Episode 89: Unlocking Real Estate Wealth: How Private Money Can Fast-Track Your Millionaire Journey

Are you ready to take your real estate investing game to the next level?

In our latest Raising Private Money podcast, Jay Conner shares invaluable insights on how to achieve financial success through real estate investing, minus the bank.!

In this episode, Jay reveals a game-changing strategy that can help you close deals quickly and confidently. Through his experience and expertise, he emphasizes the importance of having access to private money, which empowers investors to make offers and seize opportunities in the dynamic real estate market.

Discover how raising private money can provide the financial flexibility necessary to build your real estate empire.

Jay explains how private lenders typically offer an 8% annual percentage rate (APR) and have more flexibility in payment terms compared to traditional banks. Imagine being able to buy properties without bringing money to the closing table, receiving a big check upfront, and making no payments until cashing out — it’s all possible with Jay’s proven strategy.

But raising private money is just the beginning. Jay delves into the essential pillars of real estate success, including finding the right deals, selling to people with good or less-than-perfect credit, and building automation systems that allow your business to run on autopilot.

By leveraging these strategies, you can streamline your operations and position yourself for sustained growth in the real estate market.

In a time where traditional financing is becoming increasingly challenging, Jay’s approach offers a viable alternative for individuals looking to secure their financial future. Whether you’re unsatisfied with your current financial situation, seeking a better return on investment, or simply looking to make a positive impact through real estate, this episode is a must-listen!

Remember, you have the power to transform your financial future through real estate investing. Don’t miss out on this opportunity to learn from one of the industry’s leading experts!


01:51 – Housing shortage, demand, fix-up, profit opportunity

05:57 – Banker refuses to fund, leaving significant liability.

08:22 – Confidence and private money fuel real estate success.

11:04 – Improve retirement with better rates of return.

17:19 – Jay raised $900,000 with one call. Find deals in MLS or from owners.

20:26 – Help repair credit, and sell homes to families.

21:55 – Success in real estate: servant’s heart, private money, right deals, automation, systems.

25:05 – “Blessed with wife, business, land. Help others in real estate.”

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What is Private Money? Real Estate Investing with Jay Conner


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 #PrivateMoney #FlipYourHouse #RealEstateInvestor

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Unlocking Real Estate Wealth: How Private Money Can Fast-Track Your Millionaire Journey


Jay Conner [00:00:00]:

While it’s true that more millionaires are made in real estate than anywhere else, it’s also true that you can lose money in real estate if you don’t know what you’re doing. 



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. 

Jay Conner:

Over 90% of the millionaires in the United States come from real estate. I do three real estate deals a month here in our small area with a pretty nice mid-five-figure profit on each deal we do. Now, if you’re looking to create wealth, you could invest in stocks, you could invest in your education, and become a highly skilled laborer, like a surgeon or a lawyer, or a CEO.


Jay Conner [00:01:02]:

And there are people who have made millions of dollars doing exactly that, but it’s a very small percentage of the people who became millionaires. Now, if you wanted to play the odds, you do what I did and invest in real estate. Well, my name is Jay Conner, and I’ve been buying and selling property since 2004 in this very small town on the coast of North Carolina. Now, I average three local real estate deals a month. And let’s just say that my average gross profit on each deal is in the mid-five figures. Well, I’ve got a system, and because of that system, I work between four and 8 hours a week on my real estate investments. Now, people ask me all the time, is it too late to get into real estate? The answer is just really simple. The only time better than now to get into real estate was yesterday.


Jay Conner [00:01:51]:

You see, we have a massive housing shortage in the United States. Just in the next three to five years, it’s predicted we’re going to need over three and a half million new homes. There’s going to be a lot of demand. The other thing is, money has been tight since 2008, and homeowners have spent very little maintaining their homes. Now, what this means for you what this means for me is that there’s going to be a lot of houses that need fixing up. We’ll be able to find houses at a discount, rehab those houses and sell them at a fair market value, making a really good profit in this process. If you woke up this morning and realized that your nine-to-five job was not going to create enough money for you to live comfortably in retirement, or if you’ve retired and realized that your nest egg is not going to last as long as you thought or give you the lifestyle that you want. Or if you’re a real estate investor and you’re just, like, kind of stuck at doing one or two deals a year, I want you to know you are in the right place.


Jay Conner [00:02:56]:

What I’m about to share with you is going to impact your life in ways you cannot even imagine. I said earlier that 90% of millionaires are real estate investors. When you invest in real estate, you’re investing in a real, solid physical asset. Buildings, houses, land. When you invest in the stock market or cryptocurrencies or the next shiny object, you’re investing in a piece of paper or a byte of electronic zeros and ones. And they can all pretty much disappear overnight. Just ask somebody who invested in Bitcoin at $64,000 and watched it go down all the way to 17,000, or someone who bought Blockbuster stock and watched them go out of business and go bankrupt. When you buy property, even if the price drops, you can still have cash flow.


Jay Conner [00:03:49]:

So let’s say your plan is to buy a house at $100,000, fix it up and sell it at $150,000. But something happens in the market and you can’t sell it for more than, say, $110,000, you can still rent it out. Remember, the United States needs 3 million more homes. You cover your carrying costs until the price goes back up. Remember, this is a worst-case scenario. So what we have here is a business with high demand, minimal downside, and the potential for excellent profits over the long term. You see, I have built my business on four pillars finding the deal, funding the deal, closing the deal, and putting this business on automatic to where I’m in it for less than 10 hours per week. You see, my four pillars work regardless of where you focus in real estate.


Jay Conner [00:04:39]:

You can be like me and predominantly do single-family homes, or you could do commercial real estate, which would include things like strip malls, regular malls, warehouses, multifamily projects, self-storage, and land. I mean, you name it. The list just goes on and on and on. So, for our purposes in this episode, I’m just going to be talking about single-family homes. But I want you to keep in mind this applies equally to any real estate that you’re going to be doing. Absolutely any real estate whatsoever, what you prefer to work on, in other words. Now, while it’s true that more millionaires are made in real estate than anywhere else, it’s also true that you can lose money in real estate if you don’t know what you’re doing. Like anything, if you do it wrong, you’re going to lose.


Jay Conner [00:05:25]:

You see, I’m here to show you how to do real estate the right way. Each of my four pillars presents its own unique issues and challenges. But there’s no doubt that funding the deal is the biggest challenge that most real estate investors face. Imagine that you’ve negotiated a deal on a house. You’ve signed the contract, now you got to get the money. Well, pretty much everybody starts off by going to a bank. You meet your banker. You’ve done a ton of deals with the banker before.


Jay Conner [00:05:57]:

He or she’s like your best friend, and he looks at you from his desk and says, you know, I’m sorry, we cannot fund your deal or your deals anymore. Now imagine that you’ve got two deals and this happens. You see, I’ll never forget it. That’s exactly what happened to me in 2009. If you sign a contract to buy a piece of property and for whatever reason your funding falls through, you have a significant liability. And that’s what happened to me in 2009. I’d been working with my banker for years, and he just told me right over the phone with no notice, I’m sorry, but we’re not loaning money out to real estate investors anymore. The other problem with bankers is that they look at how much debt you’ve got, how many properties you’ve got, and then they might say, you know, I don’t think we want to do any more deals with you right now.


Jay Conner [00:06:48]:

Well, look, that really limits your ability to grow your business. Well, let’s look at this funding from another perspective. Let’s say you’re looking at a house. You think it’s a good deal, you want to make an offer. Actually, let’s say you do make the offer and you’re confident your bank is going to fund the deal. But, and it’s big but the owners want the money fast. They want to close, like really fast. From experience, you know, it’s going to take a month or so, maybe two, to get the approval and then the money.


Jay Conner [00:07:19]:

So then let’s say another real estate investor comes by and says, yeah, I can write you a check, give you all the money and close in ten days. Is that good? And guess what? The other real estate investor gets the offer accepted and you lose out on the deal. There’s no way around it. Do you really want to fire your banker and not be dependent on the banks for anything? Listen, I have got a treasure chest and it’s full of money. In fact, I’ve got 47 private lenders. You don’t need 47, but I got 47 private lenders and have eight and a half million dollars at my disposal that I’m able to use on real estate deals. And again, you don’t need to start out with nearly that much. You see, when I look at a house and I want to make an offer, I know that I can go into my treasure chest and have all the money I need for the deal, transfer it to my real estate attorney, close the deal, and my seller gets their money within seven to ten days, guaranteed.


Jay Conner [00:08:22]:

You see, I get more offers accepted than my competition does because I’m able to have the money and close really quickly. So when I go to negotiate, how confident do you think I am in making the offers? I don’t have to worry that my banker is going to say no or not loan me the money. Don’t let anyone tell you any different. Here’s the deal. Confidence is a huge factor in your success and in your making the offers, the treasure chest that I’m talking about, that I’m able to get my funding from at any time and not lose out on any deals. It’s called private money. When you’re spending hundreds of thousands of dollars to invest in a house, there are tons of rules and regulations which are meant to protect both the buyer and the seller. We’re not going to get into all the technical stuff here on this episode because I really just want to give you a 30,000-foot view of how you can actually grow your real estate business, whether you’re just starting out or you’ve been doing it for a very, very long time.


Jay Conner [00:09:24]:

So I don’t know if you ever watched Popeye, the cartoon Popeye the sailor man. Well, Wimpy the hamburger eater in the cartoon, popeye was probably the first most famous private money borrower. He would say, I’ll pay you Tuesday for a hamburger today. Well, what was he really saying? He was saying, lend me some money, my friend, and I’ll pay you back later. Well, that’s pretty much what’s going on with private money. You know, somebody that’s got funding, you got money to contribute, and if not pay for the entire deal that you want to put together, you can make an arrangement with them. And when you got a deal, then they’re going to fund your deal. They are a private lender.


Jay Conner [00:10:04]:

You see, here’s the question is there a lot of money in the world or is there very little? There are numerous ways that you can get set up to get private money funding. So for the purposes of this episode, I just want to talk about one, and that is retirement saving plans or IRA. So here’s a little fun, interesting fact. Assets in individual retirement accounts, or IRAs, totaled $12.5 trillion at the end of the first quarter of 2023. That’s an increase of 4.3% from the end of the fourth quarter of 2022. Defined contribution plan assets were $9.8 trillion at the end of the first quarter. That’s up 5% from December 2022. Well, most of the people on these plans are stuck with picking either mutual funds, low-interest-bearing instruments, or a safe stock, quote, unquote.


Jay Conner [00:11:04]:

Often they wish they could make a better return on their money. It is, after all, that when they hope to be living on retirement, right? What if we could help improve their retirement by giving them better rates of return over the next 510 or even 30 years? You see, typically, I offer my private lenders 8%, and that’s an apr annual percentage rate. Where the real beauty of private money is that you make the rules. If it’s a mortgage at a bank, they expect monthly payments. However, when you’re dealing with private lenders, you may pay everything when the deal is closed and not make any monthly payments whatsoever. Imagine how you’re going to feel when you’re able to buy a house. Take no money to the closing table, bring home a big check at purchase, and make no payments until you cash out. This is why I am so excited about private money.


Jay Conner [00:12:00]:

Let’s say you’re doing rehabs, that you’re working on everything that’s happening and you don’t have to worry at all about where the money is going to come from when you’re going to be funding a deal. And their investment, my private lender’s investment with me has incredibly low risk for them. You see, they have a first position in most cases on the property that is backing the note on the money that they have loaned to me. So if worst comes to worst, if I don’t pay them, then they get the property and they’re made whole. So let me tell you about a recent deal I just did. It’s over at 114 Vine Street in Havelock, North Carolina. Well, I bought the property using private money for $50,000. The rehab was $51,000.


Jay Conner [00:12:46]:

I used private money for that, the purchase, and the rehab. Well, I sold the property very quickly. In fact, multiple offers. When I first put it on the market, I sold it for $234,900. The realtor fee was $11,750. My carrying costs were 9000. The closing cost in miscellaneous was $15,000. On that little 1200-square-foot house that I sold for $234,900, I profited $98,000.


Jay Conner [00:13:19]:

And it’s all because of having the private money ready to go. Now, let’s say that just everything went wrong. I mean, you know who Murphy is, right? If something can go wrong, it will. That’s the law of Murphy. Well, Murphy’s always hanging around. In fact, sometimes his relatives show up at a property and my private lender is like going to be taking over the property, right? Worst case scenario. Well, the private lender would have loaned me $150,000. See, I’ll borrow 75% of the after-repaired value.


Jay Conner [00:13:53]:

Well, 150,000 isn’t even 75. So I got $150,000 when I bought the property. And so I use 50 of it to buy 50 of it to rehab. That’s 100 right there. And then guess what? I got that extra cash from the private lender when I bought the house. You can pull equity out of the house when you’re buying the property when you are wanting to do the deal. So they loan me the money and let’s say not all the work got done. So the house was not livable.


Jay Conner [00:14:27]:

Worst case scenario here, not in showroom shape. And the private lender, of course, doesn’t want to do any rehabbing. They just want to sell it. And so let’s say they only sold it for, let’s say $200,000. Well, they’re still going to profit from the deal. So the reason I’m sharing this with you and by the way, none of my private lenders have ever had a house given over to them because they didn’t finish the job. Every one of my private lenders has always received every penny coming to them. But the reason I share this with you is that even in the worst-case scenario, everybody’s protected and it ends up being a win-win scenario.


Jay Conner [00:15:03]:

And I tell you, your private lenders, my private lenders are gold. Remember, they are your treasure chest, and you always have the money available. And, of course, you want to always look after them before anyone else. As I said, I’ve never had a single deal ever since 2009 where my private lenders were not paid in full. And as I told you a minute ago, I have over eight and a half million dollars in funds ready from my private lenders. Now, the first thing I teach my students is how to find money. Well, having the money burning a hole in your treasure chest really moves you to get off the couch and really get to work finding a property that you can profit on. So right now, take a listen to Jonathan, one of my successful students, and their success story.


Jay Conner [00:15:59]:

Since starting with Jay, we’ve raised a total of 780,000 in private money. It’s been a very rewarding experience. It’s allowing me to plan to walk away from my job within the next year, my full-time job. If you’re on the fence, just pull the trigger and go for it, because if you follow Jay’s system 100%, you will succeed. Now, you just listened to Jonathan. How about taking a listen to Erica and what her success story is all about? Using private money went all in when we joined Jay’s program, and it has just blessed us beyond measure. My husband was able to quit his job, and now we’re just able to homeschool our kids and have that quality family time that we’ve always dreamed of at the event in the program. It’s just such genuineness, it’s real, and everything that is promised is delivered and then some.


Jay Conner [00:16:49]:

Whenever we come back to these live events, it’s literally like visiting family. Everyone has their own personalities, their own strengths, their own downfalls, and we’re all just big cheerleaders for them. And there’s no doubt that you will succeed if you just follow the program. And then we have my student, Carly. Oh, what an inspiration Carly is. Listen to Carly as she shares her story. It’s because of the training I gave her. It got her her very first real estate deal.


Jay Conner [00:17:19]:

And because of Jay, I just raised $900,000 in one phone call. He makes so much sense, and it just makes it easy and very digestible that, oh, these are action steps, and you really want to get up and go because you’re like, okay, I can do this. I got to go. Now, that brings us to the second pillar of my business, and that is finding the deals. Where do you find them? Well, there are primarily two places you find them that’s in the Multiple Listing Service and what we call off-market houses or for sale by owners. Well, generally speaking, off-market homes are homes owned by people who don’t really know that they want to sell or they’re trying to sell it themselves. So oftentimes these homes are rentals and the landlords are just tired of toilets and trash and tenants or they just left the house vacant for long periods of time. And you can tell because the lawns haven’t been mowed in a while and the place looks run down.


Jay Conner [00:18:12]:

The easiest way to find these houses and properties for sale is what we call driving for dollars. Well, lots of people go for Sunday afternoon drives. And if that’s you, when you go on these drives, we’ll just take a look at the houses that you’re driving by, make a note of the homes that have the tall grass. Then you just have to figure out how to contact the owner and see if they want to sell. And of course, my students use one of my favorite sources for skip tracing. We will outbound call and we will text them as well all kinds of ways to find these motivated sellers. Again, I’m just giving you a 30,000-foot view here of how we’re doing this business. We’re not getting into the details of how you do this or that or all the different ways that you can do it.


Jay Conner [00:18:57]:

Now, the two other off-market sources of houses are what we call probates or pre-probates and foreclosures. So like foreclosures, this is the biggest way that we are getting most of our leads today. I mean, over 50% of our deals are foreclosures. I just bought a house on country club road from a foreclosure person facing foreclosure last year. And I bought that house subject to the existing note, actually with a $175,000 purchase price. And then I used private money to rehab it. It was about 30,000 in rehab. So I had all in about $205,000 purchase and rehab.


Jay Conner [00:19:41]:

I turned right around, put it in the Multiple Listing Service and sold it, and cashed out for $325,000. Well, I would have missed out on that deal if I hadn’t had the private money for the rehab and if I didn’t know how to find these foreclosures. So my third pillar is what I call closing the deal. You see, the beautiful thing about private money is we get to make the rules. We set the interest rate, you set the interest rate, and you set how the frequency of the payments and the schedule of the payments. Well, that’s the same for the person that’s buying your property. So let’s say, for example, that the buyers don’t have good credit. However, they do have money for a down payment.


Jay Conner [00:20:26]:

They do have a good job, and for whatever reason, their going to the bank just isn’t going to work out. The bank’s not going to loan them the money. Well, what if you could work with them, help them repair their credit within a year or two, and then they cash you out and in the meantime, you got positive cash flow? In other words, I can sell people, quality people, into a home that the banks won’t. So you never when you’re doing business like me, you never have to worry about being stuck with a house. And I do this over and over again. I’ve gone into neighborhoods, buy, rundown houses, fix them up, and then I put wonderful families that have kids into these homes. And then over the years, I’ve actually helped to transform the neighborhoods doing this now, I think of just countless stories of families that we’ve helped out.


Jay Conner [00:21:20]:

I think about a family right now. The house that they bought was over in Havelock on Lager Lane. And in this house, it was a mother and daughter that bought the home they needed to build up their credit a little bit. I sold it to them on rent to own. And then within about nine months, we were able to cash them out. Without having the Rent to own program on the back end of our deals, they would not have owned the house. So you see, we’re not just in real estate just to make money. We’re in it to change people’s lives for the better.


Jay Conner [00:21:55]:

If you want to be successful in real estate, then you’ve got to lead with a servant’s heart. So to summarize, we’ve talked about the importance of raising private money, finding the right deals to buy, and then how we can sell the house to people with good credit or to people that have less than perfect credit. That’s three of the four pillars. The last pillar is automation. By using my Proven systems, we’re able to combine software, local staff, virtual assistants, local contractors, and businesses to do the majority of the task required to find these properties that we buy, fix them up, and then resell them. If you set up the proper systems in place the proper way and of course, you don’t bail out on your responsibility as the boss and the leader, then a few years from now, you’ll find that most of your business is running by itself on automatic and you more or less just need to be the conductor. It doesn’t really matter if you’ve never bought or sold a house or if you’ve done a few deals a year for the last couple of years. If you want to be a successful real estate investor, you need to work with somebody who’s done what you want to do and continues to do it.


Jay Conner [00:23:10]:

Today, to get started, I have put together this guide. So here’s what I’d like for you to do. Go ahead and download my private money guide. It’s called Seven Reasons Why Private Money Will Skyrocket. Your real estate investing business. I recommend you read and study the guide as your very first step. So to really move forward, you need to immerse yourself in a community dedicated to doing what you want to do with people and coaches who will support you in achieving your goal. And as I was saying, you want to hang around people that are doing this very thing that you want to do.


Jay Conner [00:23:49]:

So it’s unlikely that you’ve ever heard of me before unless you’ve been tuning into the podcast. We may have never met in person before, so I’m wanting you to really start to get to know me well. In addition to the podcast here. By reading the guide, you see, most people won’t even do anything. We call it shelf help. They’ll buy a book, they put it on the shelf. They think they’ve taken huge steps when they really haven’t done anything. Well.


Jay Conner [00:24:19]:

The Private Money Guide, right, is your first step into really getting started in this world of private money. And you won’t be walking alone. Your success is very, very important to me. I’m here to support you in any way that I can. You see, nothing happens unless you take action. So all you have to do is just download the Money Guide at www.JayConner.com/MoneyGuide.  

So let me ask you a question as we close out. Does your retirement look exciting? Is your job helping you to achieve your financial goals? Do you really want more out of life? Or do you want to put your efforts into real estate? Be one of the 90% of millionaires who made their fortune in real estate.


Jay Conner [00:25:05]:

And let me leave you with one last thing. You see, God has blessed me with a beautiful, loving wife, Carol Joy, a thriving business, and a wonderful plot of land in a great country. And I know without a shadow of a doubt that my calling in life is to actually work with you and walk beside people like you, supporting your learning, and your journey to success in this world of real estate investing. And the only way to fail in this business is by quitting or not taking action. I’m Jay Conner, The Private Money Authority, wishing you all the best. I look forward to you getting the Money Guide, and I also look forward to seeing you right here on the next episode of Raising Private Money. 



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.