
Raising Private Money with Jay Conner Achieving Financial Freedom with Private Lending and Real Estate Investing
***Guest Appearance
Credits to:
https://www.youtube.com/@scalablerei
“#62 Mastering the Art of Raising Private Money with Jay Conner”
https://www.youtube.com/watch?v=wT7aLflhpVg&t=2s
The journey of a real estate investor is filled with challenges and opportunities, but one challenge consistently stands out: securing funding. In a recent episode of Scalable Real Estate Investing, expert investor Jay Conner shared his story and insights on how private money can transform the trajectory of a real estate business. Partnering with host Mason Klement, they peeled back the layers of what it really takes to raise and leverage private capital.
The Shift from Traditional Lending to Private Money
Funding real estate deals with bank loans is a common starting point, but it can be a risky bottleneck. Many investors, including Jay Conner, have learned the hard way that banks can pull lines of credit suddenly, putting deals and profits in jeopardy. This kind of wake-up call can turn a problem into a golden opportunity—if investors are willing to explore alternatives.
After experiencing this himself, Jay Conner pivoted to private money, assembling a network of individuals willing to lend directly on his deals. Unlike hard money lenders—who often broker funds and charge points—private money involves direct relationships with individuals. The process is not about pitching deals but educating potential lenders about the advantages and mechanics of private lending.
Building Relationships and Teaching the Private Lending Program
Success with private money isn’t about desperately searching for cash once a deal is in hand. Instead, Jay Conner recommends that investors make “the money comes first” their mantra. By having funds lined up and “pledged” before making offers, investors gain confidence and negotiating power. This approach fosters a mindset of opportunity rather than urgency.
The foundation of raising private money is relationship-based. Investors should start by reaching out to their warm market—friends, colleagues, and acquaintances. These are people who know, like, and trust them, making the transition from conversation to funding more natural. The strategy includes teaching these contacts the private lending program, covering the basics: the interest rate offered, the length of the loan, how the lender is protected, and other pertinent details.
Jay Conner advocates never directly asking for money. Instead, the focus should be on informing and educating. By outlining how the process works and the security involved, potential lenders often end up eager to participate, excited by the opportunity for higher, safer returns that traditional investments fail to offer.
Structuring the Deals for Safety and Simplicity
A major selling point for private lenders is security. Lenders receive a promissory note collateralized by the property—usually in the form of a deed of trust or mortgage. They’re also named on the insurance policy and title, protecting their interests comprehensively. Importantly, funds are always wired to a closing agent, never directly to the investor, ensuring transparency and safety.
In structuring these deals, Jay Conner uses a conservative approach, never borrowing more than 75% of the property’s after-repair value. This provides a significant equity cushion, protecting lenders if market volatility impacts resale prices. These practices, combined with the option of interest-only or deferred payments, result in win-win scenarios for both the investor and their lenders.
Finding More Private Lenders and Scaling Up
Beyond personal contacts, investors can expand their networks through organizations l
