Raising private money may seem incredibly intimidating for a first-timer, but it’s actually a lot easier than you think. Don’t know where to start or who to ask? Look no further.
In this episode of Raising Private Money, I’m sharing why private money trumps bank loans any day and how you can raise private money in a single conversation. We also talk about how private money can help you easily diversify your real estate investments and scale up your operations.
Key Takeaways:
- Why private money is so powerful in real estate
- How borrowing private money puts you in control
- On how the real estate market is more profitable than ever
- Securing real estate leads with this simple method
- How I close 1 out of every 5 leads
- The three main places you can easily find private lenders
- How to successfully pitch private lending to virtually anyone
- How your money can grow 8 times more with private lending compared to bank deposits
Check out my book: 7 Reasons Why Private Money Will Skyrocket Your Real Estate Business and Help You Build Incredible Wealth!
Get it here for FREE: www.jayconner.com/moneyguide
Timestamps:
0:01 – Raising Private Money with Jay Conner
1:35 – Jay’s Free Money Guide: https://www.JayConner.com/MoneyGuide
2:31 – Why Private Money Is Powerful In Real Estate?
6:15 – Jay Conner’s Biggest Truth
10:35 – Jay Conner’s Real Estate Investing Business
13:30 – Where Do You Find Motivated Sellers?
20:17 – How To Build Your Real Estate Business Dream Team
22:35 – My Job Is To Make Decisions
24:39 – Where To Find Private Money Investors
28:49 – How To Start A Conversation With A Potential Private Lender
30:49 – Jay Conner’s Best Problem
33:01 – The Way I Do My Business Is So Simple That Anybody Can Do It
35:25 – My Passion Is To Make A Huge Impact In Your Life As A Real Estate Investor – Jay Conner
How to Raise Private Money With Jay Conner
[00:00:00] Ty Crandall:
It seems like a man of your intelligence and expertise. It seems like syndication is like you move up. And that’s like the top level where you’re buying like 10 million, grant Cardone type deals where the deals just get bigger and bigger. So I’m just curious why don’t you play in that really big syndication space, or do you?
[00:00:26] Ty Crandall:
Hello and thanks for joining us today. I’m really excited you could be here cuz today we’re talking about one of my favorite topics, which is real estate investing. We’re talking about my topic. It’s even more favorite than that. How to get the money, private money that you need to be able to do real estate investing.
[00:00:40] Ty Crandall:
We brought the goat, the guru on to talk about this topic. Today with us is Jay Connor. Now Jason, national speaker on the topics of private money. Business automation, automating your real estate business and foreclosures. Now he’s known as the private money authority and has raised two over 2 million in private money in less than 90 days when the banks refuse to loan him even a dime.
[00:01:05] Ty Crandall:
Now, he’s also the bestselling author of Where to Get the Money Now, and he’s a leading expert on private lending, marketing, and business development as well. Jay, thanks for joining us.
[00:01:16] Jay Conner:
Ty appreciate you inviting me on here, and I’m so excited to talk about my favorite subject, which is private money and private lending.
[00:01:24] Ty Crandall:
You literally just, wrote the book on this actually. You just have a new guide that maps it all out. Can you show that? Cause we were just talking about that before
[00:01:31] Jay Conner:
And I think that’s awesome. I’m so excited. I just finished writing this new private Money Guide and it’s titled Seven Reasons Why Private Money Will Skyrocket and Explode Your Real Estate Business and Help you build incredible Wealth.
[00:01:46] Jay Conner:
This guy will get anyone that’s looking for money for real estate. On the fast track experience, what I did, and that is when I first started using private money in 2009, I’ve never missed out on a real estate deal for not having the funding.
[00:02:01] Ty Crandall:
That’s awesome. And how much is that gonna cost our audience?
[00:02:05] Ty Crandall:
10,000. Oh,
[00:02:06] Jay Conner:
I don’t know if your audience can afford this. How about a big capital? F R E E? It’s free!
[00:02:11] Ty Crandall:
I love it. So for everybody watching, if you’re gonna stick around to the end of this, we’re gonna show you how to get this for free. And that is like the Bible on everything you need to know about why private money can help you blow up your real estate empire.
[00:02:26] Ty Crandall:
So let’s talk about that. Why is private money so powerful in the real estate game?
[00:02:30] Jay Conner:
Wow. There’s a long list of reasons, so I’ll start out with the big ones. First of all, I guess I should define what I mean by private money. So I’m not talking hard money. I’m not talking hard money lenders, I’m not talking brokers, I’m not talking about institutions, I’m not talking about banks.
[00:02:48] Jay Conner:
Private money is when you as a real estate investor, whether it’s for single-family houses, commercial deals, or whatever, borrow money from. From human beings, just like you and me. Private lenders are individuals that are loaning money from their investment capital and or their retirement funds. There’s a big subject right now, right?
[00:03:11] Jay Conner:
They need to learn about self-directed IRAs. But anyway, we’re doing business with individuals and so the benefits to using private. When are you gonna use it? When all cash is required by the seller, which in the real world is the majority of the deals. Yes. We negotiate with sellers and off-market sellers, creatively seller financing, and buying subject to the existing note.
[00:03:34] Jay Conner:
But 87% of those off-market sellers require all the cash. And of course, anything in the multiple listing service is gonna require cash. So doing business with these private lenders, one bene big benefit is that it puts you the borrower, the real estate investor in the driver’s seat. There’s no application process.
[00:03:55] Jay Conner:
Your credit scores got nothing to do with how much money you can get. Your verification of income got nothing to do with how much money you get. The private lender does not make the rules. You make the rules, right? So we as the borrower, we set the interest rate, we set the frequency of payments, we set what’s the maximum loan to value going to be because it is a program that we are teaching to other people and now they’re chasing us.
[00:04:23] Jay Conner:
Lemme tell you, Ty since I started using private money in February 2009, I’ve never asked anybody for it. They’re cha, like when I teach ’em what the private lending program is, now, they’re chasing me. And so the benefits put you in control. Number two, you always bring home. A big check when you buy the property and you never take any of your own money to the closing table, Do you think that might help your cash flow?
[00:04:54] Jay Conner:
So it’s very common when I’m buying a house here in my small area of only 40,000 people, I bring home a 30, 40, $50,000 check when I buy and don’t take any of my own money to the closing table. Now, the reason that works is, first of all, I’m buying the properties. Deeply discounted prices. I’m not gonna bring home a 30, 40, 50,000 check when I buy a house unless there’s gonna be some type of rehab involved.
[00:05:20] Jay Conner:
And so fixes the cash flow problems. With private money, there’s. Hurry to pay it back, like hard money, right? The term is typically two to five years and we can pay off early with no penalties. And when I first started using private money, my business tripled in the first 12 months after using private money because I didn’t miss out on any deals and I could pick and choose the ones that I wanted.
[00:05:45] Jay Conner:
No credit. Your credit’s got nothing to do with it. You bring home big checks when you buy. I get multiple checks on every transaction, and it just puts me down. And now we’ll put you in the driver’s seat and put you in control. Hey, how did you figure this out,? I could tell you, Ty. How I did not figure it out.
Ty Crandall: and how, let’s start there. Let’s start with, this cause everybody else is there right now. They’re not figuring it out.
[00:06:08] Jay Conner:
Yeah. So I just didn’t wake up one morning. And say, Hey, I think I’m gonna raise some private money. No, I tell you, Todd, your question reminds me of a big truth, and that is your biggest growth, personally, the biggest growth in your business.
[00:06:27] Jay Conner:
Your quantum leaps always come from a difficulty from a challenge. Growth takes place in the valley. Growth doesn’t take place on the mountaintop. How in the world did I back into private money? I can tell you, I remember it just like yesterday. It was in January 2009, January 2009. You see the first six years I started in 2003.
[00:06:54] Jay Conner:
So the first six years of investing in single-family houses, I relied on banks. Lemme tell you, we still have landlines here in North Carolina, right? And so in, wait, what is that thing? A landline, right? Like not a cell phone, but a landline, right? So yesterday I picked in January 2009, and I called up my.
[00:07:23] Jay Conner:
My banker’s name was Steve. I had two houses under contract to buy. I’d already been doing business with Steve for six years, and I told him about these two houses under contract. The profit was gonna be over a hundred thousand dollars on these two houses, and I learned on that phone call Ty, like that, that I had no line of.
[00:07:44] Jay Conner:
My line of credit had been shut down. Nobody had told me, and I said to Steve, what’s the problem? I said I’d never been late on a payment in six years. I got an 800 credit score. Why are you cutting me off? He says we’re just not loaning money to real estate investors anymore. Due to the global financial crisis, I didn’t know there was a global financial crisis until it happened to me.
[00:08:08] Jay Conner:
So now I’m in a crisis with these two deals and no way they So sat a moment, tell you what, I had a new mantra come to that I’ve said ever since. That moment in time when I hung up the phone from my banker. And that is, and I quote, it’s impossible for you to fail. Unless you choose to quit and quitting was not an option for me.
[00:08:36] Jay Conner:
So I sat here for a moment and then I pick up the phone and I called my buddy Jeff, who was a real investor in Greensboro, North Carolina at the time. I turned him to what had just happened. He said Jay, welcome to the club. I said, what club? He said the club of losing your line credited the bank. My bank just cut me off last week.
[00:08:55] Jay Conner:
I said how are you gonna fund your deal? He says with private money and private lending. And I said, what’s that? So I started learning about private money and private lending, and I put my program together. By the way, don’t worry. In the money guide, you’ll learn exactly what my private lending program is that I offer and teach to other people.
[00:09:17] Jay Conner:
And so I put my program together and I just started teaching people that I had a relationship with people I went to church with in the Rotary Club, my connections, people in my cell phone. I started teaching ’em what private money and private lending are. And in less than 90, I was able to raise $2,150,000 in pledges from individuals, from their investment capital, and also from their retirement funds.
[00:09:43] Jay Conner:
And you know what? I was able to close on those two deals, and since that time, I’ve never missed out on a deal for not having the funding. In 2011, I started sharing with other real estate investors how I do this. And now I’ve got thousands of students across the nation that are raising private money just like me.
[00:10:05] Ty Crandall:
Wow, that’s a heck of a story. I love that. I love how like it’s that, the word, the best things sometimes come from like the worst experiences. So let me ask, I have so many questions here, but let’s start with your model in general. So you’re raising money from individuals and I wanna talk more about how that’s done.
[00:10:22] Ty Crandall:
And then you’re walking out with checks. So what are you doing with the homes? Because there are a lot of ways you could invest in real estate. I could buy it. Airbnb is the thing I could put long-term renters in it. I could buy it, fix it up, and slip it. Are you doing some, all of those, like what’s the main thing you’re doing with that property when you get prior to Covid, and who in the world had a crystal ball?
[00:10:43] Jay Conner:
Certainly, I didn’t. Who would’ve guessed what real estate values have done this side of covid and what’s, happened with the economy and all that? But prior to Covid, I sold my exit strategy about a fourth to a third of my houses. I would sell on rent to own or at least purchase to people that couldn’t go to the bank or mortgage company and buy a house.
[00:11:07] Jay Conner:
And I did that. Differently, than most real estate investors do. So most real estate investors, and I’m not casting any judgment here, I’m just sharing facts. Most real estate investors, when they sell ’em rent to own or lease purchase, do not help the buyers get ready for a mortgage. They sort more or less leave it up to the rental-owned buyer to get ready.
[00:11:30] Jay Conner:
And of course, we know what’s gonna happen in that case. Less than 5% of ’em will ever get ready for a mortgage. If they keep that non-refundable lease option deposit, they may go sell the house again. On rent to own. I actually require people to enter into our credit repair program, and over 80% of ’em actually get a mortgage.
[00:11:47] Jay Conner:
So 25 to 30% of our sales, we did that. Prior to Covid, but this side of Covid, the high majority, I’m rehabbing the houses, turning them into brand new homes, and I’m putting them into multiple listing services and selling. And here’s why. Because prices have gone up so much. In the past year and a half, two years, it’s common for me to make over a hundred thousand dollars on a single-family house.
[00:12:17] Jay Conner:
So it is hard to turn down a hundred thousand house now, a hundred thousand dollars. As far as wholesaling deals, I’ve never wholesaled a house in my life to another real estate investor. There ain’t nobody else around here to wholesale it. Two, I’ve only got 40,000 people in my market and we do two to three deals a month, but our average profits now are $74,000 per deal that we do.
[00:12:46] Jay Conner:
So in answer to your question, time in today’s market I’m rehabbing most of the houses in the beautiful homes and I’m cashing them out just because there’s just so much money to make.
[00:13:00] Ty Crandall:
Next question. Where do you find the homes? Cause I’m at Tampa Bay, everything’s inflated. And so and there are so many investors, Jay, there are so many people out there fighting for the stuff that’s an off-market or the stuff that can, is junk that can be rehabbed.
[00:13:16] Ty Crandall:
That it just seems like it’s like there’s saturation, major saturation of investors from my perspective. So like where are you finding these?
[00:13:24] Jay Conner:
Yeah, so my two best sources right now. Now I use eight different methods consistently every day, right? I’m in a small market and I want to dominate the market.
[00:13:34] Jay Conner:
If there’s a motivated seller that’s not in the Motorable Listing Service if they’re in the Motorable Listing Service, they’re gonna get top dollar. So I don’t buy outta the Motorable Listing Service, but if there’s a motivated seller, I want ’em contacting me. So let me start with my number. My number one source is because all the foreclosures have now, the moratorium has been lifted on foreclosures.
[00:14:00] Jay Conner:
So I direct mail to every, for notice of the default once the file is open. And so now about 25% of my deals are coming from people, unfortunately, that are facing foreclosure, and I’m actually able to put money in there. They ain’t gonna get no money from the bank, but I put money in their pocket to help them move on with their life.
[00:14:20] Jay Conner:
My second best source right now is Google ads. Now I do Facebook ads as well. My Facebook ads are just a picture of me holding a yellow bandit sign, standing in front of houses saying I buy houses. So I get Facebook leads every day, but my most valuable leads are Google leads. So why are they it’s a value because those people are looking for us? They’re going to Google and they’re searching for, sell my house fast or buy my house fast, and all those types of keywords. So a Google lead of someone looking for us the real estate investor. Is four to five times more valuable than just a Facebook lead that shows up in your newsfeed and they see the end.
[00:15:05] Jay Conner:
They go, oh, okay. I might be conned, I might be interested in selling my house, but when somebody goes to a search engine like Google and is searching for somebody to buy their house fast, that is a hot lead. Listen, Ty, I only need five Google leads from motivated sellers. To buy one house. And guess what?
[00:15:27] Jay Conner:
It’s crazy. I’m only investing 50 bucks per lead. Say what time?
[00:15:32] Ty Crandall: That’s a 20% close ratio.
[00:15:33] Jay Conner:
Yeah. But that’s not because I’m so smart. I think it is, but that’s okay. Go ahead. Those people are looking for you. They’re looking for us. Sure. To and so one of the, one of the secrets. One of the sequences, so I have three different Google sources the service providers that send me Google leads, and all of them I have set up that as soon as they push, submit on the, on their computer laptop or on their phone immediately by phone rings, my Acquisitionist phone ring.
[00:16:07] Jay Conner:
And then we’re able to hit the button, hit number one on our phone, and now we’re calling that seller with less than 60 seconds of them hitting submit. You talk about impressing somebody. Yeah, sure. You go to Google and hit submit and boom, whoever you just submitted to is calling you on the phone.
[00:16:27] Jay Conner:
That’s. Yeah.
[00:16:29] Ty Crandall:
And statistically, I just looked at this the other day for our sales team, statistically, you are a hundred times more likely to reach a contact if you call ’em within five minutes. And the numbers I’ll be like, it’s staggering how long it takes people days on an average day to get back to people.
[00:16:44] Ty Crandall:
Like it’s staggering and you’re telling ’em quickly. So here’s my question. Are you running the Google ads or are you buying the leads from people that are smarter than us in Google and they like what they’re running? I’m,
[00:16:55] Jay Conner:
My team is running the ads.
[00:16:57] Ty Crandall:
They run the ads running, and then you get the leads from those ads
[00:17:00] Jay Conner:
and the lead comes straight to us from that ad.
[00:17:03] Ty Crandall:
Are you looking in your area? Are you just, do you just stay in a specific geographic area because you need the contractors to do the rehabs and stuff like that?
[00:17:11] Jay Conner:
Yeah. I’m sticking right around here in two counties. Two counties right here where I.
[00:17:18] Ty Crandall:
So all of your focus on the foreclosures, everything is bam in two counties.
[00:17:22] Ty Crandall:
Now, gee, have you found, I’m sure your system works across the country? We have students all over the country, but have you found that there are certain areas that are better than not? Cuz again, I’m skeptical about Tampa because it’s so crazy like this. Everybody, all this foreign money pours in here.
[00:17:36] Ty Crandall:
And then like with Covid, as every New Jersey moved. That’s just the whole state, Jay. Everybody in New Jersey just moved to Tampa is apparently what happened. So there are so many people that are like, wow, the real estate’s so cheap. So do you find there are certain areas of the country that works better than others?
[00:17:51] Jay Conner:
Let me answer it this way. Number one, I don’t wanna be investing in the big city competing against another thousand real estate investors or whatever. It’s, I like to go. Where I own the sandbox, so my most successful students go about 30 minutes to 45 minutes. If they’re near a big city, they’ll go like 30 minutes or so outside from the big city into the suburbs.
[00:18:20] Jay Conner:
Where you don’t have that much competition and when you can go, there’s nothing but competition. You can just dominate the market. Now I’ve got some good friends that are big-time real estate investors, and they’re right. Slap dab in the middle of, the metro, whatever, Tampa, Los Angeles Philadelphia, all that stuff.
[00:18:39] Jay Conner:
I like to go out and I like to see my students go out in the outlying areas where they just don’t have that kind of competition.
[00:18:46] Ty Crandall:
But they say somewhat close to them and you advise your students to be able to invest in an area around them and then they do almost all of it in that area.
[00:18:55] Ty Crandall:
They just own that area. That’s right. Okay. Yeah. I do that with the land. I have a little county in Nevada and I often say that I own that county. If you look at land parcels like that is my county. I pretty much own 90% of the land in that county, I believe, and that’s always worked really well for me.
[00:19:11] Ty Crandall:
I know everything about that county and how it operates. Okay, so that makes a lot of sense. So you’re fluctuating what you’re doing with the property, depending on the market, maybe in Airbnb, if you’re in the right place. Maybe a buy-and-hold. Maybe a flip. Maybe a flip. And then, How are you building a team to be able to do the work?
[00:19:28] Ty Crandall:
Do you just start building the relationships, and testing contractors out? Do you have a general contractor that just takes over the entire project, or are you handling a plumber and an electrician and all those types of things?
[00:19:40] Jay Conner:
So as far as the rehabs go, I’ve got two crews that have been with me for 14 years.
[00:19:45] Jay Conner:
And then I also did business with two other general contractors. So I got two general contractors. And my own crew. The reason I’ve got that working like that is that I got so many projects going, just my crew couldn’t keep up. Yeah. So all the above on that. How do you find good general contractors?
[00:20:02] Jay Conner:
It’s the same way you find a good real estate attorney. It’s the same way you find a good realtor. It’s the same way you find a good home inspector. And that is everybody in the industry as far as real estate goes. They know the good ones and they know the bad ones, right? So the team members, if someone’s brand new and wants to get started into investing in real estate, there are a few team members that you gotta have in place in relationships.
[00:20:29] Jay Conner:
Number one is I couldn’t be in this business without my relationship with my realtor, right? The realtor I’ve been working with the same realtor for 14, no, excuse me. For 18 years. 18 years, the same realtor. He pulls all my comps, he tells me all the after-repaired values, and I get all that information in less than 24 business hours.
[00:20:50] Jay Conner:
Of course, my real estate attorney is on my team. I’ve been using the same real estate attorney and firm since 2003 and then contractors, et cetera. So you’re looking for a good realtor. Ask your real estate attorney. You’re looking for a good real estate attorney. Ask your realtor. Everybody knows everybody.
[00:21:08] Jay Conner:
So yeah, I work in this business for less than 10 hours a week. And I’m doing well. I just cashed out. I’m manualizing right now about 30 houses and the average profits are, as I said, 74,000, run those numbers that work. I’m actually in the business myself, less than 10 hours a week, and people ask me all the time Jay, what do you do?
[00:21:32] Jay Conner:
I make decisions, so my job is to make sure the marketing funnel is turned on all the time and I’ve got consistent every day, every week, motivated settler leads coming into the pipeline. And I make sure my team members have, you know what they need, and I get out of the way. I let other people do what they do best and I get outta the way and let them do it.
[00:21:55] Jay Conner:
Like as far as a house, I may go to a house only two times. Look at it when I buy it. And that’s if I’m in town for sure. I’m gonna have eyes looking at it, my realtor, and my contractor to make sure that we estimate repairs correctly and get the after-repaired value. And then I won’t go back into the house until after it’s totally finished and ready for Southern Living Magazine pictures.
[00:22:17] Jay Conner:
That’s another thing we do. We do awesome music videos and 3D tours. Music videos of all of our properties when we put them out on the multiple listing service. You stage ’em, we do stage ’em, and a lot of my friends say, Jay, why are you staging houses these days when the market is so hot?
[00:22:37] Jay Conner:
Here’s the deal. It’s not because I can’t find a buyer. It’s because I want the perceived value in the buyer’s mind to be equal to, or at least up to what I’ve got it listed at. I list all my houses these days in this hot market, at least five to 10% above what my realtor tells me they will appraise for.
[00:22:59] Jay Conner:
And I’m getting more cash offers these days and this year than I’ve ever gotten before on houses. I dunno where all the people are getting the money. This, our current administration has printed more money in the basement of the White House year to date than any other administration before. Right now there’s 31 trillion in cash sitting in retirement accounts that can be used for private money.
[00:23:24] Jay Conner:
But yes, I still stage my houses.
[00:23:27] Ty Crandall:
Okay, so we haven’t really got to the most important stuff. Where are these private investors coming from? Because from my perspective, what you’re doing, you sh you should, you have so much money you’re making on these properties that why even bring in private money, it would seem like after you get so far in, you’ve got so much cash that you could just reinvest the cash.
[00:23:45] Ty Crandall:
So are you doing that or are you still at the stage that you’re in investing in, or do you rely on, not relying, but using a private network?
[00:23:54] Jay Conner:
Yeah, that’s a great question. I’m still using private lenders and here’s why. I don’t want my own cash buried in 20 projects. , right? And I also invest in other investments as well.
[00:24:05] Jay Conner:
I do commercials. I got a free and clear shopping center paid for. So I spread out my different investments. Yeah, I’m still using private money. Now you ask, where do you find these people? Where are these private lenders? Here are the three categories of where you find private lenders.
[00:24:23] Jay Conner:
Category number one is what I call your warm market. That’s people you’ve already got a relationship with. They’re on your list. They’re on your email list. They’re on your cell phone. They’re on your Facebook. And I don’t mean your fake Facebook friends, people you actually know and have a relationship with all your social media, Instagram, LinkedIn, Snapchat, TikTok, whatever it is that you got a relationship with.
[00:24:46] Jay Conner:
So that’s one category. Your warm market. The second category is what I call you’re expanded. Warm market. What in the world is that? I have sometimes people say, Jay, my warm market is broken. I don’t know any people with money. First of all, I don’t believe them because I think they’re just intimidated and don’t even know how to start a conversation.
[00:25:04] Jay Conner:
By the way, I teach that in the private money guide as well. But expand your warm market. So I teach how to network. How to grow the network that will attract even more private money to you. And then the third category of private lenders are what we call existing private lenders. These are individuals all across the nation in your backyard that are already loaning money to other real estate investors backed by real estate.
[00:25:35] Jay Conner:
How in the world do you find them? I’ll tell you three places to find them. First of all, don’t do it the way I started. When I first started looking for existing private lenders, I hired my real estate attorney’s paralegal to look for individual names on public records at the courthouse that were loaning money out secured by real estate.
[00:25:54] Jay Conner:
In 90 days in my small area, we only found two people. I said, there’s gotta be a better way. So I hired some very smart software developers and we developed what I call my private lender data to feed. One of the rules, is the private lender data feed we update it every month. We get every private lender’s contact information, how much money they’re loaning out, and what interest rate they’re getting on every private and lender loan closed.
[00:26:23] Jay Conner:
Every month across the nation, you can go into my private lender data feed and search by zip code. Type your zip code in, and find private lenders right in your own backyard. And you may be asking how in the world do I get that private lender data feed? That’s all revealed in the private money guide.
[00:26:39] Jay Conner:
And then the third place is to find private lenders. Are at self-directed IRA networking events. So a self-directed IRA company. In fact, the one that I do business with is having a great big conference. The end of next or the, actually the end of this month. They’re expecting a thousand people at that conference.
[00:26:58] Jay Conner:
Guess what? 70%. Self-directed IRA account holders are wanting to loan money out of their retirement accounts to you, the real estate investor. Imagine what it would be like to network with 700 people that are looking for a place to put their money and the place to put it is with you on your real estate deals.
[00:27:20] Jay Conner:
So those are a few places where you can find an existing private lender.
[00:27:26] Ty Crandall:
So when you’re meeting with them, what’s the general pitch? What’s the elevator pitch? Yeah. Are you just pro-put ’em on a rate of return or what are the specifics here?
[00:27:33] Jay Conner:
let me start back with the warm market.
[00:27:37] Jay Conner:
So people in your warm market, I promise you, 99.9% of people that you know, that you got some kind of relationship. Have never heard of private money in private lending, and they’ve never heard of self-directed IRAs. One of my favorite ways tied to start a conversation is with three words, and here’s a right or downer right here.
[00:27:59] Jay Conner:
And those three words are, did you know I love to start a conversation or just bring that question up in the midst of a conversation? Did you know how would the rest of that question go? Here’s an example. . So let’s say you’re chit-chatting along with a friend of yours or whatever, and then you just say, did you know there’s a way that people can earn limited returns on their investment money and their retirement funds tax-deferred or tax-free?
[00:28:28] Jay Conner:
And then you shut up. Of course, they never heard they, they never heard of a way that people can earn unlimited returns a year, either tax-deferred or tax-free, and they say no. How do you do? Then you tell ’em about self-directed IRAs, how they can take a current retirement fund they have, and penalty-free and tax-free.
[00:28:47] Jay Conner:
Move it over to a self-directed IRA company and now they can loan the money to you on real estate deals. And there’s no limit to the amount of money they can earn per year, depending on the type of retirement account they’ve got, either tax-deferred or tax-free. And so that’s just one of my favorite ways to start a conversation about a person possibly becoming a private lender for me.
[00:29:11] Ty Crandall:
Pretty phenomenal. And then I imagine a lot of ’em just continue. Are you still out looking for ’em or do you just have such a lot of them that they, the ones you have just in your network, fund, what you’re dealing with?
[00:29:22] Jay Conner:
Ty, I’ve got a big problem right now. I’ve got more money than I can use, I would imagine.
[00:29:29] Jay Conner:
I’ve got about eight and a half million right now that we moved from project to project, but I’ve got about a million and a half of that right now, what I call sitting on the shelf, waiting for a home, waiting to be used, and I promise. You are going to love having the problem of having more money than you can use, than having a house under contract or a real estate doing a contract and no way to fund it.
[00:29:57] Ty Crandall:
That makes perfect sense. You build that network and once you start showing ’em returns, they don’t wanna stop. They, then the bigger the network builds. Nobody believes in the network. Everybody stays in the network.
[00:30:09] Jay Conner:
So they’re going to get, these kinds of high rates of return safely and securely.
[00:30:12] Jay Conner:
At the local bank right now, it’s about a quarter of a percent for a 12-month certificate or deposit. I come along and pay ’em 8%. That’s 32 times more money than they can get in a cd.
[00:30:26] Ty Crandall:
I’m curious, so you buy all types of properties, single family. Do you buy storage units and mobile home books? Do you just have certain industries or types of properties you stick with?
[00:30:35] Jay Conner:
I focus on residential, single-family residential. However, if somebody’s interested in self-storage, you always, typically, you’re always gonna use private money for self-storage. Now you can use private money for land, private money for commercial, and private money for apartments. Now if you’re gonna do a larger apartment deal, you would want to do what’s called syndication.
[00:30:56] Jay Conner:
Where you would establish a fund and have private lenders invest in that fund. Right now what I do is what we call one-offs. So I have my private lender’s loan money secured by a house. By a house. So I’m not borrowing unsecured money. They are having their loan to me collateralized by the house, by the real estate that’s being purchased by Private Money.
[00:31:25] Ty Crandall:
So I’m interested, why don’t you move to syndication? It seems like a man of your intelligence and expertise. It seems like syndication is like you move up. And that’s like the top level where you’re buying like 10 million, grant Cardone type deals where the deals just get bigger and bigger.
[00:31:40] Ty Crandall:
So I’m just curious why don’t you play in that really big syndication space?
[00:31:44] Jay Conner:
I don’t, and I’m happy with what I got going on here in my local area. I’ve got all going on that I want to, while simultaneously I am just so passionate about teaching and sharing with other real estate investors how I do this.
[00:31:58] Jay Conner:
And so the way I do the business is so simple that anybody can do it. And. I can’t ethically, in my own mind, continue to teach other real estate investors what’s going on, unless I am totally active in the market today. Sure. So I’m just as active today as I was when I started in 2003.
[00:32:21] Ty Crandall:
How do I learn from you? What products, services, and coaching,? What do you offer that helps somebody like me, who’s, and by the way, I’m my graph like I’m my God, I’m buying everything that you have. I’m really passionate, having 700 plus episodes, Really rarely do I run into somebody that I’m like, oh my gosh, this makes so much sense.
[00:32:40] Ty Crandall:
And I happen to be doing a lot of research in real estate investing right now. And what you say makes a ton of sense from all the people that I know that are really smart in the industry as well. So like, where do I go when I wanna learn?
[00:32:52] Jay Conner:
What options do I have? The great way for us to get connected is to simply.
[00:32:59] Jay Conner:
Go to www.JayConner.com/MoneyGuide. You’ll be able to download this immediately, get you on the fast track to private money, and once you get the money guide, if you want to connect with me personally even more, then all the information will be in the money guide as to how you can reach out to me and we can work together if you like.
[00:33:32] Jay Conner:
As I say, I’ve got students all across the nation, so I’m, that’s my passion is looking to make a huge impact in your life as a real estate investor.
[00:33:44] Ty Crandall:
Jay, thanks for coming on with us today. This has been really powerful. And I’ll be honest with you, man, this has been honestly one of the top interviews that I’ve ever done.
[00:33:52] Ty Crandall:
I just think what you’re doing is so brilliant, and now it’s a phenomenal time. Like what the market adjusting right now is not such a great time to be able to get in and be able to make really big returns on real estate. So just kudos to what you bill and kudos to the fact. You’re taking your experience from making money.
[00:34:09] Ty Crandall:
You’re in private wealth and you’re using it to help others. I just think that’s the coolest thing. So hats off team.
[00:34:15] Jay Conner:
Absolutely. Todd, thank you so much for having me on. It’s been a blast and I’ve probably been a guest on over 700 podcasts, and you’re an awesome interviewer, man. Thanks for having me on.
[00:34:26] Ty Crandall:
All right, thanks, Jay. So listen, if you’re listening, watching this wow. I’ve done a lot of episodes and this is so true. It’s so brilliant. Because honestly, what I find, and I talk about this on the business side, is that there’s a lot of people that wanna invest and get good rates of return.
[00:34:40] Ty Crandall:
They want a place to put their money where their money’s gonna give them a rate of return. And so many people have so much confidence in real estate that you could be that person that they invest with and use that to create significant private wealth for your family and also, a lot of fun. Anything I’ve ever done in real estate, it’s just so much fun to do.
[00:34:59] Ty Crandall:
But you have to have a roadmap. We got to a lot of questions today, and it might sound easy when you listen to a 30-minute interview, but the reality is, every one of these one things has 10 things that can go wrong, and this is where if you go to www.JayConner.com/MoneyGuide, he’ll start to get in and get you the nitty gritty.
[00:35:17] Ty Crandall:
Details into more in-depth details that you’re truly gonna need to succeed. The other part of that is, is that from looking at www.JayConner.com, there are a lot of other ways you could go. You can go get his book for free on the website, plus free shipping and handling, and then you can even get a little bit more knowledge about Jay as well.
[00:35:34] Ty Crandall:
But I would start with www.JayConner.com/MoneyGuide because it’s everything you need. And then if you wanna take deeper steps with more privatized coaching, et cetera. Jay does offer that, and he’ll go through all that with you in the money guide. So make sure you visit www.JayConner.com/MoneyGuide
[00:35:49] Ty Crandall:
Unless you don’t like money. If you don’t like money, don’t go to www.JayConner.com/MoneyGuide. But if you do, this could be the opportunity you’ve been looking for to break into real estate or take the real estate empire that you’re building to a whole other level. So make sure you go to www.JayConner.com/MoneyGuide
