Credits to:
https://www.youtube.com/watch?v=Xqu2JG2Yk8w
“How To Buy Real Estate With Other People’s Money With Jay Conner – 085 I The Open Concept Podcast”
https://www.youtube.com/@TheOpenConcept
If you’ve ever dreamed of investing in real estate but felt paralyzed by the belief that “only people with money can make money,” you’re not alone. The overwhelming majority of aspiring investors—and even many seasoned ones—believe the greatest barrier to entry is lack of funding. But as the Raising Private Money Podcast shows, that’s not the whole story. In fact, most people are asking the wrong questions.
Let’s pull back the curtain on the art of raising Private Money, and discover why real estate isn’t just for the wealthy—it’s for those who know how to connect, communicate, and serve.
What is Private Money, Really?
For many, “Private Money” conjures images of sophisticated, wealthy financiers or shadowy institutional backers. But according to Jay Conner, that’s a misconception. Private Money is not about banks, hard money lenders, or institutional lines of credit. Instead, it’s sourced from “ordinary human beings”—friends, acquaintances, professionals in your network, and even people you play golf with—who are simply seeking better returns than what’s available from a certificate of deposit or the unpredictable stock market.
The vast majority of these folks have never even heard of Private Money or self-directed IRAs. The key? You don’t need to chase or beg them to invest. As Jay explains, private lenders are everywhere, and it’s your role to present the opportunity—not to ask for a loan.
Serving, Not Selling: The Mindset Shift
Perhaps the most powerful insight from the conversation is the shift from scarcity (“I need money for a deal!”) to service (“Let me help you get better returns”). Desperation, Jay warns, “has a smell to it.” The worst time to raise Private Money is when you’re frantically seeking funds for a deal under contract. Instead, line up capital before the need arises. This mindset—owning “the real estate between your ears”—turns you into an educator and problem-solver, not a salesperson.
How do you start? Simple, clear communication and education. Jay uses a 20-minute “Private Lender Presentation,” keeping things accessible and straightforward. No fancy applications, no convoluted sales pitches—just a conversation about how your opportunity can solve their problem.
The Power of Relationship and Referrals
Another golden nugget: Ask for referrals, not handouts. When Jay first started, he approached people not to ask them directly for money, but to request their help in spreading the word about his investing opportunity. More often than not, this indirect approach led to those very people expressing interest themselves.
Why does this work? It removes pressure and creates curiosity, shifting the dynamic from “sales” to “service.” People are far more willing to engage and invest when they feel they’ve entered the process on their own terms.
Keep it Simple: Systems that Scale.
Managing dozens of private lenders doesn’t require a Wall Street-level back office. Jay’s system? Two simple spreadsheets—one tracking properties and their associated lenders, another tracking available funds. Transparency and clear communication keep everyone in the loop and happy.
When it comes to deploying capital, treat your lenders like VIPs: prioritize new lenders to “prove you can perform,” keep your offers conservative to manage risk, and always structure win-win deals. Educate your partners on deal structure, protection (like being named on insurance policies and title), and realistic returns.
The Real Secret: Mindset and Action
What separates those who succeed from those who never make the first call? According to Jay, it’s mindset and a willingness to act. Many struggle with fear—of rejection, of making mistakes, of stepping into the unknown. But as Jay reminds us, “How can you be rejected if you’re not asking for anything?”
Private Money is not reserved for the select few. It’s accessible to anyone willing to educate, serve, and ask the right questions. By focusing on relationships, embracing a service-first mentality, and keeping your systems simple, you can unlock a world of opportunity—both for your investors and for your own real estate journey.
Are you ready to leave the scarcity mindset behind and step into the world of Private Money? Your network is waiting. All you have to do is start the conversation.
10 Discussion Questions from this Episode
- Why is it important to separate the conversation about teaching potential private lenders from presenting them with a specific real estate deal?
- What are the main differences between Private Money and hard money lending, and why is this distinction important for real estate investors?
- According to the guest, what are the three main categories of potential private lenders, and how can investors tap into each?
- What mindset shift is necessary for new investors when transitioning from traditional funding to raising Private Money?
- How does the use of a simple Excel spreadsheet system help manage multiple private lenders and deals?
- What advice is given for individuals who have never completed a real estate deal but want to begin raising Private Money?
- Why is the indirect approach—in which you ask for referrals instead of directly for money—potentially more effective when talking to potential private lenders?
- What is the “Good News Phone Call” script, and how does it play a role in consistently securing funding for deals?
- What are the biggest mistakes new investors make when trying to raise Private Money, and how can they be avoided?
- How does focusing on serving others and relationship-building, instead of transactions, impact long-term success in real estate investing?
Fun facts that were revealed in the episode:
- No Need for a Deal to Raise Money
One unique strategy discussed is that you don’t need to have a property deal under contract before raising Private Money—in fact, it works better to secure funding first so you’re never scrambling or appearing desperate when a deal comes up. - Simple Tracking System
Despite funding over 500 properties using money from 47 private lenders, all investments are tracked using just two simple Excel spreadsheets—no fancy finance software or full-time accounting department required. - The “Good News” Phone Call Script
To secure funding without ever “asking” for money, a specific phone call script is used—once a potential lender is educated about the opportunity, the call simply informs them, “I can now put your money to work,” rather than requesting funds. This script claims a 100% success rate for getting real estate deals funded.
Timestamps:
00:00 Demystifying Private Real Estate Investment
09:51 Securing Funding Before Deals
11:45 Managing investments and investor tracking
16:07 Selling Yourself, Not Just the Deal
26:17 Recruiting a referral partner
30:22 Brandon’s investment decision criteria
32:50 Asking for referrals tactfully
41:55 Narrow vs. Broad Investment Strategies
47:06 Managing construction costs in home flips
48:41 Home inspection and contractor bids
58:26 Discussing personal motivation and fulfillment
01:02:43 Free script for starting conversations
01:05:47 Free money guide download
Connect With Jay Conner:
Private Money Academy Conference:
https://www.ThePrivateMoneyConference.com
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book, Where to Get the Money Now?
It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven leader in real estate investing. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $86,000 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: