Essential Private Money Strategies for Aspiring Real Estate Investors

***Guest Appearance

Credits to:

https://www.youtube.com/@TheMHPExchange 

"How To Find The Money To Finance Your Next Deal"

https://www.youtube.com/watch?v=FC635vBeyTA 

 Navigating the world of real estate can often feel like traversing a maze, especially when it comes to securing funding for your deals. For those feeling daunted by the hurdles of traditional banking, Jay Conner, renowned as the "Private Money Authority," shares invaluable insights into how investors can break free from the constraints of conventional lending methods.

Jay's journey into private money lending began out of necessity back in 2009, during the global financial crisis. Like many real estate investors at that time, Jay found himself in a bind when his reliable line of credit from the bank was abruptly closed. 

However, rather than seeing this as a setback, Jay turned it into an opportunity to explore alternative funding sources. This exploration introduced him to the world of private money—a realm that would transform his real estate career.

Private money lending involves working with individuals who are willing to lend their personal investment capital in exchange for attractive returns. Unlike traditional banks, which often impose stringent credit checks and collateral requirements, private lenders offer flexibility, allowing you to make your own rules. Jay emphasizes that the cornerstone of his success in this arena has been education and relationship-building. 

By wearing his "teacher hat," he educates potential private lenders about the secure, high-return opportunities available through real estate investments.

One of the key insights Jay shared on the podcast is the importance of investing in your local community—an approach he prefers, as it allows him to maintain better oversight of his investments. 

However, he notes that private money principles are versatile and can be applied across various real estate asset classes, from single-family homes to mobile home parks.

Jay’s strategy pivots around the concept of a "good news phone call," a unique approach he uses to fund deals without ever explicitly asking for money. After educating individuals on private money, Jay simply calls them with news of a potential investment that matches their pre-discussed funding capability. 

This approach is not just about maintaining control over investments but also about offering genuine value to lenders by securing their investments with real estate, therefore ensuring that both parties benefit.

The podcast also highlighted an often-overlooked avenue—self-directed IRAs. For those with retirement accounts, directing funds into real estate can yield higher returns compared to traditional investment vehicles. Jay reiterated the importance of establishing a relationship with a self-directed IRA company, thus providing an additional pathway for potential investors to engage in real estate funding.

Jay’s emphasis on mindset—"owning the real estate between your ears"—is pivotal. Many potential investors are held back by fear and a scarcity mindset, unaware of the abundant capital available for real estate deals. Jay’s narrative breaks these barriers, demonstrating that with confidence, knowledge, and the right network, securing private money can be a seamless process.

Entrepreneurs and real estate newcomers alike stand to gain from Jay’s wealth of knowledge, particularly those eager to explore non-traditional funding routes. His book, "Where to Get the Money Now," which he generously offers for free (just cover shipping), is an excellent starting point for anyone looking to delve deeper into private money lending.

This episode is more than just a guide to securing funding—it's an empowering call to action for investors