Raising Private Money with Jay Conner From Bank Rejection to Millions: The Private Money Transformation
***Guest Appearance
Credits to:
https://www.youtube.com/@VastSolutionsGroupdotcom
“Real Estate Deals with Private Money!”
https://www.youtube.com/watch?v=70bQ7fWVgiM&t=367s
If you’re a real estate investor, entrepreneur, or simply someone looking to take your business to the next level, you’ve likely encountered one common hurdle: access to funding. The latest episode, featuring Jay Conner and Kenner French, dives deep into an innovative approach that has been helping investors scale their portfolios for years—raising private money without ever directly asking for it.
Jay Conner, recognized in the industry as “The Private Money Authority,” shared the actionable, real-life steps that have powered his own success since 2009 and transformed the investment businesses of countless others. He emphasizes that this isn’t a theory—it’s a proven strategy honed over years of real estate experience.
Private Money vs. Hard Money: Understanding the Difference
One of the biggest takeaways from the episode is Jay’s distinction between hard money and private money. As Jay notes:
“Private money has had more of an impact…in my real estate investing career ever since 2009 when I started doing it beyond anything else that I’ve done.”
Hard money lending typically involves strict terms, high interest rates (often between 12% and 14%), origination fees, appraisals, and a limited timeframe to repay the loan. By contrast, private money is all about building one-on-one relationships with individuals—often from your own network. These lenders provide funds from their investment capital or retirement accounts, allowing the real estate entrepreneur to set the terms, interest rates (often as low as 8%), and loan period (usually multiple years).
The Mindset Shift: From Borrower to Teacher
A recurring theme throughout Jay’s approach is the importance of mindset. Most people think the person with the money makes the rules, but Jay flips the script.
He urges investors to:
“Take on the mindset of having a servant’s heart and put on your teacher hat.”
Rather than begging or selling, you develop a program, become the “private money teacher,” and share opportunities with potential lenders in your network.
This isn’t about joint ventures or giving away equity. The private lender becomes, in essence, a bank, collateralized not through ownership but through promissory notes and deeds of trust.
Five Steps to Raise Private Money
Jay outlines a simple, replicable five-step process:
- Make Your List: Identify the top prospects in your own network—people in your contacts, at church, or on your email list.
- Opening Conversation Script: Use direct or indirect methods (which Jay expands on in his conference) that don’t involve asking for money, but instead spark curiosity and invite questions.
- Stress-Free Investing Audio: Jay records a short audio to introduce people to the concept of private money, raising questions without pitching the opportunity directly.
- One-on-One or Group Presentation: Teach the program, share success stories, outline terms, and explain the safety and profitability of private lending.
- Verbal Pledge: Secure a verbal commitment about how much a prospective lender can offer, without pressure or paperwork at this point.
Why Private Money Works—for Both Sides
There are a wealth of reasons why investors prefer private money: no credit checks, no income verification, no personal guarantees, fast closings, and the ability to bring home fast cash and fund unlimited deals. For private lenders, their investment is safely collateralized, they earn far more than