"Startup Funding Explained: Everything You Need to Know"
In the ever-evolving world of real estate investing, access to capital can make or break a deal. But what happens when traditional funding sources dry up or become too restrictive? This was exactly the dilemma faced by Jay Conner, a seasoned real estate investor in Eastern North Carolina, whose journey and strategies were explored in depth on a recent episode of the “Investing to Win” podcast with Garret Wong.
From Banks to Private Money: Jay’s Turning Point
For the first six years of his real estate career, Jay relied solely on institutional financing—local banks and traditional money sources to fund his single-family home deals. But as the 2008-2009 financial crisis arrived, Jay, like many investors, found his credit lines abruptly closed by the bank, jeopardizing multiple deals overnight. Instead of throwing in the towel, Jay asked himself a powerful question: Who do I know that can help me with this problem?
That introspection led him to Jeff Blankenship, a fellow investor who introduced Jay to the world of private money and self-directed IRAs. This new approach, Jay quickly learned, didn’t depend on bank approvals or credit scores but rather on relationships and transparency.
What Is Private Money?
Private money, as Jay describes, is direct investment from individuals, not institutions or hard money lenders. It’s a one-on-one relationship where investors loan funds secured against real estate, often using capital from personal savings or retirement accounts. Unlike hard money brokers who pool funds into lending operations (and charge higher rates and fees), true private lenders work directly with the investor.
Jay emphasizes that private lenders come from all walks of life. Most of his 47 active private lenders wouldn’t consider themselves sophisticated or accredited; many are teachers, civil servants, and retirees simply seeking better and safer returns on their investments.
Key Benefits of Private Money Lending
Why does Jay champion private money with such passion? He lists several compelling advantages:
Flexibility and Speed: Without lengthy bank underwriting, deals can often close in as little as five to seven days—sometimes a lifesaver for properties facing foreclosure or competitive bidding.
Fewer Restrictions: Private lenders don’t cap the number of deals or the size of your line of credit. Jay’s deals frequently involve borrowing up to 75% of the after-repaired value (ARV), and it’s common for him to leave the closing table with “excess cash to close”—funds above and beyond the purchase price, useful for renovations or reserves.
Timestamps: 00:01 Thriving in Small Markets 06:00 Teaching Private Lending for Success 08:53 Transitioning from Mobile Homes to Real Estate 12:54 Private Lending for Real Estate 14:55 Fast Home Sale via Private Lending 20:07 Real Estate Investment Risks 21:41 Stable Returns with Private Lending 26:08 Ensuring Lender Returns with Property Investments 28:39 Private Lender Queue System Explained 33:39 Conversation Starters for Financial Growth 36:17 Real Estate Referral Opportunity 40:09 Webinar for Raising Private Money 43:22 Partner With Experienced Real Estate Mentor 45:15 Self-Directed IRA Guide 49:45 Private Lender Risk Management" 52:07 Private Money Challenge: 7-Day Course
Private Money Academy Conference:
Free Report:
Join the Private Money Academy:
Have you read Jay’s new book, Where to Get the Money Now? It is available FREE (all you pay is the shipping and handling) at
What is Private Money? Real Estate Investing with Jay Conner
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
Read More
By: Raising Private Money For Real Estate - Jay Conner Title: Funding Solutions for Real Estate: Raising and Managing Private Capital Sourced From: www.youtube.com/watch?v=ZwxICJb6XYM
