Building Reliable Systems for Sustainable Real Estate Growth with Private Capital

***Guest Appearance

Credits to:

https://www.youtube.com/@howtoscalecommercialreales334 

"How to Get Money for Real Estate Deals Without Relying on Traditional Money Lenders"

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

If you’re a real estate investor, few things matter more than having access to funding on your terms. While hard money loans or bank financing can work, they’re often inflexible or disappear just when you need them most. This is the exact challenge that propelled Jay Conner into becoming a passionate advocate for private money lending. His insights not only reveal how to raise and leverage private capital but also why building the right team and systems is essential for growing your investment business.

The Turning Point: From Institutional Reliance to Private Money

Jay’s journey started in the family mobile home business, but took off when he transitioned to single-family and commercial real estate. Like many investors, Jay initially relied on banks and institutional lenders to fund his deals. That changed dramatically in 2009, when his bank suddenly revoked his line of credit, with no warning. Deals in the pipeline were now at risk, and Jay needed a solution. Enter private money.

Within 90 days, Jay raised over $2.1 million from private individuals. The key was leveraging his contacts and offering them a safe, high-return investment opportunity secured by real estate. Importantly, private lenders hold a promissory note and are named on the deed of trust or mortgage, granting them protection typically enjoyed by banks.

This isn’t joint venturing or selling equity. Instead, it’s about structuring deals so that the private lender acts exactly like the bank, and the investor, like Jay’s company, owns the property.

Demystifying Private Money: Education Over Persuasion

One of Jay’s most powerful points is the difference in mindset when raising private money. Too often, new investors feel like they’re begging or imposing when asking for funds. Jay flips this script entirely.

“I’ve never asked anyone for money,” he says. “Instead, I simply teach people about the opportunity.”

He holds private lender luncheons, presents the investment structure, explains the safety and returns, and lets the program speak for itself. By operating as an educator—rather than a salesperson—Jay not only makes the process more comfortable, but also attracts motivated, informed lenders. This partnership mentality means that when it’s time to fund a deal, Jay simply calls to let the ready lender know their money can be put to work. There’s no awkward “pitch”—just the progress of a win-win relationship.

Systems and Team: The Engine Behind the Deals

Raising capital is only one part of the scaling equation. Jay emphasizes the importance of great team members: a trusted real estate attorney, reliable realtors, acquisitionists, project managers, and a personal assistant. These specialists ensure that transactions run smoothly, repairs are managed efficiently, and leads are always coming in. Jay’s commitment to delegating and systemizing allowed him to scale back his workload to under 10 hours a week, focusing solely on high-value decisions and strategy.

This didn’t happen overnight. Jay learned—often the hard way—that doing everything himself was not sustainable. By joining mastermind groups with other active investors, he gained critical advice and support. These peer groups, he asserts, have been instrumental in propelling his business forward.

Mindset: The Most Profitable Asset

Ultimately, Jay’s success comes down to mindset. Private money is about offering, not asking. It's about educating your network, structuring attractive, secure deals, and having confidence in the value you