***Guest Appearance

Credits to:

https://www.youtube.com/@LancelotsRealEstateRoundTable          

“Revolutionize Real Estate Investing with Private Money Strategies – EP 59”

https://www.youtube.com/watch?v=CM7p2K3fEOk&t=130s 

In the realm of real estate investing, many newcomers and seasoned pros alike hit the same intimidating wall: funding. Banks get selective, credit lines dry up, and the promises at seminars never seem to pan out. But what if the solution was not in begging banks or risking your own savings, but in tapping into private money?

That’s precisely what Jay Conner, known as the Private Money Authority, shared on Sir Lancelot’s Real Estate Roundtable hosted by Lancelot Lenard. As someone who’s flipped over 500 homes and averaged $60,000 profit per deal using private funding, Jay’s story is both inspiring and practical.

The Turning Point: From Banks to Private Money

Jay didn’t start his career with a silver spoon or endless private lenders. In fact, for six years, he did what nearly every investor does—go to banks, jump through their hoops, and hope for approval. Then, in 2009, the rug was pulled out from under him. “Jay Conner” recalled calling his banker, Steve, only to learn his line of credit was shut down overnight due to the global financial crisis. Suddenly, he was left with deals on the line and no funding.

It was in this moment that he asked himself a critical question: “Who do you know that can help fix your problem?” That led Jay to a friend who introduced him to the world of private money and self-directed IRAs, and—importantly—how ordinary people could use their savings to fund real estate deals.

Teaching, Not Selling: The Secret to Raising Private Money

Most would assume raising private capital is about pitching deals and selling your vision. Jay’s method is the opposite. He puts on his teacher hat, educates people in his network about what private lending is, how it works, and how it keeps their money safe.

“No chasing, no begging, no selling. Just offering an opportunity versus asking for money,” Jay said. In less than 90 days, he raised over $2 million simply by educating and building trust. His approach is built on demystifying private lending and showing how ordinary people—often those sitting in your church pew or neighbors—can earn high returns safely and securely.

Confidence Is Key: Overcoming the Fear Factor

For new investors, fear of rejection or not being “ready” is real. Jay stresses the importance of mindset: “Your net worth will never exceed your self-worth.” The first step is learning exactly what you’re offering, understanding how to protect your lenders, and being prepared to answer their concerns about safety and returns. If you haven’t done a deal yet, Jay recommends partnering with an experienced investor and learning on the job.

A Real-Life Example: Fast Deals, Big Profits

Private money isn’t just theoretical. Jay shared a vivid example: an oceanfront condo deal that stacked three layers of motivation (absentee owner, inherited property, and foreclosure threat). He was able to close in just seven days for $480,000 cash, invest $12,000 in repairs, and sell it for $618,000—netting $160,000 profit in six weeks. Without private money, this opportunity would have slipped away.

Building a Scalable, Automatic Machine

Systems and technology are crucial. Jay’s operation relies on a CRM, automation, and a dedicated team. Leads come in daily through multiple funnels, and his acquisitionist and other staff handle the process seamlessly. This “automatic transaction machine” means Jay spends his time making decisions, not getting bogged down in the details.

Why Private Money Is the Biggest Opportunity Right Now

According to Jay, the real opportunity isn’t just for investors but also for lenders. With $31 trillion in liquid cash sitting on the sidelines today, people are seeking better returns and security. Private lending—backed by real estate and structured with strong protections—answers both needs.

Final Takeaway

The story shared by Jay Conner on Sir Lancelot’s Real Estate Roundtable is a blueprint for how anyone can break free from traditional funding roadblocks in real estate. Teach, don’t sell. Build systems. Leverage relationships. Most importantly, realize that private money is not just the fuel for your deals but can be the gateway to financial freedom—for both you and your lenders.

If you want to dive deeper into Jay’s strategies, grab his free book, “Where to Get the Money Now,” and start learning how you can transform your real estate investing journey through the power of private money.

10 Discussion Questions from this Episode:

1. When traditional bank funding suddenly became unavailable in 2009, how did this experience change the guests’ approach to real estate investing, and what key lessons can be learned from this turning point?
2. The idea of private money is initially described as mysterious or intimidating. What practical actions were taken to make private lending understandable for potential lenders, and why is an educational approach more effective than pitching deals?
3. Overcoming the fear of raising private money is a common struggle. What strategies are recommended for building confidence and the right mindset, especially for new investors?
4. The guest expanded from flipping a few properties to over 500. What specific systems and team structures made it possible to scale without burning out?
5. The episode describes an “automatic transaction machine.” What does this system involve, and how does it automate the process from generating leads to closing deals?
6. Can you summarize a deal from the episode that would not have been possible without private money? What factors made private capital crucial in that scenario?
7. Instead of “asking for money,” the strategy is to “offer an opportunity.” What is the actual script used for the “good news phone call,” and why does this approach resonate with potential lenders?
8. How are deals structured to protect private lenders, and what safeguards are in place to ensure their security?
9. The value of mentorship is discussed as a shortcut to success. What examples are shared of students achieving transformative results through coaching, and why is having a mentor important in real estate investing?
10. With rising interest rates and stricter bank requirements, how does the current market create opportunities for private money investors, and what advice is offered for newcomers who want to start leveraging private capital?

Fun facts that were revealed in the episode:

1. Jay Conner raised $2,150,000 in private money within 90 days after attending his first real estate investing conference about private money in 2009, without ever asking, begging, or selling—he simply taught people about the opportunity.
2. Jay Conner averages bringing home a big check every time he buys a house—sometimes borrowing more than the purchase price so that he gets paid at closing, a strategy that only works when purchasing distressed properties at a discount.
3. Jay Conner has never pitched a deal to a private lender; instead, he uses what he calls the “good news phone call,” where he simply informs his lenders when he has a property ready for funding, and they eagerly wire their money without being asked!

Timestamps:

00:01 Raising Private Money with Jay Conner

08:30 Discovering Private Money Loans

14:14 Mindset for Private Money

17:13 Private Lending for Single Homes

24:27 From Chaos to Organized CRM

31:31 Streamlined Lead Processing System

37:23 First Citizens Bank Rate Update

41:12 Buying Homes Subject to Notes

48:04 Unlimited Wealth Through IRAs

51:14 Lancelot’s Investment Deal Timeline

59:34 Mastermind Shortcut to Success

01:02:19 Real Estate Lead Generation Systems

01:05:40 Self-Employed Loan Challenges

01:11:16 Learn Private Lending Basics

 

Connect With Jay Conner: 

Private Money Academy Conference: 

https://www.JaysLiveEvent.com

Free Report:

https://www.jayconner.com/MoneyReport

Join the Private Money Academy: 

https://www.JayConner.com/trial/

Have you read Jay’s new book, Where to Get the Money Now?

It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book 

What is Private Money? Real Estate Investing with Jay Conner

http://www.JayConner.com/MoneyPodcast 

Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.

#RealEstate #RealEstateInvesting #RealEstateInvestingForBeginners #Foreclosures #FlippingHouses #PrivateMoney #RaisingPrivateMoney #JayConner

YouTube Channel

https://www.youtube.com/c/RealEstateInvestingWithJayConner 

Apple Podcast:

https://podcasts.apple.com/us/podcast/private-money-academy-real-estate-investing-with-jay/id1377723034 

Facebook:

https://www.facebook.com/jay.conner.marketing  

Twitter:

https://twitter.com/JayConner01

Pinterest:

https://www.pinterest.com/JConner_PrivateMoneyAuthority

 

Creating Win-Win Opportunities: Mentorship, Systems, and Private Money to Grow Your Portfolio

 

 

Jay Conner [00:00:00]:

The longer you own a property, the more money you make with this condition, depending on what the underlying debt is, right?

 

Narrator [00:00:13]:

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. Money because the money comes first. Now here’s your host, Jay Connor.

 

Lancelot Lenard [00:00:48]:

Welcome to Sir Lancelot’s Real Estate Roundtable, your guide to mastering the realm of real estate in Central East Florida. I am Sir Lancelot Lenard, ready to uncover the secrets of seller strategies, home staging, mortgage mastery, and more. From Daytona Beach to Cocoa Beach, Lake County to St. Augustine, join me as we navigate the intricacies of real estate. As the leader of the Sir Lanslo Group at Florida Homes Realty and Mortgage, I’m here to arm you with knowledge and innovation. Whether you’re a seasoned homeowner or a first-time buyer unveiling the kingdom of real estate one roundtable at a time, most real estate investors hit a wall when it comes to funding,  banks say no, credit lines dry up, and opportunities chip away. But what if I told you there was a way to unlock millions in capital without begging banks or risking your own savings to Today on the Real Estate Roundtable, I’m sitting down with a man who cracked the code. He’s a nationally renowned investor, educator, and host of the Private Money show.

 

Lancelot Lenard [00:02:03]:

He’s flipped over 400 homes,,s averaging $60,000 profits per deal and built a system that turns private money into what he calls an automatic transaction machine. I’m talking about none other than J. Connor, the Private money authority himself. If you’ve ever wondered where to find the money for your deal, this is the episode you cannot afford to miss. Jay is also giving away something really special today for everyone listening. Go grab Jay’s free guide@jconnner.com moneyguide and pick up his book where to get the money now@jconnner.com book. It’s free, just cover the shipping. Jay, tell me a little bit about this book.

 

Jay Conner [00:02:53]:

Lancelot, I’m so excited you invited me to come along and talk about what I’m so excited and passionate about, private money. And why in the world am I so excited about private money? I’ll tell you why. Private money has had more of an impact on our real estate investing business than any other strategy that we have employed since 2003. I started raising private money in 2009 for my real estate deals. And you know what? I haven’t missed out on a deal since 2009 due to not having the money. And so that’s why I’m so excited about it. So this book is titled Where to Get the Money Now. It’s a national bestseller.

 

Jay Conner [00:03:36]:

The subtitle is how and where to get money for your real estate deals without relying on traditional or hard money lenders. And this is not an ebook. It’s a real book. Did you know the United States Postal Service is still in business? So I will express mail the autograph, express mail this book to you. Where to get the money now. It’s so easy to read. I promise you, by the end of reading this book, you’ll know where to get money. You’ll be in control.

 

Jay Conner [00:04:06]:

You make the rules. You are your own underwriter. You’ll always bring home a big check when you buy a property without taking any of your own money to the closing table. So, yeah, go to www.JayConner.com/Book. I’ll rush it right out to you, Lancelot. I can’t wait to dive in and talk about this topic. Private money among so many people is like this mysterious, magical, ethereal money over here somewhere. And in our conversation between Acts 1, 2, 3, 4, and 5, we will unpack how easy-peasy lemon-squeezy this world is to get all the money for your deals.

 

Lancelot Lenard [00:04:54]:

So let’s go back to the beginning. Jay, we talked a lot about your book right now, which is awesome, guys. Pick up a copy. He’s basically giving it away for free. What was the turning point when you realized banks were holding you back?

 

Jay Conner [00:05:07]:

All my lands. The turning point. I remember it like it was yesterday. I was sitting right here at this desk because what happened was that from the start, I started investing in single-family houses here in eastern North Carolina in 2003. And from 2003 until January of 2009, the only thing Lancelot II knew to do was go to the local bank or the mortgage company, get on my hands and kneesand say, Please fund my deal. And the banker would make me pull my skirt up and show off my personal assets. And I had to do the financial statement, nd they pulled my credit score and appraisal, and all that stuff. That worked out okay.

 

Jay Conner [00:05:50]:

I did a ton of deals between 2003 here in eastern North Carolina and January of 2009 using traditional funding and banking,  but what’s your question? What was the pivotal or turning point when I realized banks were holding me back? I’ll tell you what the turning point was. I called up my banker. His name was Steve. In January of 2009, I had two houses under contract to purchase. Steve had funded a ton of deals for me in those first six years. And while I’m on the telephone with Steve, I learned that my line of credit has been shut down with no notice to me. I said, Steve, what in the world are you talking about? My line of credit is shut down.

 

Jay Conner [00:06:32]:

I’ve always made my payments on time. I got a great credit score. I. I got a great cr. I got a great record. Why are you telling me you’ve shut down my line of credit? Steve says, Jay, don’t you know there’s a global financial crisis going on right now? I said no, but you just gave me a financial crisis by shutting me down with no notice. And he says, Sorry, we’re not loaning money out to real estate investors. So I put the phone down on the receiver,,r and I sat here for a moment, and I thought, and I want to share a question with you, Lancelot, and your audience that’s tuning in here to the show.

 

Jay Conner [00:07:13]:

I want to share with you all a question that I asked myself right after I’d been notified. Line of credit shut down. And I asked myself this question, and you know the powers in question, a nd you can’t get the right answers unless you have the right questions. And so I asked myself, I saidJay, who? It’s not how, it’s who. I said, Who do you know that can help fix your problem? That’s the question for myself, by the way. These people running around saying, Oh, every problem’s an opportunity. I want to throw up. I didn’t have an opportunity.

 

Jay Conner [00:07:49]:

I had a problem.

 

Lancelot Lenard [00:07:50]:

Yeah.

 

Jay Conner [00:07:51]:

Now, the problem did become an opportunity, because you and I wouldn’t be visiting here today without that problem. But in the heat of the moment, it’s not a, for goodness sake, blankety blank opportunity. It’s a problem. Let’s face the fact. So I asked myself, who do I know that can help me fix my problem? You know what’s magical? Immediately, when I asked myself that question, I thought of Jeff Blankenship. Now, Jeff Blankenship lived in Greensboro, North Carolina, at the time. A very dear, close friend. We know each other through church and gospel a acapella singing events and all that kind of stuff.

 

Jay Conner [00:08:30]:

And so he was investing in single-family houses. So I called up Jeff, and I told him what happened, being cut off from the bank. He says, Jay, welcome to the club. I said, I’m not sure I want to be a member of that club, but what club are you talking about? He said, tThat’sthethe lub of having the bank shut you down. He said, My bank shut me down last week. I so, Jeff, how are you going to fund your real estate deals? He said, Have you ever heard of private money? I said, nNo He said, have you ever heard of self directed IRAs and how individuals, ordinary people, can take their current retirement funds that they’re not happy with and loan that and move it over to a self directed IRA company and then loan it out to us real estate investors and then the interest that we pay them is either tax deferred or tax free for them. I said, Jeff, you are talking Greek.

 

Jay Conner [00:09:18]:

You’re talking another language. I don’t have a clue what you’re talking about. I said, What’s private money? He said, I’m not sure. He said, But there’s this gentleman down in Jacksonville, Florida,  by the name of Ron LeGrand. I said, Who’s on LeGrand? He said, I don’t know. He says, but there’s this guy, Ron Legrand, who can teach us about private money. I said, What is it? He said, Jay, I don’t know. But Ron says we can get a lot of it really fast.

 

Jay Conner [00:09:44]:

I said, OkaySo I went to my very first real estate investing conference with Rhonda Grand in February of 2009 to learn about private money. And boy, did I learn about private money. I came back from that conference landslide. I raised $2,150,000 in new funding from people who had never even heard about private money or private lending, or self-directed IRAs. And I didn’t ask, I didn’t beg, I didn’t chase, I didn’t sell, I didn’t persuade. I raised all this new funding, and how in the world did I do it? I put on my teacher hat, which is called the private money teacher hat. And I just went about initially teaching people in my own network what private money is, what’s private lending, what in the world is self-directed IRAs.

 

Jay Conner [00:10:41]:

And in less than 90 days, by just teaching, leading with a servant’s heart, no chasing, no begging, no selling, just offering an opportunity versus asking for money or applying for a mortgage, I was able to attract that money. And I never pitched a deal. I’ve yet to pitch a deal today. I’ll share with you here in this episode whenever you think it’s best. The exact Script as to what I say to my private lenders over the phone. And I always get my deals funded without asking for money. And so anyway, I attracted that money and never missed out on a deal for not having the funding. The traditional way to borrow money, and that’s what I did in my first six years.

 

Jay Conner [00:11:26]:

The traditional way to borrow money for your real estate deals is to go to the lender. And in your mind, you think they make the rules? They do traditionally. We think whoever’s got the money makes the rules. They set the interest rate, they set the term, they set the length of the note, they set the maximum loan-to-value, they charge points, that whole thing. And you just have to bow down to whatever they’re saying. That’s all we know. Until you come into my world. We turn this thing upside down and turn it upside down in the banks, and guess what? In this world, you never ask for money, you never apply for a mortgage, you never have to give your credit score, and there’s never an appraisal on the properties because we’re not asking for a mortgage.

 

Jay Conner [00:12:16]:

We’re offering an opportunity, and we’re leading with teaching to people who have never heard of this world. I have 47private lenders right now funding my deals. Not one of them had ever heard of private money, private lending, self directed IRAs until I taught them about it. And some of them are accredited investors. But you know what,t Lancelot? They don’t even know they’re accredited investors because they don’t even know what an accredited investor is.

 

Lancelot Lenard [00:12:43]:

Talk about that for sure.

 

Jay Conner [00:12:45]:

Anyway, that’s how we got started in all this.

 

Lancelot Lenard [00:12:48]:

So there’s always a, from my standpoint, and a lot of investors are afraid to ask for money. How did you overcome that fear? I know you’re not asking for money; you’re basically teaching them stuff. But how did you overcome to get them together in a room? I heard you go to church, so that’s probably one of the avenues. But is there any other avenue that you have gathered the folks together and given them, or is it on one teaching? How do you do this? Tell me a little bit about that.

 

Jay Conner [00:13:13]:

When you’re talking with someone who could be a potential private lender, you can’t be getting ready. You gotta be ready. Your net worth will never exceed your worth. Your net worth will never exceed your level of confidence. So, how do you become confident? You become confident knowing what in the world you’re talking about. How do you learn what you’re talking about if you never raise private money? Reading my book is a good place to start to learn what you’re talking about. Because first of all, Lancelot, one of the most common questions I get from people that haven’t raised private capital before is, I say, Jay, how do I start, like how do I start raising private money? I’m fearful, I’m fearful of asking, I’m fearful of rejection, all that kind of stuff. The first place you start is owning the real estate between your ears.

 

Jay Conner [00:14:14]:

What I’m talking about is mindset. You’ve got to own your mind before you start talking about private money. So how do you do that? What you want to learn is what in the world is it you’re going to teach, right? What are you going to share with people initially that have never heard about this world? So you want to learn now? My world of private money is single-family houses, right? There are all kinds of ways to use private money. You can use private money for single-family houses. I’ve flipped over 500 houses now in a small area over all these years. And I don’t say that to brag. I’m just saying there’s a case to be made to own and dominate a small market instead of trying to be a competitor in a big market. So what is it that you’re going to teach and share? One big secret, as I just said, my 47 private lenders that are funding my deals, they have never heard of this.

 

Jay Conner [00:15:14]:

They never heard of private money. They never heard of self-directed IRAs. They’re not sophisticated investors like at my private money live events, the private money conference.com, at those live events. Lancelot. I have private lenders come to the event for my attendees to meet. They’re ordinary people. Just. I got teachers, I got retired teachers, I got retired law enforcement officers.

 

Jay Conner [00:15:40]:

I’ve got engineers in the civil service. I’ve got ordinary people, ordinary walks of life. And so, owning the real estate between your ears, people are fearful of asking, people are fearful of rejection. You know what I say to them? I said, Let’s ask you a question. How can you be rejected if you never ask anybody for anything? You can’t be rejected, right? You’re sharing a world with people who they never heard about you. Okay? Now, as I said, you can use private money for all kinds of things, all kinds of asset classes. You can use private money for multifamily, as you’ve been involved in land, you’ve been involved in multifamily deals, and so it’s all. You can use private money for self-storage, you can use private money for land, you can use private money for any kind of commercial.

 

Jay Conner [00:16:37]:

I’ve got a friend who’s in an $800,000 office building, all funded with private money. The difference is that it’s all the same money. It’s just a matter of how you structure the deals. In my world of single-family houses, everything that I do is what’s called asset-backed debt. Asset-backed debt, which means I don’t, I’m not raising money for a fund as you would in syndication, right? Everything I do is what’s called asset-backed debt. That’s the fancy term. Everything I do in slang is what we call one-offs.

 

Jay Conner [00:17:13]:

So you got a single-family house, you got a private lender, maybe a couple of private lenders that are funding that property, and they get their own promissory note, they get their own deed of trust or mortgage, securing their promissory note as a result. The SEC does not regulate this part of private money. The SEC, Security Exchange Commission, which a lot of new capital raisers are fearful of because they’re afraid they’re going to break the rules and all that kind of stuff. Guess what? There are no rules to break when you’re doing single-family houses unless you’re borrowing unsecured funds, which is a big no. Unless you are actually raising money for a fund. Now, if you’re raising money for a fund, the SEC has its regulations, of course. But with single-family houses where the private lenders have their own promissory note and a deed of trust or mortgages collateralizing that note, that’s asset-backed debt. But anyway, I got so excited, Lancelot, I forgot the last thing you asked me.

 

Lancelot Lenard [00:18:18]:

That’s funny. So last thing I was like, how do you overcome the fear?

 

Jay Conner [00:18:21]:

Oh yeah, how do you overcome the fear? Mindset. Mindset. So one way you can overcome fear is just screw it up really bad and learn lessons from screwing it up. Like, how do you really get good at something? Is doing it right, practicing it. But you want to have the foundation, right? You want to have the foundation of what to teach people, as to how this opportunity works, how they’re protected, and how they can get their money back in case of an emergency. And so you see, you are seen as the expert. Now, one thing that causes fear and lack of confidence is if somebody’s looking to raise private money for their deals and they’ve never done a real estate deal, right? That’s who’s going to loan me money. And I’ve never done a real Estate deal.

 

Jay Conner [00:19:14]:

You know what, that’s a pretty doggone really good question. Who is going to loan you money? And you’ve never done a deal. I say join forces with somebody that’s done a bunch of deals, right? That knows how to structure a deal and learn on the job while you’re earning. Right. And a joint venture with somebody. Get a coach, get a mentor, work with somebody who’s doing it. But the other answer to that question of who’s going to loan me money? And I’m fearful about that. Here’s one of the answers.

 

Jay Conner [00:19:45]:

If you don’t pay your private lender, the property does. Let me repeat that. If you don’t pay your private lender, the property does. Well, that’s why the private lender is protected. We don’t borrow more than 75% of the after-repaired value of a single-family house. Nice big equity cushion that’s protecting the private lender. Notice I did not say a maximum of 75% of the purchase price. Big difference.

 

Jay Conner [00:20:17]:

I always, here’s a writer downer. I always bring home a big check when I buy a property without taking any of my own money. To the closing table. Here’s the question. Who wants to get paid to buy houses?

 

Lancelot Lenard [00:20:31]:

Everybody.

 

Jay Conner [00:20:34]:

Without taking any of your own money, their clothes. Hey, look, I always bring home a big check when I buy a single-family house because I’m borrowing more than I need to purchase the property. But that only works, of course, when you’re buying a property that’s distressed and it needs renovation, it needs rehab. And so that’s why you’re buying it at a discounted price. But yeah, this whole world of private money puts you in control. How do you get the confidence? How do you overcome the fear? Know what it is that you are offering and teaching know how to protect your private lender. When you do business this way, they are not going to lose any money. Because listen, I’ve done over, I’ve done over 500 flips of singles.

 

Jay Conner [00:21:20]:

I started before HGTV was even conceived or sexy.

 

Lancelot Lenard [00:21:25]:

So out of those 500 properties, I have a question about this. What systems allowed you to scale without burning out on those five? Because that’s a lot of properties. I was thinking, and I’m like, oh, I’m going to get into flipping maybe a little bit nnowow I have a contractor’s license, etc. Etc. I was like, maybe I could do one a month or one a quarter or something like that. That wouldn’t be too stressful. But 500, that’s a lot. That’s like in 500, let’s say even in 20 times, that’s what 200 or was like 25 a year or something like that.

 

Lancelot Lenard [00:21:57]:  

That’s a lot of properties to flip.

 

Jay Conner [00:22:00]:

Yeah, that’s what we average. So let’s go back to day one. First year, three houses. First year, first year, three houses. Second year, five houses. So obviously, I didn’t start out scaling that. So how did it scale? I’ll tell you how it scaled. Software, as in technology CRM.

 

Jay Conner [00:22:26]:

Having everything in one place to communicate with the team. And that’s the second piece of the scale team. The only thing I do today is make decisions. I decide what marketing levers I want to pull and test to have motivated sellers reach out to us. I want to sell my house. I have, hey look, Lancelot, I ain’t bought a house out of the multiple listing service since 2019 because there haven’t been any deals. They been any deals in the multiple listing service? Right. When I get a house rehabbed, ready to sell, I put it in the multiple listing service.

 

Jay Conner [00:23:07]:

I got multiple offers the same weekend, and boom, I’m under contract. Because in our area, even today,y there’s a very small there’s lack of inventory. Lack of inventory. Now that’s not the case. That’s not the case everywhere. Right. Like down in Florida, it’s pulled out, pulled back a lot back there. But as I said, how do you scale this software, and people go ahead.

 

Lancelot Lenard [00:23:30]:

Is this what you call the automatic transaction machine?

 

Jay Conner [00:23:34]:

Yes, yes.

 

Lancelot Lenard [00:23:36]:

For example, what does that mean for an investor? Tell me about it.

 

Jay Conner [00:23:39]:

The automatic transaction machine is that you’ve got the team in place, you’ve got an oiled machine, a grease machine, and most importantly, you have a system.

 

Lancelot Lenard [00:23:50]:

Yeah.

 

Jay Conner [00:23:51]:

What’s my system? Let’s unpack, and I’ll try to do that 30,000-foot view. Right. But my system, first of all, I have to have the right time. So, my acquisitionist, I have not talked to a seller of a single-family house, and I don’t know how many years personally myself. I’ve had the same acquisitionist, her name is Kim, for 20 years. 20 years. So she talks to all the off-market sellers of single-family houses. Right. So she works out of her home, and she and I never talk.

 

Jay Conner [00:24:27]:

Literally,y we never talk? All of our communication is in the software. When I started, Lancelot, I was the most disorganized mess you have ever seen. Hey, look, I ran this business off of post-it notes everywhere I had posts, they were on the wall, they’re on my lamp, on my lamp here, on my desk, they’re on my oand receiver of my phone, they’re on the floor. Post-it notes and yellow pads everywhere. Thank goodness I discovered a wonderful CRM that I actually it is a prepare proprietary software for real estate investors that just and my mastermind members use. And so all communication is there as like from a lead comes in. So, where do all these leads come from? We’re digressing.

 

Jay Conner [00:25:17]:

We’re not talking about private money.

 

Lancelot Lenard [00:25:18]:

But anyway, it’s fine because it all ends up in private money at the end. Because how do you buy the deals that we’re talking about right now? We have a lead-up. I told you this is a story-style interview. Okay? So we gotta build it up to the point where you can like, yeah, that’s how you, where’s this how you use that money?

 

Jay Conner [00:25:34]:

You can’t use the money unless you have leads.

 

Lancelot Lenard [00:25:36]:

Exactly. I could talk all day about how much, how easy it is to raise private money. But let’s find out how we can actually use that private money.

 

Jay Conner [00:25:45]:

By the way, Lancelot, speaking of leads, before I get into the system, speaking of leads, so I’m on a guess that you have heard the following quote from the guru on stage talking to real estate investors, new real estate investors, and they say something to this effect, oh, just get the deal on the contract, the money will show up.

 

Lancelot Lenard [00:26:12]:

Yeah, I love that.

 

Jay Conner [00:26:14]:

Or just hearing that, I want to be like the Kool-Aid guy who runs into the brick wall on TV. Or they’ll say, they’ll say, oh, money finds deals. Now, let me just ask a question. Does money have legs? That’s like running around looking for deals. Or you get a deal under contract and boom. That drone just flew to your front door porch step and boom, dropped a box of money on your front door step because money heard that you got a deal under contract. That’s the most stupid thing, that seminar crap. Excuse my French.

 

Jay Conner [00:26:52]:

That is seminar junk right there. Look, money ain’t going to show up looking for you, right? You get a deal under contract. So that’s why I practice and teach that money comes first. Now look, if you’re a wholesaler, if you’re a wholesaler and you get a deal on the contract, of course, money’s going to chase that contract because you already got your buyer’s list built. But what did you do? You got the money lined up first. If you’re a wholesaler and you got good training they what’s the first thing they teach you to do? Go get your buyer’s list. What’s that? It’s the money. It’s the money.

 

Jay Conner [00:27:31]:

Get the money lined up first. So whether you’re wholesaling, you’re getting your buyer’s list lined up, if you’re rehabbing and staying in deals, you’re getting your private money lined up first. There’s always going to be deals back to the lead generations and the automation. So I have right now, I think eight. I think it’s eight. Seven or eight. At least seven or eight. I have seven or eight different marketing funnels that are on automatic every day, shooting, bringing in motivated seller leads into our software.

 

Jay Conner [00:28:10]:

Where are they coming from? So we got, I have all these different vendors, Google paid ads. Now I’m not doing pay-per-click as if you’re managing your own Google account, right? But the vendor is doing Google pay-per-click, and then they’re charging you per lead that’s coming in. Whether it’s this vendor or that vendor, somebody is motivated to sell their house. They go to Google online and they type in sell my house fast. How to sell my house fast. How to sell my distressed house. How to sell my house with no repairs. There are 75 different key phrases.

 

Jay Conner [00:28:46]:

So they do. Odds are. See, I love competing with myself, right? I got a good friend here at Moorhead City, North Carolina. His name’s Clark, his wife is Liza. They own five different restaurants and every one of them is are different kind of restaurant, right? And so they compete with themselves, but they dominate the market, right? So I like to compete with myself and dominate the market. So I got all these different lead sources. Now, when the lead comes in, here’s the see automation automation la Ron Legrand taught me: the less I do, the more I make get out of the way for goodness. So lead comes in,   nd by a Zapier software attachment, that lead automatically goes into our CR, and it tracks where the lead came from.

 

Jay Conner [00:29:33]:

Look, if you can’t track and measure where you’re spending your marketing money, you cannot improve it. You cannot prune. You can’t get rid of what’s not working. You can’t keep what is working because you don’t know, right? But through the tracking, we know where every lead is coming from. Now, cost per lead is important, but the most important thing is cost per conversion. Cost per conversion. So, how much money did you spend with vendor A to buy a house, not how much was there? You can have another vendor that’s got a cheaper cost per lead, but they don’t convert, right? So cost per conversion.

 

Jay Conner [00:30:14]:

So we got all the leads coming in now. How does the system work automatically? How the system works is okay. Here comes the lead. It’s in the CRM. My acquisitionist and my lead manager. Hello. E I, E I, E I O. Lead manager.

 

Jay Conner [00:30:31]:

She’s been with me for six years. Her job is to make sure no leads fall through the cracks. So my acquisition is. Kim is a human being. Human beings are not perfect. Human beings get distracted. So my lead manager, her name’s Trixie, her job is to make sure that none of these leads are falling through the cracks and that Kim is on top of them. Stink on a stick.

 

Jay Conner [00:30:59]:

So nothing gets missed, right? So here comes the lead. Kim sees it. And now, when that lead comes in, more automation. We have an AI assistant named Bailey. What does Bailey do?o As soon as that lead comes in within two minutes, Bailey is now automatically texting that lead and setting the phone appointment for Kim, the acquisitionist, to call them. Bailey gets three out of four leads. A phone appointment for Kim. So there’s the phone appointment.

 

Jay Conner [00:31:31]:

Kim calls him up. Kim gets the information from the seller, and now she puts that information in the CRM, and now boom, she puts it i,n and now I’m notified. I got a lead to review after I finish this show with youLancelotot. I got 13 brand new seller leads to review that just came in since yesterday afternoon. And I’m gonna review them leads and I’m gonna decide which ones we wanna get a value from our realtor on and which ones maybe we wanna go look at. So I’ll look at them, and then I go into the CRM and in my quiet time, and I decide which ones to get the realtor’s opinion. So I say get an opinion. Guess what? That software automatically emails the realtor in that area to get their opinion.

 

Jay Conner [00:32:19]:

In less than 24 hours, the realtor’s opinion comes back and goes into the software. Now we’ve got all the information we need to decide whether we’re going to go look at the property or not. So we look at those numbers, and now we decide to go look at the property. So now I say, look at the property. And now Kim sets the appointment for the realtor and my project manager to go look at the property and estimate repairs. Those repairs come back to Kim. Kim puts them in the software. I look at it now, I got all the numbers I need, and now I make the offer.

 

Jay Conner [00:32:49]:

Now that goes over to Kim. She makes the offer, negotiates the deal, we go into contract, hopefully, and then we close. All that’s done, through software and the team.

 

Lancelot Lenard [00:33:01]:

That is awesome. What a fluent system you’ve got going on over there. So.

 

Jay Conner [00:33:07]:

Well, without the system, I’d be running around with my hair on fire, and I don’t have enough hair left to get on fire.

 

Lancelot Lenard [00:33:14]:

That’s kind of re, too. So I don’t know. It looks like it’s on fire all the time. Can you share a deal that simply wouldn’t have been possible without private money?

 

Jay Conner [00:33:25]:

Which one of 500?

 

Lancelot Lenard [00:33:28]:

Let’s say all of them.

 

Jay Conner [00:33:29]:

So, is there any specific one that was like so tight? So recently we had a. Had a lead come in. His name is Brian, and Brian does not live in North Carolina. He lives in South Carolina, and he inherited an oceanfront condominium here at Atlantic Beach, N.C., and totally furnished, needed hardly renovations whatsoever. And so the lead came in by a good one of our Google vendors, came in by one of our Google vendors, automatically came into the software, and here are the numbers. Oh, what was the layer? Three layers of motivation.

 

Jay Conner [00:34:14]:

Three layers of motivation. That’s what you call stacked motivation. Absentee, out-of-state owner inherited and is going to the courthouse sales steps because it’s in foreclosure. So lots of motivation is going on here. I bought the property using private money, and I closed in seven days. I had to close in seven days. I don’t want that property going to the courthouse steps. The foreclosure sale competes with all the other real estate investors.

 

Jay Conner [00:34:51]:

I bought it for $480,000 cash. Pride. We’re using private money. If I hadn’t had the private money available. Boom. There you go. Close it in seven days. Now the rehab, very out of the ordinary.

 

Jay Conner [00:35:07]:

$12,000. Nothing. $12,000. The only thing it needed was paint. They needed paint, a little bit of sheetrock repair. That was it. And beautiful furniture, totally furnished. You pull back the curtain, you’re looking out the sliding glass door, and there are windows in every room.

 

Jay Conner [00:35:29]:

The bedrooms look out over the ocean. You feel like you’re in a crew on a cruise ship in this condo. Anyway, I sold it for $618,000,  and I was in and out in six weeks. And that would not run the numbers. 618 less 12, less 480, less 30,000 in realtor fees. That deal, I think I netted over $160,000 net net in six weeks. I wouldn’t have happened without private money. And being able to close fast.

 

Jay Conner [00:36:05]:

Now, you’re not going to close fast without the private money or your own money. And you’ve got to have a relationship with a closing agent or real estate attorney that’s going to do your title search and get that done. And you’ve got to have your relationship with your realtor, if you’re not one to actually know what the after-repaired value is that you can sell it for. So again, having those team members in place allows you to close fast because time kills deals, and the older, the colder.

 

Lancelot Lenard [00:36:33]:

That is so true. So that’s an amazing deal. Do you ever keep any of these for like long-term holds, or are they all flip, flip, flip, flip?

 

Jay Conner [00:36:43]:

It depends on how I buy them.

 

Lancelot Lenard [00:36:45]:

Because I mean, ocean for a property for $400,000. You’re kidding me. You’re looking out at the Atlantic Ocean. That’s in my book. That would have been a keeper. Airbnb all day long, like a short-term rental. You only had to fix up like $12,000. You’re in it for 500,000.

 

Lancelot Lenard [00:37:00]:

It’s probably going to make you somewhere around 100,000 or north in short-term rental opportunities. So I was like, hey, yeah, I could make 160 right now, or I could make 100, 120 a year on this puppy.

 

Jay Conner [00:37:15]:

That’s a great,’  ss a great question. I don’t like to leave private money buried in a house.

 

Lancelot Lenard [00:37:22]:

Gotcha.

 

Jay Conner [00:37:23]:

However, to that the market has changed very recently. As recently as two weeks ago, First Citizens Bank, right down the street here on Bridges Street in Morehead City, North Carolina. By the way, I do a lot of business with First Citizens. I got a lot of money parked there and great friends there. They’ve got great service. I don’t borrow money from them, but. And here’s why. Two weeks ago, did you know that at First Citizens bank, you, if you want to, if you’re a landlord and you wanted to invest in a single-family house for the long term and you want to hold it for the long term, 8.3% plus points and origination fees, etc.

 

Jay Conner [00:38:08]:

And they make the rules, right? They make the rules. I’m borrowing at 8%. So with rates at 8.3%, I’m actually paying my private lenders less. Less than what the local bank is charging today. So when I said a moment ago, it depends on how I buy it. Now I will say this. The longer you own a property, the more money you make. With this condition, it depends on what the underlying debt is.

 

Jay Conner [00:38:42]:

Right. The longer I owned a different condo at a Place at the beach a few years ago, the more money I lost because of the underlying debt. And I could only rent it out for 13 weeks out of the year. You see that property that we were just talking about, that I bought for 480 and silver 618, you only rent it out for 13 weeks out of the year.

 

Lancelot Lenard [00:39:02]:

Got you.

 

Jay Conner [00:39:02]:

There’s no market. There’s no market middle of September through the end of April. So the only income on that property is Memorial Day through Labor Day. But anyway, back to how I buy it depends on how I sell it. So I don’t only use private money for buying properties, I buy properties on what we call terms. So I’ll buy single-family houses. One way that I love is to buy it subject to the existing note. So what in the world is that? I could give you a three-day seminar on buying subject to the existing note, but I’ll give you a three-minute seminar instead.

 

Jay Conner [00:39:48]:

So a buying subject to the existing note of a single-family house means that you buy the property, buy the single-family house, or it could be a duplex, quadplex, triplex, whatever. You buy it subject to the existing mortgage, which means the seller of that property agrees to transfer title and ownership to your entity and leave the mortgage in their name. You’re not assuming the note. You’re not assuming the mortgage. If you assume it, the bank has to approve you when you buy, subject to the existing note. The lender’s got nothing to do with this transaction whatsoever. This is already on the settlement statement. HUD on linenumbers 203 and 204, depending on which side of the settlement you’re on.

 

Jay Conner [00:40:37]:

But it’s already there. It says subject to the existing mortgage. So you may ask the question, who in their right mind would sell me a house and leave the mortgage in their name? Yeah. Who would agree to that? I’ll tell you who would agree to that. Somebody who needs debt relief right now. Debt relief, right. And so when I buy it subject to the existing note, then I’m typically going to sell it on lease, purchase, or rent-to-own. Okay, get a look.

 

Jay Conner [00:41:12]:

Did you know that over 85% of all mortgages right now in the US have an interest rate between 3 and 4%? Between all that refinancing that took place in the past few years. When you buy subject to the existing note on a single family house and the mortgage is between 2.75 and 4%, you just then you are borrowing free money; essentially, you’re inheriting an interest rate of 3%, three and a quarter, three and a half percent, or whatever. Now I can use private money in a second position, a junior lien, if there’s equity in the property, and use private money to l,ike, let’s sa,y, they’re behind on payments. I’ve got a whole foreclosure system where we track every foreclosure in our market, and we help these people get back on their feet, and we put money in their pockets because they’re not going to get any money at the foreclosure steps. Right. Courthouse steps. We help them get back on that. But we buy those properties subject to the existing note.

 

Jay Conner [00:42:16]:

They’re in arrears, or they wouldn’t be in foreclosure. So I can use private money if there’s equity in the property because we have to protect our private lender. And I’ll use private money to bring payments current that are past due, or if there’s some renovation that’s needed, I can use private money for that. So that’s a long answer to your short question. Do you ever keep any of those properties? It depends on how I bought it. Hey, my favorite property today, right now, here today, Lancelot is the farmhouse. That’s my favorite property. The farmhouse in Newport, North Carolina.

 

Jay Conner [00:42:52]:

We did $150,000 renovation on that property, that house last year. It’s a two-bedroom, two-bath, and it sleeps 10 people. Turned it into an Airbnb short-term rental. If I were renting it out to a straight renter, I’d bring in $2,200 a month, 20 $200 a month. And in my first 12 months, I am tracking over $100,000 in this first 12 months as a short-term rental because it’s in a high-demand area. We live here near Cherry Point Naval Air Station, Cherry Point Base, here in Havelock, North Carolina. And so contractors are right now, I got six guys, I got six guys in this, in the farmhouse, three miles out in the country. But 10 minutes from where they’re working, they’re paying me $23,360 for 90 days of rent, $23,360 for 90 days of rent, and good night.

 

Jay Conner [00:43:58]:

2200 times. I barely would have gotten that if I’d rented it out all year to a renter.

 

Lancelot Lenard [00:44:05]:

Yeah, but it makes sense that the business model is what it is because of the possibilities. Also, there are risks involved. Like, I like your area because it’s in high demand. There aren’t a lot of properties, probably that are doing Airbnb in your area. You come to my neck of the woods here in Florida d you can probably find 20, 30, 40 properties within a one or two-mile radius that are doing Airbnb. So the competition is much steeper. Your ratios change., You have an occupancy rate of 50% instead of your 80- 90%.

 

Lancelot Lenard [00:44:41]:

In some areas where it’s. Oh, it’s scarce or farm. Yours is like a typical too. It’s a farmhouse. Like, how many places do you have where you could rent a farmhouse? It’s something really unique. Some people just want to get away to live in a farmhouse for a week to try it out. So that’s also a cool like theme.

 

Jay Conner [00:44:56]:

Yeah. It sits on a 52-acre working farm. I own the farm as well. We lease it out to a young couple. They got chickens, they got eggs, they got cows, they got goats, they got pigs. And it’s just beautiful out there. Just three miles off the highway. Quiet.

 

Jay Conner [00:45:15]:

I got a, got a fire pit, I got cornhole, I got giant Jenga. Beautifully landscaped. Really, it’s, it’s just a beautiful little three-acre plot.

 

Lancelot Lenard [00:45:26]:

That’s awesome. So let’s get to your book here. Okay. I know we talked about it in the beginning, guys, but here we go again. Your book and systems, where to get the money now, how be, how to. How did that become a blueprint that separates from anything else similar? How did that become a blueprint? Tell me about that.

 

Jay Conner [00:45:49]:

It’s a blueprint in so many ways, Lancelot, because it dispels so many myths that real estate investors have. They’re looking for funding. They think they got a big and chase and pitch deals. Oh, here’s one way it dispels all the myths. Let me share with you, Lancelot, and your audience how I get my deals funded. The exact script as to how I get my deals funded by my private lenders without asking for money. That’s what makes it all different. The blueprint.

 

Jay Conner [00:46:28]:

It’s all about getting funding for your deals without ever asking for money. Right. So here’s the best way I can explain this to your audience is a little role play. So, Lancelot, let me do this setup. So what I’m getting ready to share with everybody here is the exact words I use to call up one of my private lenders to get my deal funded. And I’m not going to pitch the deal. I’m not going to ask for money, and I get my deal funded 100% of the time. I call it the good news phone call.

 

Jay Conner [00:47:05]:

The good news phone Call. All right, so let’s do a little setup. Here’s how the good news phone call works. So let’s do a few hypotheticals here. Hypothetically, Lancelot, first of all, let’s say you and I have known each other for a while. And let’s say that you and I go to church together. We’ve known each other for a while at church. Therefore, I like you, I know you, and I trust you.

 

Jay Conner [00:47:29]:

All that’s in place just from the church affiliation. And let’s also presuppose, in this example, let’s presuppose that you worked for a company in the past and you no longer work for them. And let’s say you had a 401k. Let’s say you still have a 401 (k) at the previous employer’s plan. 401k plan. And you haven’t moved that money out. And quite frankly, you’re just not really happy with how that 4401 (k)is performing. That is still with the previous employer.

 

Jay Conner [00:48:04]:

Let’s also presuppose that I have already put on my teacher hat and I’ve already shared with you. Let’s say we went to Starbucks or Dairy Queen. I like Dairy Queen better than Starbucks. And we got some ice cream. And I said something to you along the lines, along the. In our conversation, I said, Lancelot, by the way, let me ask you a question. Did you know there’s a way people can make unlimited money per year, tax-free? And in that conversation, you say, What are you talking about, Jay? In that conversation, I told you about self-directed IRAs. I told you about being a private lender and how private lenders make high returns safely and securely.

 

Jay Conner [00:48:46]:

And that I’ve got a program that may or may not be for you, but here’s what it looks like. And you heard the program taught you the opportunity, right? You love the interest rate of 8%. You love how you can get your money back in case of an emergency, blah, blah, blah, blah, blah, blah, blah. And in that conversation, you told me, and by the way, don’t miss the secret sauce, folks. Don’t miss the secret sauce in that initial conversation. I’m not talking about any deals. Here’s a writer downer. Desperation has a smell to it.

 

Jay Conner [00:49:21]:

Desperation doesn’t smell. Look, the worst time to be raising private money is when you need it, for goodness’s sakes, for a deal, right? So separate the conversations with a new potential private lender of the opportunity in the program, and then have a deal to fund, right? In this example, Lancelot, we’ve been to Dairy Queen, we’ve had our. We’ve had our strawberry sundae. And I had my banana split because I like banana splits. And we talked about the program. And in the conversation, I learned that you’ve got $150,000 in a 401 at the previous employer. You don’t like the volatility of that in the stock market. And now here we are talking about private money.

 

Jay Conner [00:50:02]:

You’re going, man, I like the sound of that. So I introduce you to the self-directed IRA company that I recommend to move your money from that 401 (k) over to the self-directed IRA company to where you can truly self-direct, and you can loan it out. And you’re going to either earn tax-deferred or tax-free interest investing in my deal, depending on the type of account you have. So you’ve moved your money over to the self-directed IRA and you’re ready to go. And I have told you I’ll put your money to work for you just as soon as possible. There’s the setup. Here’s the great news. Phone call.

 

Jay Conner [00:50:42]:

So I call you up, and Lancelot answers the phone. We have a little chat. We talked about how great the banana split was a couple of weeks ago. And then I say, Lancelot, I’ve got great news for you. I can now put your money to work. I’ve got a house in Newport, North Carolina, under contract with an after-repaired value of $200,000. Now the funding required for the deal is $150,000. Which matches up to what you’ve got in your self-directed IRA account.

 

Jay Conner [00:51:14]:

Now, closing is going to be next Friday. I’ll need you to wire your funds from your self-directed IRA account to my real estate attorney’s trust account by next Thursday. I’m going to have my real estate attorney email you the wiring instructions. That’s the end of the conversation. The most stupid thing I could say to Lancelot is Do you want to fund the deal? Of course, Lancelot wants to fund the deal. And I’ll tell you three big reasons why Lancelot is dying on the vine to wire that money to my real estate attorney’s trust account. Number one reason he trusted me,e fogoodness’s sakes to move his money to the self-directed IRA company. Waiting for me to put his money to work.

 

Jay Conner [00:52:02]:

Right? That’s number one. Number two reason, Lancelot, I want to fund my deal, because he knows I’m not going to bring a deal to him to fund. That does not match the criteria. The Underwriting of a deal that I already taught him. I taught Lancelot. I don’t allow my private lenders to loan me more than 75% of the after-repaired value. Do you remember the numbers I just told him in that phone call? I told him the property has an after-repaired value of $200,000. The funding required is 150,000.

 

Jay Conner [00:52:40]:

That is 75% of the after-repaired value. And the third reason Lancelot just can’t wait to wire that money is because he’s not making any money until I put his money to work, which I promised him I would do. As a result of this scenario. I’m ethically and morally bound to borrow his money, to invest his money, because I promised him that’s what I would do.

 

Lancelot Lenard [00:53:10]:

That’s amazing. So what’s the return for someone who invests their money?

 

Jay Conner [00:53:16]:

8%. No points, no origination fees. And you know what’s interesting, Lancelot? People will ask me, say Jay, how in the world are you still paying your private lenders 8% since 2009? Let’s say, for goodness’ sake, 2000, 2020 Covid. I can tell you what it was. 0.7%. A year and a half ago, you could have gotten five and a half percent from First Citizens Bank for a seven-month CD. They say, Jay, the rates are all over the board. Markets up, markets down, markets sideways.

 

Jay Conner [00:53:49]:

How in the world are you still paying everybody 8%? And why do they like that? I say there are two reasons. Number one, 8% is a whole lot more than right now. 2.75 is what it is right now. In a seven-month CD, it’s 8% more than five and a quarter percent. Five and a half years and a half ago. So it’s still more. It’s backed by real estate. And the second reason I make the rules, they don’t.

 

Lancelot Lenard [00:54:20]:

Is it 8% on the total amount that he funded you, osohe would get 8% on the 150, or is it 8% a year? How does that work?

 

Jay Conner [00:54:28]:

8% APR. So, 8% annual percentage rate. So it’s not 8% on the deal regardless of the term, it’s 8%. So if you borrow a hundred thousand dollars and you use it all year, that’s $8,000.

 

Lancelot Lenard [00:54:46]:

Got you. Okay, that makes sense.

 

Jay Conner [00:54:48]:

That’s better for sharing in the equity. There’s no sharing in the profits. This is not joint venturing. The private lender is the bank. Meaning the private lender acts in the same capacity as the bank. Private lender gets the same protection as if I had gone to the bank to borrow the money. They get the promissory note. They get the deed of trust.

 

Jay Conner [00:55:13]:

That’s collateralizing the note. They get named on the insurance policy as the mortgagee. They’re named in the title policy. Initial insured. They got all the same protection as a bank. So the private lender is the bank.

 

Lancelot Lenard [00:55:31]:

Yeah. It’s just so many protective layers that I don’t see why somebody wouldn’t do it. Especially if, hey, my money’s invested in a CD. I always tell my friends who have CDs. I’m like, are you kidding me? I’m like, are you 90 and trying, like, why do you have a CD still? It doesn’t make any sense in any kind of market shape anymore. In my opinion, you’re better off buying U.S. Treasury bonds, for God’s sakes, than locking your money in with a CD. We just talked about how they’re protected and profitable, which makes a ton of sense.

 

Lancelot Lenard [00:56:05]:

Next point is we’re going to talk a little bit about mentorship. Okay. You’ve taught thousands of investors. What kind of results have your students achieved in the past?

 

Jay Conner [00:56:14]:

I just interviewed Willie in my Mastermind membership. He came into the Mastermind this past, I guess, about a year and four months ago. He now has $2.3 million in private money that he just rotates from property to property. Crystal. Crystal is so wonderful. Came into my world, actually, and now helps me mentor and coach our Mastermind members and our platinum coaching clients. Crystal right now has over 5 million that she uses from property to property. I’m thinking of Eric and Erica out in Mississippi.

 

Jay Conner [00:56:55]:

Actually, Poplarville, Mississippi, I think, population 3,000 or so. And they have about three and a half million in private money. Those are some that just come to mind. Off the top of my head, however, I’ve got mentees, I’ve got coaching clients that don’t have one penny in private money. Because I can’t make you do anything right. I can inspire you. I can give you the knowledge. I can give you exactly the strategy.

 

Jay Conner [00:57:25]:

But to get private money, the person raising the money actually has to do the work. Now, with my Mastermind members, I actually help them raise money and, like, force them to. I do webinars with them. I do live webinars. They’ll invite people to the webinar. I’ll do the talking. We’ll raise private money. I record audios for them that they can share with their connections as to how private money works.

 

Jay Conner [00:57:49]:

But yes, in our coaching program and our Mastermind membership, we have so many. I’ve just lost count of the wonderful success stories. That’s why I, ‘s why I’m continuing to be in this business and coach others. Lancelot, there’s no better feeling I have than being part of a transformation. I remember Crystal when we first started working together; she promised herself she would never drive her kids through fast food. She was working over 70 hours a week as an occupational therapist, overseeing multiple clinics, making multiple six figures a year. But it was running her, and she wasn’t running yet. She found herself about nine o’clock at night one evening, going through fast food to feed her kids in the backseat.

 

Jay Conner [00:58:40]:

And we started working together in real estate and raising private money. And within nine months, she retired from her day job after over 20 years running clinics. And then she went to being able to homeschool her kids. And now she lives on the beach, and she walks to the ocean, and it’s wonderful. Back to Eric out there in Mississippi. He was working for the railroad, had been for years. An hour drive each way to work for the railroad. In seven months of us starting to work together, he retired from working on the railroad.

 

Jay Conner [00:59:12]:

And by the way, he’s in 30s, he’s in his 30s, so you can actually retire from a career in your 30s. And he and his wife are full-time real estate investors. So I have no better feeling than being a part of other people’s transformation and really creating the life that they want.

 

Lancelot Lenard [00:59:31]:

Is that why you believe mentorship is a shortcut to success?

 

Jay Conner [00:59:34]:

Oh, it is a shortcut to success. When I first started joining and becoming a member of Master other Masterminds, which right now I’m a member of three mastermind groups that I don’t run, that I’m a member. And when you are surrounded by other people of like minds, that is the shortcut to get you there so much quicker, and save you so much money. I mentioned at the beginning of your show, Lancelot, that those first six years, the only thing I knew to do was go to the local bank or a mortgage company. If I had gotten training or gotten a coach or a mentor, I would have known all that stuff within the first month. But no, I spent a lot of money. If you think coaching and education are expensive, you ought to try just doing the business with no help.

 

Lancelot Lenard [01:00:25]:

Yeah, I can attest to that for sure. You spend a lot of money. Trial and error.

 

Jay Conner [01:00:30]:

Hundreds.

 

Lancelot Lenard [01:00:31]:

Oh yeah.

 

Jay Conner [01:00:32]:

Starting because I didn’t get the right training.

 

Lancelot Lenard [01:00:35]:

Yeah. Even just like testing marketing, like you just sink money into it. Oh, does this work? Does that work? Does that work? I could probably attest to at least a couple of hundred thousand dollars lost in ether that never brought me anything in marketing and other investments. Shiny objects. This, that. The other thing in real estate that you’re like, everybody dangles this in front of realtors. That’s one of the things I just talked about. I.

 

Lancelot Lenard [01:00:58]:

It’s a cool meme going around online. I don’t know if you’ve seen it are two guys talking like, you know, how you make money in real estate? Do we sell houses? No. Do we get buyers? No. We sell leads to the agents, basically. And I’m like, you are not freaking kidding me. Because you guys are always making money no matter what. We are always buying these leads, no matter what. So that’s.

 

Lancelot Lenard [01:01:21]:

And then. And just for maybe a little add-on to your business model, because you’re generating a lot of leads, I’m pretty sure you already do it. But the leads that are not as shiny or as good for you to use, you. You probably refer them out to an agent or sell it to an agent for a fee, and then you make money off of that, too. Is that a way?

 

Jay Conner [01:01:41]:

Have you been looking over my shoulder?

 

Lancelot Lenard [01:01:45]:

A few books over there.

 

Jay Conner [01:01:46]:

Yeah, but all these books were written in the 1800s.

 

Lancelot Lenard [01:01:49]:

They were beautiful. By the way.

 

Jay Conner [01:01:53]:

The story you just shared, I have not seen that meme, but I get it. Please email me a picture, a screenshot of that.

 

Lancelot Lenard [01:02:00]:

If I find it again, I’ll send it to you. I don’t. I was just browsing through it. Oh my God. That hit me like the.

 

Jay Conner [01:02:06]:

I bet AI could find it for me. Yeah, but. But the story you just shared, you know what it reminds me of? It reminds me of the gold rush and all them people moving out to California who made the money. The people selling the pans.

 

Lancelot Lenard [01:02:19]:

Exactly that. People who sell the tools for them. Exactly. That’s the same thing in real estate, like even top producers. Yes, but the top producers have their own lead generation systems that, similar to what you got going on, bring in all the deals and bring in all the leads, and then they have systems and agents brushing through and combing through those deals, and then they go and close them. The smaller people who are doing 3, $4 million in sales are probably working off their sphere of influence. Then you got your five to $10 million people that are probably buying leads, five to 10 to $20 million producers, they’re probably buying the leads to get to that level above that, you gotta have a system that’s doing it for you.

 

Lancelot Lenard [01:03:03]:

That’s where you spend your money. Instead of sending 5, $10,000 on Zillow every month to get leads from you, figure out a system to generate your own leads. Because that’s all that Zillow does. They generate leads and then they sell them to you for a premium.

 

Jay Conner [01:03:18]:

That’s right.

 

Lancelot Lenard [01:03:19]:

No, Jay, you got the perfect system. Maybe you guys can join Jay’s mastermind and figure out how to get leads, which in itself is probably worth every penny. So tell me, for a brand new investor listening right now, what’s the first step they should take to raise private money?

 

Jay Conner [01:03:37]:

The first step toward raising private money again is to know what you’re talking about, to learn what it is that you are offering. To learn how private money works to build your confidence. So yeah, the first thing is to get your mindset right and to get the knowledge, and just simply order my book jconnner.com forward slash book. That’ll get you started.

 

Lancelot Lenard [01:04:02]:

So, how do rising interest rates and tighter bank regulations create new opportunities for private money investors?

 

Jay Conner [01:04:10]:

How do rising interest rates affect? You’re talking about institutional rates.

 

Lancelot Lenard [01:04:15]:

Yes. Not your, not private money interest rates. Interest rates for say the Fed or interest rates, let’s say, for the banks, which are correlated to the Treasuries. So the rise in those interest rates and tighter bank regulations from banks creates new opportunities for private money investors.

 

Jay Conner [01:04:36]:

That’s a good question, Lancelot. Let me let you take a stab at that. I’m not sure there’s a direct correlation between institutional rates rising or falling and having any difference in an opportunity for a private lender. However, there is a direct correlation. Obviously, the lower rates are in CDs, the more interested a private lender would become. For sure. Because there’s more spread between what you as a borrower would pay a private lender and what the lo and what the local bank would offer. My crystal ball, everybody’s got one, just like something else.

 

Jay Conner [01:05:19]:

But my crystal ball says rates will continue to come down for some period of time for several reasons. That’s a whole other conversation. And the more those rates come down, particularly rates that you can get on your money in a local bank, the more opportunity for people to be interested in becoming a private lender.

 

Lancelot Lenard [01:05:40]:

Also, I think for us as investors, it’s looking to be an easier avenue than submitting. Self-employed, I have four LLCs, and I have a non-profit, and I own several houses, properties, and cars and whatnot. And when I go to the bank to get a loan, you don’t want to know, like an average person with a W2 says, oh my God, the paperwork. Try to do the paperwork for P and L for five companies in mid-year, going through everything without. Because I don’t have an accountant, I do everything myself. I do all the paperwork myself. So when I’m trying to apply for a loan, that’s five businesses, five P&L statements in the middle of the year, going through all the books and everything.

 

Lancelot Lenard [01:06:24]:

It’s insane. And that’s just one part of it. You get tax returns for each company for the past couple of years, etc. Etc. It’s insane what they ask for. Now here we’re talking private money. Hey John, I got a deal for you. And boom.

 

Lancelot Lenard [01:06:42]:

Money’s wired to the attorney. You close the deal. And what was the paperwork again? I put the house under contract. Which you would have done anything.

 

Jay Conner [01:06:50]:

I mean, that’s such a good point. Because I shared with you and your audience the good news phone call script. Right? Yeah. After the one or the first one or two, you know what the script becomes?

 

Lancelot Lenard [01:07:04]:

What I just said.

 

Jay Conner [01:07:05]:

Exactly.

 

Lancelot Lenard [01:07:07]:

Here’s the deal wire to the attorney. That’s it.

 

Jay Conner [01:07:10]:

That’s right. And of course, that conversation comes as a result of performance, that trust and confidence. They know you’re going to take care of them. That does not happen in the first conversation, of course.

 

Lancelot Lenard [01:07:24]:

Oh no, no.

 

Jay Conner [01:07:25]:

But that’s where that, that’s where that relationship goes to. And I’ll tell you another funny thing. You go to pay off the private lender the very first time, I guarantee you, every time. What are they going to say? Can’t you just keep the money? Can’t you keep the money? I don’t want the money back. Because if you give them the money back, they’re not making any money on their money. Yeah. And then the next time I’m on your show, Lancelot, we’ll talk about substitutions of collateral and how we actually keep their money working. Okay.

 

Lancelot Lenard [01:07:55]:

There’s a way for that. That’s awesome.

 

Jay Conner [01:07:56]:

Yeah.

 

Lancelot Lenard [01:07:57]:

That makes them even happier. The next question is, where do you see the biggest openings in today’s market for people willing to think creatively?

 

Jay Conner [01:08:07]:

Now, are you talking about private lenders? Are you talking about real estate investors?

 

Lancelot Lenard [01:08:10]:

Real estate investors.

 

Jay Conner [01:08:12]:

The biggest opportunities, private money. Because of two reasons. Here’s the reason. Private money is the biggest opportunity right now. Number one in the history of the United States, there is more liquid capital sitting on the sidelines. Than ever before. And people don’t know what to do with their money to get a really nice rate of return. They don’t want to put it in the local bank because they know that’s not a good rate of return.

 

Jay Conner [01:08:40]:

Before COVID, there was $18 trillion in cash liquidity. Today, $31 trillion in cash. That’s looking for a home. Look at, no pun intended, looking for a home. Right. So you got all this liquidity that makes a big opportunity. And in addition to that, it’s the biggest opportunity because most real estate investors do not know how to leverage private money. Most real estate investors don’t even know what they’re missing out on.

 

Jay Conner [01:09:14]:

Right. Some of my best friends are hard money lenders. They use my techniques to raise money for their fund to turn around and loan out to real estate investors.

 

Lancelot Lenard [01:09:24]:

Make 2% on that. That’s amazing. I didn’t think about that. But that’s also a great way of making money.

 

Jay Conner [01:09:31]:

Yeah, sure. So the big opportunity for the lenders themselves and for real estate investors to pull the lever and leverage this strategy, and it’s a win-win for everybody. One thing that I learned very early on, Lancelot, is I thought that I thought I needed the private lenders more than they needed me. Wrong. Private lenders need you, the borrower, more than you need them because there’s more money than there are deals. There’s more money than there are deals. So you create win-win scenarios and everybody wins.

 

Lancelot Lenard [01:10:07]:

That’s amazing. By the way, I was just thinking about it. I thought you were going to come out with like car wash or a senior care facility because of the boomers or something. No lenders. This is the biggest opportunity is private money.

 

Jay Conner [01:10:20]:

That’s it.

 

Lancelot Lenard [01:10:20]:

It’s not the end product. It’s the thing that you can get the end product with is that’s the biggest opportunity there. And I think that you are so right in saying that. I really thought you were going to come up with a product at the end. I love that. And then, from the lender standpoint, because that was the investor standpoint, how about let’s turn around and, for the lenders, private money lenders, what’s their big opportunity ties?

 

Jay Conner [01:10:42]:

So,o for the private lenders, their biggest opportunity i  in this market. Lancelot, that is really a good question. Because my private lenders are now actually in competition with each other, wanting to loan their money there. They, as I just said, there’s more money than there are deals. And it’s a challenge. It’s a challenge for people to become. Now I’ll tell you, I’ll tell you. I’ll tell you where the opportunity is for private lenders.

 

Jay Conner [01:11:16]:

I’ve got Mastermind members who have written their own book that teaches ordinary people how to become a private lender and what a private lender is. So here’s the. I’m so glad you asked this question. I’ve been a guest on over 800 podcasts, and nobody’s ever asked me that question. And so the opportunity for private lenders is if you’re listening to this show and you’re an individual and you want to get high rates of return safely and securely, you can order my book that I’ll mail to you, and you can learn how the private money system works. And now you can put on your teacher hat. And if you’ve got a friend who is a real estate investor in single-family houses, you can teach them how you can fund their deals. And now you get the 8% return instead of what you get measly in the bank.

 

Jay Conner [01:12:15]:

And so wouldn’t that be pretty cool? You can teach your friend who is in real estate and doesn’t know the world of private money and say, Hey, I’m a private money lender. How would you like me to fund your deals? By the way, if you do that, you don’t lend the same way you borrow. Charge them 12%, don’t charge them eight.

 

Lancelot Lenard [01:12:33]:

Ah, there you go. There’s the opening. That’s, ‘s hard money right there. That’s the 12%. What excites you the most about the future of real estate financing?

 

Jay Conner [01:12:49]:

Wow. What excites me the most. I’ll tell you what excites me the most. I’m on six podcasts a week, spreading the message. I do multiple live events a year. Spreading the message. The opportunity for private money in the future and financing in the future is for real estate investors to learn how to do this and make a difference in other people’s lives, not only yours. What do I mean by that? When Carol Joy, my wife, started borrowing private money, we didn’t know the kind of impact that we were going to make on our private lenders’ lives.

 

Jay Conner [01:13:31]:

We have received thank you notes, Lance, a lot from our private lenders that are elderly and retired, thanking us for changing their retirement years. There’s an opportunity in the future in private money and finance as a real estate investor. Leverage this strategy, create win-win scenarios, get all the money you would want for your real estate deals, and make an impact and a difference in your private lenders ‘ lives.

 

Lancelot Lenard [01:14:03]:

Jay, thank you very much. This has been absolute gold, my friend. You’ve shown us that funding doesn’t have to be a barrier. It can actually be the gateway to freedom in real estate. For everyone listening. Go grab Jay’s free guide@jconnner.com moneyguide and pick up his book. He’s going to show it to you guys one more time here. Where to get the money now@jconnner.com book.

 

Lancelot Lenard [01:14:30]:

It’s free. Just cover the shipping. That’s all it is. Make sure to follow Jay on YouTube, LinkedIn, Facebook, and Instagram, Private Money Authority for even more insights. And if you found value in today’s episode, hit that subscribe button. Share this with investors, friends, and drop us a review. God’s sake, share it with your friends who have IRAs and all this stuff, so they can start somewhere to make some more money. It helps us bring more powerhouse guests like Jay right here to the Real Estate Roundtable.

 

Lancelot Lenard [01:15:02]:

Until next time, I’m Lancelot Lenar, reminding you your next deal is only one conversation away. Thank you, everybody, for coming. Have a great day. Thank you for joining us on Sir Lancelot’s Real Estate Roundtable, where we’ve unveiled the mysteries of real estate together. Remember, in this kingdom of possibilities, every dream home is just a discussion away. I can help your real estate dreams come true. Just call me at 786-449-7518 until our next round table. May your ventures be prosperous and your homes be filled with love and joy.

 

Lancelot Lenard [01:15:48]:

Farewell, fellow knights of real estate.

 

Narrator [01:15:57]:

Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide, that’swww.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.