Raising Private Money with Jay Conner

In today's fast-paced world, many of us find ourselves trapped in the endless cycle of the 9 to 5 grind, yearning for a taste of financial freedom and a lifestyle that truly resonates with our personal values. Michael Hoang, a real estate investor from Houston, Texas, once found himself in this very predicament. However, through strategic real estate investments, he managed to escape the daily grind and now dedicates his life to helping others achieve the same.

Before diving into real estate, Michael was entrenched in the telecom industry, working as a risk manager with a grueling travel schedule that spanned the U.S., Canada, and even Puerto Rico. As he juggled this demanding routine, he recognized the unsustainable nature of his professional life. Motivated by the desire for stability and a gentle nudge from his wife, he embarked on a quest for financial independence through real estate.

Michael's journey in real estate began with "house hacking," a strategy where one purchases a multi-unit property, lives in one unit, and rents out the others. This initial step provided a crucial foundation for his real estate business, allowing him to build capital and experience. However, he soon learned that fear and hesitation had initially held him back from progressing further, despite possessing the necessary knowledge and tools.

His breakthrough came when he discovered the power of private money. Traditional financing methods, such as hard money lending, often come with cumbersome paperwork and higher costs. In contrast, private money offered a more flexible and relationship-driven approach, making it easier to secure funding quickly and efficiently. This strategy enabled him to scale his operations significantly faster.

Michael credits much of his success to direct-to-seller marketing, emphasizing the importance of finding deals off-market through methods like direct mail. Despite numerous technological advancements, he attests to the timeless efficiency of direct mail in reaching potential sellers and securing profitable deals.

Furthermore, Michael utilizes the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), acquiring distressed properties, renovating them, and refinancing to recoup his initial investment. This method has allowed him to recycle his capital repeatedly, growing his portfolio and wealth without the limitations imposed by traditional financing institutions.

Through networking and relationship-building at local meetups and self-directed IRA gatherings, Michael connected with private money lenders who shared his vision. He emphasizes the significance of nurturing these relationships early, suggesting that aspiring investors "dig their well before they are thirsty" to avoid desperation when a lucrative deal arises.

Michael's story is not just about financial gain; it's about creating a fulfilling life based on personal values and priorities. He finds joy in knowing that his investments not only provide him with financial freedom but also benefit his private lenders, creating a cycle of opportunity and growth.

His journey underscores a critical lesson: in real estate, as in life, relationships are everything. Whether it's connecting with potential sellers or building trust with private lenders, Michael's approach revolves around integrity and mutual benefit, resulting in a win-win scenario for all parties involved.

As he continues to expand his real estate ventures and digital presence, Michael remains committed to sharing his knowledge and insights. Through his podcast, "The Be Someone Podcast," and his active participation on social media, he inspires others to break free from their constraints and pursue lives of passion and purpose.

In a world where many feel trapped by the constraints of traditional career paths, Michael Hoangs success story offers hope and inspiration. By leveraging creative real estate strategies and cultivating meaningful relation

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Credits to:

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

"Becoming a Private Lender with Jay Connerl"

https://www.youtube.com/watch?v=x-k2ACFciBk 

 In the world of real estate investing, securing funds efficiently and reliably can be the linchpin to scaling your business. Jay Conner, a seasoned real estate investor and the so-called "Private Money Authority," recently shared his invaluable insights on the Blue Collar Wealth Club podcast with host Jerry Garcia. His journey from banker-dependent investor to private money mogul presents a fascinating story of innovation, resilience, and education.

The Turning Point: A Crisis into Opportunity

Jay's foray into private money was not born out of curiosity but necessity. After six years of relying on traditional bank loans, he faced an unexpected closure of his line of credit in 2009, despite a strong credit history. This abrupt financial crisis pushed him to seek alternative funding methods, leading him to discover private money.

In a conversation with a fellow investor, Jay learned about the world of private lending and self-directed IRAs, where individuals can use their retirement funds to invest in real estate for higher returns. This discovery was pivotal. He realized that the key to raising private money lay in educating potential lenders rather than asking for loans.

Educate First: The Private Money Program

Jay emphasizes the importance of separating the conversation about potential investments from actual funding requests. His approach is based on teaching individuals about the opportunity to become private lenders. He crafted a comprehensive program that includes competitive interest rates, attractive terms, and robust security measures.

By conveying this knowledge through private lender luncheons and one-on-one meetings, Jay effectively secures significant funds without making direct asks. He underscores that desperation has a smell, and by providing information upfront, potential lenders are drawn in by curiosity and interest rather than pressure. This strategy has allowed him to cultivate a network of 47 private lenders, amassing $8.5 million in funds.

Building Trust and Offering Security

For Jay and his private lenders, trust is paramount. He demonstrates his commitment by securing all loans with real estate, providing a 25% equity cushion to safeguard against market fluctuations. Additionally, lenders are named as mortgagees on insurance policies, ensuring their interests are protected.

By acting as the underwriter, Jay guarantees that his deals align with the pre-established terms, eliminating any surprises for lenders. His success in consistently securing private money is rooted in transparency, reliability, and the proactive teaching of financial opportunities.

Empowering Business Owners with Private Lending

Jay extends his insights beyond real estate, suggesting how business owners can leverage private lending. For those seeking to become lenders, he advises knowing the borrower’s experience and securing loans wherever possible. For business owners in need of funds, Jay suggests having a well-planned program to present to potential lenders.

He highlights the advantage of having funds lined up before they are needed, preventing the desperation-driven pitfalls seen in alternative financing options like merchant cash advances. This approach offers business owners a flexible, lower-cost borrowing option, helping them manage cash flow and growth seamlessly.

Beyond Real Estate: A Broader Vision

Jay’s teachings on private money are not confined to real estate. They offer a blueprint for financial empowerment, allow

***Guest Appearance

Credits to:

https://www.youtube.com/@BolaAlabi 

"How to Build a 7-Figure Real Estate Business with Less Than 10 Hours a Week"

https://www.youtube.com/watch?v=KlHGPU8cB0Q 

 The real estate world is a sphere of endless opportunities, yet financing often stands as the primary barrier for both new and seasoned investors. While traditional bank loans have long been the go-to option, they come with their fair share of hurdles and red tape. Enter private money—a game-changing concept that's revolutionizing how deals are funded and executed. 

In a recent enlightening episode on the Raisig Private Money podcast, Jay Conner joins Bola Alabi on The Career Evangelist Podcast and shares his invaluable insights on harnessing the potential of private money to transform the way you invest in real estate.

Why Consider Private Money?

Jay Conner's journey into private money began from a place of necessity when his bank unexpectedly cut off his line of credit. Finding himself in a predicament with two deals under contract and no funding, Conner asked a crucial question: "Who do you know that can help you with your problem?" This led him to discover private money through a fellow investor, Jeff Blankenship. Unlike traditional loans that often require personal guarantees and creaking through endless bank procedures, private money is sourced from individuals looking to invest their capital or retirement funds in real estate for attractive returns.

The beauty of private money lies in its flexibility and accessibility. Whether you aim to purchase single-family homes, commercial buildings, or apartments, the structure remains consistent. The process is less about convincing hard money lenders and more about creating mutually beneficial relationships with people eager to see their money grow.

The Role of Education and Relationship Building

Jay emphasizes the importance of educating potential lenders and establishing trust as fundamental to raising private money. His approach involves putting on his "teacher hat" rather than pitching deals out of desperation. By clearly explaining the investment opportunity, the security of their funds, and the expected returns, Jay reframes private lending from a transactional agreement to an educational and collaborative partnership. This helps in fostering long-term relationships where lenders are comfortable and eager to participate in future projects.

To illustrate, Jay has developed a network of 47 private lenders, none of whom knew about private money until he explained it. His ability to attract constant investment is rooted in being transparent and providing sound knowledge about private lending, ensuring that both sides of the table feel informed and secure.

Strategies for Success

One of the standout strategies Jay shared on the podcast is the benefit of having funds ready before contracting a deal. This involves separating the conversations about lending opportunities and specific deals, thus allowing investors to feel prepared and confident when entering negotiations. Unlike the conventional wisdom that suggests getting a deal and hoping for the funds to materialize, Jay insists on the contrary—having a financial plan beforehand empowers investors to act swiftly and assuredly.

Moreover, he suggests structuring deals with flexibility in mind, such as offering interest-only payments, allowing lenders to earn consistently without reducing your cash flow during the holding period. This pragmatic approach to investor relations underscores Jay's philosophy of leading with a servant’s heart and adds an appealing layer of security for lenders.

Conclusion

Jay Conner's journey and expert

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Credits to:

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

"How To Find The Money To Finance Your Next Deal"

https://www.youtube.com/watch?v=FC635vBeyTA 

 Navigating the world of real estate can often feel like traversing a maze, especially when it comes to securing funding for your deals. For those feeling daunted by the hurdles of traditional banking, Jay Conner, renowned as the "Private Money Authority," shares invaluable insights into how investors can break free from the constraints of conventional lending methods.

Jay's journey into private money lending began out of necessity back in 2009, during the global financial crisis. Like many real estate investors at that time, Jay found himself in a bind when his reliable line of credit from the bank was abruptly closed. 

However, rather than seeing this as a setback, Jay turned it into an opportunity to explore alternative funding sources. This exploration introduced him to the world of private money—a realm that would transform his real estate career.

Private money lending involves working with individuals who are willing to lend their personal investment capital in exchange for attractive returns. Unlike traditional banks, which often impose stringent credit checks and collateral requirements, private lenders offer flexibility, allowing you to make your own rules. Jay emphasizes that the cornerstone of his success in this arena has been education and relationship-building. 

By wearing his "teacher hat," he educates potential private lenders about the secure, high-return opportunities available through real estate investments.

One of the key insights Jay shared on the podcast is the importance of investing in your local community—an approach he prefers, as it allows him to maintain better oversight of his investments. 

However, he notes that private money principles are versatile and can be applied across various real estate asset classes, from single-family homes to mobile home parks.

Jay’s strategy pivots around the concept of a "good news phone call," a unique approach he uses to fund deals without ever explicitly asking for money. After educating individuals on private money, Jay simply calls them with news of a potential investment that matches their pre-discussed funding capability. 

This approach is not just about maintaining control over investments but also about offering genuine value to lenders by securing their investments with real estate, therefore ensuring that both parties benefit.

The podcast also highlighted an often-overlooked avenue—self-directed IRAs. For those with retirement accounts, directing funds into real estate can yield higher returns compared to traditional investment vehicles. Jay reiterated the importance of establishing a relationship with a self-directed IRA company, thus providing an additional pathway for potential investors to engage in real estate funding.

Jay’s emphasis on mindset—"owning the real estate between your ears"—is pivotal. Many potential investors are held back by fear and a scarcity mindset, unaware of the abundant capital available for real estate deals. Jay’s narrative breaks these barriers, demonstrating that with confidence, knowledge, and the right network, securing private money can be a seamless process.

Entrepreneurs and real estate newcomers alike stand to gain from Jay’s wealth of knowledge, particularly those eager to explore non-traditional funding routes. His book, "Where to Get the Money Now," which he generously offers for free (just cover shipping), is an excellent starting point for anyone looking to delve deeper into private money lending.

This episode is more than just a guide to securing funding—it's an empowering call to action for investors

***Guest Appearance

Credits to:

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

"Unlock Real Estate Success: Mastering Private Money Lending with Jay Conner"

https://www.youtube.com/watch?v=so-s2bKVElA&t=67s 

In the world of real estate investing, securing funding can be one of the most critical challenges. A rigorous, time-consuming process often accompanies traditional bank loans, and the limitations they impose can stifle even the most promising deals. Enter private money lending—a game-changer for real estate investors, offering a flexible and efficient alternative that can help you seize opportunities without the usual headaches.

The Journey to Private Money

Take it from Jay Conner, a seasoned real estate investor featured on Dr. Christopher Loo's Financial Freedom Podcast. His journey into the realm of private money began out of necessity. After years of dealing with banks and having his line of credit unexpectedly pulled during a financial crisis, Jay turned his attention to private lenders—individuals who were willing to invest their funds for a solid return. This pivot not only saved his business but opened up a wealth of opportunities.

Why Private Lenders Are Attracted to Real Estate

Jay Conner outlines several key reasons why private lenders are drawn to real estate investments. First, they earn impressive returns, far surpassing the interest rates of traditional savings accounts or CDs. While he has consistently offered his lenders an 8% return, even in volatile markets, such rates are enticing compared to the low returns at traditional banks.

Second, private lenders appreciate the security real estate investments offer. Unlike stocks, which can be highly volatile, real estate deals provide a stable principal, backed by tangible assets. Lenders have the added security of a promissory note collateralized by the property, reducing their risk.

Third, private lending is straightforward. Lenders know exactly what their returns will be without the unpredictability of market fluctuations. This reliability makes it an attractive option for individuals seeking to diversify their income streams with minimal stress.

The Distinction Between Private and Hard Money

It's important to understand that private money lending is distinct from hard money lending. While both serve as alternatives to traditional financing, hard money lenders typically operate as brokers, charging higher interest rates and fees. In contrast, private money lending involves direct relationships between investors and individual lenders, offering more favorable terms.

As Jay explains, private lenders are not institutions but real people who are eager to invest their savings or retirement funds into real estate. This personal connection often results in more favorable lending terms, such as no origination fees, lower interest rates, and no extension fees, allowing investors the flexibility to get paid when they buy properties.

Building Credibility with Lenders

Gaining the trust of private lenders hinges on credibility. New investors can begin by tapping into their existing networks—friends, family, colleagues, or acquaintances who might be interested in becoming private lenders. Expanding one's network can also be achieved through platforms like Business Networking International (BNI), where professionals connect to share leads and explore investment opportunities.

Additionally, partnering with self-directed IRA companies can lead investors to individuals who are already familiar with private lending. These existing lenders may require negotiation, but can provide a valuable source of funding.

Conclusion

Private money lending can revolutionize your real estate investing venture by p