Building a Real Estate Empire in Small Markets with Private Capital: Jay Conner’s Story

***Guest Appearance

Credits to:

https://www.youtube.com/@thekatebarryteam3281 

"The Private Money Powerhouse: Funding Fortunes to High Returns with Jay Conner - EP 14"

https://www.youtube.com/watch?v=5iTULXZJROE  

In the world of real estate investing, setbacks are almost a rite of passage. But for those determined enough, each obstacle is simply a stepping stone toward bigger success. This is the resounding message from the latest episode of the Raising Private Money podcast!

From Traditional Lending to Private Money

Jay Conner’s real estate journey is a testament to adaptability and resilience. Like many investors, Jay started his career relying on traditional bank financing. For six years, this approach worked—until 2009’s global financial crisis abruptly shut down his line of credit, leaving two profitable deals suddenly unfunded. “The only opportunity I had at that moment was to solve a problem,” Jay recalls. And solve it he did.

Rather than wallow, Jay reached out to contacts, sought advice, and quickly discovered the concept of raising private money. This method involves borrowing capital from everyday individuals—friends, neighbors, even fellow church members—who are looking for higher, safer returns on their investments than the stock market or a typical savings account.

Educating, Not Pitching

One of the secrets to Jay’s success lies in his approach to fundraising. Instead of hard-selling investment opportunities or begging for money, Jay led with education. “I never asked for money. I simply explained the opportunity, how private lending works, and the kinds of returns people could achieve,” he says. By positioning himself as a teacher and problem-solver, Jay attracted investors who already knew, liked, and trusted him—and who appreciated the clarity and transparency.

As Jay explains to Kate Barry, none of his first 47 private lenders had ever heard of private money or self-directed IRAs before he taught them about it. Separating the act of building investor relationships from pitching individual deals allowed him to grow trust and raise over $8 million, solely through “good news” phone calls inviting investors to put their money to work, not funding requests.

Protecting Investors and Building Trust

A cornerstone of Jay’s longevity is his diligent protection of private investors’ interests. He never borrows more than 75% of a property’s after-repair value, ensuring a 25% equity cushion and added security for his lenders. All investments are strictly tied to real property, secured with promissory notes and deeds of trust, and lenders are named on insurance policies.

Jay’s systematic, risk-conscious approach allows him to promise—and deliver—competitive, consistent returns to investors, regardless of market conditions. Even when renovation budgets go over (as they so often do), these safeguards insulate investors from losses and keep their confidence high.

Systems, Teams, and Consistency

Jay’s growth wasn’t built on volume but on quality. He and his wife, Carol Joy, run a high-margin operation, taking on two to three deals a month in a relatively small market. A key to their efficiency is a well-coordinated team of acquisition specialists, general contractors, and support staff. This lets them run up to six renovations simultaneously, execute projects smoothly, and bring homes to market quickly, often marketing through coming-soon listings and professional music videos to generate demand before a property is even available for showings.

Lessons for Aspiring Investors

If Jay could go back to his earliest days, his advice would be this: Don’t go it alone. Get a mentor, connect with your local real estate investing association, and continually surround