Raising Private Money with Jay Conner Expanding Real Estate Investment Opportunities Using Relationship and Networking Capital
***Guest Appearance
Credits to:
https://www.youtube.com/@PlayBigFasterPodcast
"Jay Conner, the Private Money Authority: How To Get PAID At CLOSING"
https://www.youtube.com/watch?v=Hobyjd_poXw
Are you a real estate investor struggling to fund your deals, tired of jumping through hoops at the bank, or nervous about your credit standing? According to Jay Conner—“The Private Money Authority”—there’s a better way: tapping into private money.
On the recent episode of the Raising Private Money podcast, Jay broke down his proven approach to raising limitless funds for real estate, bypassing the banks, improving profits, and making investing easier for everyone—from complete novices to seasoned pros.
What is Private Money?
First, Jay spells out what makes private money different from traditional or hard money loans. Traditional funding—like banks and mortgage companies—involves strict rules, credit checks, and lots of red tape. You borrow on their terms, not yours.
On the other hand, private money comes from individuals investing their own capital or retirement funds directly with you. There’s no middleman, no institutional underwriting, and best of all: “You set the rules.” Jay’s system allows him to pay 8% interest—significantly better than bank certificates or other safe investments—on straightforward terms, with no fees or points. For more than a decade, he’s successfully leveraged private lenders without once needing to show his credit score.
Why Private Money Beats Hard Money
Hard money loans are a step up in speed from traditional financing, but they’re still expensive (think 12–14% rates), short-term, and packed with fees. Plus, there are still limits to how many deals you can finance. Private money, by contrast, offers unlimited scale, flexibility, and often better rates. Jay explains that you’re not just borrowing money—you’re building relationships and teaching others to safely get excellent returns on their capital.
No License or Experience Required
A common misconception is that you need a real estate license or an established track record to raise private money. Jay busts this myth: as long as you’re investing for yourself (not representing others), you don’t need a license. And because private money is secured by real estate, not your credit score, experience isn’t a prerequisite, either.
Jay emphasizes the power of teaching. “Not one of my 47 private lenders had ever heard of private money before I taught them,” he says. By putting on the “teacher hat,” you empower others to invest in your deals, opening doors for both you and them.
Where Do You Find Private Lenders?
Jay outlines three key sources:
- Your Warm Market: Friends, family, business associates, church groups—anyone you already know. Educate them on private lending, and most will be intrigued by the returns and security.
- Your Expanded (Warm Market) Network: Grow connections by joining business organizations like your local BNI (Business Networking International). There’s only one real estate investor per group, making you the go-to expert.
- Existing Private Lenders: Found at self-directed IRA networking events, these individuals are already lending to real estate investors and may be looking for new opportunities.
Most people with retirement accounts have never been shown how to self-direct their IRAs into real estate, where they can earn higher returns—often tax deferred or tax free.
Making the Numbers Work
To ensure every deal is profitable, Jay shares his “Maximum Allowable Offer” formula: Take the after-repaired value (ARV), multiply by 70% (or 80% if the ARV exceeds $300,000), subtract estimated repairs, and add a “Murphy factor