Many aspiring real estate investors are held back by the belief that they need significant capital, personal connections, or a background in real estate to get started. However, the journey of Alex Kononov demonstrates that it’s possible to break into the field with limited resources, strategic thinking, and the willingness to leverage new technology.

Alex began his investing career in 2018, starting with a W2 job and $30,000 in savings—no family wealth, no real estate experience. Instead of seeking out large deals, Alex focused on the basics: finding the right property and mastering the fundamentals. His first purchase was a two-family house in Trenton, New Jersey, introduced to him by a relative. The initial project was proof that the “BRRRR” strategy—Buy, Rehab, Rent, Refinance, Repeat—could work even without abundant resources. By carefully underwriting hundreds of properties before buying, Alex was able to identify an opportunity where the numbers made sense and forced appreciation through strategic renovations. His first deal was far from smooth; he overcame setbacks with contractors and even had to supervise renovations himself, but he ultimately cashed out through refinancing, regaining his investment, and setting the stage for rapid growth.

Within two years, Alex scaled his portfolio to 30 units. He continually refined his approach, forcing appreciation through smart renovations and focusing on value-add opportunities like finishing attics, basements, or converting office spaces into bedrooms. These improvements increased both rent potential and property value, providing a blueprint for other investors to follow.

A core skill that set Alex’s strategy apart was his focus on underwriting—the process of analyzing deals, understanding market comps, and evaluating risk factors. Underwriting isn’t just crunching numbers; it involves reversing the appraisal process, understanding property types, market dynamics, rental rates, cash flow projections, and the factors that influence long-term value. Alex spent time analyzing hundreds of deals, which taught him how to spot great opportunities and avoid costly pitfalls. He emphasized that effective underwriting goes beyond spreadsheets; investors should consider neighborhood trends, school proximity, local businesses, hospitals, and universities—all of which can influence demand and property performance.

Recognizing inefficiencies in traditional underwriting, Alex built uWise, an AI-powered platform for deal analysis and pipeline management. The system aggregates multiple AI tools and trusted data sources, guiding users through questions about property type, rental comps, renovation plans, and market conditions. Rather than making assumptions or relying on a single data provider, uWise creates a guided report that helps investors and passive lenders evaluate deals quickly and accurately. For example, investors can compare AI-generated reports with sponsor projections to spark informed conversations and deeper due diligence. The platform’s design ensures flexibility, letting users adjust risk appetite and customize their analysis to fit their business strategy.

From the perspective of private lenders and passive investors, tools like uWise offer third-party perspectives on potential deals. If the sponsor’s numbers differ from the AI’s projections, the technology serves as a conversation starter—helping stakeholders discuss renovation plans, rental income assumptions, and other critical elements before committing capital.

Alex underscores that, while AI speeds up underwriting and reduces the risk of bad assumptions, it doesn’t replace relationships and trust. Real estate is fundamentally built on networks, and effective technology supports better decision-making, not the removal of human judgment. By embracing AI solutions, investors can move faster and smarter—positioning themselves as reliable partners for private funding.

The message f

Most real estate investors are used to chasing the same leads as everyone else, competing tirelessly over properties listed on the MLS or platforms like Zillow. However, there’s a lucrative avenue that often goes unnoticed: off-market inherited property deals. 

In a recent episode of Raising Private Money, host Jay Conner sat down with Micah Nicholes, owner and CEO of US Lead List, to reveal why pre-probate and inheritance leads offer unparalleled opportunities for savvy investors.

Micah isn’t a typical data broker—his hands-on experience since 2014 includes buying, holding, wholesaling, and selling properties himself, using the very data his company provides. Through US Lead List, he’s helped investors all over the country find motivated sellers and close deals that most competitors don’t even know exist. 

What makes these leads so potent is that many inherited properties aren’t yet being marketed, and their owners haven’t fully decided on selling. This creates a window for investors to step in early and position themselves as trusted problem solvers.

Inherited property deals differ from traditional motivated seller leads in several crucial ways. First, inherited homes are often paid off, which means sellers aren't wrestling with mortgage pressure. The families involved face logistical and emotional challenges after the loss of a loved one, and the property is just one aspect of their complex situation. The pain points for these sellers aren’t always strictly financial—they're searching for simple, respectful solutions, and they value the guidance of investors who approach with empathy.

Building rapport is paramount in these deals, as Micah Nicholes has learned both professionally and personally. In recent months, he navigated probate following his father’s passing, feeling the whirlwind of emotions and logistics that heirs regularly face. He stresses the importance of being a listener first, putting aside the investor’s immediate objectives to understand what the seller is going through. Creating trust opens the door to strong relationships—and often, sellers will choose the investor they trust over higher offers from others.

Another benefit of working with inherited property lists is the lack of direct competition. These leads are fresh, often provided monthly, and have not yet been inundated by calls or offers from other investors. This gives acquisition teams a chance to engage sellers before they think of listing, negotiating, or entertaining competing bids. Jay Conner, who’s used Micah’s service for years, values being able to reach sellers ahead of the competition, making the process less about battling for offers and more about establishing a genuine connection.

Direct mail marketing plays an essential role in this strategy. Letters sent to inherited property owners are generic and sensitive, never mentioning the recent passing in the initial outreach. The aim is to invite conversation without poking at fresh emotional wounds—most sellers volunteer information about their inherited status naturally during early discussions. By approaching with subtlety and respect, investors can build the goodwill that’s essential for closing such deals.

US Lead List stands out for the depth and segmentation of its data. Investors receive not just names and addresses, but detailed property information, tax delinquency status, vacancy data, and more. These datasets are divided into critical subgroups, including pre-probate, surviving spouse, trusts, and inter-family transfers, each with its unique implications for timing and negotiation. Micah’s favorite niche is marketing to those inheriting portfolios of multiple properties; helping heirs navigate this headache offers relief for them and great opportunities for investors.

Success in this niche isn’t only about having great lists. Consistency in marketing, empathetic acquisition teams, and persistent outreach make all

***Guest Appearance

Credits to:

https://www.youtube.com/@dwellynn-realestate                        

“DS67 | Finding deals before anybody else does | Jay Conner”

https://www.youtube.com/watch?v=QU3F3w5veYM  

In today's competitive real estate landscape, innovative funding solutions can be the difference between scaling your business and hitting a financial plateau. On a recent episode of the Dwellynn Show, Ola Dantis sat down with Jay Conner to unpack the practical strategies that have propelled Jay to success as a “private money authority.” Drawing from decades of experience, Jay shared not only the nuts and bolts of his funding system but also actionable tips on lead generation and building lasting relationships in real estate.

Jay’s business journey is rooted in small-town North Carolina. Despite focusing on a market of just 40,000 people, he’s managed to build a seven-figure business, primarily refinancing single-family homes and overseeing commercial projects alongside his wife, Carol Joy. What’s remarkable about Jay’s story isn’t the volume of deals—he averages just two to three properties a month—but the consistent, sizable profits that each transaction yields. Over the last year, his average profit per deal reached an impressive $64,000. This higher per-deal profit means he doesn’t have to play the numbers game; instead, he targets quality, high-yield projects.

A significant pivot in Jay's career came when he transitioned from relying on traditional banks to leveraging private money. This shift not only gave him control over his business's financial destiny but also allowed him to design a system where money isn’t a constant constraint. His approach is grounded in attracting, rather than chasing, private investors—an attitude he encourages others to adopt. Rather than pleading for funds, Jay underscores the importance of presenting a compelling program that speaks for itself and naturally draws interest from potential lenders.

One of the most effective marketing tactics Jay employs is the yellow letter campaign. Unlike generic postcards, his method uses personalized, hand-addressed letters—designed to look like notes from friends or family—which dramatically increase open rates. These letters are especially effective with absentee property owners, targeting those tired of managing tenants and looking for an exit strategy. Jay is meticulous about controlling the mailing process, ensuring letters are sent from his local zip code and handled by a trusted provider, emphasizing accountability and personal touch every step of the way.

For those new to the concept, Jay clarifies that private lenders are regular individuals—often from his existing network, new warm contacts, or those referred by current lenders—who invest their capital or retirement funds in real estate deals. More than half of his lenders use self-directed IRAs, which means investors can have control over their retirement funds and potentially earn higher returns than conventional investment vehicles.

From the perspective of the private lender, there are three key reasons for choosing Jay’s investment opportunities: higher returns than traditional banks, security through documented and conservative loans, and protection from market volatility. Unlike stocks, where the principal can fluctuate dramatically, the principal amount in Jay's deals remains stable until repayment. The deals are structured to be both safe and transparent, with clear documentation such as promissory notes, mortgages, or deeds of trust, and proper insurance and title coverage.

Jay highlights the value of authenticity, collaboration, and education in building a sustainable real estate business. He encourages regular engagement wit

***Guest Appearance

Credits to:

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

“Ep #33 Jay Conner —Where To Find The Money: How To Fund Your Deals Using Private Money”

https://www.youtube.com/watch?v=ZVigcl05thY  

When most people first consider real estate investing, one of their greatest fears is how they’ll fund their deals. Banks and hard money lenders seem like the obvious go-to, but what happens when those sources dry up, as they once did for Jay Conner? The answer, as Jay Conner discovered, is private money—and embracing it doesn’t just solve a financing problem, it can dramatically accelerate business growth.

Early Days and the Banking Roadblock

Jay Conner didn’t start his career in the realm of single-family rehabs. Raised in the manufactured homes business, he was surrounded by affordable housing from a young age. But when financing for mobile homes disappeared in the early 2000s, the transition to single-family investment was a natural next step. Going full-time in 2003, Jay Conner began as many do, relying entirely on traditional banks and mortgage companies for funding his rehab deals. This process seemed rock-solid—until the financial crisis of 2008 hit.

Suddenly, with deals under contract, Jay Conner found his bank had shut down his lines of credit overnight. He was left with deals he couldn’t close, earnest money at risk, and no warning. This kind of scenario is exactly what keeps new investors awake at night.

Discovering the Power of Private Money

Rather than give up, Jay Conner made a choice to pivot—and it changed his life. Asking the right questions, he turned to a friend and learned about a new world: private lending. Unlike banks, private money involves borrowing from individuals—those with investment capital or retirement funds, people you may already know through your own network.

Rather than applying for money, Jay Conner began to teach people what private lending was and how they could earn secure, above-average returns. This education-first approach put him in a position of offering opportunity, not asking for a favor. Within less than three months, Jay Conner raised over two million dollars—enough to fund his deals and more.

Why Private Money is a Real Estate Gamechanger

For Jay Conner, private money isn’t just about having cash to close. It fundamentally shifts who controls the transaction. When working with banks, you’re subject to their rules, rates, timelines, and risk tolerances. With private money, you set the terms: interest rates, note lengths, and payment schedules. Your credit score becomes irrelevant, and approvals aren’t based on a rigid box of qualifications.

This flexibility means Jay Conner can offer to close deals in as little as seven days—a huge competitive advantage when negotiating with sellers, especially those in distress or dealing with off-market properties. Because private money doesn’t limit the amount of capital available or the number of deals that can be funded, Jay Conner hasn’t missed out on a deal for lack of funds since early 2009. In fact, his business tripled in volume right after making the transition.

The structure is also attractive for lenders. Their money is secured by real estate and is typically only loaned out up to 75% of the after-repaired value of the property, leaving a healthy equity cushion. In the unlikely event of a default, the lender’s position is protected and, in many cases, they would recoup their investment plus a profit.

Building a Network of Private Lenders

How does one attract private lenders? Jay Conner’s method revolves around education and transparency. He hosts private lender luncheons, Zoom presentations, and ope

***Guest Appearance

Credits to:

https://www.youtube.com/@yourAREATV-FongChua                      

“JAY CONNER - The Private Money Authority w/ Fong - PPSS#191 - YOU REAP WHAT YOU SOW.”

https://www.youtube.com/watch?v=g4GxheJdrgI 

Stepping into the world of real estate investing can seem daunting, but learning from industry leaders like Jay Conner makes the path clearer and more approachable. On a recent episode of the Raising Private Money Podcast, Jay Conner, together with Fong Chua, shared his wealth of experience, offering actionable insights for both new and seasoned investors. The conversation was packed with wisdom on sourcing deals, leveraging private money, building strong relationships, and scaling a real estate business through automation.

A Humble Beginning and an Unlikely Pivot

Jay Conner’s route into real estate wasn’t exactly pre-planned. He was raised in a family business focused on affordable housing through the mobile and manufactured homes industry. When the financing landscape for manufactured homes changed in 2003, Jay saw an opportunity to transition into single-family homes and house flipping, inspired by a friend’s profitable venture in that space. With over 500 flips since then, Jay’s early lesson was simple: leverage your background, be open to change, and let necessity guide innovation.

The Power of Private Money

A major turning point in Jay’s business arrived in 2009. After years of relying on the local banks for funding, his line of credit was abruptly closed during the global financial crisis. Rather than seeing the loss as a roadblock, Jay viewed it as a challenge to overcome. Within two weeks, he had learned about private money and began to educate those in his network on the advantages of lending privately—including higher returns, security, and passive income.

Instead of pitching investment opportunities directly or asking for money, Jay took the role of an educator. He created a private lending program, taught people what private money was, and explained how they could safely and securely earn high returns. Those interested would stay on his radar until a relevant deal arose, at which point Jay would make a “good news phone call” to let them know their money could be put to work. This approach, based on teaching rather than pitching, helped Jay build a list of 47 private lenders and raise over $2 million in funding in less than three months, ensuring he never missed a deal due to a lack of capital.

Building Relationships and Keeping Lenders Engaged

A key theme throughout Jay’s approach is relationship-building. He never tries to persuade or pressure people, instead focusing on transparency, education, and letting potential lenders make the decision themselves. The structure of his lending program minimizes risk and maximizes value for everyone involved, with all funds secured by real estate, and private lenders receiving a solid return on their investments—rates which have remained consistent and attractive even during fluctuating markets.

To keep things running smoothly, Jay meticulously tracks available lender capital, prioritizing new and smaller investors, and ensuring everyone stays engaged and satisfied.

Consistently Sourcing Deals in a Small Market

Remarkably, Jay operates in a target market of just 40,000 people, doing two to three deals a month with average profits of $78,000 per property. His lead-generation strategy is multifaceted. He leverages a meticulous foreclosure tracking system, sending direct mail to those in distress and genuinely seeking to help homeowners overcome hardship—even if it means no financial

When people think of real estate investment, their minds often drift to residential or multifamily properties, maybe even commercial buildings bustling with tenants. Yet, beneath the radar, self-storage has quietly established itself as one of the strongest and most resilient asset classes available. In a recent episode of "Raising Private Money," host Jay Conner sat down with seasoned developers Bill Kanatas and Benjamin Salzberg to unpack what makes self-storage such a powerful and reliable investment — and why astute investors and lenders keep funneling capital its way.

Simplicity and Security: The Self-Storage Advantage

Unlike sectors like multifamily housing, self-storage benefits from a much simpler operating model. Managing self-storage units doesn’t require dealing with traditional tenants, midnight maintenance calls, or lengthy eviction processes. Instead, storage facilities operate with a customer relationship that is more transactional and less risky. When a customer stops paying, owners initiate a lien process rather than a drawn-out eviction, streamlining revenue recovery and reducing legal headaches.

This streamlined setup not only boosts operational stability but also mitigates unexpected costs or drawn-out disputes. For many investors, this lower barrier to operational complexity is a strong attractor, allowing them to benefit from a stable cash-flowing asset without the typical headaches and liabilities present in other real estate ventures.

Data-Driven Development and Value Creation

Building a profitable self-storage portfolio requires more than just buying the nearest vacant lot and erecting some buildings. According to Bill Kanatas and Benjamin Salzberg, successful development hinges on a meticulous, data-driven approach. Their process starts with analyzing key indicators like population density, income levels, competition, and traffic counts. Barriers to entry, such as restrictive zoning or competitive saturation, are also carefully assessed.

Once a lucrative site is identified, the team works closely with local authorities and communities, often negotiating tax incentives or revitalizing underutilized properties to unlock additional value. For example, they have transformed blighted properties, like a closed-down retail space, into vibrant, income-producing self-storage facilities, breathing new life into both the property and its surrounding area.

Raising and Protecting Capital

A major focus of the conversation was about ensuring investor safety. Bill Kanatas and Benjamin Salzberg shared that their group invests its own resources upfront to handle entitlements, secure permits, and conduct necessary due diligence before any outside investor money enters the deal. Only after the groundwork has been meticulously laid do they invite private capital, thus protecting investors from unnecessary risk.

Transparency, trust, and consistent communication are the foundation of their relationships with investors and lenders. When issues arise, direct and timely communication ensures that challenges are addressed together, fostering strong, long-term partnerships. Their approach has attracted capital from family offices, funds, and private individuals who want the security of knowing their investments are handled with care and guarded by experience.

Operational Excellence and Long-Term Profitability

Once a storage facility is up and running, operational efficiency becomes key. Many smaller operators, especially those managing just a handful of locations, lack the robust systems and processes needed to maximize profitability. The self-storage leaders featured in the podcast emphasize the power of process — ensuring seamless customer onboarding, fast responses to inquiries, and rigorous property maintenance. By instituting clear, repeatable procedures, they close the financial leaks that can gnaw away at profits over time.

When it comes to building lasting wealth, many entrepreneurs believe the solution lies purely in mathematical prowess or uncovering the perfect investment strategy. However, according to Mark Murphy, CEO of Northeast Sequoia Private Client Group and a renowned financial advisor, the most significant hurdles to wealth creation are less about income and more about emotional decision-making and the mindset behind each financial move.

On the "Raising Private Money" podcast with Jay Conner, Mark offers a comprehensive look into why most entrepreneurs struggle to create multi-generational wealth. Surprisingly, it isn’t an income problem—it’s a problem rooted in how decisions are made and how money is managed. Entrepreneurs and investors often earn substantial incomes, but many fail to keep, protect, and grow that wealth into a lasting legacy.

A critical concept Mark emphasizes is “emotional fitness.” This refers to the ability to make rational, well-considered financial decisions rather than impulsive or emotionally driven ones. Emotional fitness extends beyond personal spending habits to deeply influence investing and wealth-building choices. Mark believes that while most financial advisors focus solely on numbers, ignoring the emotional side of money leads to mistakes that sabotage long-term growth.

Emotions can cloud judgment, causing people to justify risky investments or impulsive purchases as sound decisions. Cultivating emotional fitness requires conscious effort—evaluating investments based on logic and reliable criteria rather than chasing the thrill or fearing loss. For those raising capital or seeking investors, this mindset is crucial because it signals trustworthiness and professionalism. Responsible capital raisers not only protect investor funds but also align their own investment alongside their clients, building trust and mutual commitment.

Mark distinguishes between two main investment categories: 'paychecks' and 'playchecks.' Paychecks are assets designed to generate reliable income flows, such as rental properties or dividend-paying investments. These vehicles form the backbone of multi-generational wealth and financial independence. Playchecks, on the other hand, are assets or funds meant for riskier ventures, spending, or charitable giving—essentially capital free from the obligation of supporting family or lifestyle needs. By balancing both types, individuals can enjoy financial freedom while pursuing growth opportunities.

At the core of Mark Murphy’s advice is the principle that people should carefully evaluate both investment partners and opportunities. Investors are not just putting money into projects; they are investing in people. Those raising money should demonstrate skin in the game, showcase a strong track record, and communicate how they protect and prioritize investor capital. When a sponsor personally invests significant funds into a deal alongside outside investors, it cultivates confidence and credibility.

Mark Murphy also stresses the importance of understanding investment risks. For experienced and high-net-worth investors, it’s important to consider questions like: "Can I afford to lose this investment without negatively impacting my lifestyle?" and "If a deal takes longer than expected, am I comfortable with the increased timeline?" The most successful investors approach every opportunity with these hard questions to safeguard their overall wealth and keep their long-term goals intact.

Building relationships that last through multiple deals is not simply a matter of offering high returns. It’s about delivering consistently, maintaining open lines of communication, and sometimes even having the discipline to return capital instead of funneling it into subpar investments. Savvy capital raisers avoid the trap of chasing deals for the sake of deploying funds; instead, they patiently wait for superior opportunities and act with integrity.

For thos

The world of real estate investing continues to evolve, especially when it comes to capital raising and private money. Industry veterans like Merriah Harkins are at the forefront of these changes, demonstrating that successful wealth generation is not just about finding the right deals but strategically building trust and strong capital relationships. 

In a recent conversation hosted by Jay Conner on "Raising Private Money," Merriah Harkins, a senior sales executive at Lukrom, shared her experience and perspective acquired over two decades in the field.

Navigating an Evolving Investment Landscape

When Merriah Harkins began her career, the investment environment was less cluttered. Investors had fewer choices, which made decision-making more straightforward. Fast forward to today, and the private money landscape has transformed dramatically. Investors now encounter a plethora of options, which can make due diligence daunting and diversification essential.

For those seeking passive opportunities in real estate, the proliferation of funds and firms means greater risk and reward. Merriah Harkins emphasizes the importance of finding trustworthy companies and spreading investments across different products and asset classes to mitigate potential losses and maximize gains.

Lukrom’s Approach in the Marketplace

Lukrom, based in Phoenix, specializes in private credit funds and lends to real estate investors and businesses aiming to acquire, improve, or develop properties. The company’s niche is short-term loans, ranging from six to twelve months, primarily for residential improvement or quick acquisitions with a goal of resale or refinancing. For real estate investors, this means fast access to capital without the delays common with traditional banks.

On the fund side, Merriah Harkins leads the effort in raising capital for Lukrom. The firm accepts accredited investors from across the nation—those meeting specified income or net-worth thresholds. These investors receive monthly cash flow payouts between 8 and 9 percent, a structure designed to provide both consistent returns and strong protections, such as first lien positions on underlying properties.

The Shift from Marketing to Relationship Building

Lukrom initially sourced capital through friends, family, and social media outreach, but found this approach unsustainable for long-term growth. Upon joining, Merriah Harkins redirected efforts toward building relationships with broker-dealers, registered investment advisors, and family offices. The strategy focuses not on pitching or hyping the investment, but on education, extensive due diligence, and integrity.

For high-net-worth and institutional investors looking to diversify their portfolios, Merriah Harkins stresses the importance of understanding a fund’s track record, the sponsor’s experience, and the structural protections in place. Lukrom, for instance, is structured conservatively, targeting high-growth markets and maintaining strict loan-to-value ratios. The executive and advisory team also invests in the fund, placing their capital at risk ahead of clients—a powerful gesture of confidence and alignment.

Mitigating Risks in Private Investments

Every investment carries risk. Merriah Harkins encourages investors to carefully consider liquidity constraints, the sponsor’s history, and the ability of the fund to fully deploy capital. Lukrom’s practice of thoroughly vetting borrowers and maintaining diversity in loans helps protect against concentration risk and defaults. Short-term, first-position loans in high-growth markets tend to be more resilient, reducing investors’ exposure to downturns.

A Blueprint for Investors and Advisors

For those considering real estate funds or seeking private money for projects, Merriah Harkins advises prioritizing education and clarity. If sponsors aren’t willing to spend ti

***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

***Guest Appearance

Credits to:

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

“Secrets Of Rich: Use Other People's Money | Jay Conner.”

https://www.youtube.com/watch?v=WnXWripgNVM&t=91s 

For many real estate investors, accessing capital is the key to taking advantage of opportunities and scaling up their portfolios. But while traditional banks and mortgage companies have long dictated the rules of borrowing, a different path exists for those ready to take control: private money lending. This approach offers an investor-centric alternative that can create bigger profits and enable greater agility in today’s competitive real estate environment.

Private money, as explained by Jay Conner on a recent guest episode with Matt McKeever, is all about borrowing directly from individuals—often referred to as “mom and pop” or “relationship money.” Unlike institutional hard money lenders or banks, private lenders are everyday people, sometimes even within your existing network. The difference? Instead of jumping through endless hoops and paying high fees, private money lending lets you set the terms and structure deals for mutual benefit.

Jay Conner’s personal real estate journey showcases the potency of private capital. Starting in a small community, he and his wife transitioned to using private funds after getting cut off from banks in 2009. Within 90 days, he raised over $2 million from private sources—leading to a tripling of his business within the first year. Since making the shift, he’s not missed out on a single deal due to a lack of funding.

The advantages of private money go far beyond just providing cash. Unlike equity partnerships or traditional JVs, which may require sharing profits and decision-making, private lending is structured as debt. This means you keep full ownership and control while offering the lender a secure, collateralized investment. For those worried about credit checks or borrowing limits, private money is a game-changer—you can borrow as much as you can manage, from as many lenders as you connect with, across the country or even internationally.

One of the most compelling features: the ability to borrow more than just the purchase price. It’s common practice to roll rehab funds and even equity into the loan, which provides flexibility and improves cash flow for the investor. Many deals can be funded with no out-of-pocket money, allowing you to be paid at closing and cover renovations without dipping into personal reserves.

While hard money lenders have become a mainstay for some, their terms can be punishing—often charging double-digit interest and expensive points, with strict timeframes for payback. Private money typically comes with much friendlier rates and terms, minimal fees, and no extension penalties. Most importantly, the process is relationship-driven, allowing you to create win-win solutions and close deals quickly—sometimes within just a week.

The next logical question is: Why would someone want to lend privately? The answer lies in the security, return, and certainty that the investor’s offer provides. Typical alternatives for savers—like certificates of deposit—offer paltry yields, while the stock market’s volatility sends many seeking more predictable opportunities. Private lending offers borrowers high, reliable returns, secured by a physical asset with a conservative loan-to-value ratio. These features make the offering attractive to those with idle cash or retirement funds.

Building your private lender network may seem daunting, but your warm market—existing contacts, friends, club members, or professional acquaintances—is filled with potential candidates or referrals. Rather than pitching or beggin