***Guest Appearance
Credits to:
https://www.youtube.com/@WealthArchitectPodcast
“SE3 Episode 14: How to Invest Without Banks | Jay Conner”
https://www.youtube.com/watch?v=Mp0PBbv3Gb4
Are you a real estate investor tired of jumping through hoops at the bank? Imagine never missing out on a deal because you “didn’t have the funding.” That’s exactly what Jay Conner, The Private Money Authority, has achieved since 2009. In this game-changing episode, Jay sat down with Emilio DiSpirito to break down his system for raising and leveraging private money—no banks, no institutional “gatekeepers,” and absolutely no hard money lenders.
Busting the Biggest Myth in Real Estate Financing
Most real estate investors believe their growth is capped by access to bank or hard money financing. Jay calls this the “number one misconception”—the idea that whoever has the money makes all the rules, sets the terms, and holds all the power. Before discovering private money, Jay missed out on deals simply because standard funding sources decided not to play ball, regardless of his perfect track record or credit.
But everything changed in 2009. After being cut off by his local bank overnight, Jay learned how to tap into the world of private lenders—ordinary people seeking better returns on their savings or retirement funds. This single pivot has allowed him to fund every deal for over a decade, leveraging over $50 million in private lending.
Adopt the Right Mindset: From Chasing to Attracting
According to Jay, the key to raising private money is right between your ears. The crucial shift is moving from a mindset of chasing, begging, or persuading (which investors dread) to one of educating and serving. As he puts it, “No chasing, no begging, no selling, no persuading at all.” Instead, Jay positions himself as a “private money teacher,” simply educating friends, professional contacts, and even service providers about a new opportunity—one that solves the problem of low, unsafe, or volatile returns elsewhere.
Importantly, he never pitches a deal right away. Instead, he explains the concept of private lending, details the protections (promissory note, mortgage security, insurance, etc.), and outlines the terms. The property only comes up after a lender has expressed interest in investing.
Where to Find Private Lenders…and How to Build Trust
Jay reveals three major sources for finding private lenders:
- Your Existing Network: The contacts in your phone, social networks, and professional circles. Trust is already built in.
- Referrals: Ask existing connections who else they know who might be interested. Trust transfers through connection.
- Expanded Networks: Business networking groups, especially Business Networking International (BNI), which both Jay and Emilio cite as game-changing for scaling up their funding relationships.
The initial conversation is simple, but powerful: “With everything going on in the markets, are you earning a high, safe return on your money?” If the answer’s “no,” it’s time to educate, not sell.
Protecting Your Lenders, Keeping Control
Security is paramount for both the lender and the borrower. Jay’s system always collateralizes loans with real estate—no unsecured funds, no syndication complications. Each lender receives a promissory note, a deed of trust or mortgage (depending on the state), and is named as mortgagee on insurance policies. He never borrows more than 75% of the after-repair value, ensuring a significant equity cushion.
Funds never go directly to the investor but instead to the closing agent or attorney’s escrow, providing full transparency and compliance.
Results: Financial Freedom and Opportunities for Others
The system works—Jay continues to flip homes with average profits of $86,000 per deal, all while never worrying about bank approvals.
For new investors, he offers scripts, a best-selling book, and live private money conferences to teach these methods hands-on. The message is clear: real estate financing isn’t about begging for money—it’s about providing a win-win opportunity for everyone.
Ready to break free from the banks? Follow the advice in this episode and start building your own network of private money lenders—one conversation at a time.
10 Discussion Questions from this Episode
- How did Jay Conner’s experience losing his line of credit in 2009 change his approach to real estate financing?
- What are the key differences between private money and hard money lending, according to Jay Conner?
- Why does Jay Conner emphasize the importance of mindset when it comes to raising private money?
- What strategies does Jay Conner use to start conversations about private lending without sounding salesy or desperate?
- How does Jay Conner ensure his private lenders are protected when investing in real estate deals?
- What role do self-directed IRAs play in private real estate lending, and what are the advantages for both the investor and the lender?
- Why does Jay Conner believe “no pitching of deals” is crucial in his process for attracting private lenders?
- According to Jay Conner, how can business networking organizations like BNI help expand your pool of potential lenders?
- What are some of the marketing tactics Jay Conner uses to find distressed properties and motivated sellers?
- What three resources does Jay Conner offer at the end of the episode for those who want to start raising private money, and how might these tools be useful to a new investor?
Fun facts that were revealed in the episode:
- Speed of Funding: Jay Conner regularly funds deals using private money in as little as seven days, thanks to relationships with custodians like Inspira and Directed IRA, making private funding much faster than traditional methods.
- Payday at Closing: Instead of putting money into his deals, Jay Conner often walks away from the closing table with a check in hand—sometimes tens of thousands of dollars—because his model allows for excess cash at closing.
- Scripts for Success: New real estate investors can access Jay Conner’s “Million Dollar Script Collection” with twelve different scripts for starting private money conversations—removing the stress of not knowing what to say when raising capital.
Timestamps:
00:00 Introducing Jay Conner’s expertise
03:35 Learning About Private Money
11:19 Focusing on servitude in business
13:32 Using retirement funds for investments
19:11 Building and Expanding Your Network
22:20 Becoming BNI education coordinator
24:29 Protecting private lenders in real estate
31:20 Real estate marketing strategies
35:38 Resources for Raising Capital
38:17 Getting the free money guide
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
Jay Conner on Private Money: Funding Deals and Gaining Financial Control
Jay Conner [00:00:00]:
The reason I’m so passionate about it is that ever since I started raising private money all the way back in two thousand nine, I’ve never missed out on a real estate deal for not having the funding. This one particular strategy, this one particular skill set,t has had more of an impact on our real estate investing business than any other thing that I’ve learned about real estate investing.g
Narrator [00:00:25]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, ey 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. Nowhere’s your host, Jay Conner
Emilio Dispirito [00:00:53]:
all right thank you for joining us here on the wealth architect podcast this is season three episode number fourteen and you know i got to tell you the past three seasons have been so much fun we have spoke with so many wonderful people with so many amazing backgrounds and we are learning so much we got a great guest here with us today his name is jay Conner and he’s somebody who has helped thousands of real estate investors break free from the traditional financing and step into true financial control he’s a nationally recognized expert in private money lending a real estate investor a speaker and an educator who has built a system for raising capital without relaying relying on banks that’s a huge thing through his teachings he’s shown investors how to fund deals using private lenders creating speed flexibility and scalability that traditional financing cannot match private lending as many of you know is one of the most powerful tools in real estate allowing investors to structure deals directly with individuals instead of institutions often backed by real estate as collateral if you’ve ever felt stuck waiting on bank approvals i know i have and you’re looking to scale your business faster with more control this is a conversation you want to lean into please help welcome jay Conner with jay Conner company’s jay welcome to the
Jay Conner [00:02:21]:
program emilio thank you so much for inviting me to come along and talk about what i’m so passionate about that being private money private money private lending to get your real estate deals funded the reason i’m so passionate about it is because ever since i started raising private money all the way back in two thousand nine i’ve never missed out on a real estate deal for not having the funding this one particular strategy this one particular skill set has had more of an impact on our real estate investing business than any other thing that i’ve learned about real estate investing
Emilio Dispirito [00:02:59]:
oh i love that you know it’s such an important topic and as an investor myself as somebody who’s flipped homes building houses i always leverage private equity but i do it from a private like a hard money lender a known lender and i love your style i listen to a couple podcasts you’re on this is why we asked you to come on and you have a whole different different take of it really and and i love this so we’re gonna dive right right in here’s the deal right jay most investors think they need banks to scale what’s the biggest lie people believe about financing real estate well
Jay Conner [00:03:35]:
there’s more than one so i don’t know if i can identify the biggest one here’s the so this is not a lie it’s a misconception it’s a myth is what it is and i had the same misconception i have walked the walk of missing out on deals for not having the funding prior to me learning about private money here’s the number one misconception i believe that whoever had the money to loan the bank the mortgage company the hard money lender by the way when we’re talking private money in this world i’m not talking about hard money hard money is institutional money private money is doing business with individuals ordinary people human beings that loan us real estate investors from and fund our deals from either their investment capital liquid funds and or their retirement funds i believe that whoever loaned the money listen i believed whoever loaned the money made the rules i believe that whoever loaned the money did the underwriting they set the terms they set the interest rate they set the length of the note they set the maximum loan to value they set the frequency of payments all that that’s what i believed because that’s all i knew for many many years but then everything emilio changed in january two thousand nine i had a line of credit at the local bank and i’ve been using mortgage companies as well we started investing in single family houses here in eastern north carolina back in two thousand three those first six years i relied on the local bank line of credit and i had two houses under contract in january two thousand nine to purchase and i called up my banker told him the funding required he had funded a ton of deals for me those first six years and and listen to me i learned like that over i mean on that phone call that my line of credit had been closed with no notice to me my banker’s name was steve i said steve what in the world are you telling me my bank of my line of credit is closed we’ve been doing a ton of deals six years never laid on payments got a perfect credit score what’s the problem and steve said to me over the phone he said jay don’t you know there’s a global financial crisis crisis going on right now i said no steve i don’t know anything about that but you just gave me a financial crisis i don’t have a way to fund these two deals so i was cut off with no notice and my definition of coincidence is god’s way of staying anonymous in less than two weeks less than two weeks i learned about this world of private money i was able to raise two million one hundred fifty thousand dollars without asking anybod money in the next within those next ninety days and since that time i’ve never missed out on a deal for not having the funding so here’s why i bring up the myth the misconception when i learned about private money the first thing that i had to get straight in my head and people ask me they say jay i’ve never raised private money what’s the first thing i need to do here’s the first thing you need to do if you’ve never raised money never been a capital raiser and the first thing you need to do is own the real estate between your ears what do i mean by that is have the right mindset so what is the mindset what is the crucial mindset on raising and attracting private money without ever asking for it and here’s the mindset no chasing no begging no selling no persuading at all hey look i got great news if you’re listening to this show and you’ve never raised money guess what there’s no applications and you are already approved here’s why the way i raised my first two million dollars and ever since that time over fifty million in private money lending is because the people that loan me money and i have been so blessed to educate inspire thousands of other real estate investors to raise private money just like this is that not one of my private lenders so over these years carol joy and she and my wife and i we’ve had forty seven individuals human beings ordinary people funding our deals and you know what’s interesting emilio not one of them ever heard about private money private lending they never heard of self directed iras and how they can take current retirement funds and move them over to a self directed ira company and then loan that money out to us real estate investors and the interest we pay them is either tax deferred or tax free and you know how they became our private lenders here’s how they became our private lenders with the right mindset what did i do i put on my teacher hat and what’s my teacher hat say private money teacher now of course i’m talking i’m talking figuratively i’m talking about the mindset i’m talking about my heart so i simply just went about educating ordinary people in my own connections in my own network people in my cell phone people in my social network people in my professional circle service people i mean you know who do i give money to every week at the dry cleaners who do i buy my cars from you know so i just started sharing with people and educating people that had a problem and the problem they had was they were not happy with their rates of return on their investments they were sick and tired of earning pennies at the local bank in a savings account or a certificate of deposit and so once i diagnosed that they were not happy with their returns then what did i do i put on my teacher i just simply educated them and of course i have a five step process on how to do that automatically i just simply educated them on well here’s how you can get returns safely and securely i didn’t go around throwing up on everybody about hey let me tell you about private money let me tell you about private money let me tell you about private money no sure
Emilio Dispirito [00:10:20]:
It’ll come out as salesy, yeah, yeah
Jay Conner [00:10:23]:
i’d simply ask a simple question i said like you know by the way with everything going on in the markets these days are you investing in stuff that’s giving you high rates of return safely and securely are you happy with your investments mm and once i diagnose that they’re not happy then i share with them this wonderful world of private money how they can get high rates of return safely and securely and again you see when you’re borrowing from an institution or individuals that are already loaning out money they make the rules right it’s a negotiation but instead of applying for mortgages or asking or begging and all that stuff no i’m offering an opportunity
Emilio Dispirito [00:11:08]:
I love that I love the opportunity to educate somebody on something like that, and when you look at it like that, it turns it from a sale to an opportunity, and I really think that’s great
Jay Conner [00:11:19]:
you just said is so important what you said is so important another part of the mindset is having a servant’s heart so you’re focusing on them you’re not focusing on yourself you’re focusing on them as to how you can serve them you know zig ziglar says you look after enough other people with what they want you ain’t gonna have to worry about yourself so it’s all about serving them and giving them an opportunity and by the way let me say this while it’s on my mind because it’s so important i never pitch a deal my students my mastermind members they never pitch deals there’s no pitching of deals and the reason we don’t pitch deals is because we separate the conversations so don’t miss this then i’m going to turn it back to you emilio after all this is your show we separate conversations with a potential private lender between offering the opportunity what’s the opportunity well we pay all of our private lenders the same thing it’s regardless of the single family house so i’ve been paying my private lenders eight percent ever since two thousand nine and i love it eight percent that’s a lot better than you get in the local bank and with the volatility in the stock market recently they’re sick and tired of that oh yeah so we share how it works what’s the frequency of payments how can you get your money back in case of emergency how are you protected we don’t borrow unsecured funds every private lender gets a promissory note a deed of trust or a mortgage name them on the insurance policies the mortgagee same protection as the local bank and then we don’t bring up anything about a property until they tell us how much they want to invest then we call them up with the good news phone call the good news phone call to deliver and put their money to work and we get our deals funded one hundred percent of the time you
Emilio Dispirito [00:13:16]:
Mentioned earlier that you educate people, you tell them about the self-directed IRAs, is that what you say? Is that probably the best avenue to work out of a SEP? I believe they’re called SEPs, right?
Jay Conner [00:13:32]:
not necessarily now over half of our private lenders are using their retirement funds to fund our deal but it depends on it depends on the individual situation we have some private lenders that are just using liquid capital we have some private lenders that are using their retirement funds and how does that work well we introduce them to the self directed ira company also known as a third party custodian approved by the irs and they’ll move their retirement funds an old four hundred one k collecting dust et cetera they’ll move the retirement funds over to the self directed ira company no tax consequences no penalties and once that account is funded which normally takes a couple of weeks then we’ll put their money to work they will invest those funds on a particular deal that we have and then the interest that they accrue or we pay is paid back to their retirement account at the self directed ira company and so it just depends on where they have money we got some private lenders only doing investment capital that’s just liquid funds we have other private lenders that are only using their retirement funds and we have a number of private lenders that are doing both they have this liquid capital and they have retirement funds and so they’ll use both so it just depends on the situation that the individual has as to where their investment capital and or the retirement funds are and how much
Emilio Dispirito [00:15:04]:
they have the reason why i ask is i’ve met several private lenders over the years that have operated out of the self directed ira and you know a lot of them have been telling me hey emilio you need to get on this you need to get into this and you need to start putting any money that you earn from flip properties or properties you build into this and just keep operating out of it and that’s an area that i keep meaning to to get into and interview somebody on is there a custodian or a company that you would recommend that you know that i’ve seen some big ones out there but is there somebody that you’ve worked with in the past you think would be a great guess for the wealth architect how
Jay Conner [00:15:46]:
about one that i’m working with right now sure yeah i mean in fact i’ll give you two yeah i’ll give you two that are phenomenal phenomenal awesome yeah so colin c o l l i n colin taylor yeah colin taylor i’ve worked with for years and he is with inspira i n s p i r a i get my deals with my with my private lenders that have their retirement funds with inspira i call up colin well actually i don’t brenda smith my office manager does emails him here’s the deal to be funded by you know this particular private lender’s retirement account i get my deals funded in seven days emilio seven days that’s
Emilio Dispirito [00:16:39]:
a lot faster than what I’ve heard
Jay Conner [00:16:41]:
Yeah, seven days if you want me to introduce you to Colin, I’ll be glad to do that offline and have him come on, so you can interview him. I’ll tell you another fantastic individual that I’ve worked with
Emilio Dispirito [00:16:55]:
For years, it’s all about the network, uh, it’s all about the network, Jake
Jay Conner [00:17:00]:
Absolutely, so his name is Nate Hare, and he is with Directed IRA, and these two individuals, these two companies, are fantastic to work with. It all comes down to customer service, which is what it comes down to, and you know their fees are, you know, comparable,e and those are two wonderful recommendations I would give you and your audience.
Emilio Dispirito [00:17:32]:
to connect great that’s awesome we’ll take them appreciate that and any introductions so i wanted to go back to you know the process here and now you have a potential lender you got this first conversation that’s going to what is that like how do you build trust to get them to say yes i mean you you ask them that question about hey how are you you know how’s how’s your money working for you which is already a pretty hard conversation to have with somebody i like the way you asked what’s that question what are you saying how are you getting them to trust you to now move all of that money over to you
Jay Conner [00:18:09]:
Well, first of all,l they already trust
Emilio Dispirito [00:18:10]
Me, me, m,m because you already know them
Jay Conner [00:18:13]:
yeah i mean i’m not talking with anybody about being a private lender with me unless they unless i already have a relationship with them where do those relationships come from i mean you know you’re going to run out of your own current connections sooner or later if you want to scale your business so let’s let’s dive down into that you know so there are three categories where you find private lenders the first category is what i call your existing network that i alluded to a few minutes ago you know most of your existing network is already in your cell phone right they’re already in your cell phone there’s another piece to your existing network that’s really not existing so i’ll call it a separate category and those are referrals from your existing network kind of
Emilio Dispirito [00:19:07]:
like what I just asked you there, right,t always ask, yeah,h always ask for
Jay Conner [00:19:11]:
the referral absolutely and so when i in fact tomorrow afternoon at four pm eastern time i’ve got a zoom scheduled with two ladies that have been referred to me never met them before in my life we started texting this past weekend based on the recommendation of a common very trustworthy individual that i am very very close to he’s very very close to them he’s made the connection so that trust has been transferred already from his connection to them over to me so the transfer of trust pretty much by the time you talk to someone that’s been referred to you they’re ready to go they they just you know i mean they pretty much you know they just wanted to make sure they understand the details so you got your current network you’ve got referrals and then the next category is called what i call your expanded network as i said you’re going to run out of your own i mean i got a huge network right i mean i’ve got almost five thousand cell phone numbers in my cell phone so regardless of how small or large you’re going to run out sooner or later so the next category is called your expanded network how do you expand or or blow up your network of trusted connections well i teach a whole session on that at my live event the private money conference but let me go ahead and give you a big one right here a fast like overnight almost overnight way to blow up your trusted connections is by joining your local business networking international chapter
Emilio Dispirito [00:21:11]:
dude i am in a BNI here in Rhode Island. I love it. That has literally blown my business up over the years, man, I’m talking about millions of dollars over the years, it’s unbelievable, you.
Jay Conner [00:21:24]:
know what I’m talking about, the best
Emilio Dispirito [00:21:26]:
connections you learn how to public speak, oh man, absolutely bni all day and
Jay Conner [00:21:33]:
so you know my mastermind members my platinum plus coaching clients i require them to become active in a local bni and if there’s not a local bni which there are in most places i mean here in a low morehead city north carolina eight thousand population we started a bni like twenty years ago you know i love that and so i require them to get involved and here’s the deal as you know i mean emilio you’re a business networking international member the big secret there is don’t join bni to be a go getter you join b and i to be a go giver g i v e r
Emilio Dispirito [00:22:17]:
Amen, that’s right, the giver’s gain
Jay Conner [00:22:20]:
givers gain ivan meisner you know coined that phrase started b and i back in the nineteen eighties and here’s a way you can be a go giver it’s what i did years ago after after i joined bni and i understand how it worked or whatever i volunteered to be the education coordinator hey that’s what i do hey emilio how did you know we have so much in common you know birds of the same feather flock together and so what’s the education coordinator well for five minutes at least in our local chapter for five minutes every meeting once a week i’m giving a five minute education on how to be a better bni member and how to be a better networker well how in the world did i do that i read ivan meisner’s books and take a chapter out of his book and condense it and summarize it into five minutes well what’s that do you’re serving but at the same time there you are in the spotlight education coordinator so now you’re viewed as one of the go to members of the of your you know local bni membership i teach many other ways to blow up your network very quickly but bni is one of my favorites i love that
Emilio Dispirito [00:23:42]:
Amen, that’s fantastic, so it’s so funny how much I have in common with so many of our contributors, and that’s a big one, well
Jay Conner [00:23:52]:
how do you know what i think about that emilio real quick i don’t know whoever came up with the phrase and the belief opposites attract i think that’s the most stupid thing i ever heard in my life i want to be around other people that are like me you know like minded better than me same core value oh yeah i want to be around people better than me but i want us to have
Emilio Dispirito [00:24:11]:
The same standards, that’s right, standards are everything, so, Jay, how do you structure these deals to the lender so that they feel protected, right, they’re shelling over probably hundreds of thousands of dollars, maybe millions, and you know, but you still maintain control and profitability, how do
Jay Conner [00:24:29]:
you do that so as i mentioned we do not borrow unsecured funds some people will invest in a fund that’s called syndication so you may have a you may have a capital raiser that is you know got a sec attorney that’s drawn up a private placement memorandum and let’s say they’re you know buying an apartment complex and so they have a fund that people can invest in and you’re going to need to have your money tied up for three to five years that’s all well and good i’ve got amazing friends good great friends and more than one mastermind group that i’m a member of but in my world we don’t syndicate okay i’m not raising money for a fund in my world here’s how we protect our private lenders everything that i’m investing in are single family houses so with single family houses this the raising of capital is not regulated by the sec the security exchange commission and here’s why because i’m not borrowing unsecured funds every private lender is getting a promissory note and either a deed of trust or mortgage just depending on the state that you’re in so we are collateralizing the note we’re collateralizing the note and we’re giving the private lender the same protection as the local bank or any kind of institutional money would get they’re getting you know it’s collateralized by the mortgage or deed of trust they’re named on the insurance policy as a mortgagee they’re named on the title policy as additional insured how are we protecting them in addition to that we’re not borrowing more than seventy five percent of the after repaired value so we’re renovating all these houses and so now i didn’t say seventy five percent of the purchase price i said seventy five percent of the after repaired value that’s why because we’re buying these properties at a discount we always bring home a big check when we purchase the property because let’s say for example using small numbers let’s say i’m buying a house that’s got an after repaired value of two hundred thousand dollars seventy five percent of two hundred thousand dollars seventy five percent is one hundred fifty thousand sure but i might be buying that house for a hundred thousand mm and there might be thirty thousand of renovations well follow the money follow the
Emilio Dispirito [00:26:57]:
money twenty k in your pocket, well maybe ten k after closing, well that’s
Jay Conner [00:27:01]:
after renovation so actually i got fifty k i got fifty k in my pocket when i purchase because there’s no draws there’s no draws in this world of private money so i go to closing my private lender wires one hundred fifty thousand dollars in this example to my real estate attorney’s trust account see the private lender never sends money directly to the real estate investor no no no no no all money is sent directly to the closing agent the title company or real estate attorney here in north carolina all closings are done by a real estate attorney same here so i go to closing there’s the one hundred fifty thousand dollars sitting in the real estate attorney’s trust account we got a settlement hud statement so that one hundred and fifty a hundred thousand is going to go to the seller in this example that leaves fifty thousand dollars what my real estate attorney’s check stub calls excess cash to close excess cash to close minus closing cost of course so i’m going to get a fifty thousand dollar check ss cash to close i’m not sending any of my money to the closing table i’m getting i’m picking up a check and i’m going to take that fifty thousand and in our example here i’m going to use thirty thousand for the renovation that leaves me twenty thousand to carrying cost maybe my private lender needs monthly payments to supplement income someone used part of that twenty thousand to pay their interest monthly if they’re needing the income that’s the way it works that’s how they’re protected right that’s another way we protect them them is money doesn’t come directly to us it goes to the real estate attorney’s trust account all right so you’re
Emilio Dispirito [00:28:50]:
renting these properties out, so you’re buying them, you’re rehabbing them, you’re renting them out, are you doing, are you ready
Jay Conner [00:28:56]:
no you’re not i’m not written i’m not renting them out if i’m renovating them i’m not going to leave private money buried in them if if i’m renovating them and turning them into brand new beautiful homes i’m gonna put them in the multiple listing service and cash out however emilio i’ve sold a lot of homes over these years on lease purchase or rent to own and what i do with those is if i buy it creatively say subject to the existing note or with seller financing and there’s no major renovation involved i’ll sell it on rent to own or i can use private money to purchase that home but if there’s not a major renovation involved then i’ll sell it on lease purchase i’ve just learned the hard way i tell you emilio most of the most important lessons i’ve learned i had to screw it up first to get it right so i got tired of renovating homes and turning them into brand new homes and then selling it on lease purchase and then if they didn’t cash out i had to go renovate it again so many times you got to do that that you don’t like that it depends on how you buy it and how much renovation is need needed but in this market since COVID back in twenty twenty we’ve been flipping most of them our average profits are eighty six thousand dollars per flip
Emilio Dispirito [00:30:17]:
Wow, you know we’ve seen our profit margins really shrink here in Rhode Island, and a lot of that was from wholesalers. Wholesalers really took a large market share here, you know, they’re eating up so much of the equity, and there’s really not much left for the flippers. Are you running into that in the North?
Jay Conner [00:30:36]:
carolina well i can’t really say i’ve never i’ve never well yes i can say what i was getting ready to say was i’ve never wholesaled a property in my life because i’ve stayed in every deal i’ve done i’ve flipped over five hundred houses however i have bought some houses from wholesalers yeah but not not recently there’s no margin there’s no there’s no margin no so guess what i don’t buy from wholesalers i do my own marketing me either i bought
Emilio Dispirito [00:31:06]:
I bought one or two from wholesalers, and they were both, you know, break-evens, all set. You gotta find the deals, you know. I’m so curious, where are you finding the deals, like how are you finding where are you finding these distressed properties? Well, now, Emilio, that’s
Jay Conner [00:31:20]:
a whole nother episode but i’ll give you the thirty thousand foot answer yeah so here we go let me let me blast it out to you all right and so the these are not in any particular order i do it all i do it all number one i have a foreclosure direct mail system that carol joy my wife and i started putting together back in two thousand four wow twenty two years ago we track and direct mail every family that is facing foreclosure that’s in pre foreclosure and we serve those people we have a eight letter eight sequential letter campaign that each letter is mailed out they’re all different mailed out every three days apart takes twenty four days to go through the cycle and so serving those people we put money in their pocket we help them get back on their feet we never buy for what they owe we help them it’s a win win win scenario secondly secondly direct mail again inherited properties inherited properties so we direct mail to pre probate pre probate and the reason we do that is because here in north carolina real estate is does not go through probate wow real estate does not go through probate which is very out of the ordinary most states sure so we do a three letter ninety day sequential campaign to families that have inherited property that own real estate and we show up with a servant’s heart serving them to help them walk through that process interesting statistic across the nation within two years of someone passing away that owns real estate within two years that property is sold and no longer in the family how else google google ads pay per click google ads you can do either pay per click or you can do pay per lead what’s the difference pay per lead is you are paying a third party vendor that’s running pay per click campaigns in your local area but you’re not paying google any money you’re paying the company the third party per lead that they provide you that came from google outbound outbound calling i bought houses from outbound calling i’ve had a full time outbound callers that call all different kinds of lists absentee owners distressed code violations utilities that have been turned off i mean you know as emilio as a real estate investor there’s you know a ton of different of different categories facebook buy a lot of houses off of facebook so i run two different campaigns a day one’s called the generic campaign the other is called the distressed seller campaign so i just got two different ads running and both of them have me holding a yellow sign on a street here in morehead city north carolina that says i buy houses with the phone number on the sign you know facebook won’t let you put a phone number in the ad but my phone number is on the picture smart of me hold holding the bandit sign there’s lots more but at least that’s that’s a start to the conversation i
Emilio Dispirito [00:34:43]:
mean you know and i’ve got i’ve got like ten other questions i could be asking you here but i would just say this to any of our listeners if you are interested in any of this content and if you’re interested in how to raise private money and scale your real estate business without banks and you want to hire a coach to do so you should really go ahead and contact Jay Conner at www.JayConner.com, and you can find out so much more jay you know what we have a section on our website www.WealthArchitectRadio.com, we call it the vault and this is where our contributors like yourself can put something of value in there for for our listeners and they can go ahead go on the website they enter their email they enter their name and then they can download this do you have anything you want to add to the vault and if so what is it
Jay Conner [00:35:38]:
Absolutely i’ve got all kinds of things we can add to the vault in fact three things you can add all three if you want to yeah we’d love it so the first one yeah the first one is so you know one of the common questions i get with new capital raisers is how do i start conversations i mean what do i even say to a potential private lender to start the conversation so i have my private money million dollar script collection perfect there’s twelve different scripts of how to start conversations you know how that should go and so if you’re listening to this show you go there into the vault you can download the very first script it’s called the curiosity opener script how to start a conversation you can download that script absolutely for free it’s a pdf and you can get it at www.JayConner.com/Scripts, secondly my national best selling book is called where to get the money now how and where to get money for your real estate deals without relying on traditional or hard money lenders and so this book i will autograph it for you i’ express mail it to you you can get it for twenty bucks on amazon but don’t go to amazon let me just give you the book for free just cover shipping and handling you can pick up my book at www.JayConner.com/Book, and then thirdly i put on in person live the private money conference the private money conference there’s not another live event like it in the nation and you want to raise private money get yourself in person i have real estate investors come from all over the nation here to our hometown in eastern north carolina you can go check it out and read all about it at www.JayConner.com/Event, it’s a three thousand dollar event for you and a guest for three days but guess what because you are here listening to emilio’s show you and your guests get to come for free instead of three thousand dollars with only a ninety seven dollars registration fee to reserve you and your guest seats so there’s three great big gifts for you take advantage of all three
Emilio Dispirito [00:38:03]:
Wow, that’s amazing, awesome, Jay Conner, real estate investor, coach, entrepreneur, you’re the man, I appreciate you being here with us in the Wealth Architect Radio
Jay Conner [00:38:13]:
Thank you, Emilio, for having me. You’re welcome, awesome are
Narrator [00:38:17]:
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.