Credits to:
https://www.youtube.com/watch?v=joTUWXcl0Ek
“Learn How to Raise Private Money for Real Estate w/ Jay Conner”
https://www.youtube.com/@JackBoschOfficial
Many real estate investors reach a pivotal moment: they’re ready to scale, but hit a wall when it comes to funding. The most common misconception? That “Raising Private Money” requires a hard sales pitch, relentless persuasion, and chasing prospects in a way that feels uncomfortable for everyone involved. Jay Conner, The Private Money Authority, joined the Jack Bosch Show to set the record straight—and reveal what it really takes to raise millions for your deals.
Facing Obstacles With Resilience
One of the cornerstones of Jay’s message is resilience. He recalls the dark day in 2009 when, after years of relying on local banks in Eastern North Carolina, his line of credit was yanked away during the global financial crisis. Two deals on the line, over $100,000 of profit at stake, and suddenly the funding was gone. It wasn’t an opportunity—at least not at first—it was a serious problem.
Still, as Jay explains, “When you’ve got a problem, and you want to be resilient, ask yourself, who can help you with the problem?” That question led him to discover private money—a decision that changed everything. Today, Jay and his wife Carol Joy have never missed out on a property deal due to lack of funding since that turning point.
The Formula For Success: E + R = O
Success, according to Jay, follows a simple but profound formula: Event + Response = Outcome. While you can’t always control the events life throws at you, you always have a choice in your response. Jay could have simply given up when the banks said no. Instead, he sought new relationships, learned about private money, and took action. His outcome wasn’t luck—it was the product of a resilient response.
Raising Private Money: Stop Selling, Start Teaching
The most powerful revelation in Jay’s approach isn’t a secret script or negotiation tactic—it’s a mindset shift. He never asks for money. He never pitches deals in desperation. Instead, he puts on his “Private Money Teacher” hat. “I separated the activities of teaching people what Private Money is, people that we already have an association with, and having a deal for them to fund,” Jay explains.
Here’s how the process works:
- Educate First: Jay meets potential lenders—often from existing relationships—and simply explains what private lending is and how it works. No pressure, no sales pitch. He discusses security (backed by real estate), conservative lending, and the kinds of returns they could earn.
- Let Them Express Interest: Only those who are intrigued by the conservative, above-market returns are invited further into the conversation. If they “get it,” the discussion continues. If not, he moves on—with no chasing or convincing.
- Match the Right Deal: Once someone expresses genuine interest and shares the amount they wish to invest, Jay’s “good news phone call” simply opens the door: “I can now put your money to work.” Details about the deal are given, but there’s never a pitch. The opportunity simply aligns with what the lender has already said they want.
- Utilize Key Questions: When paying off a lender, Jay asks a powerful question: “Would you like to add any more to it for the next deal?” This invitation often uncovers more capital than initially revealed.
The Private Money Advantage
Private Moneyisn’t just for house flippers. As the hosts discuss, it’s critical for land investors, wholesalers wanting to stay in deals, or anyone eyeing bigger opportunities. Private Moneyisn’t limited by strict guidelines, and when you control the funding, you control the deal flow.
Action Steps For Investors
- Practice your introduction: Be clear, concise, and focus on teaching, not selling. “I help private lenders earn above-average returns secured by real estate” opens doors.
- Have your educational ‘program’ ready: Even if it’s a simple, informal explanation of your process, know it well.
- Don’t chase; attract: If someone’s interested, they’ll ask questions. Let them come to you.
- Always ask existing lenders if they want to reinvest or upscale once a deal wraps up.
Resources And Next Steps
Jay Conner offers his book, Where to Get the Money Now, free (just cover shipping) via JayConner.com/Book, and also invites listeners to his Private Money Academy Conference for an immersive hands-on experience.
The future of your real estate business hinges not on your ability to sell, but to educate and serve. Switch on your teacher hat, foster trust, and allow opportunities to unfold—one resilient response at a time.
10 Discussion Questions from this Episode
- Jay Conner credits resiliency as the key attribute behind his success. How do you define resiliency in your personal or professional journey, and what examples from your experience illustrate its importance?
- The formula “E + R = O” (Event + Response = Outcome) was discussed as a guarantee for results in life. How can you apply this formula to common obstacles in real estate investing?
- When Jay Conner lost his line of credit in 2009, he sought help from his network instead of giving up. What strategies do you use to build valuable networks, and how do they impact your business growth?
- Many people associate raising private money with “begging or chasing” investors. How does Jay Conner’s approach of teaching rather than selling differ from traditional fundraising methods?
- How can separating the education about private lending programs from individual deals reduce perceived desperation and increase investor trust?
- Jay Conner mentions that private lenders often have more capital than they initially disclose. What tactics can be used to encourage investors to increase their commitment, and when is the best time to ask?
- How does having Private Money available open up more creative options for structuring real estate deals, particularly for land flipping and development projects?
- Only about 13% of for-sale-by-owners are open to creative terms, while 87% require cash. What does this say about the value of Private Money in expanding the pool of available deals?
- What are the risks and rewards of using Private Money versus traditional bank or hard money loans in real estate transactions?
- Jay Conner emphasizes never pushing or selling, but rather serving and creating win-win scenarios. How can this mindset be applied when seeking partners or funding in any business venture?
Fun facts that were revealed in the episode:
- No Pitch, No Begging:
Jay Conner has raised $8.5 million in Private Money since 2009—without ever directly asking anyone for money or pitching a deal. Instead, he simply educates potential lenders about private money, creating curiosity and demand without sounding desperate. - Turning Problems into Profits:
The loss of a bank line of credit during the global financial crisis forced Jay Conner to seek alternative funding solutions. This problem serendipitously pushed him into Private Money and became the biggest blessing of his real estate investing career. - One Simple Question Can Unlock Major Funds:
When paying off an existing private lender, Jay Conner recommends always asking, “Would you like to add any more to it for the next deal?” This one question has led to private lenders often investing far more money than they originally disclosed.
Timestamps:
00:00 Facing a financial crisis
05:45 Losing bank credit and finding solutions
09:29 Executing a collaborative launch strategy
11:16 Discovering Private Money options
13:32 Creating a private lending program
17:40 Talking with potential investors
22:53 Building strong relationships with lenders
26:05 Quick property flipping strategy
27:48 Benefits of using private money
30:13 Reviewing off-market property deals
34:34 Practicing Effective Communication Skills
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’s Formula for Success: Raising Private Capital Without the Hard Sell
Jay Conner [00:00:00]:
These people that are going around saying, oh, whenever you have a problem, that’s really an opportunity. I want to throw up. I didn’t have an opportunity. I had a problem. I got a financial crisis going on. So many people, when they think about Private Money, they think that I’ve got to go out and I’ve got to beg and, and, and sell and persuade and chase. And that’s not the way it works. One of the easiest ways to raise Private Money very quickly is with one question.
Narrator [00:00:29]:
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, 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.
Jack Bosch [00:00:56]:
All right. Hello everyone, and welcome to another episode of the Jack Boss Show, where we talk about all things real estate and finance. Today, we’re going to actually do a mixture of both of them because we’re going to talk about Private Money, how to raise Private Money without ever selling anyone on Private Money. And my guest today is a superstar of Private Money raising, Mr. Jay Conner. Jay, how are you today?
Jay Conner [00:01:18]:
I’m fantastic, Jack, and I’m so excited to be here to talk about what I’m most passionate about, and that’s Private Money, because Private Money has made a bigger difference in mine and Carol Joy’s investing career than any other strategy.
Jack Bosch [00:01:33]:
Let’s talk about the secret to success. Let’s talk about the— what is the number one criterion? You’re a successful entrepreneur for many, many years, right? Before we started this recording here, we talked about you having a formula for success. And let’s dive into that. Tell me a little bit about that.
Jay Conner [00:01:54]:
Right. So one question that I get asked a lot, Jack, is, Jay, if there was just one attribute, if there was just one personality characteristic about yourself that you would say has got the most to do with you being successful, achieving your goals. The one word that comes to my mind is resiliency.
Jay Conner [00:02:14]:
So what do I mean by that? That means, you know, not quitting, not giving up no matter what. And so I think back to 2009 when I was cut off from the banks; I lost my line of credit. My wife, Carol Joy, and I, we’ve been investing in single-family houses in Eastern North Carolina since 2003. The first 6 years that we were doing it, I was relying on local banks to fund our deals, from 2003 to 2009. And in 2009, I was sitting at my desk. I had 2 deals under contract, and all I knew to do back then was rely on local banks to fund them. I called up my banker. I had 2 houses under contract to buy, and I learned that I’d lost my line of credit.
Jay Conner [00:02:58]:
I said, Steve, what do you mean I’ve lost my line of credit? He said, “Jay, Don’t you know there’s a global financial crisis going on?” I said, no, but now I got a financial crisis, ’cause I’m getting ready to lose over $100,000 in profit. And he says, well, we’re not loaning money out to real estate investors anymore. So I hung up the phone, and I sat there at my desk for a moment. And I thought to myself, and here’s a writer-downer: when you got a problem, what do you do? I asked myself, who can help me with my problem? By the way, Jack, these people that are going around saying, oh, whenever you have a problem, that’s really an opportunity. I want to throw up. I didn’t have an opportunity. I had a problem. I got a financial crisis going on.
Jack Bosch [00:03:40]:
Right.
Jay Conner [00:03:40]:
So I asked myself, who can help me with my problem? Well, I immediately thought of Jeff Blankenship in Greensboro, North Carolina, a good friend of mine and Carol Joy’s. He was investing in real estate. And so in answer to the question, who could help me with my problem, I called up Jeff. I told him what was going on. He said, ” Welcome to the club. I said, what club? He said, ” The club of losing your line of credit at the bank. I said, well, how are you funding your deals? He said, have you heard of Private Money? I said, no. He said, have you heard of self-directed IRAs? I said, no.
Jay Conner [00:04:09]:
So I studied that, and I started teaching people that I already knew what Private Money was and attracted over a couple of million dollars in 90 days. I don’t say that to brag. I just say that as part of the story as to what happened. When you’ve got a problem, and you want to be resilient, ask yourself, who can help you with the problem? So I have this formula that I actually learned from another Jack. And the Jack that I learned this formula from is Jack Canfield.
Jack Bosch [00:04:37]:
Okay.
Jay Conner [00:04:37]:
I know Jack Canfield. The co-author of the Chicken Soup for the Soul series.
Jack Bosch [00:04:41]:
Right.
Jay Conner [00:04:42]:
And so I learned from Jack Canfield this formula that will guarantee your outcome in life of whatever you want to experience. And here’s the formula. The formula is E plus R equals O.
Jack Bosch [00:04:58]:
Okay.
Jay Conner [00:04:58]:
The E stands for event. The R stands for your response to that event. And the O stands for outcome. Now, unfortunately, most people walking around live life with a different formula. The formula they’re living is E equals O. The event equals the outcome. Whatever happens in your life, the event, whether you caused it or not, well, that determines your outcome. Whatever happens in life.
Jay Conner [00:05:29]:
But the E+R is very, very different. You see, you may not have had any control over an event happening. I didn’t have any control over losing my line of credit at the bank. That was a global situation.
Jack Bosch [00:05:43]:
But you have full control over the response.
Jay Conner [00:05:45]:
Exactly. We have 100% choice, 100% control over how we want to respond and how we choose to respond to whatever that event was that happened. So what did I do? What was the event in my example? The event was that I lost my line of credit at the bank. Not my fault, but it is my choice in the response. So how did I respond to losing my line of credit at the bank? To change the outcome. How I responded was that I looked for a better and quicker way to fund my real estate deals. And as a result, since that time— and boy, was it a blessing in disguise— since that time in 2009, we’ve never missed out on a real estate deal for not having the funding.
Jack Bosch [00:06:34]:
Right. Now, with that said, it means that the problem became an opportunity.
Jay Conner [00:06:40]:
It did. It did. But not in that moment of it happening.
Jack Bosch [00:06:44]:
No, of course not in that moment. In that moment, you want to throw everything at the wall.
Jay Conner [00:06:48]:
Exactly. And you know—
Jack Bosch [00:06:48]:
You want to go be frustrated and everything.
Jay Conner [00:06:50]:
Yeah. That event was the biggest blessing that Carol Joy and I have had in our real estate investing career. And so, yeah, that curse was turned into an opportunity.
Jack Bosch [00:07:02]:
And that’s what often happens. But only— and now bringing it back to your resilience work— only if you have the resilience to not just, yeah, I mean, I have—
Jay Conner [00:07:11]:
I mean, there were all kinds of choices. I could have quit. Yeah, I could have packed the bags and gone home.
Jack Bosch [00:07:16]:
That’s what most people out there do. That’s what a lot of people do is like, oh well, that didn’t work. I, I lost my line of credit, so what can I do? It’s not my fault. Like, they took my line of credit. These bastards took my line of credit away. Now I’m stuck in here. I’m losing my earnest money deposit. I lose my reputation.
Jack Bosch [00:07:30]:
I’m done. This is like crap, right? No. Yes, that’s an outcome. That’s a choice, right? But those that ultimately succeed, it’s like the key is like those that ultimately succeed don’t succeed because they don’t have obstacles. It’s because they don’t have events happening. It’s because of their response to the event. I mean, like I just released a few social media posts on Facebook where we talk about some of the things that happened along the way. I remember, like, in my first live event that we ever did, we had zero people show up.
Jack Bosch [00:08:02]:
We sold zero tickets.
Jay Conner [00:08:04]:
Zero people?
Jack Bosch [00:08:04]:
Zero tickets sold. ‘Cause I didn’t know how to sell tickets. So I was like, I got something amazing here and put up a website, put up some things, tried to sell, no tickets sold. So we still did it. We brought a bunch of employees into our conference room, and I taught it to them even though they of course knew it already. But it was like a test run. The second time we had 2 people, and they ended up fighting with each other. And so in the third one, we had 300 people.
Jay Conner [00:08:33]:
Wow. Well, and you know, how often do we think to ourselves, we wouldn’t be here today, wherever we are, wherever you are, we wouldn’t be where we are today unless we had gone through all the stuff that we’ve gone through, right? It’s all that that brought us here. And another thing from our good friend Jason Medley that I heard him say a couple of years ago—
Jack Bosch [00:08:55]:
Talked to him today.
Jay Conner [00:08:56]:
Did you? Jason said, I’ll never forget it. Jason said, what got you here will not get you there.
Jack Bosch [00:09:04]:
Right.
Jay Conner [00:09:05]:
We can’t keep doing the same thing to grow and, you know, progress in our business and personally.
Jack Bosch [00:09:12]:
Right. No, 100%. Like, what the exact skill set that gets you from 0 to 100 or 500 or 1,000 or to a million is the exact opposite skill set you need to grow from there.
Jay Conner [00:09:23]:
So it was a different skill set that got 300 people at your event versus 0 and 2?
Jack Bosch [00:09:29]:
Exactly right. It’s a different strategy. It was a different, a completely different thing. Instead of me trying it alone, I did a big product launch. And with a big product launch, I got the support of like 50 other people, and they sent out emails on my behalf. And we gave away, I think, a Rolex and stuff like that to those, like whoever won it ended up getting a nice Rolex, a nice thing, and laptops and stuff like that as prizes to incentivize them. And obviously commissions and so on. But because of that, then the word, the name got out, and it was a successful product launch.
Jack Bosch [00:10:04]:
And just many people weren’t willing— we needed to go big, basically. We needed to say, instead of dabbling around with little things, we needed to go big.
Jay Conner [00:10:12]:
What year was that?
Jack Bosch [00:10:13]:
Oh, that was 2008, actually.
Jay Conner [00:10:15]:
Wow, okay. Sort of in my time frame of where I was waking up to Private Money. Yeah.
Jack Bosch [00:10:21]:
And we had that moment actually because everyone was losing their shirt, and we realized that our stuff continued to work. That’s when we said, like, well, there’s lots of people losing their shirt. They need to learn this because this still works. Land flipping continues to work. But let’s go back. Let’s go into the, into your main kind of thing you talk about. Okay, so now Private Money.
Jay Conner [00:10:39]:
Yes.
Jack Bosch [00:10:39]:
Let’s talk about Private Money. I mean, obviously you’re the expert in Private Money lending or in Private Money raising. So, so, so tell me about— so it’s 2008. You lost your line of credit. You had a moment of despair. You called a couple of people. So again, it’s the who, not what, right?
Jay Conner [00:10:56]:
That’s right.
Jack Bosch [00:10:57]:
There’s somebody who always has the right answer. And that’s another distinguishing factor. Those who succeed have built up a network, and they’re sometimes also willing, or often willing,g to pay for the network.
Jay Conner [00:11:07]:
Yes.
Jack Bosch [00:11:07]:
Certain networks you just have to buy yourself into.
Jay Conner [00:11:10]:
That’s right.
Jack Bosch [00:11:12]:
And so now you have that, but did you know how to raise Private Money?
Jay Conner [00:11:16]:
No. So back to that story, back to that event of being cut off from the banks. So I heard about Private Money from my good friend Jeff. And while I was talking to Jeff, Jeff says, have you heard of Private Money, Jay? I said no. And he says, well, have you heard of this guy down in Jacksonville, Florida? Named Ron LeGrand. I said, no, who’s Ron LeGrand? And Jeff says, I don’t know, but he says we can get a lot of Private Money. And I said, well, what is Private Money? And Jeff says, I don’t know, but Ron says we can get a lot of it, and Private Money will fund our deals. So that was my very first real estate investing seminar.
Jack Bosch [00:12:01]:
Uncle Ron.
Jay Conner [00:12:02]:
Uncle Ron, Papa Ron. That was the first real estate investing seminar I went to.
Jack Bosch [00:12:07]:
By the way, if you’re interested in listening to Ron LeGrand, just go back to an earlier episode. We interviewed Ron LeGrand not too long ago.
Jay Conner [00:12:14]:
Awesome. Ron is fantastic. Anyway, so that was my first real estate investing seminar. Went to Ron LeGrand’s seminar to learn about Private Money, learned a bunch of other stuff too. And so I learned what Private Money was, came back, and here is the differentiating factor, Jack. So many people, when they think about Private Money, they think that I’ve got to go out and I’ve got to beg and sell and persuade and chase. And that’s not the way it works. Did you know, Jack, that since I learned about Private Money to this date, since 2009, I have yet to ask anybody for money? I’ve never asked anybody for money.
Jay Conner [00:12:53]:
I’ve never pitched a deal to get it funded. And people say, Jay, how do you have $8.5 million in Private Money lending that you just rotate from project to project? And you haven’t asked anybody for money. Well, it’s real simple. I got right here my hat. This is my Private Money Teacher hat. Now, Jack, I know I don’t look as good in a baseball cap as you do, but my Private Money Teacher cap is what I talk about. And what I did is I separated the activities of teaching people what Private Money is, people that we already have an association with. And having a deal for them to fund.
Jay Conner [00:13:32]:
So what I did is I came back home, and I put together what I call my private lending program. Well, what’s my private lending program? Well, my private lending program is the program that I offer to new private lenders on how they can get high rates of return safely and securely, how they’re secured, how it’s conservative loans, etc. So I teach the program. And once they tell me they like it, they’ve got X number of dollars to invest, and/or they maybe have some retirement funds that they want to invest. Well, I’ll introduce them to the self-directed IRA company that I recommend. They’ll move retirement funds over, et cetera. So I don’t, I don’t approach a deal in that first conversation because if I do, you see, desperation’s got a smell to it.
Jay Conner [00:14:20]:
And if I’m talking Private Money and I got a deal over here, I’m already sounding desperate. Even if I don’t try to sound desperate. So I teach my program to potential private lenders. Interestingly enough, Jack, as a side note, Carol Joy and I right now have 47 private lenders, individuals that are investing in our deals. Not one of them had ever heard of Private Money or private lending or self-directed IRAs until I put on my teacher hat and I started teaching them. So I teach the program, they tell me how much they’ve got to invest. And so then I’ll come back, and I don’t pitch a deal. I’ve never pitched a deal in my life.
Jay Conner [00:14:58]:
I simply call them up with what I call the good news phone call. Well, what’s the good news phone call? I call them up. Jack, let’s say you’re one of my new private lenders. I call you up, you answer the phone. I’ll say, Jack, I’ve got fantastic news for you. I can now put your money to work. And I’ll tell you 4 things about my deal. Now, if it’s land, like you’re an expert in, you’re going to talk a little differently about the land.
Jay Conner [00:15:22]:
If it’s a house, I’m going to talk differently. But like, if it’s a house, I’ll say it’s got a $200,000 after-repaired value. It’s in Newport. The funding required on this deal is $150,000. I know you got $150,000 because you already told me as to how much you want to put to work. And I’ll say the closing’s next Thursday, so you have to wire your funds by next Wednesday. And that’s the end of the conversation. The reason there’s no pitching involved in that deal is I’m not bringing you a deal to fund that doesn’t already match the program that I taught you initially.
Jay Conner [00:15:55]:
And so by separating the conversations of teaching the program to people that— I mean, all 47 of our private lenders, they never heard of Private Money before I taught them.
Jack Bosch [00:16:07]:
So let’s jump into that. So there’s a lot to unpack here. So, a couple of things are like, when you say you teach them the program, we’re not talking about you giving them a home study course. No, what we’re talking about is basically you explain to them what you do.
Jay Conner [00:16:23]:
Yeah.
Jack Bosch [00:16:24]:
That’s just to clarify. So, in the world of education and things like that, program often means like they pay for a course or something like that. No. So, you basically have conversations with people like, hey, nice to meet you, Jay. So, what do you do?
Jay Conner [00:16:37]:
Right.
Jack Bosch [00:16:37]:
And then you’re like, You say?
Jay Conner [00:16:40]:
If you ask me what I do, I teach private lenders how to make a lot of money. And you don’t have any idea what I just said.
Jack Bosch [00:16:45]:
What’s a private lender?
Jay Conner [00:16:46]:
What’s a private lender? And so I’ll say a private lender is an individual just like you or me that loans their money out or retirement funds on real estate, backed by real estate,e to get high rates of return safely and securely.
Jack Bosch [00:17:00]:
Tell me more. How does that work? And that’s how it goes, right?
Jack Bosch [00:17:03]:
And if they’re blind to it, they’ll just say, okay, that’s cool. Nice to meet you. And they walk off, and then there’s no need to chase them anyway, because they’re If they don’t get it, they don’t get it.
Jay Conner [00:17:12]:
Right.
Jack Bosch [00:17:13]:
But if they get it, they’re like, oh yes, like, let me, let me hear about it. Yeah. So, so, and I remember without knowing your program, I’ve, I’ve gotten some investors for multifamily by simply being at a school function of my daughter and doing the same thing. It’s like, well, what do you do? Well, like, we put together investors, and we buy apartment complexes,s and we bring them up, and our investors make 15 to 20% a year on their money. And they’re like, 15 to 20% a year.
Jay Conner [00:17:38]:
Right, you just got their attention.
Jack Bosch [00:17:40]:
What do I need to do to get 15%, 15, 20%? Well, what do you do? Like, well, I need to— because accredited investors, not accredited, so I got to vet them a little bit. But soon enough, also, it sounds like I’m not desperate, which I’m not. They’re going to ask; they’re now telling me all their financial things. And it’s like, well, great. Well, I’ll be happy to talk to you about more, but right now let’s watch the show for the kids. Okay. So, and then they’re like, Okay, this guy’s like playing hard to get in a way. But, but really, bottom line is it’s not, it’s not that.
Jack Bosch [00:18:10]:
I want to watch the show, but it’s like, let’s change, change information. And then, and then usually they call me, they’re like, hey, how about that 15%, 20%? And, and so you’re right, there’s no sales pitch involved.
Jay Conner [00:18:21]:
Exactly. The worst time to be raising money or attracting money is when you need it for a deal that’s got a deadline to close, right, within the next week.
Jack Bosch [00:18:32]:
Right.
Jay Conner [00:18:32]:
So again, there’s no desperation. There’s no chasing here. You know, one thing that I’ll hear from new real estate investors that are wanting to raise money is they’ll say, Jay, I’ve got this fear of rejection. Now, they don’t say it like that, but that’s what they mean. They don’t want to ask. They say, you know, I just don’t want to be rejected. And here’s my answer to that. How can you be rejected if you’re not asking anybody for anything?
Jack Bosch [00:18:58]:
Right.
Jay Conner [00:18:59]:
If you are teaching people an opportunity or showing them how they can get a higher rate of return, like you were just saying, the people you were talking to at your, you know, your child’s event there, you’re having a casual conversation, and all you did was drop the seed, right?
Jack Bosch [00:19:15]:
Exactly right, yeah. So once you explain it to them, they tell you, yeah, okay, so, well, I have some money invested. So how do you, how do you close that back?
Jay Conner [00:19:22]:
Right.
Jack Bosch [00:19:23]:
You know that they actually have $150K.
Jay Conner [00:19:25]:
So here’s what’s so interesting about that. So when I go through and I teach my private lending, we’ll call it opportunity instead of program, right? So I’ll teach, well, here’s the rate of return you’ll get. So I teach the rate of return regardless of the deals. I’ll tell them how long the notes are. I’ll show them how they can get their money back in case of an emergency. And that’s called the 90-day call option. Just give me 90 days. All I need is a week now.
Jay Conner [00:19:52]:
But if you need your money back in life, and circumstances come up. So I’ll go over the points, and then I’ll say, that’s all the points of the program. Does any of this need clarification? You got any questions? No, or whatever. Then I just look at them.
Jack Bosch [00:20:07]:
Okay.
Jay Conner [00:20:07]:
I don’t have to ask. I don’t have to do a trial close. I don’t have to ask, when would you like to be putting your money to work? I mean, here’s what I’ve learned after all these years, Jack. If somebody wants to hear from me how they can earn high rates of return safely and securely, number one, they’re not going to listen to how I do that for them unless they’ve got investment capital to use.
Jack Bosch [00:20:33]:
And do you ask them like, okay, how much do you have to invest?
Jay Conner [00:20:36]:
Well, they will ask me before it even starts. They’ll say, well, what’s your minimum? So you need to have an answer to that question. Well, my minimum is $50,000. It costs me the same thing to pay my real estate attorney a closing cost on $50,000 as it does on $20,000 or on $1 million. It’s all the same. So it’s just not worth it for the deals.
Jack Bosch [00:20:58]:
No, absolutely.
Jay Conner [00:20:59]:
Unless we’ve got at least, at least $50,000, you know, to start.
Jack Bosch [00:21:02]:
So that makes sense. So now you’re, you’re basically going and, and they’re telling you like, yeah, I got $150,000. So, so in this case, uh, I want to say like a $50,000, and they’re like, okay, that’s fine, but it still doesn’t tell you if they have $1 million or if they have $150,000. So how do you get that out of them?
Jay Conner [00:21:17]:
Right. So when I go through the program, and they don’t have any questions, uh, and they’re obviously interested, I’ll say, well, how much would you like to start with, right? And I’ll put your money to work for you as fast as I can. Then, then maybe at that point they’ll say, well, watch me, I’ll say $50,000. And I will say this: I’ll say, however, I can put larger amounts of money to work quicker than I can smaller amounts. Because obviously, I’m not going to buy a house, in my world, for $50,000. But I can use $50,000 for rehab.
Jack Bosch [00:21:49]:
Right.
Jay Conner [00:21:50]:
Right? By the way, Jack, I just had a thought come to mind that I got to share. Because anymore these days, Jack, if I don’t say it while I got it, it’s gone. So just 2 weeks ago, 2 weeks ago, I paid off a small private lender. Paid off $50,000 to a private lender. And of course they never want the money back.
Jack Bosch [00:22:09]:
Right.
Jay Conner [00:22:10]:
‘Cause when it’s paid off, they’re not earning money on their money. So I paid off this private lender, and here’s what I wanna share. One of the easiest ways to raise Private Money very quickly is with one question. Now, this is with an existing private lender. So I paid off this private lender. I told him to expect the payoff check in the mail. And so I said to them, I said, by the way, this check is coming to you. I’ll probably be able to put your money back to work for you pretty quickly if you want me to.
Jay Conner [00:22:44]:
I said, but do you have any more you want to add to it now? There’s the question. So if you want to— this is a writer-downer.
Jack Bosch [00:22:53]:
Right.
Jay Conner [00:22:53]:
So when you pay off a private lender, always ask when paying them off, would you like to add any more to it for the next deal? Now they might come back and say, well, how much more are you going to be looking at? Well, if you’ve got a deal coming around, in my example here, I paid off $50,000. The next deal I knew was going to be $200,000. I said, well, the next deal coming around is $200,000. Would you like to put any with it? And I said, you don’t have to. I got other Private Money, but I’ll give you the first option. And she said, Let me get back to you tomorrow morning. So she called me up the next morning; that $50,000 lender went to $170,000 because her mother had just passed away 2 months ago. And she had come into this inheritance.
Jay Conner [00:23:40]:
So the principle is, and the bottom line is, private lenders have always got more than they tell you.
Jack Bosch [00:23:46]:
Yes.
Jay Conner [00:23:47]:
And so the perfect time to ask, would you like to put any more with your investment capital?
Jack Bosch [00:23:52]:
Is when you pay them off. That’s right. When they have the trust, the ultimate trust-building event, which is not the monthly payments or quarterly payments, but if there’s any like that, but when they get their money back plus their return.
Jay Conner [00:24:06]:
That’s right.
Jack Bosch [00:24:07]:
Yeah, absolutely. Yeah, 100%. Very cool. So we got this solved. So hopefully if you’re paying attention to this now, you’ve got some wording that you could use. And now, how do you select 45? You have 45 people, $8.5 million. How many projects do you do usually at the same time?
Jay Conner [00:24:27]:
Yeah, so right now we’ve got about 7 projects going on, 7 houses in different stages. Now in this market, I’m flipping most of them. Now, you know, over the years we’ve sold a lot on rent-to-own, you know, lease purchase, but most of them we’re flipping and turning around. I mean, just went under contract on a house in our market, Eastern North Carolina. The after-repaired value is $550,000. It’s under contract right now for us to buy for $325,000.
Jay Conner [00:25:01]:
And the rehab is $51,000. The committee approved that deal pretty quickly. The point of my story is, with this kind of market and the kind of margins that we’re making, We’re cashing out, and we’re flipping those. So our median price on our houses is $325,000 in our market. And again, we’ll have 6 or 7 going at any given time. But Jack, I’m interested in hearing from you. I mean, you’re the land guy, right? Most of the real estate I do, I mean, I’ve done condominiums. I mean, you do multifamily.
Jay Conner [00:25:35]:
I mean, you’re in all kinds of projects, but I mean, you’re— you’re known for the land, right? How about explain to your listeners why Private Money would work for them in the land business when, you know, they buy a lot on terms?
Jack Bosch [00:25:51]:
Well, first of all, a lot of our listeners,-not all our listeners do land. Some of them just want to get a real estate education. But in the land, it definitely comes in handy when you, when you get some of the larger deals, because most people don’t need Private Money for a $5,000 deal.
Jay Conner [00:26:05]:
Right.
Jack Bosch [00:26:05]:
So plus, we don’t really do $5,000 deals. But if you have a $250,000 deal that you, let’s say, get for $100,000 and you can resell, you can wholesale it or resell it for $150,000 or so, then sometimes if the seller needs a quick closing, because usually we do wholesaling, right? We don’t even buy the property; we just pass it on to the next guy. But it does happen that the buyers need that the sellers, the only condition they give it to you for $80,000 or $100,000 is that you close in like 3 weeks or so.
Jay Conner [00:26:43]:
Right.
Jack Bosch [00:26:43]:
And so you do that, you agree to that. And in that case, you need some money.
Jay Conner [00:26:48]:
Right.
Jack Bosch [00:26:49]:
And many people don’t have, or most people don’t have, or don’t want to use their own $100,000 that they have in a bank.
Jay Conner [00:26:55]:
Sure.
Jack Bosch [00:26:55]:
So Private Money can come in very handy there. Also can come in handy, obviously, on more development deals; can come in handy particularly for the more advanced land flippers, or land— we call land flippers. If they— if it’s going to the entitlement process, into the development process, then, you sometimes— I mean, we got one of our students right now has a deal under contract for, I think, $2.4 million.
Jay Conner [00:27:17]:
Okay.
Jack Bosch [00:27:18]:
And that’s a wholesale deal. But could they potentially take that deal? And in that particular case, that student, I don’t think, is at the level yet where they would take it down and develop it. But, but some of our students are, some of our people making $800,000 a year. And, and if they come across a deal like that, they would take it down and partner with a developer and so on. And they would need to get their hands on some money. And Private Money in that case would certainly work.
Jay Conner [00:27:48]:
Yeah, I’m glad you brought that up because, you know, I’ve got a lot of friends that do wholesale deals. And when you’re a new wholesaler, one thing that happens very, very quickly is like, you get as a wholesaler, and of course you don’t need Private Money to wholesale a deal. But what happens with the wholesaler is that the 3rd deal or 4th deal or 5th deal comes along and they go, oh my land, if I had the funding to stay in the deal. And it’s like a big profit deal. They wouldn’t assign it out for the assignment fee. They would stay in the deal. So that’s another beautiful part about using Private Money when you’re wholesaling is that you get to pick and choose which deals you want to stay in and which deals you want to go ahead and assign out.
Jack Bosch [00:28:34]:
Yeah. And one area that, that it makes land flipping a little bit more complicated is that if you get Private Money, particularly Private Money that’s interested in being in it for a little longer, then you can get Private Money for self-financing deals.
Jack Bosch [00:28:50]:
So in other words, we like to sell a lot with seller financing, meaning we’d take a $200,000 deal. If we get it for $80,000, great. We couldn’t— 2 choices. You can wholesale it to somebody and, for $120,000, make $40,000. All good. Or you can also take it in and then sell it for $200,000 with about a $40,000 down payment and a monthly payment so that my Private Money investor would get, would get probably well, the land flipper would probably get $20,000, but $20,000 would be put back right to the investor. So they would get off their $80,000. They would get $20,000 back, but they’re still out $60,000.
Jay Conner [00:29:26]:
Right.
Jack Bosch [00:29:27]:
But since you sold it for $200,000 with a $40,000 down payment and let’s say a monthly payment of $1,200, you could split that cash flow between the investor and the land flipper.
Jay Conner [00:29:38]:
Right.
Jack Bosch [00:29:39]:
So now you can basically tell the investor, hey, we’re going to do an amortization schedule. And dear Private Money lender, over the next 5 years, we’re going to pay you all of this, all your money back. So the majority of the cash flow on the front end goes to the investor. But then once the investor is paid off, all the back end goes to the flipper. Yeah.
Jay Conner [00:29:59]:
Well, the bottom line is—
Jack Bosch [00:30:00]:
Bottom line, there are creative, different ways to do these things.
Jay Conner [00:30:02]:
When you’ve got Private Money available, many more options open up to you.
Jack Bosch [00:30:08]:
Exactly right.
Jay Conner [00:30:08]:
For, you know, for doing deals. Different ways and not missing out on deals.
Jack Bosch [00:30:12]:
Exactly right.
Jay Conner [00:30:13]:
You know, Jack, over the years, like yourself, we have reviewed thousands and thousands of property lead sheets. In today’s market, there’s hardly anything in the Multiple Listing Service. Most of the deals we get are what we call off-market, for sale by owners. And after reviewing thousands of property lead sheets, I mean, I’ve heard some real estate investors say, you know, I don’t need Private Money. I just want to do terms deals. I just want to buy on terms. And what I’ve discovered over these years is that only 13% of for-sale-by-owners will sell to me creatively. Yeah, right.
Jay Conner [00:30:51]:
Subject to the note, seller financing.
Jack Bosch [00:30:52]:
They want cash.
Jay Conner [00:30:53]:
What do the other 87% require?
Jack Bosch [00:30:56]:
The cash.
Jay Conner [00:30:57]:
Right. And so, you know, some people will say to me, they’ll say, I don’t need any Private Money. I just want to buy on terms. Well, that’s a business decision. If you only want 13% of the deals. But when you’ve got the Private Money, you can, you know, whether it’s a house, whether it’s land, whether it’s a pretty house that doesn’t need any rehab, when the seller requires it, that’s when you use Private Money. When do you use Private Money? When the seller requires all the cash or part of the cash.
Jack Bosch [00:31:24]:
Right.
Jay Conner [00:31:24]:
I mean, you can combine creative terms.
Jack Bosch [00:31:27]:
Yes, absolutely.
Jay Conner [00:31:28]:
But subject to the existing note and use Private Money. Like if they want some money over and beyond the payoff amount. So again, Private Money opens up the world.
Jack Bosch [00:31:37]:
Yeah, absolutely. It does. Great. So tell us about— so you also teach this, right? You actually, you actually don’t just teach it for your own benefit in the way that you teach people that ask you, what do you do? And you gain more private lenders from it. But you actually teach people, everyone, every everyday citizen, on how they can do what you do.
Jay Conner [00:31:58]:
Absolutely.
Jack Bosch [00:31:59]:
Okay. Tell us a little bit about that.
Jay Conner [00:32:00]:
Sure. So one thing I’m excited— I’ll put this back, Patrick, here in a moment. But I want to show everybody. So, so my book is Where to Get the Money Now.
Jack Bosch [00:32:09]:
That’s our producer over here.
Jay Conner [00:32:10]:
Yeah. Hey, Patrick. So my book, Where to Get the Money Now, subtitle: How and Where to Get All the Money for Your Real Estate Deals Without Relying on Hard Money Lenders or Traditional Lending. By the way, I got a lot of friends, and you do too,o that are hard money lenders. I say get as many relationships as you can, right? But this book, by the way, you can’t download it. This is, by the way, Jack, did you know the United States Postal Service is still in business?
Jay Conner [00:32:36]:
Yeah, so you can buy this on Amazon for $20, or I’ll give it to you for free. Just cover shipping. I’ll autograph it. I’ll mail it to you via priority mail. You get it in 3 days or less. And this will walk you through step by step on how I get all the Private Money I need and how you can get all the Private Money. So how do you get it for free? Go to www.JayConner.com. I’m an E-R, not an O-R.
Jay Conner [00:33:00]:
So J-A-Y-C-O-N-N-E-R.com. So again, that’s www.JayConner.com/Book. I’ll ship the book to you. In addition to that, Jack, I want to do something new for your audience. So I do a live Private Money event 3 times a year. It’s called the Private Money Academy Conference.
Jack Bosch [00:33:27]:
Okay.
Jay Conner [00:33:28]:
It’s in eastern North Carolina. So some of you have got to get on an airplane or drive a ways, but the Private Money Academy Conference, I do it 3 times a year. It’s a $3,000 event, and I want to give your followers and your listeners the event for free.
Jay Conner [00:33:42]:
The $97 registration fee is all there is to it. So you can learn all about that event. You can get registered at www.JaysLiveEvent.com. That’s www.JaysLiveEvent.com. You can go there and read all about it. And at that URL I just gave out to your followers, Jack, um, they’re not going to be paying the $3,000 fee. That gets them in for free with just a small registration fee.
Jack Bosch [00:34:10]:
Absolutely wonderful. Well, uh, www.JayConner.com/Book. and www.JaysLiveEvent.com. All right, make sure you check that out. And, um, yeah, I loved it. Thank you very much for being here. I love the ease— if I— again, I love the ease of the conversation flow that you have with your future financial investors. So guys, remember that there’s— you don’t have to push anything on anyone.
Jay Conner [00:34:34]:
No.
Jack Bosch [00:34:34]:
Like, you, again, you simply, you need to practice a little bit what you say so you don’t get like, what do you do? I’m blushing, I don’t know. So you gotta, in front of a mirror or something like that, you gotta practice. If you’re looking for— if you’re in real estate, you’re looking for private lenders, then, or you can use some for your business, then practice what Jay just said. Rewind, watch the episode multiple times, go attend, get the book, attend the event. But most importantly, practice it because when somebody asks you, you want to say like, yeah, I’ll help people, just like I’ll help private lenders make above-average returns with loans backed by real estate. And then that sounded like Chinese to them, and they’re going to be like, what does that mean?
Jay Conner [00:35:21]:
Exactly.
Jack Bosch [00:35:21]:
If they’re interested. Because they heard a few keywords: above average returns.
Jack Bosch [00:35:26]:
Like, just like when I talked about doing that kind of comedy show or something, and at the table, it’s just like, well, I help, I put together investors,s and we buy apartment complexes, and at the end they make 15% to 20% per year returns. They’re like, 15% to 20%? That’s the key thing they heard.
Jack Bosch [00:35:41]:
And everything else was like laser vision. Jack, I want to get to know you better. How do I get 15% to 20% returns? What’s going on here? And the rest then becomes just an education process.
Jack Bosch [00:35:52]:
Right. And, and then he said, like, well, I don’t even have a deal right now, but I can put you on my investor list. How much, how much do you think you could invest? Well, that much. Okay, great. When I have a deal, I’ll let you know. And boom, that’s how it just keeps going.
Jay Conner [00:36:04]:
That’s the key right there is separating.
Jack Bosch [00:36:08]:
Yeah.
Jay Conner [00:36:09]:
You know, that you got a deal now and, you know, letting them know that, you know, what you’ve got. And another thing that I’ve learned, Jack, you know, over the years is whenever I feel like that I’m selling, or I feel like I’m pushing, I back off. Back off. Because, I mean, you don’t want to be selling and like trying to talk anybody into anything. You’re simply offering them a way to serve them. And that’s what it’s all about, is creating win-win scenarios.
Jack Bosch [00:36:37]:
Exactly right. Well, that’s it. Thank you for being here.
Jay Conner [00:36:40]:
Jack, thank you for having me all the way out here in your studio in Phoenix.
Jack Bosch [00:36:44]:
That’s exactly right. I’m glad you were in town so we could do this in person instead of on Zoom.
Jay Conner [00:36:49]:
Absolutely.
Jack Bosch [00:36:49]:
Um, thank you for coming out here and then to our studio in Phoenix. So with that said, guys, that’s, uh, that’s it. That’s a wrap. Thank you for attending. As always, give us a 5-star review. If you’re watching this on YouTube, hit that, uh, subscribe button, hit that recommend button. And, uh, with that said, see you in the next show. Thank you very much.
Narrator [00:37:10]:
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 7 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.