Leveraging Private Money: Jay Conner on Strategic Real Estate Financing

Raising Private Money with Jay Conner

***Guest Appearance

Credits to:

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

"Ep. 25 - How to Raise Private Money for Real Estate with Expert Guest Jay Conner"

https://www.youtube.com/watch?v=gSMuEeoodHM&t=23s

In a recent episode of the Raising Private Money podcast, Jay Conner joined Maura McGraw on her Mastering Real Estate podcast and shared his invaluable insights on mastering real estate investment. The discussion was rich with practical strategies and personal anecdotes providing a roadmap for novice and seasoned investors. Here's a comprehensive dive into the key takeaways from their conversation.

The Fallacy of "Get the Deal, Money Will Follow"

Both Jay Conner and Maura McGraw reflected on a pervasive piece of advice commonly given to real estate professionals: "Get the deal under contract and the money will show up." Though well-meaning, this advice often leads to undue stress and poor decision-making.

Maura recounted her experience with her first coach who urged her to secure deals without first lining up the necessary funding. This led to precarious situations where she struggled to manage finances. Jay echoed her sentiments, emphasizing that a successful real estate strategy must start with securing money.

Building a Resilient and Strategic Mindset

Jay Conner detailed how his career was transformed by adopting a resilient mindset. After being cut off from banks during a pivotal moment, Jay didn't despair. Instead, he pivoted towards private money. This mindset—converting setbacks into opportunities—is crucial for anyone in real estate.

He highlighted the importance of budgeting for unexpected costs, as the unpredictability of real estate projects is governed heavily by Murphy's Law. Investors are bound to face unforeseen issues. Being mentally prepared and financially buffered for these hiccups sets successful investors apart.

From Humble Beginnings to Scaling New Heights

Jay Conner’s story is inspiring. He began his journey modestly by focusing on one house at a time. Through hard work and a systematic approach to building his team and automating his processes, he gradually scaled his operations. Technology played a crucial role in managing leads and streamlining team communication.

The Power of Private Money

A significant portion of the discussion focused on the advantages of private money. Jay Conner believes that securing funds before finding deals provides a solid foundation for growth.

For those interested in raising private money, Jay Conner suggests:

1. Defining Your Program:
   Establish key details like interest rates, loan length, and payment frequency.
2. Targeting Potential Lenders:
   Focus on individuals with idle retirement funds.
3. Partnering with Self-Directed IRA Companies:
   This facilitates easier transfer of funds for lenders.

The 7-Day Private Money Challenge

One of Jay’s major highlights is his 7-day private money challenge. This accelerated learning program provides daily actionable insights on attracting private money without directly asking for it. Jay outlines a revolutionary approach where the borrower sets the terms, separating the educational aspect from presenting actual deals. This method not only empowers investors but also builds trust with potential lenders.

Balancing Work and Life

Throughout the episode, Jay emphasizes the importance of balancing work and life. To reduce stress and create more freedom for himself, Jay automated as much of his business as possible. This transition allowed him to pursue other interests, including his passion for writing music with his wife. Notably, o