Raising Private Money with Jay Conner The Secret to Never Missing a Deal: Jay Conner’s Private Money Method
***Guest Appearance
Credits to:
https://www.youtube.com/@EggsThePodcast
“Eggs 420: Unlocking Unlimited Funding in Real Estate with Jay Conner”
https://www.youtube.com/watch?v=zWaAtliaWWQ&t=34s
When it comes to real estate investing, one of the most common hurdles is securing funding. Many aspiring investors are intimidated by the strict requirements and drawn-out processes of traditional lenders. On a recent episode of “Raising Private Money,” Jay Conner sat down with Michael Smith to share game-changing insights on how private money can propel your investing career—and how you can secure it without ever asking for a loan.
The Turning Point: From Banks to Private Funding
Jay Conner recounts his early days navigating the world of real estate investment. Initially relying on banks and mortgage companies, he faced a major setback in January 2009—the global financial crisis shut down his line of credit overnight.
Instead of giving up, Jay asked himself a powerful question: “Who do you know that can help fix your problem?” This shift in mindset led him to discover private money, an approach that forever changed his career trajectory.
Through education and networking, Jay was able to raise over $2 million in new funding—without asking anyone for money outright. As he puts it, “In fact, I don’t ask anybody for money. Today, I’ve got 47 private lenders that are funding our deals without ever asking for money. I never pitch a deal.” The secret? He became a teacher, educating potential lenders about the opportunity instead of selling or persuading.
Teaching the Opportunity: The “Private Money Teacher” Approach
Rather than chase investors or beg for funds, Jay Conner recommends a teaching approach. In this world, the investor defines the terms—interest rates, loan-to-value ratios, note length, and frequency of payments—in advance. For Jay, that means paying an attractive 8% interest to his private lenders and limiting borrowing to 75% of the after-repaired value of a property.
He stresses the importance of separating two conversations: first, teach the opportunity and program; second, once a potential lender is educated and interested, bring them a deal that fits the criteria. Jay’s exact script for putting a lender’s money to work is simple: “Mike, I’ve got great news for you. I can now put your money to work. I’ve got a house under contract... with an after-repaired value of $200,000. The funding required for the deal is $150,000…”
The key here is that his lenders have already been educated. There’s no selling, no chasing—just fulfillment of a promise.
Protecting Lenders and Structuring Deals
A major concern for both sides is risk. What happens if a deal falls through? Jay Conner explains that his private lenders are protected similarly to banks, with asset-backed debt secured by a mortgage or a deed of trust. They’re named on the insurance policy and title, ensuring recourse if the borrower fails to perform.
This approach distinguishes “one-off” deals from larger projects requiring SEC compliance. In single-family home investments, which are Jay’s specialty, the deals are asset-secured and private lenders receive steady, predictable returns—rather than a share of potentially fluctuating profits. The conservative borrowing limit of 75% of the after-repaired value means lenders have a substantial equity cushion.
Where to Find Private Lenders
Jay categorizes sources of private lenders into three groups:
- Your warm market: friends, family, and personal connections.
- Expanded warm market: networking groups like BNI (Business Networking International) and community organizations.
- Existing private