Automation, Private Lenders, and Mentorship Tips with Jay Conner

***Guest Appearance

Credits to:

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

“Ep. 198: Jay Conner's 10-Hour Work Week for 7-Figure Success.”

https://www.youtube.com/watch?v=TGRzyNBkO6Q  

On the recent episode of Raising Private Money with Jay Conner, Jay joins Brian Davis on the Buck Outside the Box podcast, where listeners were treated to an insightful discussion on scaling a real estate business through private funding and automation. Jay’s perspective, shaped by decades of investing experience and over 475 rehabs, offered actionable strategies for both seasoned investors and newcomers hoping to build a profitable portfolio.

Jay’s journey in real estate began in the early 2000s, transitioning from the mobile home business to single-family house investments in Eastern North Carolina—a smaller market with a population of just 40,000. Despite the locality’s modest size, his business has been able to consistently produce high margins with average profits now exceeding $82,000 per deal. His career illustrates that significant success in real estate does not require operating in a major city; it hinges upon execution and business fundamentals.

Early on, Jay relied heavily on local banks to fund his deals, building the business around a substantial line of credit, as was common practice before the 2008 financial crisis. The downturn provided a pivotal challenge when his credit was abruptly withdrawn during the crash. Instead of stagnating, Jay viewed this hardship as a catalyst for growth, prompting him to explore private money—a mode of funding that would forever change his approach. In less than 90 days, he successfully raised over $2 million from individual private lenders, a sum that allowed his enterprise to not only survive a tough market but actually triple its growth that year.

Private money, as Jay delineates, is fundamentally distinct from hard money. Hard money lenders operate as brokers or firms, pooling investments from individuals to lend out as secured loans, and often tacking on origination fees and higher points. In contrast, private lending is conducted directly with individuals—friends, family, or acquaintances—eliminating the middleman, junk fees, and ultimately giving the real estate investor much more control over terms. 

For Jay, these private lenders are treated like banks, safeguarded with promissory notes and mortgage protections, but they enjoy greater returns than traditional CDs or savings vehicles. He has steadfastly offered his 47 private lenders the same attractive interest rates since 2009: 8% in first position or 10% on rehab funds, with no origination fees.

One vital insight Jay shares is the mindset and approach required to attract private money authentically. Rather than chasing after people for cash or approaching the conversation from a position of need, Jay frames the opportunity as a service—teaching others how they can achieve above-average returns safely and securely, often without even referencing a specific deal in initial conversations. 

This educator's mindset builds trust and credibility. He recommends avoiding raising money at the last minute or in desperation, but rather proactively educating potential lenders on how private lending works and benefits them.

Automation is another key pillar of Jay’s business. By leveraging both human resources (including an acquisitionist who has managed his seller contacts for over 18 years) and technology, he has built a systemized, self-running operation. 

Jay’s involvement in the business is now less than ten hours per week—all possible due to careful delegation and the adoption of customer relationship management (CRM) software. This proprietary software streamlines