Why Educating Investors is the Key to Unlocking Private Funding to Fund Your Deals

Welcome to another insightful episode of Raising Private Money With Jay Conner!

Today,  Jay Conner, The Private Money Authority joins Mike and Ligia Deaton on the Cashflow Fight Club Podcast where Jay shares his wealth of experience on how to flip houses using other people's money!

Starting Out: A Lesson in Education

Jay Conner didn't begin his journey in real estate investment following the beaten path. Coming from a background in manufactured housing, Jay initially bypassed formal education in the industry, a decision that would cost him dearly. He stressed the value of proper education and mentorship. Aspiring investors should learn from his story; the price of entering the real estate market unprepared can be unforgiving.

Attracting Private Lenders: The Power of Relationships

One of Jay's crucial steps to success was raising private capital, especially when traditional bank lending became a bottleneck. He emphasizes the importance of assembling a list of potential private lenders from personal contacts, including retirees and community influencers. The goal is to educate, not to solicit directly, which he beautifully illustrates through his innovative approach to hosting private luncheon events.

Structuring the Deal: A Conservative Approach

Jay walks us through the mechanics of structuring a real estate deal, advocating for never borrowing more than 75% of the after-repaired value of a property. This conservative approach ensures an equity cushion for the lenders, mitigating risk and solidifying trust. He further explains the role of self-directed IRAs in funding and the significance of consistent seller leads for a robust real estate business.

Beyond the Money: Teamwork and Market Dominance

Operating in a small North Carolina market, Jay discusses his strategy to dominate rather than diversify. He champions the use of proprietary software for lead management and process automation. By building a reliable team and perfecting delegation, Jay has developed a seven-figure net business requiring less than 10 hours of his time each week.

Ensuring Sustainability: A Focus on Investor Relations

Jay Conner doesn't just find private lenders; he maintains and grows relationships with them. Reinvestment of profits from his clients bolsters the sustainability of his operation, positioning his business model as a dependable alternative to the volatile cryptocurrency market.

Securing the Future: Educating and Protecting Investors

Mike Deaton recognizes the shared path in educating potential investors, highlighting the time and effort it takes to bring them into the fold. Jay accentuates the educational aspect of his private lender luncheons, with a clear focus on informing, not asking for money.

Real estate investment is as much about relationships and education as it is about the numbers. Jay Conner's experience in flipping houses using other people's money offers a blueprint for success that relies on trust, conservative funding strategies, and constant learning. Whether you're a budding investor or a seasoned veteran, the insights from this episode are invaluable. Stay subscribed for more content that will help you up your game in the competitive world of real estate investing.

Real Estate Investment Protection: 

"I'm giving you all the protection just like a bank. So, if you borrow money from the bank and get a mortgage, the bank's name is the mortgagee. You, as the private lender, you're named as the mortgagee on the insurance policy." - Jay Conner

10 Questions Answered From This Episode:

1. How did Jay Conner's upbringing and family involvement in the home-flipping business shape his approach to real estate investing?

2. Can you discuss the formula from Jack Canfield that influenced Jay Conner's positive mindset and how it can be ap