***Guest Appearance
Credits to:
https://www.youtube.com/@TheRealBridgetStuart
“Funding Fix and Flip Deals with Private Money | Jay Conner on The Inner Estate”
https://www.youtube.com/watch?v=cDuad6P1QNE
In the ever-evolving world of real estate investing, one element reigns supreme: access to capital. Traditional lending from banks can be slow, restrictive, and, as many investors learned in 2009, unpredictable. On the Raising Private Money podcast, the renowned Private Money Authority, Jay Conner, shares his wisdom on the game-changing world of private money and offers practical steps for both investors and everyday people who want to build wealth or participate safely in real estate.
The Turning Point: Crisis Breeds Opportunity
Jay Conner’s journey into private money began with a problem many investors can relate to: he found his bank line of credit abruptly closed, right when he had two houses under contract. Traditional funding methods collapsed during the financial crisis of 2009, leaving countless serious investors stranded. But as Jay Conner says, “Every problem is an opportunity.” With no way to fund his deals, he sought out solutions and found a new path in private money, forever changing his approach and tripling his business in a single year.
What is Private Money (and What It’s Not)
Many new investors—and even members of the general public—can confuse private money with hard money or, worse, risky “loan shark” financing. Jay Conner sets the record straight: private money is capital raised from individuals—ordinary people such as teachers, civil service workers, or even minors who have inherited capital—not institutions. In private money transactions, there are no middlemen or brokers, and the terms are mutually agreed upon between the investor and the lender.
Hard money, on the other hand, typically comes from institutional lenders or brokers, requires fees and points, and often includes restrictive terms and caps on the number of deals you can fund. With private money, Jay Conner emphasizes, “We make the rules.” This flexibility allows for faster closing, more creative deals, and often better rates for both parties.
The Mindset Shift: Teacher, Not Salesperson
One of the most profound takeaways from this interview is Jay Conner’s approach: never pitching, always teaching. Rather than chasing potential lenders, he educates people in his network about the opportunity. “Desperation has a smell to it,” Jay Conner says, warning that raising money when you need it is the worst time. Instead, take on the mindset of diagnosing a problem: Are people happy with their investment returns?—and then presenting private lending as the solution.
Safety, Security, and Building Trust
Jay Conner stresses that private money deals are asset-backed. Each private lender receives a promissory note, and their interest is secured by real property. They’re named on the property insurance and title, just like a bank, ensuring their investment is protected. The money lent is never more than 75% of the after-repair value, creating an equity cushion that minimizes risk in a downturn.
Anyone Can Participate
Perhaps the most inspiring lesson is that private investing isn’t just for the wealthy. Ordinary people with modest retirement funds or savings can benefit, and investors don’t need to have it all figured out before starting. The process is approachable; the concepts are simple when you have a guide or mentor. Jay Conner and his wife have educated dozens of lenders who never even knew private lending existed until they were introduced to it.
Taking the First Step
For those ready to take action, Jay Conner offers practical resources—books, scripts, and even invitations to his live events in North Carolina. His central message: implementation is power. Knowledge alone won’t build wealth. Whether you want to invest or lend privately, start by seeking education, surround yourself with experienced people, and take that first step.
Private money doesn’t just expand deals—it empowers ordinary people to build generational wealth safely, securely, and with confidence. The opportunity, as Jay Conner reminds listeners, is truly open to everyone.
10 Discussion Questions from this Episode
- Jay Conner describes his transition from traditional bank financing to using private money in 2009. What circumstances led to this change, and how did it reshape his approach to real estate investing?
- What are the key differences between “private money” and “hard money,” as explained by Jay Conner? Why does confusion often arise between these two in the public’s perception?
- Jay Conner emphasizes having a “teacher mindset” when working with private lenders instead of pitching deals. How does this approach build trust and benefit both sides of the transaction?
- Bridget Stewart and Jay Conner discuss the philosophy that “the money comes first” before the deal. Do you agree with this approach? Why or why not?
- Jay Conner consistently offers 8% returns to private lenders. How does this compare to more traditional investments, and what might make it attractive to everyday individuals?
- Jay Conner advises never to lend more than 75% of the after-repair value of a property. What protections does this practice provide for both the investor and the private lender?
- Bridget Stewart raises the topic of limiting beliefs when starting in private money lending or real estate investing. What mindset strategies does Jay Conner suggest for overcoming these barriers?
- How do self-directed IRAs factor into private money lending, according to Jay Conner, and what makes them powerful for both investors and lenders?
- Jay Conner mentions that many of his private lenders are people from ordinary backgrounds, such as retired teachers or police officers. What does this indicate about who can participate in private money lending?
- During the 2008-2009 financial crisis, Jay Conner’s access to traditional funding disappeared. How did his pivot to private money not only resolve his immediate trouble but also open new doors for expanding his real estate business?
Fun facts that were revealed in the episode:
- Jay Conner Never Pitches Deals
Jay Conner revealed that in all his years of raising private money, he has never actually “pitched” a deal. Instead, he educates potential lenders about the opportunity and calls them only when there’s a deal that matches their interests. - “Lunch and Learn” Raised Nearly $1 Million
At one of Jay Conner’s private money luncheons, he raised a staggering $969,000 just from a single event by educating attendees about private lending. - Ordinary People as Private Lenders
All of Jay Conner’s private lenders are everyday people—retired teachers, civil service workers, police officers, Marines, and even minors who inherited money—not wealthy elites or professional investors.
Timestamps:
00:00 Dealing with a credit crisis
04:24 Discovering private money sources
07:25 Hosting a private money luncheon
13:04 Using private money for real estate
16:11 Difference between hard and private money
18:23 Protecting private lenders’ interests
22:21 Encouragement for all investors
25:29 Leaving mobile homes behind
27:25 Mindset and cash resources
31:29 Discussing generational wealth opportunities
Connect With Jay Conner:
Private Money Academy Conference:
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:
Facebook:
https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
Overcoming Obstacles in Real Estate by Mastering Private Money with Jay Conner
Jay Conner [00:00:00]:
Bridget, I’ve never pitched a deal in all these years. I’ve never pitched a deal. Took the opportunity. First, they understand what the deal is,s and then I simply call them up and fulfill.
Jay Conner [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. Because the money comes first. Now, here’s your host, Jay Conner.
Bridget Stuart [00:00:40]:
Hello and welcome to this episode of the Inner Estate with your host, Bridget Stewart. I’m so excited. Today, we have a special guest, Jay Conner. Jay Conner, known as the Private Money Authority. Jay, welcome to the Inter Estate.
Jay Conner [00:00:54]:
Bridget, thank you so much for inviting me to come along and talk about what I’m so passionate about, and that’s private money for funding your real estate deals. Because this one strategy, this one way of doing business to get funding for your deals, has had more of an impact on our real estate investing business than any other strategy. Ever since starting to use private money years ago, never missed out on a deal for not having the money.
Bridget Stuart [00:01:20]:
That’s incredible. So take us back. Jay. In 2003, you and your wife, I believe you started like, We’re going to build a real estate portfolio. We’re going to build our wealth through owning some dirt and owning some doors. And you were- you started out doing it traditionally, Correct? You were getting mortgages from banks and lenders.
Jay Conner [00:01:40]:
Yep. Those first six years, from 2003 to January of 2009, the only way I knew to fund my deals was to have a line of credit at the local bank. And they made the rules. As is traditional, little funding goes to, you know, appraisals and taking 30 to 40 days to close. That all worked out, Bridget. Okay, the first six years, 2003 to January 2009. But then everything changed. Everything changed in January of 2009.
Bridget Stuart [00:02:15]:
Everything changed with a capital C. Yes. So the avenue of securing what I’ll call the more traditional form of financing was no longer available, correct?
Jay Conner [00:02:26]:
That’s right. Yeah. You know, I remember it like it was yesterday. I called up my banker, whose name was Steve. I had two houses under contract. This was January 2009. And Bridget, I thought I still had a line of credit at the bank before the phone call, prior to putting my deals under contract. And so I got Steve on the phone, and I learned that my line of Credit had been closed with no notice.
Jay Conner [00:02:53]:
To me, it’s like, it would have been nice to let me know to stop making offers, you know, on deals. Anyway, I said, Steve, what in the world are you telling me? My line of credit’s been closed. We’ve done a ton of deals in these six years. I’ve always made my payments on time. I got a great credit score. What’s the problem? Steve said, ” 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. Yeah, I don’t have a way to fund these two deals. So anyway, I hung up the phone.
Jay Conner [00:03:25]:
Bridget, I sat here at my desk, and I asked myself one of the most powerful questions I have ever asked myself. And so here’s the question I asked myself. It’s not how, it’s who. I said, ” Jay, who do you know that can help you with your problem? That was the question I asked myself and Bridget, you know, these people running around saying every problem is an opportunity. I want to throw up. I did not have an opportunity. I had a problem. Now did the, did the problem become an opportunity? Yes, because I wouldn’t be on your show without the problem.
Jay Conner [00:03:59]:
But at that point in time, I had a problem, and I needed a solution. And when I asked myself that question, I immediately thought of a dear friend. His name is Jeff Blankenship. He was living in Greensboro, North Carolina, at the time, and he was investing in single-family houses. I said, ” Well, maybe Jeff can help me with my problem. So I called him up. I told him what had just happened. You know what Jeff said to me? He said, ” Jay, welcome to the club.
Jay Conner [00:04:24]:
I said, ” Well, I’m not sure I want to be a member of that club, but what club are you talking about? He said, ” It’s the club of having your bank close your line of credit. He said the bank closed my line. Closed his line of credit last week. And I said, ” Well, Jeff, how are you going to fund your real estate deals? He says, w” Well, have you ever heard of private money? I said no. He says, “Have you ever heard of self-directed IRA companies where ordinary people can move their retirement funds over to a self-directed IRA company and loan money out to us real estate investors, and the interest we pay them is eithertax-deferredd or tax-free, depending on their account? I said, Jeff, you’re talking Greek to me, man.
Bridget Stuart [00:05:02]:
Gobbledygook.
Jay Conner [00:05:03]:
I have no idea what you’re talking about. I said, ” What is private money? He said, ” Well, I’m not exactly sure. He says, but there’s this gentleman down in Jacksonville, Florida, by the name of Ron Legrand, who can teach us about private money. I said, w” Well, what is it? He said, I just told you, I don’t know. But Ron says, we can get a lot of it really, really fast. So Jeff and I go to this conference to learn about private money. And oh my lands, Bridget, did I learn about private money? I learned. I learned so much.
Jay Conner [00:05:33]:
And I came back home here to Morehead City, North Carolina, and what did I do? I put my opportunity together. So no chasing, no begging, no selling. I put on the mindset. In fact, here’s what my hat says. My hat says private money, teacher. Private money teacher, Private money teacher. So I just went about educating people in my professional circles, in my social circles, in my service circles; I just went about educating people. I mean, I gave birth to private money.
Jay Conner [00:06:08]:
And the reason I say that is because when somebody’s pregnant, that’s all they can talk about.
Bridget Stuart [00:06:12]:
That’s right. You know, and then after the baby’s born, all they want to talk about is the baby.
Jay Conner [00:06:18]:
That’s right.
Bridget Stuart [00:06:19]:
That’s right.
Jay Conner [00:06:20]:
So what did I do? I took on the mindset of being a teacher and educating, you know, Carol, Jo,y and I, my wife and I, we’ve had 47 individuals, ls private, private, private lenders, but they weren’t private lenders. They, they didn’t. Not one of them ever heard of private money. Didn’t know what private money was. Never heard of self-directed IRA companies until I educated them. So I took on this mindset of being an educator, not having any deals attached to it. You know, desperation has a smell to it. The worst time to be raising private money is when you need it.
Jay Conner [00:06:52]:
That’s right, a deal. And people smell that. They sense. So I took on the mindset of being an educator and a doctor. Now, I’m not a doctor, but, you know, they say, Dr. J, he’ll cure your business. I took on the mindset of diagnosing first if somebody had a problem, I. E.
Jay Conner [00:07:13]:
Not happy with their returns. And one of my favorite definitions of malpractice. Malpractice is giving a prescription before a diagnosis.
Bridget Stuart [00:07:24]:
Yes.
Jay Conner [00:07:25]:
So I didn’t go around throwing up on people about my wonderful private money, private lending opportunity, and how you can earn high rates of return safely and securely. Nobody wants to hear that unless I first diagnose them, they might have a problem. And so, just in my daily, you know, conversations, I mean, I put on a luncheon, you know, lunch and learn, whatever you want to call it. I call it a private money luncheon. And I had about 20 people there, had it at the Dunes Club. Nice oceanfront view there. Well, just at that one luncheon, I raised $969,000 and pledged money to invest in our real estate deals. So something so important, as far as mindset goes, is that money goes first.
Jay Conner [00:08:08]:
Now comes first. I mean, there are always deals. There’s always going to be deals.
Bridget Stuart [00:08:12]:
There are always deals.
Jay Conner [00:08:13]:
Always deals.
Bridget Stuart [00:08:14]:
That I can attest to that.
Jay Conner [00:08:16]:
Just think, you know, if you’re listening to this show, how much more confident, how many more offers are you going to make if you got the money burning a hole in your pocket? Right? And, Bridget, now I’m going to take a little risk, and then I’m going to turn it back to you, but I’m going to take a little risk here. I’m going to ask you a question. I think I know the answer. Have you ever heard someone say, or the guru standing on stage,e talking to new real estate investors? Have you ever heard anybody say, quote, unquote, Oh, just get the deal under contract, the money will show up?
Bridget Stuart [00:08:49]:
That’s right. Yes. Yes, I have heard that.
Jay Conner [00:08:51]:
Oh, my word. Or they’ll say. Or they’ll say, quote, unquote, money finds good deals.
Bridget Stuart [00:08:58]:
Yeah, yeah, yep.
Jay Conner [00:09:00]:
I mean, let me ask a question. You get a deal in the contract, is a drone going to fly over your front door porch and just drop you a bag of money on your front porch? Because money finds good deals. Give me a break. Unfortunately, no, I want to throw up. And unfortunately, I’ve heard hundreds and hundreds of real estate investors say they bought that. I mean, they bought that. Thinking. And then the deals on the contract, it’s like, where’s the money?
Bridget Stuart [00:09:29]:
Right?
Jay Conner [00:09:30]:
You know, so it just seems common sense to me to get the money lined up, the plan, the money up first. And then you get a deal that comes across your desk, you know exactly where the money’s coming from, and then you pick up the phone. We actually still have handsets and cords here in North Carolina, you know, love it. But, you know, I pick up the phone, and I call my next private lender in the queue, and I give them what I call the good news phone call. And the good news phone call. Here’s the script, Bridget. I call you up, I say, you’re one of my private lenders. I say, Bridgett, I got great news.
Jay Conner [00:10:05]:
I can put your money to work. Got a house under contract in Newport after the repair value is 200,000. Funding requires 150,000 closings next Friday. You need to have your money wired to my real estate attorney’s trust account by next Thursday. I, I want to have my real estate attorney email you the wiring instructions. End of conversation. The stupidest thing I could do is ask, Do you want to fund the deal? Well, yes, you want to fund the deal. And the reason you want to fund the deal is, number one, you’ve been waiting for the phone call.
Jay Conner [00:10:32]:
You know, I’m not going to bring any deal to the phone conversation that doesn’t match the criteria of the underwriting that I already taught you. And for goodness ‘ sake, if you moved your $150,000 retirement money over to the self-directed IRA company, you trusted me to move your money, and you’re waiting on me to perform. You know, one big mistake that comes to mind right now that new capital raisers make is that they talk too much. They talk too much. It’s like they’re trying to like pitch the deal. Bridget, I’ve never pitched a deal in all these years. I’ve never pitched a deal, taught the opportunity. First, they understand what the deal is, and then I simply call them up and fulfill it.
Jay Conner [00:11:15]:
And by the way, these people are all ordinary people. These, this is not, this is not rich people. These are ordinary people who have never been exposed to this world. And so I’m viewed as the expert. My students and my mastermind members were reviewed as experts. And so they’re leading, they’re setting expectations, they’re teaching. And it’s all led by a servant’s heart.
Bridget Stuart [00:11:39]:
That’s really remarkable. And I agree with you, I agree with your hat, private money teacher, because you’re educating on both sides. You’re educating the potential lenders to make sure that they understand. They are waiting for that call.
Jay Conner [00:11:56]:
Yes.
Bridget Stuart [00:11:57]:
And then they are ready when the call comes in.
Jay Conner [00:12:00]:
They’re ecstatic.
Bridget Stuart [00:12:01]:
They’re thrilled that they were next in line. And then they take action.
Jay Conner [00:12:04]:
Absolutely.
Bridget Stuart [00:12:05]:
And I believe that you’re also educating the investors who want to take action. Not the lenders, but the ones that want to buy.
Jay Conner [00:12:15]:
Sure.
Bridget Stuart [00:12:16]:
On the benefits for them. So what? So these sound phenomenal. And once you went to Jacksonville, Florida, and got your education and started doing this, since 2009, you have still been acquiring and building your portfolio or building or doing flips or whatever the opportunity is that comes your way, and you’ve been private money ever since.
Jay Conner [00:12:38]:
Yes.
Bridget Stuart [00:12:38]:
Correct.
Jay Conner [00:12:39]:
That’s correct. That’s great. And since most of the deals we do are flips now, we don’t use just private money. We. I bought a house this morning. I closed on it this morning. My attorney’s office is down the sidewalk, 12 steps. And we bought that house subject to the existing note, which means the seller of this property agrees to leave the mortgage in their name.
Jay Conner [00:13:04]:
My company agrees to make its payments, and we take ownership of that property. But we use private money for the renovation in the second position a lot of times as well. So private money can be used for purchasing, and private money can be used for refinancing. If you’ve got cash in a property, you want to pull some of that cash out. And so it just really, really gives you the flexibility. You know, I think back to when I was cut off from the banks in 2009, and that story I shared, you know, it’s, it’s really interesting. As I look back in 2009, banks were not loaning money at all, but all these foreclosures were going on by these people who should never have been given a mortgage in the first place. Well, so all these foreclosures are going on now.
Jay Conner [00:13:52]:
Stop and think about this. The banks aren’t loaning money. So the only way the foreclosures are going to be sold is if you have the cash. Right?
Bridget Stuart [00:14:00]:
That’s right.
Jay Conner [00:14:01]:
So now it was like a vortex. I’ve got all this private money that I’m attracting, and now I can pick and choose the foreclosures. Our business tripled in 2009 because of the new funding that we got from private money.
Bridget Stuart [00:14:20]:
That’s remarkable. So I have a question for you. Some people may be listening to us. Hopefully, they hung around when they heard private money. And there’s a lot of, I believe I’ll call it conflict, confusion, or misconceptions with the general public. When they hear private money, they automatically think hard money, risky money, or a loan shark. You know, so there’s a lot of. Correct me if I’m wrong, but I think you’re right.
Jay Conner [00:14:46]:
You’re absolutely right.
Bridget Stuart [00:14:48]:
Has these misconceptions. So, how would you explain that difference between a loan shark and private money?
Jay Conner [00:14:57]:
Yes. So here are the differences. A hard money lender, and I’ll tell you the reason this confusion has come about. You have a lot of. And by the way, I’m not poo-pooing hard money lenders. I’m not even; some of my best friends are hard money lenders. They use my techniques to raise money for their hard money lending fun,d that they turn around and loan back out. But here’s the difference.
Jay Conner [00:15:19]:
First of all, hard money is institutional money, which means it’s regulated by the commissioner of banks. Private money is not.
Bridget Stuart [00:15:28]:
So.
Jay Conner [00:15:28]:
So first of all, a private money transaction is a one-on-one transaction between you, the borrower, the real estate investor, developer, whatever, and your private money lender. There’s no middle person; there’s no brokerage. A hard money lender is typically a brokerage that has gone out and raised money for their hard money lending fund. And then they turn around and lend that out at a higher interest rate than they’re paying their private lenders or investors that are investing in the fund. They charge points and origination fees. I’ve never paid any points. I’ve never paid any origination fees to my private lenders because there’s no broker to pay. There’s, there’s nobody in the middle of that.
Jay Conner [00:16:11]:
Another huge difference is what kind of, you know, how much, how much can you use, how much can you borrow? Well, the hard money lender is going to put a limit on the amount or the limit to the number of deals. There is no limit. When you’re doing private money and private lending, you have as many private lenders as you want, as much private money as you want, etc. Now here’s the big difference. Here’s the big difference. The hard money lender makes the rules just like a bank does. Hard money lender sets the interest rate, sets the points, sets the length of the note, since the frequency of payments sets the loan-to-value. All that underwriting stuff.
Jay Conner [00:16:49]:
Well, in this world of private money, you, as the real estate investor, the borrower, make the rules. Instead of asking for a mortgage, we’re offering an opportunity. So my opportunity is that I’ve been paying all my private lenders 8% ever since 2009. The ups, the downs, the sideways, the mark. 8%, they love it. Compared to what they could get at the local bank, 0.2% but less than 3% on a four-month CD, you know?
Bridget Stuart [00:17:20]:
Right.
Jay Conner [00:17:21]:
So I set the interest rate, the opportunity, and the length of the note. See, they’re two years or five years, depending on whether they’re getting the money. From maximum loan to value, we don’t borrow more than 75% of the after-repair value. I didn’t say 75% of the purchase price. That’s right, 75% after repair, after repair value. That’s why we always bring home a check when we buy the property. It’s like, who wants to get paid to buy properties? And so you know those types of terms. And so that’s what we put our teacher hat on and teach the opportunity, the interest rate.
Jay Conner [00:17:55]:
How are you protected? We don’t borrow unsecured funds. The SEC does not like that. So everything we do is called asset-backed debt. So, which means every private lender has their own promissory note. They got their own in North Carolina. It’s a deed of trust. Most states call it a mortgage. Collateralizes the note.
Jay Conner [00:18:13]:
We name the private lender as the mortgagee on the insurance policy. Just like the bank thinks of the private lender as the bank.
Bridget Stuart [00:18:22]:
The bank, yep.
Jay Conner [00:18:23]:
So we give them the same protection as the local bank. If there’s ever a claim against that insurance policy, then the check is made payable to the private lender in my company. So they got to sign off on that check before I get the money. We name them in the title policies and as additional insured. So we’re looking after our private lenders. So we’re making the rules, we’re setting the terms, et cetera, and offering that to our private lenders, ordinary people, everyday people. Our private lenders are retired teachers, civil service workers, police officers, and Marine Corps veterans. I’ve even had minors- I’ve even had two minor children as private lenders who inherited money from grandparents, and you know, the parents didn’t know what to do with it for their children.
Jay Conner [00:19:10]:
So these are all ordinary people who we’re providing a solution to that want a higher rate of return. Safely and securely.
Bridget Stuart [00:19:18]:
That’s right. So what are the downsides?
Jay Conner [00:19:21]:
So the downsides, I mean, everything comes with risk. Everything comes with risk. So the downside is that if you want to be a private lender, you need to know the operator. You need to know, I mean, even though you’re not going to loan more than 75% of the after-repaired value. In other words, one way to look at it is if, if you’re, if you’re a borrower and the real estate investor does not pay you, the property does; that’s your legal recourse.
Bridget Stuart [00:19:50]:
That’s right.
Jay Conner [00:19:51]:
You get the property, but you don’t want the property. You want to be passive; you just want to sit back and collect checks. So the downside is doing business with some, with an operator, with a real estate investor whose track record you don’t know.
Bridget Stuart [00:20:06]:
Now, what’s another downside going to come through?
Jay Conner [00:20:09]:
Yeah, another downside is, you know, real Estate is cyclical, right?
Bridget Stuart [00:20:14]:
Yes, it is.
Jay Conner [00:20:15]:
Goes up, goes down. Well, what if the market comes down to where you’re not protected with the amount of money that you’ve loaned out on a property? Well, that’s why I advise not to loan more than 75% of the after-repair value. That’s going to give you what we call an equity cushion.
Bridget Stuart [00:20:33]:
That’s right.
Jay Conner [00:20:33]:
We want our private lenders to have a 25% equity cushion in case the market does start to come down, then the property can be liquidated,d and then, you know, everybody is made whole.
Bridget Stuart [00:20:45]:
Yes. Yeah. Or you’ve minimized, hopefully at least to a break-even point. You’ve minimized the risk, provided the risk. So my question to you, because this is a question I ask myself often, I won’t tell you how I respond. Which do you think is better? Being the bank or being the owner? Being the investor?
Jay Conner [00:21:06]:
Yes. Yeah, I’ve been both. I’ve been both. You know, my, you know, my average profits now are unbelievably $86,000 per property. But how in the world do we have that kind of profit? Well, we know how to find these motivated sellers off-market. But you know, I can’t think of a better way to use your retirement funds. Of course, you can use your retirement funds in a self-directed IRA and actually go invest in a property. But of course.
Jay Conner [00:21:37]:
Let me say, let me ask this question, Bridget. Do we lend the same way we borrow?
Bridget Stuart [00:21:43]:
No.
Jay Conner [00:21:44]:
No, we do not lend the same way we borrow.
Bridget Stuart [00:21:49]:
Right.
Jay Conner [00:21:50]:
And you know, it’s, I don’t like doing business with existing private lenders that have already been in the game because they know it. Right.
Bridget Stuart [00:21:59]:
That’s right.
Jay Conner [00:21:59]:
It’s like I’m not putting on my teacher hat. Teacher hat, existing private lender.
Bridget Stuart [00:22:05]:
Right.
Jay Conner [00:22:05]:
They already know what the deal is. Right. And so, you know, they’re already spoiled at 12%, three points, and you know, that kind of thing. But, but anyway, those are the risks that come to mind.
Bridget Stuart [00:22:21]:
I love that you were going over how this is open to everyone because I’m sure there’s someone who’s hung in there with us, and they’re still listening to yo,u and me have this conversation, and they may be sitting there thinking, you know, that just sounds, that sounds great. But I don’t know if I trust myself to have something called a self-directed IRA, or if this is something for other people to fill in the blank. They’re smarter, wealthier, and they have more reserves than me. But what I hear you saying is that on either side, being an investor or being a lender is a possibility for anyone.
Jay Conner [00:22:57]:
Absolutely. And the concepts really are simple. The concepts are simple. Now they may not sound simple if you’ve never heard of this world. Right. But the concepts are really simple to understand. You know, if someone’s listening and is saying, ” Wow, I would like some nice returns and sit back, and you know, not have to, you know, negotiate deals and et cetera. And you got retirement funds.
Jay Conner [00:23:22]:
Well, I mean, there are some amazing self-directed IRA companies out there. Bridget probably knows some of them. And these companies are more than willing to educate you. They have free education on their websites. The reps are glad to get on the phone with you. And as far as being a private lender, shoot, Bridget, I’d love to give your audience my book for free. Where to get the Money Now. This book is a national bestseller, and it speaks to the real estate investors, and it also speaks to the private lenders or people who want to learn about private lending.
Jay Conner [00:23:54]:
And don’t give Amazon 20 bucks. Let me give you the book for free. Just cover shipping, a nd I’ll autograph it. I’ll express mail it to you. You can pick up my book on how to get the Money Now. It’s all about private money and very, very easy to read.
Bridget Stuart [00:24:06]:
That’s awesome.
Jay Conner [00:24:08]:
www.JayConner.com/Book. Anywhere you’re consuming this podcast.
Bridget Stuart [00:24:14]:
That link is going to be in the description, as well as just how to reach out to you for people who want to learn more.
Jay Conner [00:24:21]:
Sure.
Bridget Stuart [00:24:21]:
So absolutely. I wanted to ask you a couple of questions. We’re going to do a little pivot shift. I’m going to guess that you’re older than 29. So what did you do before this? So what were you, and I believe your wife’s name is Carol Joy. What were you guys doing before 2003?
Jay Conner [00:24:39]:
Yeah, for years we were in the mobile home business. Housing in the 60s and 70s, they called them trailers.
Bridget Stuart [00:24:48]:
Yes.
Jay Conner [00:24:49]:
And so anyway, my dad, Wallace Conner, is 92 years old right now and still developing a 350-new-build home subdivision at 92 years old. I love that mercy. But anyway, his company was the largest retailer of manufactured housing mobile homes in the nation at one time. So I was born, raised, and grew up in this world of helping people own affordable housing. Well, in the early 2000s, the financing for the consumer to buy that product went away.
Bridget Stuart [00:25:29]:
Went away.
Jay Conner [00:25:29]:
The whole industry fell out of favor with Wall Street; there was no more financing. And so I knew if I ever got out of, you know, mobile homes, manufactured housing, I wanted to get into single-family houses and, you know, I wanted to flip houses. And this was even before HGTV was on, you know, that was even before then. And so I knew I wanted to get into it if, you know, I ever got out of mobile homes. And so I didn’t have much of a choice. Had to get out of mobile homes because, you know, consumers weren’t walking around with the cash I know to buy that product. So yeah, that was my prior life.
Bridget Stuart [00:26:05]:
Gotcha. And that is a natural segue into it. But you did have to face. I’m sure there was some. It’s easy now for you and me to discuss it, but that had to have brought about some stress and some self-questioning, and you know, am I going to be able to provide? Is it going to work? Am I going to be able to do it?
Jay Conner [00:26:23]:
Absolutely. Yeah, it was, it was stressful. But, you know, I was able to raise over $2 million in less than 90 days, with people wanting to be private lenders. And then, after that first year had gone by and our business had tripled, I said, ” Wow, what a blessing in disguise at the time.
Bridget Stuart [00:26:42]:
That’s right. Yeah. Look at what you, what you’ve been able to accomplish because of it.
Jay Conner [00:26:47]:
My favorite definition of coincidence is God’s way of staying anonymous.
Bridget Stuart [00:26:52]:
I like that. That’s very good. See, I want to ask you one other question. So if someone is listening to us and they’re saying, ” Well, sure, this sounds easy because he’s been doing it since 2003. He’s done the private money since 2009, but the world’s different now. I don’t have blank, so that wouldn’t work for me. What would you say to anyone who is having a limiting belief right now, thinking times have changed, opportunities have changed, and they’re feeling as if they’re intrigued, but they feel like it still wouldn’t be possible for them? What would you say?
Jay Conner [00:27:25]:
Well, I’ll give one statistic. Before Covid 2020, there was $18 trillion in cash sitting on the sidelines that people didn’t know what to do with, and today there’s over 31 trillion in cash. So it all comes down to your mindset, right? It all comes down to mindset. I mean, do you have a mindset of abundance? I mean, do you believe there’s money all around you? So I don’t think it’s a belief that times have changed. That might be a limiting belief. I think the limiting belief would be, I can’t do that.
Bridget Stuart [00:28:02]:
Right.
Jay Conner [00:28:03]:
That’s. That’s the overarching. I can’t do that. Well, guess what? You can do that when you surround yourself with the right people. I might. I may not be the person for you to surround. I mean, you know, unfortunately, not everybody likes Jay Conner. Thank goodness.
Jay Conner [00:28:18]:
A lot of people do. Right. But surround yourself with someone who’s already done what you’re interested in doing, and don’t go. Don’t try to go about it yourself, is what I’m trying to say.
Bridget Stuart [00:28:30]:
I agree. Yeah. Seek out counsel. People have done it before; they’re going to do it again. You can be one of the people who are going to do it again.
Jay Conner [00:28:37]:
Yeah.
Bridget Stuart [00:28:37]:
And reach out. So don’t feel, you know, as if there’s no one who would be willing to assist you. There’s more than enough to go around.
Jay Conner [00:28:46]:
Absolutely.
Bridget Stuart [00:28:47]:
There are never-ending deals. It’s literally a never-ending deal stream. So I like that you have that sentiment, which is to take action. That’s the biggest thing: learn about it. Find people who can assist you that you trust, and then take that first step.
Jay Conner [00:29:04]:
Absolutely.
Bridget Stuart [00:29:05]:
Don’t be afraid of that first step.
Jay Conner [00:29:07]:
That reminds me, and I don’t know who to give credit to for this, but the quote, knowledge is not power. Knowledge is not power. Implementation of knowledge is power.
Bridget Stuart [00:29:18]:
It’s power. Yeah. Well, Jay, I want to thank you so much for joining us today. I know that you are still. I can hear the energy and excitement in your voice even after. What is this now? It’s going on. 17 years of you doing private money.
Jay Conner [00:29:33]:
17 years for the private money. That’s right.
Bridget Stuart [00:29:36]:
Yeah. And even longer for investing in real estate.
Jay Conner [00:29:40]:
23 years.
Bridget Stuart [00:29:41]:
To hear the level of passion and excitement that you have and see the look on your face as you’re exuding your passion for this. So I want to thank you for joining us and sharing that, and again, get that book. And the book again is Jay Conner.
Jay Conner [00:30:00]:
www.JayConner.com/Book, and I tell you what, let me just give out two more gifts real quick. Bridget.
Bridget Stuart [00:30:08]:
Okay.
Jay Conner [00:30:09]:
So another gift is a free download. A free download. So one thing I hear new capital raisers say, or people that are interested in raising money, is that I don’t know what to say. I mean, how do I start a conversation? Right. How do I start? Well, the book’s going to do that for you, but you can, right now, you can download www.JayConner.com/Scripts.
Bridget Stuart [00:30:31]:
Perfect.
Jay Conner [00:30:32]:
And get my curiosity opener script. One last gift. Here’s a $3,000 gift. Bridget. I do three live, in-person private money conference events a year right here in North Carolina. And the next one is coming up in June. Got another one in October. It’s a $3,000 event that allows people to come with a guest.
Jay Conner [00:30:52]:
But because your folks are listening, I’m going to give out a special URL. They get to come for a measly $97 registration fee, three days in person, to the private money conference. Here it is. Www.jconner.com event. And that gets you right in the door.
Bridget Stuart [00:31:12]:
I love that. Where is it in Morehead City?
Jay Conner [00:31:14]:
Yep. Morehead City, Atlantic Beach, North Carolina. Yep.
Bridget Stuart [00:31:18]:
All right. Very good. Well, I would love to come to that. So the invitation is extended to me. I want to come.
Jay Conner [00:31:25]:
Hey, come.
Bridget Stuart [00:31:26]:
It’d be great to bring some and
Jay Conner [00:31:28]:
I’ll give you a slide on stage.
Bridget Stuart [00:31:29]:
Nice. That would be great. I do love public speaking, so yes, let’s. I’m really thrilled about that. Jay, I want to thank you for sharing this opportunity with anyone who’s listening, especially anyone who may be feeling as if they have a problem or an obstacle that they cannot overcome, to start building their generational wealth through dirt and doors or generational wealth by being the bank. Because both, as you and I know, they’re both viable and they are both open to everybody. So thank you again for doing that. If you are listening to this episode of the Inter Estate, I really hope you’ll take advantage, and maybe I’ll see you in North Carolina as well.
Bridget Stuart [00:32:08]:
Take advantage of the opportunities and the book that Jay has so graciously shared with us. I also hope you’ll come back for the next episode. Thank you. Thank you again, Jay.
Jay Conner [00:32:19]:
Thank you, Bridget.
Narrator [00:32:19]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide– that’s www.JayConner.com/MoneyGuide, and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/MoneyGuide to get your free guide. We’ll see you next time on Raising Private Money with Jay Conner.