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Raising Private Money with Jay Conner
I’m Jay Conner, also known as the Private Money Authority. Did you know that as a real estate investor, you are missing out on 87% of the deals because you’re “not” leveraging private money? After two decades as an investor, I started the Raising Private Money podcast to help you unlock all the private money you'll ever need to fund your real estate deals - WITHOUT resorting to expensive hard money loans.
If you’ve ever lost out on a great off market deal because you lacked the financing, then you and I are kindred spirits. I’ve been there too, missing seller financed opportunities early on because I didn’t know any better.
On this podcast, we’ll walk through accessing private funding together. You’ll discover:
•How to position yourself to tap into flexible private money funding rather than restrictive, costly hard money loans
•Untapped funding sources like self-directed IRAs – and many others you may not be aware of
•Steps to build your own network of private lenders for repeat financing
I speak with wholesalers, flippers, rehabbers, and investors in every niche about where they were BEFORE private money, and how adding private money has EXPLODED their profits!
Whether you’re a new investor looking to quit your 9 to 5 job and finance your first deal or an experienced investor aiming to do more deals and generate bigger profits, private money is out there waiting for you.
You just need the right mindset, positioning and tools.
Visit JayConner.com to join me on this journey and fund your first (or next) deal. All the capital you need is closer than you think. Let’s get there together!
Raising Private Money with Jay Conner
From Local Deals to Millions: Jay Conner’s Private Money Success in Real Estate
***Guest Appearance
Credits to:
https://www.youtube.com/@multifamilyap360
"How I Raised $2 Million in 90 Days for Property Deals with Jay Conner"
https://www.youtube.com/watch?v=5rzX5J_zDaA
Private money has become a cornerstone for many successful real estate investors. Unlike traditional bank loans, private money offers terms generally set by the borrower, enabling rapid deal closures and often leading to significant profits. Jay Conner, a seasoned expert in private money lending, shares his insights in this enlightening episode of the Raising Private Money podcast.
Understanding Private Money
Jay Conner's journey into the realm of private money began out of necessity. After his bank abruptly shut down his line of credit during the financial crisis of 2009, Jay had to find alternative funding sources. Fortunately, his close friend Jeff introduced him to the concept of private money — funds sourced from individuals looking to invest their capital or retirement savings in real estate deals. Unlike institutional banks and hard money lenders, private lenders don't require you to jump through hoops.
Jay emphasizes that using private money is more about educating prospective lenders than making a hard sell. "I put on my teacher hat and started teaching people in my own network what private money is," he says, which allowed him to raise over $2.1 million in the first 90 days after his bank cut him off.
The Mechanics of Private Money
Terms and Timelines
In Jay's model, the private money loans he secures are typically for a two-year period. However, the actual use of the money rarely extends that long. Most deals — from acquisition, and renovation, to sale — are wrapped up within six to nine months.
Returns for Private Lenders
Jay started paying his private lenders an 8% annual percentage rate (APR) back in 2009 and remarkably, he still offers the same rate today. One might wonder how he sustains such favorable terms for himself, especially given today's higher interest rates. The answer lies in two points: first, 8% is still considerably higher than the 4.5% or 5% one might earn through conventional methods like certificates of deposit; second, Jay makes the rules. He sets the terms that allow him to offer 8% because he is not competing with the strict, often opportunistic terms of larger financial institutions.
Finding Success with Private Money
Finding Private Lenders
Jay categorizes potential private lenders into three main groups:
1. Warm Market:
People you already know — friends, family, colleagues.
2. Expanded Warm Market:
This entails deliberately expanding your network, often through organizations like Business Networking International (BNI), which Jay highly recommends.
3. Existing Private Lenders:
These are individuals already lending money to real estate investors, often found through self-directed IRA custodians who offer regular networking events.
Strategies for High-Profit Margins
Jay’s average profit per deal is a whopping $82,000, achieved through two key strategies:
1. Targeting Off-Market Properties:
Jay primarily acquires off-market properties via Google pay-per-lead services. These properties, usually owned by motivated sellers, are not listed on MLS, allowing for better deals.
2. Quick Closures:
Thanks to private money, Jay can close deals rapidly, often within seven days, which is attractive to sellers in urgent situations, such as impending foreclosures.
The Exit Strategy
Jay's exit strategy varies depending on how he financed the property. If he financed it with cash through private money, h