Fundamentals of Private Money and Real Estate Investment: Insights From Jay Conner

Raising Private Money with Jay Conner

***Guest Appearance

Credits to:

https://www.youtube.com/@TheClosingTablePod

"Jay Conner Discusses Private Money Raising"

https://www.youtube.com/watch?v=cNtgseDPZMk

Today, on the Raising Private Money podcast, Jay Conner had an amazing time joining Kat Schooler on The Closing Table Podcast. During the discussion, Jay elucidated the stability of private money lending compared to traditional investment avenues and shared invaluable insights on attracting private lenders. Here's an in-depth look into the segments of their dialogue.

Stability of Private Money Lending vs. Stock Market

Jay Conner draws a clear distinction between private money lending and stock market investments. Unlike the stock market, where values fluctuate wildly, private money offers a more stable route. When lending private money, the principal amount remains constant until cash-out, behaving similarly to a bank CD. This stability allows for predictable returns, an invaluable feature for any investor looking to mitigate risk.

Finding Private Lenders: Three Essential Categories

Jay lays out a comprehensive strategy for finding private lenders, categorizing them into three pivotal groups:

1. Personal Connections: Utilize your existing network. Family, friends, social media contacts, and community members are all potential sources of private money. Jay emphasizes that an active online presence, akin to his, can bolster these efforts significantly.
2. Expanded Warm Market: Build and grow your connections by joining networking groups like Business Networking International (BNI). These groups offer a fertile ground for expanding your influence and tapping into broader financial resources.
3. Existing Private Lenders: Seek out individuals who already have self-directed IRA accounts. These seasoned investors are often keen on private lending opportunities and understand the mechanism and benefits involved.

Leveraging Social Media to Attract Lenders

One of the significant revelations from the discussion is the compelling use of social media for attracting private lenders. Jay advises using platforms like Facebook and Instagram to showcase ongoing projects and successful deals. However, he cautions against directly mentioning terms like "private lending." Instead, he advocates creating curiosity by inviting questions, which compels potential lenders to reach out for more information.

Personal Journey and Transition to Real Estate

Jay Conner’s journey from the mobile home industry to real estate investing is both inspiring and instructive. His transition was catalyzed by a significant disruption in 2002 when Wall Street funding for manufactured housing was cut off. By 2003, Jay had pivoted to flipping single-family homes, a venture that has seen him rehab over 500 homes with substantial average profits per deal.

A key challenge early in his career was assembling a reliable team. He underscores the importance of delegating tasks and avoiding the pitfalls of trying to handle everything alone. This realization led to automating his business operations, enabling him to work a lean 5-7 hours per week while focusing on education and teaching others through platforms like his podcast, "Raising Private Money."

The Game Changer: Private Money Post-2008 Crisis

Jay recounts the 2008 financial crisis, which abruptly closed his line of credit. This crisis turned into an opportunity when fellow investor Jeff Blankenship introduced him to private money lending using self-directed IRAs. In an impressive feat, Jay raised $2,150,000 from private lenders within just 90 days without any direct solicitation for funds.

Jay underscores the importance of s