Raising Private Money with Jay Conner

In the latest episode of Raising Private Money, Jay Conner dives into the inspiring story of Jonathan and Cara Broyles, a dynamic duo in the world of real estate investment. From starting their journey in 2021 to closing high-value deals, Jonathan and Cara have shown the power of strategic planning, persistence, and the importance of nurturing relationships with private lenders. This episode highlights their recent property acquisition and the lessons they learned along the way.Securing the Deal: 143 Royalty DriveJonathan and Cara's most recent endeavor revolves around a property located at 143 Royalty Drive. The property, after undergoing necessary repairs and renovations, boasts an impressive After Repair Value (ARV) of $550,000. However, reaching this point was no small feat.Assessing the Property:The house, previously occupied by an owner and 80 Siberian husky dogs, was in dire need of cosmetic repairs. Recognizing the potential in the property, Jonathan and Cara estimated a generous $100,000 for the rehab, including a contingency fund for unexpected expenses—a strategy they call "Murphy," named after Murphy's Law that suggests if something can go wrong, it likely will.Negotiating Purchase Price:Initially listed by a wholesaler for $367,000, Jonathan and Cara knew their maximum allowable offer based on their rehab estimates would be $310,000. Despite the significant gap between their offer and the asking price, they stuck to their numbers, a testament to their disciplined approach to real estate investment. The wholesaler initially countered with $330,000, but eventually, Jonathan and Cara's persistence paid off—their $310,000 offer was accepted.Lesson Learned:Stick to your evaluated numbers and don't let emotions sway your decisions. By adhering to their calculations, Jonathan and Cara secured the property at a price that allowed for a profitable investment.The Power of Private LendingA vital piece of Jonathan and Cara's strategy involves leveraging private lenders to fund their property acquisitions and renovations. This approach minimizes the need for traditional loans, accelerates the buying process, and often provides more favorable terms.Expanding Their Network:For the 143 Royalty Drive property, Jonathan and Cara initially anticipated using $250,000 from a new private lender. However, this transaction took an exciting turn—the lender expressed interest in funding the entire deal, boosting his investment to $410,000. This unexpected increase emphasized a crucial point in private lending: private lenders often have more funds available than they initially disclose.Key Point:Always present opportunities to your private lenders confidently. They may have more capital ready to deploy once they see a promising investment.Interest Rates and Returns:For this particular deal, the private lender agreed to an 8% interest rate on the $410,000 loan. Over the projected six-month rehabilitation period, this translates to approximately $16,000 in interest—a reasonable return for the lender while still allowing Jonathan and Cara to achieve their target profit margins.Working with Realtors: A Smart InvestmentAnother pillar of Jonathan and Cara's strategy is their partnership with a reliable realtor. Although paying realtor fees can seem daunting—30,000 in this case on a $550,000 sale—the benefits far outweigh the costs.Benefits of a Professional Realtor:Realtors handle the legwork, both pre-and post-renovation, helping to price the property appropriately and sell it quickly.They ensure the property reaches a wide audience, increasing the chances of a top-dollar sale.Advice to Investors:

Beki and Kelly Cassels’ journey in the real estate investment world is both inspiring and educational. Within a short span of two and a half years, they have gone from being brand-new investors to successfully executing significant deals. Jay Conner, their mentor, plays an instrumental role in their success by providing them with the knowledge and financial resources required to thrive in the competitive market of real estate.In the latest episode of Raising Private Money, Beki and Kelly shared the details of their latest deal, providing in-depth insights about their journey, the acquisition process, repairs, and the unexpected challenges they faced. Here is a breakdown of how they transformed a problematic property into a profitable investment.Identifying and Securing the DealFinding the PropertyBeki and Kelly's latest project, located at 2332 East 10th in New Mexico, was identified through a referral from a neighbor. The property was notorious in the area for being the “problem house.” The landlord, tired of dealing with tenant issues, was looking to sell. This was a classic case of a “tired landlord” and represented a perfect opportunity for the Cassels.Understanding the Market ValueThe after-repair value (ARV) of the property was initially assessed at $230,000 by their knowledgeable realtor. This valuation was crucial as it provided a baseline for determining the potential profitability of the deal. However, due to market dynamics, they planned to list the property at a higher value of $280,000, significantly increasing their potential return on investment.Repairs and Unexpected ChallengesEstimating and Executing RepairsThe initial repair estimate for the house was $110,000, but they wisely set aside an additional $10,000 for unforeseen issues, following the well-known Murphy’s Law. True to form, challenges did arise, particularly with the gas lines and HVAC system, necessitating a complete overhaul. This thorough rehabilitation included gutting the house down to the studs and installing new electrical wiring, plumbing, and insulation.Detailed Repair BudgetTheir strategy involved getting a contractor's rough estimate before making an offer on the property. While the detailed estimate came in after the property was purchased, it closely matched their projections. By diligently working with professionals and being prepared for surprises, Beki and Kelly ensured the project stayed within budget.Financing and Profit CalculationSecuring FundingOne of the standout aspects of this deal was the financing structure. Beki and Kelly borrowed $172,500 through multiple private lenders at an interest rate of 10%. The funds were wired directly to the closing agent's trust account, covering the $43,000 purchase price and leaving them with $130,000 upfront for repairs and other costs.Calculating Net ProfitAfter accounting for the $120,000 spent on repairs, realtor fees, carrying costs, and other expenses, Beki and Kelly calculated a net profit of $88,200 from this deal. They also paid a 6% realtor fee amounting to $16,800 and anticipated their private lender interest to be around $9,000 over six months. Such meticulous financial planning ensured that they could maximize their returns even with significant upfront and carrying costs.Key Takeaways and Lessons LearnedNetworking and ReferralsOne of the central lessons Beki and Kelly highlighted was the power of networking. By maintaining good relationships with neighbors and service providers, and by making their capabilities known, they secured this valuable deal. They also emphasized the importance of appreciating referral sources; rewarding their neighbor with $1,000 was not only good pract

In the latest episode of the Raising Private Money podcast, Jay Conner sat down with mastermind member Tim Benskin to discuss his latest deal in Swannanoa, North Carolina. Tim shared his unique approach to acquiring, financing, and profiting from real estate investments, offering invaluable lessons for aspiring and seasoned investors alike. Today, we will dive deep into the key topics discussed, providing a comprehensive guide to understanding Tim Benskin's successful strategies and tactics.A Fortuitous Encounter: The Genesis of the DealTim Benskin’s latest deal began with an unexpected opportunity. While working on a property purchased from a wholesaler, Tim was approached by a neighbor who inquired if he would be interested in buying his house. This initial conversation set the stage for a profitable transaction.Key Takeaways:Networking and Relationship Building:Tim’s success in this deal highlighted the importance of maintaining good relationships with contractors, neighbors, and other stakeholders in the real estate industry. An open line of communication can often lead to new opportunities.Opportunistic Mindset:Being present and attentive during property renovations can present unforeseen chances to acquire new properties at favorable prices.Negotiating the Purchase PriceThe neighbor initially asked for $150,000, but after assessing the property and understanding the seller's needs, Tim successfully negotiated the price down to $130,000. This $20,000 reduction set the foundation for a profitable investment.Key Takeaways:Negotiation Skills:Tim’s ability to negotiate effectively saved him a substantial amount on the purchase price. Understanding the seller’s motivations and maintaining a flexible negotiation stance is crucial.Assessing Property Value:Conducting a thorough property valuation, including an understanding of After Repair Value (ARV), is essential in negotiations.Leveraging Financing: Private Money and Profit CentersTim financed the property using private money, borrowing a total of $130,000 from two private lenders. The strategic use of private money enabled Tim to acquire the property without using his capital while structuring repayment terms that supported a positive cash flow.Key Takeaways:Private Money:Utilizing private lenders can provide flexible financing options, often with more favorable terms compared to traditional lending institutions.Multiple Profit Centers:Tim created several profit centers through this deal, including monthly cash flow, a nonrefundable lease option deposit, and potential appreciation upon sale.Innovative Selling Strategy: Work for EquityTim’s decision to sell the property through a lease option with a "work for equity" component was a masterstroke. This approach not only minimized his upfront renovation costs but also incentivized the buyer to invest in the property’s improvement.Key Takeaways:Work for Equity Concept:Allowing buyers to reduce their purchase price by undertaking necessary repairs encourages them to buy into the property's value and care for it. Tim’s buyers stand to receive a $10,000 credit for completing specific agreed-upon repairs.Reducing Risk and Increasing Profit:This strategy reduced Tim's risk and repair costs while increasing the property's sale price to $187,000, considerably higher than its ARV.Monthly Cash Flow and Final Profit AnalysisPost-financing, Tim’s monthly outgoing payments to his private lenders totaled $940. His lease option agreement brought in $1,450 a month, leading to a net positive cash flow of $284.34.Key Takeaways:

Real estate investing is an exciting and potentially lucrative venture, but it requires a comprehensive understanding of the market, strategic planning, and access to resources, particularly funding. In a recent episode of the Raising Private Money podcast, Jay Conner and PMA member Erica Camardelle gave listeners an in-depth breakdown of how to execute a successful real estate deal using private money.Today we will unpack the key takeaways from Erica's deal and provide actionable insights that can help you navigate your own real estate investments profitably.The Importance of Understanding Seller MotivationOne of the pivotal lessons Erica shared was understanding the seller's motivation. This allows investors to better tailor their offers and negotiations.Identifying Key Motivations:Inheritance:The seller had inherited the property from her parents.Out-of-State Ownership:Living in a different state made managing the property inefficient for her.These factors compounded to create a seller who was highly motivated to offload the property quickly, providing Erica with a leverage point in negotiations.Negotiation Tip: Always dig deeper into the seller's circumstances. Understanding their motivations can provide hidden advantages in structuring your offer.Leveraging Private Money for Real Estate DealsErica and Jay detailed the significance of private lending, which can make or break a deal, particularly in competitive markets.Utilizing Private Lenders:Borrowing Against After Repaired Value (ARV):Erica borrowed 75% of the ARV ($166,000), amounting to $125,000. This ratio ensures a financial buffer, minimizing the investor's risks.Establishing Long-term Lender Relationships:Erica’s success stemmed from a long-standing relationship with her private lender over several years. This not only facilitated quick access to funds but also built trust over time.Pro Tip: Building and nurturing relationships with private lenders can lead to more favorable terms and quick approvals, crucial for seizing opportunities swiftly.Effective Property Valuation and BudgetingUnderstanding property valuation and accurately budgeting repairs are cornerstones of successful real estate ventures.Valuation Approach:ARV Calculation:The after-repaired value was set conservatively at $166,000. Despite this, Erica listed it for $185,000 based on market dynamics, which illustrates a strategic risk-taking approach to maximize profits.Budgeting Repairs:Predictive Budgeting:Erica initially budgeted $20,000 for repairs but managed to spend only $15,000. This conservative overestimation helps in dealing with unforeseen issues.Carrying Costs:Six months of holding costs were budgeted. This includes accounting for taxes, insurance, and private lender interest, ensuring no financial surprises.Investor Insight: Always budget for higher than anticipated repair costs and consider listing slightly higher than the ARV to attract potential buyers willing to pay more.Calculating Net Profits and Key MetricsJay Conner emphasized the need for accurate calculations to understand the true profit from a real estate deal.Net Profit Breakdown:Sale Price:Listed at $185,000.Expenses Subtraction:Purchase Price: $96,000Repairs: $15,000Realtor Fees: 5%, approximately $9,250Private Lender Interest: $5,000Taxes and Insurance: Estimated at $2,250Following these deductions, the net profit was calculated to be approximately $57,500.Understanding MAO (Maximum Allowable Offer):MAO Calculation:

***Guest AppearanceCredits to:https://www.youtube.com/@jasonbalara6929 "Raising Private Money with Jay Conner | Know your WHY"https://www.youtube.com/watch?v=KPGp8HHtd6Q   On the latest episode of the Raising Private Money, podcast we have an inspiring conversation between Jay Conner and Dr. Jason Balara on his Know Your Why podcast. Jay Conner dives deep into the nuances of raising private money and the resilience needed to succeed in real estate investing. With a background in traditional banking turned private lending expert, Jay Conner offers invaluable insights and inspiring stories that illustrate the power of persistence, a strategic mindset, and the importance of understanding your "why."Facing the Fear: Jay Conner’s Early ChallengesJay Conner begins by recounting the nervousness he faced when asking for a private lending loan for the first time. Overcoming such nerve-wracking experiences is crucial, and Jay emphasizes that action is the antidote to anxiety. His initial discomfort didn't deter him but rather fueled his drive to become proficient in raising private money.The Breakthrough Luncheon: A Turning Point in FundraisingJay's notable breakthrough came during his first private lender luncheon, a strategic event where he successfully raised $969,000 in verbal pledges within just one hour. This massive achievement, despite his initial discomfort, underscores the significance of preparation and a well-crafted presentation. He used a PowerPoint presentation to educate attendees on the private lending program, effectively communicating the benefits and security of investing.Learning from Failure: The John Maxwell PrincipleA recurring theme in the discussion is resilience through failure. Jay quotes leadership expert, John Maxwell, stating, "Success comes from failing more often," highlighting that every failure is a step towards success if viewed as a learning opportunity. Both Jay and Jason Balara draw parallels between business and sports, emphasizing that just as athletes like Michael Jordan succeeded by persisting through failure, so too must entrepreneurs and investors.Key Strategies for Securing Private FundsJay's approach to securing private funds is rooted in education and relationship building. By positioning himself as a "private money teacher," he shifts the focus from asking for money to offering an investment opportunity. This methodology not only enhances trust but also attracts potential lenders through the promise of high returns and secured investment.Additionally, Jay shares his unique strategy called the "great news phone call," informing lenders when their money is needed for a deal. This preemptive approach ensures that funds are readily available without the need for constant pitching, making the process smoother and more efficient.Mindset Shift: Overcoming Initial DiscomfortTransitioning from discomfort to confidence is a crucial part of Jay's journey. He acknowledges that initial discomfort is natural when venturing into new territory but asserts that practice and persistence lead to growing competence and comfort. Quoting Crystal Baker, Jay affirms, "Life begins at the end of your comfort zone," which is a mantra that underscores the growth experienced from tackling challenges head-on.The Importance of Resilience: Lessons from Personal ExperiencesJay shares a touching personal anecdote about his grandfather teaching him resilience. After being thrown off a pony, young Jay was encouraged to get back on, instilling a lifelong lesson in persistence. This lesson translated into his business life, especially when traditional banks cut off his credit

***Guest AppearanceCredits to:https://www.youtube.com/@bradleysugars "Following Your Purpose: How Jay Conner Discovered the Opportunity of Private Lenders in Real Estate"https://www.youtube.com/watch?v=iJPJqgxDZME  Welcome back to another exciting episode of the Raising Private Money podcast! Today, Jay Conner had an insightful conversation with Brad Sugars on his The Big Success podcast!From a young age, Jay Conner knew his true calling was to teach. Fast forward to 2011, and this dream came to fruition when he began coaching real estate investors, a mission driven not just by financial outcomes, but by a burning desire to positively impact others. Jay’s definition of success transcends wealth; it’s deeply rooted in passion and purpose. By emphasizing the importance of making a difference, Jay aims to inspire others to seek a higher purpose beyond financial gains. This ethos has shaped his approach to teaching and mentoring, making a significant impression on the real estate community.Success Defined: Passion and Purpose Beyond ProfitsJay Conner’s definition of success moves beyond the simplistic idea of wealth accumulation. To him, success encompasses pursuing one's passions and making a meaningful impact on the lives of others. This philosophy is reflected in his work, where he combines his real estate expertise with a deep commitment to mentoring and teaching. For Jay, true success involves helping others realize their potential and find their paths to fulfillment. This is the hallmark of his career as an educator and real estate coach.Influential Beginnings: Lessons from the Family BusinessGrowing up in an environment of success, particularly observing his father's business endeavors, had a profound impact on Jay. At the age of 12, he was already immersed in a setting that emphasized the importance of surrounding oneself with successful individuals—a notion famously underscored by motivational speaker Jim Rohn. These early experiences laid a strong foundation for Jay’s entrepreneurial journey, where he saw firsthand the value of mentorship and networking in achieving success.Transformation and Lifelong LearningA pivotal moment in Jay's life came at the age of 24 when dissatisfaction with his lifestyle spurred a transformation. Fueled by Og Mandino's "University of Success," Jay embarked on a path of continuous learning and self-improvement. This book not only helped him shift his mindset but also ignited a lifelong passion for personal development. Since then, he has avidly consumed self-help books and autobiographies, continually learning from those who have achieved success. This commitment to growth and learning has been a cornerstone of his personal and professional life.The Power of Goals and PlanningOne of the critical insights Jay shares is the importance of setting and regularly reviewing goals. By updating them every four months, he ensures they are aligned with current opportunities and challenges. Jay's approach to short-term planning reflects his understanding of the unpredictable nature of life and business. This pragmatism is also shared by fellow podcaster, Ryan Pineda, who avoids scheduling appointments more than 30 days in advance. Both emphasize the necessity of flexibility and adaptability in achieving long-term success.Embracing Failure as a Learning OpportunityJay Conner's perspective on failure is deeply influenced by David Meltzer's philosophy of viewing failures as lessons rather than mistakes. He recounts stories from his real estate career where setbacks became opportunities for growth and improvement. By treating challenges as opportunities to rethink and refine his approaches, J

Welcome to one of the most important podcast episodes you’ll hear all year! In this game-changing episode, we uncover the hard truth that most real estate investors don’t want to face: The majority of them will fail in 2025.But here’s the kicker—it’s not because they can’t find deals. The deals are out there. The real reason they’ll fail is simple: they won’t have the funding to close those deals.If you’ve ever walked away from a deal because you couldn’t find the money fast enough—or felt stuck, frustrated, and like you’re one deal away from a breakthrough—this episode is for you!Join us as we uncover why funding is the #1 barrier holding most real estate investors back and why private money is the ultimate key to break through those limitations. You’ll also hear the inspiring story of Carly Mannino, who attended her very first real estate event, made ONE phone call, and raised $90,000 in private money—leading to her first deal!  Whether you’re brand new to real estate or a seasoned investor looking to scale, this episode will show you how to dominate 2025 by unlocking the power of private money.What You’ll Learn in This Episode:Why most real estate investors will fail in 2025 (and how to avoid being one of them).  The #1 reason deals fall through—and how to get the money need to close fast. Why relying on banks or personal cash is a losing game in today’s fast-moving market. How private money gives you access to an endless stream of capital to close more deals, quickly. The inspiring real-life success story of Carly Mannino, who raised $90,000 in private money on her very first phone call after attending a private money event. Don’t Miss Your Opportunity to Dominate 2025If you’re serious about taking your real estate investing business to the next level, you can’t afford to miss my 3-day, live event happening February 12th–14th in Atlantic Beach, North Carolina.At this event, you’ll learn:  Proven scripts to confidently approach private lenders. How to structure deals so they’re a win-win for everyone involved.  The secrets to building long-lasting relationships with private money partners who will fund deal after deal.  This isn’t theory—it’s hands-on, actionable training designed to help you take control of your funding, close more deals, and grow your business without limits.  Tickets are just $97—and that covers TWO people! Bring a partner, friend, or business associate with you and learn together.  Reserve Your Spot Now!Seats are limited, and they’re filling up fast. Don’t wait until it’s too late—2025 is already here, and every day you wait is another missed opportunity.  👉 Grab your tickets now at jayconner.com/eventLet’s make 2025 the year you dominate your market, fund your deals with confidence, and finally build the real estate business you’ve always dreamed of.  Connect with Me:- Website: [jayconner.com](http://jayconner.com)  - Register for the Event: [jayconner.com/event](http://jayconner.com/event)  CTA Reminder:👉 Don’t miss your chance. Reserve your spot today at jayconner.com/event](http://jayconner.com/event)!

***Guest AppearanceCredits to:https://www.youtube.com/@harcourtsauctions "Private Investing for Realtors: How to Build Your Private Lending Network from Scratch"https://www.youtube.com/watch?v=2lo11foe4oE&t=9s In a dynamic real estate market, the ability to secure funding can often determine an investor's success or failure. Jay Conner's insights into raising private money offer a revolutionary approach that can transform your real estate ventures, making funding more accessible and flexible.Welcome back to another insightful episode of the Raising Private Money podcast! If you're a real estate investor eager to master the art of raising and leveraging private money, you're in the right place. Today, Jay Conner joins Ben Brady in his Rethink Real Estate Podcast where they dive deep into the world of private money in real estate, they discuss the strategies behind raising significant funds without ever having to ask for a dime directly. Jay shares his journey and effective methods that have helped him raise over $8 million, even in tough financial times.The Challenges of Traditional FundingTraditional funding sources such as banks and institutional lenders come with their own set of challenges. For instance, during economic downturns, banks tighten their lending criteria, making it difficult for investors to secure loans. This was evident during the global financial crisis when many investors found their lines of credit abruptly closed. Today's high interest rates and stringent lending requirements continue to pose similar challenges, making traditional funding less reliable.Enter Private MoneyPrivate money represents a more flexible and reliable way to finance real estate deals. Essentially, this involves doing business with individual lenders rather than institutional ones, allowing investors to set the terms and streamline the process. This method provides a more straightforward way to secure funding without the typical red tape associated with banks.An innovative approach to raising private money eliminates the discomfort of asking for capital. Instead, the process involves educating potential lenders about the benefits and returns of investing in real estate, transforming the conversation into one of mutual benefit rather than a plea for funds.The Process: Teaching, Not BeggingOne of the key aspects of raising private money is overcoming the fear of rejection. By focusing on teaching potential lenders about the process and benefits of private money, investors can eliminate the fear associated with asking for funds. This approach involves separating the educational conversation from specific deal discussions.Initially, investors educate lenders about private money, interest rates, and the overall investment program without mentioning any specific deals. Once the lender is comfortable and understands the potential benefits, specific deals can be introduced, making the entire process more palatable and less stressful.Setting the TermsPrivate lenders need clear details about the terms of their investments. Offering an 8% annual interest rate is a straightforward and attractive proposition, especially when compared to traditional investments like CDs, which yield much lower returns. All loans are collateralized by real estate, providing security for the lenders and making the investment more attractive.How Much Money Do You Need to Raise?Determining how much money to raise depends on several factors, including the investor's market, the average property price, and the projected number of deals each year. By using a simple formula, investors can calculate

***Guest AppearanceCredits to:https://www.youtube.com/@TheClosingTablePod "Jay Conner Discusses Private Money Raising"https://www.youtube.com/watch?v=cNtgseDPZMkToday, on the Raising Private Money podcast, Jay Conner had an amazing time joining Kat Schooler on The Closing Table Podcast. During the discussion, Jay elucidated the stability of private money lending compared to traditional investment avenues and shared invaluable insights on attracting private lenders. Here's an in-depth look into the segments of their dialogue.Stability of Private Money Lending vs. Stock MarketJay Conner draws a clear distinction between private money lending and stock market investments. Unlike the stock market, where values fluctuate wildly, private money offers a more stable route. When lending private money, the principal amount remains constant until cash-out, behaving similarly to a bank CD. This stability allows for predictable returns, an invaluable feature for any investor looking to mitigate risk.Finding Private Lenders: Three Essential CategoriesJay lays out a comprehensive strategy for finding private lenders, categorizing them into three pivotal groups:Personal Connections: Utilize your existing network. Family, friends, social media contacts, and community members are all potential sources of private money. Jay emphasizes that an active online presence, akin to his, can bolster these efforts significantly.Expanded Warm Market: Build and grow your connections by joining networking groups like Business Networking International (BNI). These groups offer a fertile ground for expanding your influence and tapping into broader financial resources.Existing Private Lenders: Seek out individuals who already have self-directed IRA accounts. These seasoned investors are often keen on private lending opportunities and understand the mechanism and benefits involved.Leveraging Social Media to Attract LendersOne of the significant revelations from the discussion is the compelling use of social media for attracting private lenders. Jay advises using platforms like Facebook and Instagram to showcase ongoing projects and successful deals. However, he cautions against directly mentioning terms like "private lending." Instead, he advocates creating curiosity by inviting questions, which compels potential lenders to reach out for more information.Personal Journey and Transition to Real EstateJay Conner’s journey from the mobile home industry to real estate investing is both inspiring and instructive. His transition was catalyzed by a significant disruption in 2002 when Wall Street funding for manufactured housing was cut off. By 2003, Jay had pivoted to flipping single-family homes, a venture that has seen him rehab over 500 homes with substantial average profits per deal.A key challenge early in his career was assembling a reliable team. He underscores the importance of delegating tasks and avoiding the pitfalls of trying to handle everything alone. This realization led to automating his business operations, enabling him to work a lean 5-7 hours per week while focusing on education and teaching others through platforms like his podcast, "Raising Private Money."The Game Changer: Private Money Post-2008 CrisisJay recounts the 2008 financial crisis, which abruptly closed his line of credit. This crisis turned into an opportunity when fellow investor Jeff Blankenship introduced him to private money lending using self-directed IRAs. In an impressive feat, Jay raised $2,150,000 from private lenders within just 90 days without any direct solicitation for funds.Jay underscores the importance of s

In the latest episode of "Raising Private Money," Jay Conner dives deep into the nuances of mortgage note investing and private money with his good friend, Jamie Bateman. Renowned for his success in raising over $3,000,000 in private money, Jamie shares his journey and insights into leveraging mortgage notes as a powerful investment vehicle. This episode is a goldmine for both seasoned investors and newcomers looking to expand their portfolios. Let's break down the themes and insights discussed during this illuminating conversation.Jay Conner's Real Estate WisdomA Wealth of ExperienceJay Conner, a real estate investor who began his journey in 2003, has rehabbed over 500 houses. His experience spans various facets of real estate, making him a credible guide for aspiring investors. Conner emphasizes one crucial lesson: avoid operating in isolation. He avows that seeking mentorship from experts can save you from costly mistakes and accelerate your path to success.Jamie Bateman on Mortgage NotesThe Strategic AdvantageJamie Bateman, a prominent voice in mortgage note investing, emphasizes the versatility of this investment strategy. Mortgage notes offer a unique advantage: you can invest across state lines without ever visiting the properties. This location independence is a game-changer, making it easier to diversify your investment portfolio.Moreover, mortgage notes come with a relatively low barrier to entry. Utilizing a licensed loan servicer simplifies compliance and licensing hurdles. This ease of access complements existing residential real estate investing experience and provides opportunities for creative and analytical investment strategies. However, Jamie notes that mortgage notes lack inherent tax advantages. Fortunately, this limitation can be mitigated with self-directed accounts.Passive Investors' OpportunityJamie offers a tantalizing glimpse into the potential for passive investors to earn high returns by partnering with him. For those interested, Jamie’s platform offers pathways to explore these lucrative opportunities further.Understanding Private Money in Real EstateSecuring Single-Family HousesJay Conner elucidates how private money underpins real estate transactions, particularly in single-family houses. Utilizing promissory notes to secure private lenders is a prudent strategy, complemented by collateral via a deed of trust or mortgage. Insurance policies include private lenders as mortgagees, and Conner maintains a conservative loan-to-value ratio of 75%. Additionally, a 90-day call option provides a safety net for emergencies.Collateral and Mortgage NotesMortgage notes employ a similar protective measure through hypothecation, where the note and deed of trust serve as collateral. An illustrative example is purchasing a $70,000 principal balance note for $50,000 and borrowing $30,000 against it. Such flexibility in terms is mutually agreed upon between lender and borrower, making mortgage notes a versatile investment vehicle.Jamie Bateman’s JourneyTransition from Defense to EntrepreneurshipJamie Bateman’s career transition exemplifies the allure of real estate for control and flexibility. After 14 years at the Department of Defense, Jamie ventured into real estate, leveraging his family background in the field. His journey began with rental properties using the BRRR method and pivoted to mortgage notes in 2018. Jamie’s varied experiences, including title work, have enriched his investment acumen.Evolving Strategies in Raising CapitalOrganic GrowthJamie shares his organic approach to raising private money: documenting his investment journey on social media and blogs attracted interest from potential investors. This visibility led to his first substantial investment from a former col