Raising Private Money with Jay Conner Flipping Properties: Risk, Regulation, and Return Using Private Capital
***Guest Appearance
Credits to:
https://www.youtube.com/@WinningTheMoment
"Unveiling the Secrets of Real Estate Success with Jay Conner"
https://www.youtube.com/watch?v=AjPO4l7hsNg
Are you tired of jumping through hoops with banks, tedious paperwork, and red tape when funding your real estate deals? If so, you’re not alone. In a recent episode of the Raising Private Money podcast, together with Cody Adent, Jay Conner, widely known as “The Private Money Authority,” shared his transformative journey and actionable tips on leveraging private money to fuel real estate success.
From Banking Setbacks to Private Money Triumph
Jay Conner’s path to mastering private money began in 2009, amid the chaos of the global financial crisis. Despite a stellar credit score and a long-standing relationship with his banker, Jay suddenly found his line of credit revoked; banks simply weren't loaning to real estate investors anymore. Stuck, but determined, he turned to private money: deals funded by regular individuals, using their investment or retirement funds to back real estate.
The result? Jay’s business tripled within a year. Today, he oversees more than 2,000 investors he’s coached and manages over $8 million in private funds, regularly averaging profits of $78,000 per deal—without a dollar of his own money in play.
What is Private Money, and Why Does It Matter?
Unlike hard money or traditional bank loans, private money comes from individuals, not institutions. Jay explains that this direct lender relationship allows you to “make the rules.” There’s no need to beg for funds or suffer harsh lending standards and rates. Instead, you negotiate mutually beneficial agreements, and your deals close in days, not weeks.
Crucially, Jay points out, private money thrives regardless of interest rate fluctuations or market instability. While the Federal Reserve hiked rates 11 times in 22 months, what Jay pays his private lenders holds steady, because the deal terms are set within his program, not by institutional whims.
How Does It Work? Bringing Home “Three Big Checks”
Jay’s system ensures he never uses his funds and always brings home a check at closing. By borrowing up to 75% of a property’s after-repair value (ARV), he can not only cover the purchase and rehab but often takes home a surplus to manage carrying costs.
Here’s how the "three big checks" come in on a typical deal:
- At Purchase: When using private money, Jay structures the loan so it covers the purchase price, rehab costs, and extra buffer, meaning he collects a check at the closing table.
- Option Fees or Rent-to-Own: If selling on a lease-purchase, he collects a large, non-refundable option fee from tenants aiming to buy.
- At Sale: When the property is sold or flips, he receives another large check, pocketing the difference after paying the private lender their flat annual interest (often 8%).
Building Win-Win Relationships
Over half of Jay’s private lenders invest through self-directed IRAs, earning steady, often tax-deferred or tax-free returns entirely collateralized by real estate. Jay is clear: these “sleep-at-night” deals are hands-off for the investor, no joint ventures or profit splits. The lenders earn more than a traditional CD or high-yield savings account and retain security by being listed on the deed or promissory note.
Scaling Without Limits
Today, Jay manages 47 private lenders, often with more money queued up than he has deals available—a “good problem” by any investor’s standard. Relationships are key, and personal referrals have fueled much of his lender network. For new investors, Jay insists the beauty of private money is that credit scores are irrelevant; it’s about the value and saf