14:18]:
If it’s investment capital, just liquid capital, then they’re taxed at ordinary income tax rates. No way.
Ken White [00:14:26]:
Come on.
Jay Conner [00:14:26]:
Yep. So,o depending on where the money’s coming from, as well as taxes.
Ken White [00:14:30]:
Wow. So, I mean, there must be people knocking down your door. Not so much for the ones who want to buy the homes, but for those who want to become part of your. Your clique, your family of private lenders. This is a really good system.
Jay Conner [00:14:44]:
Absolutely. See, here’s the deal. There’s more money available than there are deals. There’s more money. I just had a current private lender send me a text yesterday. Yesterday. And he texted me. He says, Hey, Jay, I just came into 295,000 more dollars.
Jay Conner [00:15:05]:
How soon can you put it to work? Right. I got. I got another call two weeks ago from a current private lender. He’s got an additional 300,000, wants to invest. That same week, two weeks ago, another private lender called me up and said, Hey, I’ve got 200,000 more when you can, so.
Ken White [00:15:24]:
Wow.
Jay Conner [00:15:25]:
So instead of seeing in this world of private money, as a real estate investor, instead of you begging and chasing and selling and persuading and chasing the money, you’re attracting the money that the money’s chasing us. And it’s a win-win for everybody. It’s a win-win.
Ken White [00:15:44]:
Speaking of win-win for everybody, I would like to get a little win up in here. For me to do that, I gotta get some sponsorship going on. So, Jay, it’s time for us to take a break. Ladies and gentlemen, this is really good information. I love it when we have guests like this. You want to keep your pen and paper out because Jay has more to tell us when we come back from these messages that go nowhere.
Jay Conner [00:16:05]:
I’m so glad that you’re listening and tuning in. I’m Jay Conner, known as the Private Money Authority, and I am so excited you’re here because I want to give you a gift. And that is my book, on where to get the money now, how, and where to get real money for your real estate deals without relying on traditional loans. And you can pick up the book for free at www.JayConner.com/Book. That’s www.JayConner.com/Book. And you are listening to one of the most amazing podcasts and hosts on the planet. His name is Mr. Ken White.
Jay Conner [00:16:41]:
He’s the host of the Southside Unicorn show. I’ve been a guest on over 800 podcasts, and Ken White wins the prize. You’re glad you’re here. Hey, hey, hey.
Ken White [00:16:55]:
It’s your boy, Ken White, host of the Southside Unicorn show. And today’s guest is Jay Conner. He is the private money authority, or better yet, he’s the private money teacher. So I hope you’re sitting down, I hope you got your pen and paper, because yours truly is really getting something good out of this $18 trillion available out there in alternative lending. You don’t have to go cap in hand to the bank. You don’t have to go to your credit union and go, please, you can call Jay Conner, and I’m sure he has somebody who’ll be happy to help you. Think about it this way. It’s sort of like your martial arts classes.
Ken White [00:17:33]:
When you’re in your martial arts classes, you have to do the same move over and over and over. The more you do it, the more proficient you are at that particular move, or you become a black belt. Well, because Jay Conner has done over 500 deals, he’s rehabbed thousands of homes. He’s done this thing so many times. He’s a black belt in financing. Yeah, that’s right. So, ladies and gentlemen, Jay Conner, once again, let’s, let’s do this. You were saying as we left off abou, about the protection of the lenders.
Jay Conner [00:18:09]:
Yes. Yeah. We don’t borrow unsecured money from our private lenders. We give them the security-backed debt. So it’s the real estate that we’re purchasing or investing in that’s backing that note. They get a mortgage or a deed of trust here in North Carolina, just like a bank does. And they got the promissory note, they’ve got the mortgage or the deed of trust. We name them on the insurance policy.
Jay Conner [00:18:34]:
It’s a conservative loan-to-value. We don’t borrow more than 75% of the after-repaired value. So they’re very well protected.
Ken White [00:18:43]:
Okay, I got, now, you know, I got a thousand questions I’d like to ask you, but ladies and gentlemen, every show has its time limit, and so I just got to squeeze it in there. When these deals go down., I think I read somewhere in your works that they get three big checks. What, what are these three big checks?
Jay Conner [00:18:59]:
Yeah. Well, actually, it’s us, the borrower,r that gets. We can get multiple checks. That’s why I love private money. Because the traditional way to borrow money for real estate is that you only get one check, and that’s when you cash out. Unless you’re doing a buy and hold, of course, and you’re getting rental income, et cetera. So here’s where you get multiple checks on these private money deals. So first of all, your first check that you get when you’re borrowing private money is when you purchase the property.
Jay Conner [00:19:31]:
Yes, you actually get a check when you buy. And how in the world does that work, and you take none of your own money to the closing table?. Here’s the question. Who wants to get paid to buy properties? Right. So, Ken, the host, wants to get paid to buy properties. So let me, let me give you an example as to how this works. And I’m going to use small numbers, so it’s easy to follow small numbers. So let’s assume that I am purchasing and I’m investing in a single-family house.
Jay Conner [00:20:05]:
And let’s say the after-repaired value is $200,000. Now I know in California you can’t even get an outhouse for $200,000. But let’s assume here in eastern North Carolina, we have this little 1200 square foot home, after repair value, 200,000. Now second thing, let’s assume that I’m going to buy that house at a deeply discounted price of $100,000, 50% of the after-repair value. Now, the reason I’m going to buy it for 100 is because it’s distressed, it needs renovation, it needs rehab. So the after-repaired value is 200,000. I’m going to buy it for 100,000. Now, let’s also assume that the renovation, the rehab, is going to cost $30,000 to make that house look beautiful again.
Jay Conner [00:21:01]:
So there’s your three numbers. There’s one more number. One more number. Remember, I can borrow up to 75% of the after-repaired value. Well, 75% of the after-repaired value is $150,000. So follow the math. Here it comes. I go to the closing table to purchase this house, and my private lender wires to my real estate attorney’s trust account.
Jay Conner [00:21:30]:
If you’re in a state that uses title companies, then it would be wired to the title company’s trust account. So here comes $150,000 from the private Lender. Well, let’s see, where does that money go? Well, $100,000 of that 150,000 goes to the seller of that house because I bought it for $100,000. Now guess what? I love this phrase on my real estate attorney’s checks. It says excess cash to close, and I love me some excess cash. So I got a, I got $50,000 check minus a little bit of closing cost. I’m going to pick up as the purchaser of that property, as the borrower of that money. I’m getting a $50,000 check when I buy that property because there’s 50,000 of excess money in the trust account.
Jay Conner [00:22:27]:
Now what am I going to do with that $50,000? Well, remember, so remember, I’m going to take 30,000 of that 50,000 for the renovation, the rehab.
Ken White [00:22:40]:
Okay?
Jay Conner [00:22:40]:
Now I have an additional 20,000 left over, minus a few closing costs. Like I mentioned. I got an additional 20,000 leftover that I can use anyway I want to. Let’s say my private lender needs a monthly interest income. So instead of letting the interest accrue, which you can, if that’s okay with your private lender. But some of my private lenders need the monthly income. So let’s say my private lender needs monthly interest, right? Whose money am I using to pay their monthly interest income? Because they loaned out the 150,000, right? They loaned the 150 now. So that cash flow.
Ken White [00:23:24]:
Let me ask you a question, Jay, because I’m sure my audience is feeling this, and I want to make sure that they get, get some of this. So, is the sweet spot in this entire arrangement the distressed property? Is that, is that the ideal project?
Jay Conner [00:23:38]:
So I’m glad you asked that question. Private money, you’re going to use it whenever the seller requires all the cash. Now that could be a for-sale-by-owner. That could be a bank-owned property. It could be bought at an auction anytime the seller requires cash.
Ken White [00:23:57]:
Now that’s when you jump in with the private.
Jay Conner [00:23:59]:
That’s when you use the private money. You either use your own cash or use private money. For goodness’ sake, don’t, don’t go to the bank or the mortgage company. Now, the biggest profits and the biggest checks that you bring home from the closing table are distressed properties. My average profits right now per single-family house in our little area here in eastern North Carolina is $86,000 profit per deal. We do. Now the reason is the average.
Ken White [00:24:31]:
Why do I feel stupid still being here in California, scratching and scraping every day? I mean, the production assistant, Connie, she’s living in the filet mignon of Southern California. She’s over there in Orange County. And let me tell you, you know, you can’t buy a soda pop over there, you know, without five bucks. But now, Jay, I want to run something by you for the edification of my audience. Your program, would it work in California? Is California like a verboten? You guys kind of stay away from this area, right?
Jay Conner [00:25:02]:
Well, private money works anywhere there’s real estate and anywhere people have money. Now, that brings up a good point.
Ken White [00:25:12]:
I don’t mean to interject so much, but I’m doing it for a reason. You said anywhere there’s real estate and anywhere there’s money. So I wanna. This is a, is a litmus test, and it’s a real test, and I’m doing it in real time so that the audience can get a feel for private lending. Jay, there’s a property, a resort property in the Republic of the Philippines, and it’s beautiful. It’s, it’s. It says beautiful as anything you see on Fantasy Island. It’s a very nice home, but you just dated yourself.
Ken White [00:25:44]:
Yeah, right, right. It’s, It’s. It’s valued at 45 million pesos. Now I have spent some time in the Philippines. That converts to $1.5 million. In American cash. Right? American money. Say somebody wanted to do a deal, and they said, If you give me a million dollars cash, which is five, you know, half a million dollars on the table, like I just learned from you.
Ken White [00:26:07]:
Right. Is that something you could touch? Is that something you could do?
Jay Conner [00:26:12]:
Absolutely. I’ve got multiple private lenders who have more than a million dollars with me. Now, that brings up another good point. You can have more than one private lender funding the same property. So how does that work? Well, you could have one private lender in the first position, a first lien on that property. You could have another private lender in the second position. That’s called a junior lien. And here is what you want to watch.
Jay Conner [00:26:42]:
There’s this. There’s this thing called total loan-to-value. Total loan to value. So, what is the total loan-to-value? Total loan to value is when you add up all the notes from private lenders that are being secured by that one property, and you still don’t want all the notes to total more than 75% of the after-repaired value. That way, it keeps it a conservative investment.
Ken White [00:27:09]:
So if it’s meant for you to have A home. If these people want you to have the home going with a private lender system, like you’re saying, it’s almost a guarantee you’re going to get that home.
Jay Conner [00:27:20]:
Oh, sure. Oh, and that. That brings up another point. You’re asking the best questions, Ken. So that brings up another point. So you might. I’m getting ready to say something, Ken. I’m getting ready to say something.
Jay Conner [00:27:31]:
I’m going to take a little risk. Take a little risk when I say this, but have you ever heard this? The guru, the real estate investing guru on stage, teaching, educating an audience of real estate investors. And the guru says, Oh, just get the deal under contract. The money has shown up. Have you ever heard that?
Ken White [00:27:54]:
Yeah, yeah. The checks in the mail, that’s. That’s basically. Yeah.
Jay Conner [00:27:58]:
So, like, that’s the most stupid thingI’veI ever heard in my life. Where’s the money going to show up? Has money got, like, legs that’s going to come run you down? Is like, you get a deal under contract, right? You get a deal under contract, and like, a box full of money just drops out of the sky at your front door. No, that’s why I practice and I preach. The money comes first. Get the money lined up first. And listen, here’s a big tip, here’s a big takeaway, here’s a writer downer for all of y’all taking notes, quote, unquote. Desperation has a smell to it. Oh, desperation has a smell now.
Jay Conner [00:28:43]:
Wonder, what am I talking about? You see, a lot of real estate investors are taught you gotta pitch deals. You got, you know, you talk about the opportunity for the lender to invest in this particular deal. And listen, you already sound desperate if you’re trying to pitch a deal. So I practice and preach, get the money lined up first, offer your program, teach your program like I did, and do without any kind of deal attached to it. It’s the same program.
Ken White [00:29:17]:
Every word that’s coming out of your mouth, Jay. I’m learning. I. This is incredible. You make me feel like being a podcaster is not what I want to do. I want to get in on this real estate stuff. I. I am so sad that the show is only 30 minutes because there’s a wealth of information you have inside of you, and it’s just.
Ken White [00:29:37]:
It’s just bubbling out. So now, if people want to get in touch with you, how are they able to do that? How can we reach you?
Jay Conner [00:29:45]:
Thank you so much, Ken. Well, the best way to get in contact with me is to let me give your audience a Gift. And here’s the gift, my national bestselling book, which is titled Where to Get the Money Now. This is not an ebook. This is actually a real book. Where to get the money now subtitle: How and where to get money for your real estate deals without ever relying on traditional or hard money lenders. And I’m also going to include two tickets valued at $3,000 to my private money conference. The private money conference.
Jay Conner [00:30:21]:
I’ll autograph the book. I’ll ship it to you via priority mail through the United States Postal Service, which is still in business. And you can pick up the book, just cover shipping. The book is free. Just cover shipping. And here it is, www.jconner. And I’m an E.R., not an O R.
Jay Conner [00:30:41]:
So J-A Y C-O-N-N-E-R.com forward slash book. Again, that’s J. Conner. J-A Y C O-N-N-E- R.com book. I’ll autograph it. I’ll rush it right out to you.
Ken White [00:30:57]:
Wow. Now that. Ladies and gentlemen, this is why I love having guests like Jay Conner on the show. You have just been enriched. You have just been given the hookup. If it doesn’t make dollars, it doesn’t make sense. You gotta wake up with your money on your mind and your mind on your money. Jay Conners is just such a man.
Ken White [00:31:17]:
Jay, that deal in the Philippines is real. So I’m hoping to talk to you off this, off the air. And get you the information for this potential deal because it’s right there. It’s valued at a million and a half. I’m not sure, but I’m thinking maybe if they saw a million dollars on the table, it might. It might motivate them.
Jay Conner [00:31:36]:
Nice. Well, that sounds exciting.
Ken White [00:31:39]:
I can’t speak for them. I’m just saying I think. You know how they say money, money talks, and everything else runs the marathon, right?
Jay Conner [00:31:48]:
Hey, you cleaned that up nicely.
Ken White [00:31:52]:
Well, that means you’re familiar with the phrase, I like you, Jay. Jay, you’re one of those people who, if you get to know you and the person, you’ve got to be about your own business, too. This is not all about Jay Conner. If you’re going to deal with such a man, you’d better come correct. Have your chips in order, have your ambitions straight, know what you’re doing, go into it with your eyes wide open. But somehow, I think if you work with Mr. Jay Conner, you’ve enriched your life incredibly.
Jay Conner [00:32:20]:
Ken, thank you so much.
Ken White [00:32:22]:
You’re welcome. Hey, listen to me. There’s no place I’d rather be. There’s nothing I’d rather do than be right here doing this show for you. I’m Ken White with Jay Conner, and we are out.
Narrator [00:32:59]:
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.